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Company said on their mobile application, that since March supplier partners from Jilin, Jiangsu and Shanghai suspended production one after another and have not recovered yet. Because they are important suppliers, Nio had to halt car production. Nio will postpone deliveries of cars to their customers, however they will work hard with suppliers (maybe finding even a replacement) to recover as soon as possible.
The biggest problem reportedly is because of highly contagious Omicron variant, because of which China imposed major lockdowns in multiple cities, where many car company factories are located. Not only Nio was hit by these sanctions, as Tesla also had to suspend production in Shanghai since 28th of March and Volkswagen was forced to shut down the operations since middle of March. The lockdown was expected to be two-staged, but later it expanded citywide.
How long the lockdown will last is not known, however China is expected to start easing it in communities, that have zero positive results after another mass testing.
Movement of Nio since entering the market. (Source: Tradingview) *
*Past performance is no guarantee for future results.
Sources:
https://www.tradingview.com/chart/?symbol=NYSE%3ANIO
https://time.com/6165661/shanghai-easing-lockdown/