Tesla Rival Nio Halts Factory Amidst Chip Shortage

Tesla Inc. (NASDAQ:TSLA)’s Chinese competitor Nio Inc. (NYSE:NIO) has announced that it will close its manufacturing plant in Hefei for five straight days due to the ongoing semiconductor shortage.

Nio has experienced production shortcomings due to the lack of availability for the chips used to power their vehicles. The company is expecting first-quarter vehicle deliveries to drop to 19,500 instead of the 20,500 deliveries it was expecting.

Nio’s stock took a hit on the news, dropping to $34.51 per share with a market cap of $54.07 billion on March 16. There is not currently enough data for a Peter Lynch Chart or the GF Value Line to be displayed.

GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rank of 1 out of 10. There is currently one severe warning sign issued for a Sloan ratio indicating poor quality of earnings. The company has struggled with profitability over the years with a negative operating margin and the weighted average cost of capital far exceeding the return on invested capital.

Other top vehicle producers Ford Motor Co. (NYSE:F), General Motors Co. (NYSE:GM) and Honda Motor Co. Ltd. (NYSE:HMC) have also seen their own struggles with production as the demand for vehicles has picked up during the pandemic. Ford was previously partially assembling their ever popular F-150 pickup trucks before announcing it will stop production for several days.

GM and Honda have also announced they will continue to pull back the production of new vehicles throughout the following weeks in hopes that semiconductor manufacturing will catch up to demand.

The chip shortage has been driven by pandemic shutdowns that have affected industries outside of auto makers. The shortage was complicated by the drastic increase in consumer technology demand as people work from home.

Technology giants Microsoft Corp. (NASDAQ:MSFT) and Sony Corp. (NYSE:SNE) immediately sold out of their newest flagship video game consoles during the holiday season of 2020 as pre-release production numbers failed to meet expectations. Both have predicted production numbers to fall short of demand through most of this year and are expecting sales struggles on par with the automotive industry.

Source:-https://finance.yahoo.com/news/tesla-rival-nio-halts-factory-205423136.html

RSS Latest Press Release

  • Confort Prestige | Climatisation & Chauffage Announces HVAC Services For Improved Energy Efficiency
    TERREBONNE, QUEBEC- NOVEMBER 14, 2021- Premier heating and cooling company Confort Prestige is excited to share HVAC solutions with domestic customers in the Terrebonne area. These services aim to save customers money on their heating and cooling expenses throughout the year.   Since its debut, Confort Prestige has been committed to customer service. This starts […]
  • Hundreds of Car and Truck Parts Available from Salvage Specialist
    Morganville, NJ – When it comes to finding an auto part for a foreign or domestic vehicle, Trilenium Auto Salvage usually has the answer.   The Morganville, NJ salvage specialist has hundreds, if not thousands, of parts and components at its Tennent Rd premises available.   Trilenium Auto Salvage is one of the busiest salvage specialists […]
  • Flowsent Weed Delivery Offers the Fastest Weed Delivery Service in the Bay Area
    Bay Area, CA - As it becomes easier to get cannabis in different stores and online, weed delivery in Oakland, San Francisco, and other Bay Area cities are becoming more common. People are looking for the easiest way to get their hands on high-quality, safe cannabis, and nothing beats direct to your door.    Many […]
  • Cannamazoo Now Offering the Top Cannabis Concentrates in Michigan
    What are Cannabis Concentrates, Oils, and Extracts?   Kalamazoo, MI - You may be familiar with recreational cannabis in its usual form, but have you ever tried extracts, oils, and concentrates? Each of these forms offers unique effects and benefits that smoking cannabis flowers can't provide. Simple dosing, cleaner effects, and better taste are just […]