Why NIO Stock Dropped Friday
Over the last year, sales have been accelerating at Chinese electric-vehicle (EV) maker NIO (NYSE: NIO). On Friday, the company announced production will be affected by the global semiconductor shortage that has impacted other automakers.
Investors reacted by knocking NIO shares down. As of 1:25 p.m. EDT on Friday, shares were trading south about 8%.
NIO said the chip shortage will cause it to halt production for five days, beginning March 29. The planned downtime caused the company to lower first-quarter shipment projections to 19,500 vehicles, down from the previous estimated range of 20,000 to 20,500.
Source Fool.com
