American Depositary Receipts (ADRs) of Chinese electric vehicle (EV) maker Nio (NIO) fell in premarket trading Wednesday after the company announced reductions to its first-quarter delivery projections.

Nio revised its projections to an expected 30,000 vehicle deliveries in the current quarter, down from its previous outlook of 31,000 to 33,000 vehicles. The EV maker delivered just over 50,000 vehicles in the previous quarter, and about 160,000 for all of fiscal 2023.

The announcement from Nio comes less than a week after reports emerged that Tesla (TSLA) was cutting production at its factory in Shanghai over decreasing demand. Competition has increased in the EV market overall, and especially in China with homegrown companies like XPeng (XPEV) and BYD () along with international competitors like Tesla.

The EV market in China has also seen several companies like Tesla shift prices and offer other sales incentives in attempts to meet demand while maintaining profit margins. Nio and other Chinese companies have looked to potentially expand their reach to other regions like Europe, where they could likely sell vehicles without having to cut prices as much as they would in their home country.