EV developer NIO has cut its delivery guidance figures as it expects COVID disruptions in China to impact manufacturing goals.
Video Transcript
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– I’m watching NIO here. Shares dropping as the Chinese EV maker cut its Q4 delivery forecast to a high of 39,500 deliveries from a prior forecast of 48,000. NIO said it’s facing challenges to production and supply chain due to the Omicron outbreak. This of course, coming as China eases its COVID restrictions. Again, we’re seeing that good part, the positive part of China– we’re going to open up the borders, we’re going to ease restrictions, get our companies back full force. But then it’s got a high unvaccinated population, so people are getting sick. And you’re going to see that, I guess, going through until, I guess, early next year.
SEANA SMITH: Yeah, exactly. And I think the big question here is just in terms of the reopening process, how long will it take for the economy to recover? So many Chinese have been hurt just in terms of the underperformance that we have seen this year because– and really, over the last couple of years– because of the hard stance that Xi Jinping has taken with the zero-COVID policy, so we are seeing those restrictions being scaled back now, of course. The fact that they will be opening their borders next year, no longer imposing that quarantine, which you think would mean, obviously, good news here for their economy. But a number of analysts, a number covering the space over there just saying that that recovery could take much longer than maybe we had initially anticipated.
– And another thing too that I think is interesting with this, guys, is to see NIO cutting their guidance as well as what we’ve seen from Tesla. We’ve heard a lot of Tesla investors that have come on this air say, well, it’s not necessarily a Tesla problem. China’s not a Tesla problem. Wait and see what happens to the other EV makers. And you’re sort of starting to see that from all the names. So not a lot of good news for Tesla these days, and really not good news here either, but perhaps maybe it’s slightly positive spin there for Tesla.