NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) shares headed lower in pre-market trading on Tuesday following reports production delays around its Thor chip had deterred automakers.
Thor had been due to enter mass production mid-way through this year but has repeatedly faced setbacks, leaving large-scale output unlikely until mid-2025.
Chinese electric vehicle maker XPeng was reportedly among firms looking toward alternatives as a result, according to a report from 36Kr.
XPeng was instead looking to accelerate development of its own self-developed intelligent driving chip, Turing, for a new car next year.
Rival NIO Inc (NYSE:NIO) has also avoided reserving Thor chips for next year, with its latest car set to rather use its own NX9031 chip, Nvidia’s Orin and Horizon Robotics products.
Other leading Chinese automakers Zeekr, BYD and Li Auto were also said to have penned partnerships with Nvidia over the use of Thor in vehicles.
Nvidia shares dropped 1.8% to $129.65 ahead of Tuesday’s trading.