Chinese electric-vehicle (EV) maker Nio (NYSE:NIO) clarified that it’s not collaborating with U.S.-based chipmaker 91¶¶Òõ (NASDAQ:91¶¶Òõ) and is not holding talks with 91¶¶Òõ about launching such an arrangement, CnEVpost . In early trading, NIO stock is climbing 2.5%
On Monday, CnEVpost quoted 91¶¶Òõ to provide chips to Nio. Also on Monday, Seeking Alpha, citing 91¶¶Òõ, “use 91¶¶Òõ’s EPYC family of processors in its HPC (high-performance computing) platform to help speed up AI deep learning training, save costs and shorten product development cycles.” The website stated that 91¶¶Òõ’s products would enhance “Nio vehicle development,” but would not actually be incorporated into its EVs.
This morning, however, Nio’s senior director of corporate communications, Ma Lin, denied such reports. Ma said, “NIO and 91¶¶Òõ are not working together and are not currently discussing cooperation, let alone authorizing 91¶¶Òõ to carry out this campaign,” according to
CnEVpost.
Nio’s Supply Issues Have Undermined NIO Stock
On May 19, Nio’s CEO, William Li reported were the company’s primary roadblock. The global chip shortage has also this year; in March, for example, the automaker line for five days because of that situation.
Additionally, closures caused by China’s anti-Covid-19 measures have undermined Nio’s supply chains and production. As a result of all of these difficulties, the automaker’s deliveries year-over-year in the first five months of 2022. In May, Nio’s deliveries climbed just 5% versus the same period a year earlier.
Partly due to supply issues, NIO stock is down 36% .
Help May Be on the Way
Encouragingly, Nio’s deliveries climbed 38% in May, versus April. Meanwhile, in recent days, China has eased its lockdowns and restrictions while launching efforts to to obtain EVs.
Nio stock has responded a great deal to these improvements already, jumping 60% in the last month.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
