EV roundup: Nio slides on forecast decrease, Tesla stock continues to decline 2023

Tesla reduces output in China

Tesla stock is in free fall once more today, down nearly 7% as of lunchtime trading.

Reuters was the first to report that Tesla shut down its Shanghai Gigafactory on Saturday, delaying a one-day planned closure.

According to insiders, Tesla had intended to suspend production at the facility for 8 days, but on Saturday it informed staff that the suspension would start sooner than anticipated. Tesla decided to move up the production halt while it was dealing with Covid-19 infections at Giga Shanghai and its suppliers.

According to a previous story from Reuters, Tesla is also preparing to lower production at Giga Shanghai in January.

According to Reuters sources, Tesla will have manufacturing lines running from January 3 to January 19 before ceasing operations for a lengthy vacation for the Chinese New Year from January 20 to January 31.

 

Even if other major Chinese corporations do shut down over the Christmas and Chinese New Year holidays, Tesla normally doesn’t stop manufacturing for a prolonged period. Only a 3-day vacation was taken by Tesla last Chinese New Year.

Tesla did not explain the January production plan reduction. Tesla, like other manufacturers, has experienced problems with demand in China and has had to turn to strategies like price reductions and insurance discounts to boost sales. The automaker’s problems in China now include the addition of Covid-related difficulties.

NIO slides on outlook cut

We now come to the Chinese manufacturer NIO (NIO), whose Q4 delivery update is also affecting EV companies.NIO lowered its expectation for Q4 deliveries from its previous outlook of 43,000 to 48,000 units to a range of 38,500 to 39,500 units in a statement released today.

The Omicron coronavirus variant epidemic in key Chinese cities, according to the business, “has been causing issues in delivery and manufacturing, along with certain supply chain bottlenecks.”

NIO added that some consumers had trouble receiving and registering new cars due to operational difficulties.

At its NIO Day 2022 event in Hefei, China, last week, the manufacturer debuted its new EC7, a coupe-style SUV, and its ES8, a three-row, full-size. According to NIO, these vehicles will start arriving in May and June of the following year, respectively.

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