Nio stock fell more than 5% Monday following a drop in October vehicle deliveries.- October deliveries fell 27.5% from a year ago and slumped by 65% from September.
Nio stock declined Monday after the electric vehicle maker said deliveries slumped in October amid upgrades to manufacturing lines and supply-chain issues.
The Chinese multinational posted a 27.5% drop in deliveries to 3,667 on a year-over-year basis. The total also marked a 65% slide from September, when it delivered a monthly record of 10,628 units.
Nio stock fell as much as 5.5% to $37.23 in premarket trade before paring the loss to 3.3%.
October deliveries were "significantly impacted" by restructuring and upgrades of manufacturing processes that resulted in lower production volume, Nio said in a statement. Just 218 of its ES8 SUVs were delivered, with production resuming toward the end of the month.
The company said it's been preparing factory lines to introduce new products. It also cited "certain supply chain volatilities" as a reason for the slump in October deliveries.
"Despite the production and supply chain challenges, the company's new orders reached another all-time high in October driven by increasing user demand," Nio said in Monday without specifying the number of orders.
The company previously warned semiconductor supply constraints would in part hurt deliveries for the third quarter but it managed to roll out 24,439 vehicles, surpassing the top end of its guidance.
The ongoing chip shortage could lead global automakers to lose $210 billion in revenue this year, with consulting firm AlixPartners last month nearly doubling its previous sales-loss estimate for the industry from $110 billion.
Nio stock has lost roughly 19% during 2021 after notching a nearly 30% rise early in the year.