On March 26th, NIO announced that it would temporarily suspend production for five working days due to a shortage of semiconductors.
During the 2021 Q1 earnings call in early March, William LI stated:
The global chip shortage strongly impacts the supply chain, which will affect our production in Q2. Currently, we have enough chips to meet our production plan, but the situation changes daily. In Q2, the entire automotive industry may face a chip shortage. Our team has been working on this since last year. We even contacted chip companies directly to bridge the entire chip supply chain. While it should be enough to meet our Q2 demand, the risk is still high.William LI also said that the production capacity of the entire supply chain of NIO had reached
7,500
vehicles in January. Hence, the production capacity in5
working days is about1,250
. In the conference call, Steven FENG, CFO of NIO, also said that the company expects to deliver20,000
to20,500
vehicles in the first quarter of2021
. Suspension of production for5
days might not have a great impact on the total deliveries.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.