BREAKING: NIO announces production suspension due to Covid-19 in China

Written by Cláudio Afonso |

NIO announced on Saturday the suspension of the vehicles production due to Covid-19. NIO’s supply chain partners in Jilin (Shanghai) stopped production forcing the company to suspend the production of its vehicles. “Since March, due to the epidemic, the company’s supply chain partners in Jilin, Shanghai, Jiangsu and other places have stopped production one after another, and have not yet resumed. Affected by this, NIO vehicle production has been suspended.” — the company said.

“Due to the above reasons, the delivery of many users’ vehicles will be delayed recently. Please forgive me. The company will work with its supply chain partners to resume production as soon as possible and deliver the vehicles to everyone as soon as possible under the premise of meeting the requirements of epidemic prevention.”

On Friday, Daiwa Capital Markets analyst reiterated NIO’s price target of $72 and a Buy rating implying an upside potential of 253.62% based on the last closing price of $20.36. The analyst forecasts that the EV maker will rise its sales volume by 59% in 2022. On January 2021, two weeks after NIO shares hit its all-time-high at $66.99, Daiwa Securities reiterated its Buy rating on NIO shares in with a $100 price target. The Group was one of the first ever to give a three digit price target on NIO shares.

On Friday, NIO’s Shanghai Manager, 庆华, wrote on NIO App regarding the Covid-19 situation in China and how it is affecting the company. “The closure time of the epidemic in Shanghai has exceeded most of our expectations” — he started to say. “At present, almost all of the 1,240 employees of the Shanghai company are also confined to home, unable to respond to the service needs of users and friends in a timely manner, and apologize to users and friends.” — NIO’s Shanghai General Manager said.

NIO announced on Monday that held the the ceremony for the completion of NIO’s Vehicle Pilot Center on March 16 with the first vehicle from NeoPark in Hefei rolling off the production line. NeoPark is a hub for hundreds of key supporting enterprises with an annual production capacity of 1 million vehicles and 100 GWh battery. NeoPark is expected to realize a gross yearly output of RMB 500 billion ($78 Billion USD).

Written by Cláudio Afonso |