Palo Alto EV maker Tesla Inc Chinese rival Nio halts production due to chip shortage

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Palo Alto EV maker Tesla Inc Chinese rival Nio halts production due to chip shortage

Nio Inc, the Shanghai-based smaller rival of Tesla that used to excel as a full-fledged rheostat in Chinese e-vehicle market, said on Friday that the seven-year old electric vehicle start-up would stall production for five working days on its Hefei plant and trim Q1 delivery forecast by 1,000 vehicles, becoming the latest in a string of carmakers which had temporarily halted productions due to a sweeping shortage of semiconductors that led to a mass-scale loss in global automotive industry.

In point of fact, latest move from Nio Inc. to momentarily suspend its production lines came forth as a flurry of heavy-weight carmakers across the globe had been bushwhacked because of a staggering shortage of chips over recent weeks as beforementioned, while Ford Motor, General Motor, Honda Motor, Volkswagen and Stellantis had been among the automakers grievously hurt due to the havoc-scale shortage.

Besides, as many carmakers had held back productions despite an uptick in car demands in a pandemic-era new normalcy, the widespread ship shortage had costed automotive industry more than 130,000 vehicles in recent past with N.

American plants bearing the heaviest brunt, research firm AutoForecast Solutions had unveiled.

Nio joins blue-whale automakers to stall production

On top of that, as the US-listed shares’ prices of Nio Inc. had ended up the day just a notch shy of 7 per cent lower to $35.36 apiece after hitting a session low of 8 per cent following the announcement, AutoForecast Solutions said more than 74,000 units were lost in N.

America over the chip shortage, while Western Europe had missed out as many as 35,000 units. The latest shortage in semiconductors that appeared to have spread into smartphone industry in recent weeks, too, could be a result of an upsurge in demands of consumer electronics goods last year as more people had been working from home and purchasing gaming consoles during the pandemic-led lockdowns, suggested industry analysts.