Nio of Tesla's Chinese rivalry is caught off guard by Covid Lockdowns

Nio of Tesla's Chinese rivalry is caught off guard by Covid Lockdowns ...

Due to a resurgence of the Covid-19 epidemic in the Yangtze Delta region, industry-wide disruptions have resulted in reduced April deliveries for some of the country''s most prominent electric vehicle companies.

Due to supply chain concerns related to a Shanghai lockdown, the Covid-19 resurgence resulted in lockdowns and plant shutdowns in some areas in China beginning in March. Tesla (TSLA) - Get Tesla Inc Reportrival Nio (China) - Get NIO Inc. (China) Reporton April 9 was forced to halt manufacturing in Hefei, China, for five days. Nio had earlier closed manufacturing at its Heifei plant for five days on March 29 owing to

NIO

Nio Production Gradually Recovering

Nio said in a May 1st that its "vehicle production and delivery" have been impacted by supply chain volatilities and other limitations that have resulted in the fresh wave of Covid-19 outbreaks in certain areas of China.

The company claims that production has improved gradually and that it will closely monitor the situation and its implications for the company''s business and financial conditions. It added that it will continue to work with its supply chain partners to ensure that production is recovered to its full capacity.

Nio recorded 5,074 EV deliveries in April, compared to 7,102 deliveries in the same month in 2021. Deliveries included 1,878 of its model ES6, 1,252 of EC6, 1,251 of ES8 and 6,93 of ET7.

TheStreet Recommends

Stock Market Today - 5/2: The Stock Exchange Ends Higher in a Volatile Session With the Fed, Earnings, and Jobs Data In Focus; 10-Year Yields Hit 3%

Crocs Has Arrived With Its Loudest Collaboration Yet

After an Ethereum outbreak, the creator of a brown appologizes.

Nio''s April deliveries were 29 percent less than their March results of 9,985, 17% less than February''s 6,131, and 47% less than January''s 9,652.

Li Auto, a Chinese EV company, delivered 4,167 of its Li ONE model in April, bringing it 24.7% less than the 5,539 vehicles delivered in the same month in 2021. April deliveries were 2% lower than the March results of 11,034, 50% lower than 8,414 in February, and 66.7% lower than 12,268 in January.

"Our Changzhou manufacturing facility is located in the center of the Yangtze Delta region, where over 80% of our parts suppliers are located, according to Yanan Shen, the co-founder and president of Li Auto. "The COVID-19 resurgence in this area has incapacitated some suppliers in Shanghai and Kunshan, which has forced us to continue manufacturing, causing us to lose production.

"This negatively affected our production in April, resulting in delays for some of our customers. At present, we are working with supply chain partners to reduce production capacity, aiming to shorten the waiting period for Li ONE users, while meeting all regulatory requirements.

XPeng Deliveries Increase In April

XPeng, an EV company, surprised China''s electric vehicle market by significant increase in April by 75% to 9,002 vehicles, according to a survey of 3,714 P7 smart sports sedans, 3,564 P5 smart family sedans and 1,724 G3i and G3 smart compact SUVs. Year-to-day total deliveries reached 43,563, representing a 136% increase year-over-year as of April 30.

Telsa was forced to shut down its Shanghai Gigafactory on March 28 owing to a Covid-19 lockdown and remained closed for more than three weeks until it was permitted to reopen on April 19. As of this writing, Tesla had not yet released its April delivery numbers.

You may also like: