Shares of EV maker NIO (NYSE:NIO) are tanking in the pre-market session today after it announced a muted delivery outlook for the fourth quarter.
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Amid the COVID-19 situation in China, NIO is facing supply chain challenges as well as constraints in vehicle deliveries and production. Consequently, it now expects to deliver between 38,500 and 39,500 vehicles in Q4. The figure is a scale back from the previous outlook in the range of 43,000 and 48,000 deliveries.
Further, the company launched two new models, EC7 and ES8 during the NIO day in China. Deliveries for the two models are anticipated to begin in May and June next year, respectively.
William Li, the Founder, and CEO of NIO expects a complete market recovery only in May or June next year.
Analysts, meanwhile, remain cautiously optimistic about the stock with a Moderate Buy consensus rating and an average price target of $16.31.Shares of the company have tanked nearly 67.2% so far this year.
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