NIO Falls 10% as it Faces Chip Supply Issues in 2022

This post was originally published on this site — Nio Inc (NYSE:NIO) stock fell in early Friday trading after the company reported its results with deliveries missing analyst estimates. 

The Chinese electric vehicle company reported an adjusted loss per share of $0.16 on revenue of $1.55 billion. Analysts expected a loss per share of $0.16 on revenue of $1.52 billion.

Deliveries came in at 25,034 vehicles.

Looking ahead, the company also guided for deliveries between 25,000 and 26,000 vehicles in the first quarter, representing an increase of approximately 24.6% to 29.6% from the same quarter of 2021.

However, the company’s co-founder and CEO William Li warned that “chip supply is a big challenge” in its earnings call.

“The main challenge is in some common and cheap chips, which will affect our production this year,” he added. 

The news has resulted in a more than 10% fall in NIO shares.

However, in the company’s press release, Li said, “2022 will be a year of reacceleration” for the company.