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EV Startup Nio’s Losses: $5.7 Billion in 4 Years
Shanghai-based electric car startup Nio Inc. has piled up about $5.7 billion in losses since it launched five years ago,
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Shanghai-based electric car startup Nio Inc. has piled up about $5.7 billion in losses since it launched five years ago,
The total includes $365 million in second-quarter losses the company is expected to report tomorrow, according to Bloomberg News.
The news service says sluggish sales, cost overruns and big recalls related to battery fires have cut the company’s market value from a high of $11.9 billion a year ago to about $3.5 billion today.
Now the company, which is backed by China’s Tencent Holdings Ltd., faces pressure to generate more funding. Bloomberg says Nio is hoping to receive as much as 10 billion yuan ($1.4 billion) from a government-backed investment firm.
At the same time, the EV maker aims to cut its workforce by 7,400 people by the end of September. The company began the cutbacks last month by eliminating 1,000 jobs, or 10% of its staff.
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