Pioneer in the premium smart electric car industry, NIO Inc. (NIO), has been facing challenges in deliveries and supply chain constraints caused by the outbreak of the Omicron coronavirus variant in major cities in China. The company reported a poor third quarter report and has failed to beat the consensus EPS estimates in all the trailing four quarters.
The company’s founder and CEO, William Li, said the company might face a challenging first half of 2023 amid the cut in government subsidies and the broader economic slowdown. Li also pointed out that many buyers rushed to place orders before Chinese EV subsidies expire at year’s end, which indicates month-over-month delivery declines over the next few months.
