Photo courtesy of Nio.

Nio Inc. (NIO) reported strong deliveries for April despite the chip shortage that is haunting companies across the sector.

What Happened

Close on the heels of a stellar quarterly report, Nio announced it delivered 7,102 vehicles in April. This represented a 125.1% year-over-year increase, but a 2.1% decline from March. April was the third best month in terms of deliveries after January and March this year, when it delivered 7,225 and 7,257 vehicles, respectively.

The split for April was 1,523 ES8 cars, 3,163 ES6s, and 2,416 EC6 models. As of April, the company has cumulatively delivered 102,803 vehicles.

Why It's Important

The performance in April is notable given that it came amid the uncertainties regarding chip supplies that forced the company to shutdown its Hefei manufacturing plant for five working days starting March 29.

Last week, the company guided to second quarter deliveries of 21,000-22,000 vehicles, up an estimated 103%-113% year-over-year and 5%-10% higher than in the previous quarter.

Nio's William Li said in the first-quarter earnings call that he expects the chip crunch to impact the second quarter. He said the third quarter was the bottom and he expects things to improve from there. Nio closed Friday's session 2.18% higher at $39.84.