Nio Shares Fall on Price Hike, Suspended Production
2022.04.11 15:11
Nio (NIO) Shares Fall on Price Hike, Suspended Production
Nio Inc (NYSE:NIO) announced that, due to a sharp rise in global materials, the company has decided to increase the prices for three of its models and battery rental service BaaS (Battery as a Service). Model ES8, ES6 and EC6 will increase by RMB 10,000 ($1,570), while the starting prices of the ET7 and ET5 sedans will remain unchanged. The price rise is effective May 10.
“Raw materials, especially battery material prices have gone up too much this year, and no downward trend can be seen in the near future,” said William Li, founder, chairman and CEO of NIO, adding that the company originally intended to bear that pressure itself, but was forced to raise prices under the new impact of the Covid outbreak.
Nio follows Li Auto Inc (NASDAQ:LI) and Xpeng Inc (NYSE:XPEV) as several Chinese electric vehicle startups continue to raise prices to combat global supply shortages.
The company also announced that it had suspended production at its Hefei, Anhui province factory due to Covid-related restrictions in recent weeks, which have halted production at supplier factories.
“Due to the impact of Covid on Changchun and Hebei, the supply of some of our auto parts has been interrupted since mid-March,” Li said. The company’s production “succeeded in relying on auto parts inventories until last week.”
“There will be a delay in the delivery of vehicles for many customers in the near future, and we ask for your understanding,” it said in a statement on the NIO app today.
Shares of the Hong Kong-listed company fell nearly 9% in Monday morning trading.
By Michael Elkins
