Why NIO Stock Is Down Today
Shares of Chinese electric-vehicle maker NIO (NYSE: NIO) were trading lower on Thursday, after a Wall Street analyst said that the ongoing global shortage of semiconductors will continue to hold NIO's production down for a while longer.
As of 1:30 p.m. EDT, NIO's American depositary shares were down about 7.5% from Wednesday's closing price.
Citibank analyst Jeff Chung, who recently hosted a call with NIO management, wrote on Thursday that the chip shortage has remained "the key constraint" for NIO's production in May. NIO, along with Ford Motor Company, BMW, and Honda Motor, has suffered from the effects of a February fire at Japanese chipmaker Renesas, which has reduced some auto suppliers' access to chips even further for the time being.
Source Fool.com
