Shares of Nio, a Chinese=based electric car manufacturer, have been dropping after concerns over the company's financial outlook over their second quarter numbers.
The firm continues to bleed money as its net loss widened one-fifth on a quarterly basis to $478.6 million amid a contracting market, intensifying competition, and a spate of car fires.
Despite beating analyst forecasts, revenue slid 7.5% quarter-on-quarter to $206.1 million. The Shanghai-based firm has run up $5.6 billion in losses since 2016, according to company figures.
Often referred to as the “Tesla of China,” the US-listed carmaker’s shares were down 25% at the time of writing, wiping $650 million off the company’s market capitalization. The company delivered 3,553 vehicles delivered in the period, narrowly beating its previous guidance by about 300 units. However, the company lost $0.45 per share for the second quarter, more than double an expectation of $0.18.
Nio canceled its earnings call immediately after the release. A company representative promised further disclosures depending on any future developments when contacted by TechNode.
Company Founder and CEO William Li confirmed plans to slash Nio’s global workforce by more than one-fifth. “We target to reduce our global headcount to be around 7,800 by the end of the third quarter from over 9,900 in January 2019, and aim to further pursue a leaner operation through additional restructuring and spinning off some non-core businesses by year-end,” he said in the announcement.
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