Strong decline today for NIO. In the premarket, the Chinese electric carmaker’s stock fell -10% to $ 18. The weekend announcement of the suspension of production due to disruptions in the supply chain linked to Covid-19 weighs heavily. Nio explains how the supply of some auto parts has been stopped since mid-March. The company’s production “managed to rely on auto parts inventory until last week.”
Nio said it is raising prices and suspending production as the latest wave of Covid has added to the supply chain challenges. The price increase affects the three SUVs – ES8, ES6 and EC6 and will amount to 10,000 yuan ($ 1,572) as of May 10. The company notes that commodity prices, especially battery prices, have risen “too much” this year with no downward trend in sight in the near term.