Investing.com – Nio ADRs (NYSE:NIO) fell more than 4% in Wednesday’s premarket trading as the Chinese maker of electric vehicles cut its forecast for deliveries in the current quarter due to a shortage of chips.
The company now plans to deliver 22,500 to 23,500 vehicles in the third quarter, down from a previous target of 23,000 to 25,000.
The shortage of semiconductor supplies is hurting virtually all automakers, not least giants such as Toyota and Volkswagen.
Vehicle makers have been among the sectors hardest hit by the shortage of chips, as more supplies have been directed to makers of digital gadgets. The pandemic has generated runaway demand for electronics as masses of people have chosen or been forced to do more work from home, and seek their entertainment online.
Nio said it delivered 5,880 vehicles in August, an all-time high, and up 48% on-year. Production was disrupted though, the company said. It blamed supply chain constraints resulting from the pandemic in parts of China and Malaysia. In China in particular, supply chains were hit this summer by a series of lockdowns aiming to quash the worst localized outbreaks of Covid-19 since last winter.