Nio drops after cutting its 3rd-quarter vehicle-delivery outlook due to supply-chain pressure

• Nio shares fell Wednesday after the electric-vehicle maker reduced its third-quarter delivery guidance.
• The Chinese automaker cited "continued uncertainty and volatility of semiconductor supply" as a reason for cutting its outlook.
• Nio expects to deliver 22,500 to 23,500 vehicles in the third quarter, down from its previous range of 23,000 to 25,000 units.

Nio shares declined as much as 5% on Wednesday after the Chinese electric-vehicle maker lowered its third-quarter outlook for deliveries because of semiconductor supply constraints.

The company now expects to deliver 22,500 to 23,500 vehicles in the third quarter, down from its previous outlook of 23,000 to 25,000 units.

The global automotive industry has been plagued by a chip shortage and supply constraints for more than a year, prompting other car manufacturers including Toyota Motor and Ford Motor to reduce production at their factories.

Nio also said Wednesday it delivered 5,880 vehicles in August, representing year-over-year growth of 48.3%.

"While the company's new order reached an all-time high in August driven by the increasing demand, the vehicle production, especially the manufacturing of the ES6 and EC6, was materially disrupted by supply chain constraints resulting from the COVID-19 pandemic in certain areas in China and Malaysia," it said.

After seeing torrid gains to start 2021, Nio's stock is now down nearly 20% year-to-date.