Electric car manufacturer NIO Inc (NYSE: NIO) will temporarily suspend vehicle production at its JAC-NIO manufacturing plant in Hefei, the company said on Friday.
The suspension will be for five days starting from March 29 and comes due to a semiconductor shortage.
Semiconductors are materials that can conduct electricity and have become vital to the technology we use every day. They are now used in microchips in nearly all electronic devices, with electric vehicles said to use more than 3,000 in one car.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
The shortage can be put down to the coronavirus pandemic with the demand for gadgets such as laptops and games consoles increasing (meaning more semiconductors used) and production slowing due to stay at home orders.
However, as some parts of the world have begun to relax restrictions, car sales have increased, and there has been a shortfall in semiconductors.
“The overall supply constraint of semiconductors has impacted the Company’s production volume in March 2021,” said NIO.
The company said it now expects to deliver approximately 19,500 vehicles in the first quarter of 2021, adjusted down from the previous forecast of between 20,000 to 25,000 cars.
NIO shares are trading 5.6%% lower from Thursday’s close at $35.80.
Should You Invest in NIO Shares?
One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It’s a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now
