Chinese electric car maker Nio warns of global chip shortage

Chinese electric car maker Nio warns of global chip shortage

Tesla’s main Chinese challenger Nio has warned that battery and chip supply constraints will limit production as the electric vehicle maker tries to support sales growth amid fierce domestic competition.

New York-listed Nio’s revenue rose to Rmb6.64 billion ($ 1.02 billion) in the fourth quarter, up 46.7% from the previous three-month period, said the company after the U.S. markets closed on Monday, as vehicle sales grew 111% annually. over one year to 17,353.

However, the company recorded a net loss of RMB 1.4 billion in the last quarter of last year, 33 percent higher than the previous quarter and larger than analysts’ losses of RMB 576 million expected, according to Bloomberg. Nio shares fell 7% in after-hours trading.

Nio predicted sales growth of 15-18% for the first quarter of 2021, after posting record sales in January as the Chinese economy continued to recover from the coronavirus pandemic.

However, William Li, managing director, said disruption due to global chip shortages and battery supply constraints had the potential to limit production in the second quarter. “We should have the chip supply to meet domestic demand, but the risk is still quite high,” he said.

New York-based Deutsche Bank analyst Edison Yu said chip supply issues are likely to be resolved in the third quarter and battery constraints were mainly due to strong demand for a new, larger battery model. .

“In the automotive ecosystem, you are only that strong…

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