NIO stock dropped Monday after the Chinese-based electric-car company said over the weekend that it was suspending production due to Covid-19 restrictions that have disrupted its supply chain.
American depositary receipts of NIO (ticker: NIO) fell 8.7% in premarket trading on Monday.
“Since March, due to reasons to do with the epidemic, the company’s supplier partners in several places including Jilin, Shanghai and Jiangsu suspended production one after the other and have yet to recover,” NIO said Saturday in a statement on its mobile app.
It added that there will be a delay of deliveries of vehicles for many customers in the near future.
NIO’s shares have fallen 36.9% so far this year. Last week, the stock was upgraded by UBS analysts to Buy from Hold, but the price target was cut to $32 from $42.
Write to Lina Saigol at [email protected]
Credit: www.marketwatch.com /