Nio is the best performing auto-maker out of China’s EV (electric-vehicle) startups. Created in 2014 by William Li, Lihong Qi, and Hsien Tong Cheng, it currently has four purchasable models, all electric-powered. In just one year, Nio’s stock has increased by about 1,500%. However, despite considerable growth, the stock has recently been decreasing through March.
Key Questions to Consider:
1: What happened to Nio?
The Tesla competitor ran into an issue that forced it to shut down one of its factories for 5 days, setting back the production of at least 500 vehicles: a global shortage of semiconductor chips. The chip shortage was thanks to COVID, and Nio wasn’t the only company affected. The shortage as a whole caused a $60 billion loss in the global auto-making industry.
2: Are Other Car Companies Affected As Well?
General Motors has lost an estimated $1.5 billion to $2 billion, Ford estimated it would lose $1 billion $2.5 billion, and Honda and Nissan were to expected to sell 250,000 cars less than usual during March.
- Nio is an electric car manufacturing startup based in China, and its stock has skyrocketed in the past year, up 1,500% from last year.
- Recently, the Chinese auto-maker shut down one of its factories due to a global semiconductor chip shortage caused by COVID’s effect on the economy, and it has affected all car manufacturers to some degree
- Within Nio alone, the shutdown will set back the production of at least 500 vehicles
- Larger auto-makers, such as General Motors and Honda, have also taken losses in billions of dollars and hundreds of thousands of cars due to this shortage