NIO said on Saturday that it has suspended production as Covid has caused partners in its supply chain to shut down production.
Electric vehicle (EV) stocks saw big losses in early trading in Hong Kong, as Covid controls in several Chinese cities led to new threats to their supply chains.
At press time, NIO (NYSE: NIO, HKG: 9866) was down 7.89 percent, XPeng Motors (NYSE: XPEV, HKG: 9868) was down 8.54 percent, Li Auto (NASDAQ: LI, HKG: 2015) was down 6.02 percent and BYD (OTCMKTS: BYDDY, HKG: 1211) fell 5.2 percent.
NIO said on Saturday that it has suspended production as Covid has caused partners in its supply chain to stop production.
Since March, NIO's supply chain partners in Jilin, Shanghai, Jiangsu and many other places have suspended production because of the Covid outbreak and have not yet resumed, it said in a statement in the NIO app.
"Due to these factors, NIO's vehicle production has been suspended," the statement said, adding, "There will be a delay in the delivery of vehicles for many customers in the near future, and we ask for your understanding."
China on Sunday added 1,164 local confirmed cases of Covid and 26,345 new asymptomatic infections, according to health authorities.
Shanghai, home to NIO's global headquarters, added 914 local confirmed cases of Covid and 25,173 local asymptomatic infections on Sunday.
Anhui, where NIO's plant is located, added one confirmed case and 68 asymptomatic infections on Sunday, and the province has not announced widespread lockdown measures at this time.
XPeng and Li Auto have not released information on whether their production has been affected, though supply shocks due to intensified control measures may also have an impact.
Guangdong province, where XPeng's headquarters and current plant are located, added 19 local confirmed cases and 18 asymptomatic infections on Sunday.
Changzhou, Jiangsu province, where Li Auto's plant is located, added one asymptomatic case on Sunday, and the province added seven local confirmed cases and 46 asymptomatic infections on Sunday.
More cities have introduced travel restrictions that have led to some highways being closed or drivers entering a city and not being able to return.
Foreign multinationals including Tesla and German hi-tech plastics firm Covestro are lobbying China's government to allow more truck drivers to work between Shanghai and other regions as their business is hit hard by Shanghai's Covid-19 curbs, the South China Morning Post said in a report Saturday.
Hong Kong stocks were down overall today, with the Hang Seng Index down about 2 percent and the Hang Seng Tech Index down 3.62 percent at press time.
China's A-share market was also lower today, with power battery giant CATL down 6 percent.
A new Covid case has also emerged in Ningde, Fujian province, where CATL is headquartered, and the city has been tightening travel restrictions in some areas since April 10, according to local media reports.
CATL is not currently shutting down production and is producing in an orderly manner through grid-based management, the Shanghai Securities News quoted the company as saying on Sunday.
Recently there were individual cases of Covid in Ningde, and the local government temporarily upgraded control measures. CATL strengthened communication and collaboration with local authorities to fight the pandemic, the report said, citing sources from the company.
BREAKING: NIO suspends production as Covid hits its supply chain