Nio expects revenue of 16.7 billion yuan in the three months through December, which is significantly lower than analysts’ average estimate of 21.4 billion yuan. There is also less hope for car sales. Nio’s guesses are 47,000 to 49,000 vehicles. Analysts said the target was 59,426 sales.
One of China’s brightest electric car makers has yet to turn a profit and is falling well short of sales targets. This year, for example, the automaker expected to deliver 250,000 electric vehicles, but only 142,026 had been delivered by the end of November.
“We have mapped opportunities to optimize the organization, reduce costs and increase efficiency,” company CEO William Li says in a statement. “We continue to focus on the development of key technologies and key products, including sales and service capabilities. We are confident in Nio’s long-term competitiveness,” he adds.
The company cut its workforce by 10% in November, while also considering cutting non-core operations to reduce costs. In September, Nio sold $1 billion in convertible bonds, and Bloomberg learned that they plan to raise another $3 billion from investors.
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2023-12-05 11:05:41
nio-has-lagged-significantly-in-sales-and-the-companys-revenue-forecast-is-lower-than-expected