By Dhirendra Tripathi

Investing.com – Li Auto (NASDAQ:) stock was trading nearly 6% lower in Monday’s premarket as the Chinese firm lowered its outlook for vehicle deliveries in the ongoing quarter due to a shortage of chips.

According to the maker of electric vehicles, it expects to ship around 24,500 vehicles this quarter, as opposed to its prior estimate of 25,000-26,000 units. It delivered 17,575 vehicles during the second quarter, a 166% increase over a year earlier.

It stated that the Malaysian pandemic had hampered chip production for millimeter wave radars used in vehicles.

Li Auto notes, which included an update about third-quarter delivery, did not include any mention of the current financial outlook. The company forecasted in August that total revenue would be around $1.10 million at the center of its range during the current quarter. That’s 183% less than last year.

This wide shortage in chips has been ongoing for over a year, which is longer than many expected. Almost all automakers including Toyota (NYSE:), Volkswagen (DE:), Ford (NYSE:) and General Motors (NYSE:) have cut back production as the lack of supplies continues to wreck vehicle production targets.

There are many factors that have contributed to the widening gap between demand and supply. These include a rise in chip demand from manufacturers of laptops and mobile phones to carmakers, and the closing of factories as a result of the pandemic. Although chipmakers promise billions in capacity expansion, these are slow-moving.