Nio Inc. (NYSE: NIO) lowered its fourth-quarter outlook for deliveries on Tuesday amid continuous supply chain disruptions stemming from Covid outbreaks. The Chinese electric vehicle maker’s stock fell following the news.
According to a press release, it now anticipates delivering anywhere between 38,500 to 39,500 electric vehicles within the fourth quarter of 2022, a decrease from its previous estimate ranging from 43,000 to 48,000 vehicles.
“In December 2022, the Company has been facing challenges in deliveries and productions, together with certain supply chain constraints, caused by the outbreak of the Omicron coronavirus variant in major cities in China. While our teams have strived to maintain continuous operations on all fronts, we were not able to reach our full capacities, particularly when there have been disruptions on delivery and registration procedures involving users.” The company revealed in a statement.
Despite citing losses, the company’s third quarter proved strong for production and sales. Nio reported a 33% gain in revenue, in comparison to the previous year and continued to project solid demand for its incoming models.