Chinese Electric Car Company Nio Hikes Prices, Suspends Production

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Chinese electric car company Nio said over the weekend it is raising prices and suspending production as the latest Covid wave added to supply chain challenges.

fell nearly 9% in Monday morning trading.

Nio announced Sunday it would raise the prices for its three SUVs — the ES8, ES6 and EC6 — by 10,000 yuan , effective May 10. Prices for the recently launched ET7 and ET5 sedans would remain the same. Raw material prices, particularly those for batteries, have risen"too much" this year with no downward trend in sight for the near term, CEO William Li said as part of the announcement, according to a CNBC translation of the Chinese statement.

"Originally [we] thought we could bear it, but now with this pandemic it's even harder to bear," he said."We have no alternative but to raise prices. Please be understanding." A day earlier, on Saturday, Nio said it suspended production due to Covid-related restrictions in the last several weeks that halted production at suppliers' factories.

 

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