Nio expects to cruise right around supply chain issue
NIO logo and the NIO store in downtown
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Bank of America remains constructive on Nio (NIO -0.2%) after meeting with management earlier today on some capacity constraints due to chip component shortages and other disruptions with the production of local suppliers.
Crucially, Nio says it has communicated closely with CATL to ensure battery supply for the company's electric vehicle production at 8K to 9k units per month until the end of 2021. Management believes the supply constraints will only impact short-term production. On the positive side, Nio sees positive momentum on the demand front and notes strengthening with new orders received. The demand is strong enough that Nio is confident of hitting prior guidance for Q3 deliveries of 23K to 25K units.
The automaker still expects to deliver three new models (including ET7) based on the NT2.0 platform in 2022.
After taking in the update, BofA keeps a Buy rating on Nio (NYSE:NIO).
Aug. 25, 2021 3:35
PMNIO Inc. (NIO)
By: Clark Schultz, SA News Editor
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