Nio Has Not Completely Halted Production As Widely Believed: Report

Nio Inc’s NIO production lines are partially running over weekdays and completely halted only on weekends due to supply snarls, CnEVpost reported on Wednesday. 

What Happened: The U.S.-listed electric vehicle maker had last week announced a production halt over supply disruptions to auto parts and the market believed it was a complete shutdown.

Shanghai-based Nio had last week reportedly said it had suspended production as its supply chain partners in Jilin, Jiangsu and other locations were yet to resume operations after getting hit in March.

But according to Nomura analyst Martin Heung, who talked to Nio management, the company has halted production only on weekends and is running its assembly lines on a limited scale on weekdays, CnEVpost reported.

Nio and Nomura did not immediately respond to Benzinga’s request for comment.

See Also: Analyst Sees Tesla Taking 8% Volume Hit In Q2 From China COVID-19 Lockdowns

Why It Matters: Nio’s bigger rival Tesla Inc’s TSLA Giga Shanghai factory has been shut since the start of this month amid citywide lockdowns in China to curb the spread of the recent spike in COVID-19 cases.

Loup Ventures founder-analyst Gene Munster has estimated Tesla’s volume could take a hit of 8% in the second quarter due to those snags.

German automaker Volkswagen Group VWAGY, which has a large market share in China, has paused production at its Anting and Changchun plants.

Price Action: Nio stock closed 4.9% higher at $20.4 a share on Wednesday.

Photo courtesy: Nio