Chinese electric vehicle maker Nio (NIO) said it is raising prices and suspending production as
a new outbreak of COVID-19 adds to the company’s supply chain problems.
The company’s stock fell nearly 10% on news of the price hike and production shutdown.
Nio announced over the weekend that it will raise the prices for its three SUVs — the ES8, ES6
and EC6 — by $1,572 U.S. each effective on May 10. Prices for the recently launched ET7 and
ET5 sedans will remain the same, the company said.
Raw material prices, particularly those for batteries, have risen “too much” this year with no
downward trend in sight for the near term, Nio said in a written statement.
Nio also said over the weekend that it is suspending its automotive production due to Covid-19
related restrictions in the last several weeks that halted production at its suppliers’ factories.
The company began deliveries of its first sedan, the ET7, in late March. A second sedan, the
ET5, is set to begin deliveries this September.
In terms of monthly deliveries, Nio has lagged rival start-ups Xpeng (XPEV) and Li Auto (LI),
whose only model on the market comes with a fuel tank for charging the battery. All three
companies delivered more cars in March than February despite supply chain challenges.
Prior to today, Nio’s stock was down 40% year to date at $20 U.S. per share in New York
trading.
