Electric vehicle

Nio stock plunge casts doubt over China’s EV prospects

Heavy losses, job cuts and asset disposals at China’s largest electric vehicle maker even raise questions over whether a bubble could be about to burst. At the very least, tough times lie ahead.

China’s once-ballooning electric vehicle industry is showing signs of bursting after the country’s largest manufacturer reported the biggest quarterly loss since its inception, triggering massive job cuts and asset sales.

New York-listed Nio, dubbed the 'Tesla of China' by both advocates and journalists seeking a handy reference point, said it lost Rmb3.3 billion $462 million in the three months to June-end. That was 83% higher than in the same period last year and 25% higher than in the first quarter.

The five-year-old company said it will lay off another 1,100 employees to bring down its total headcount to 7,800 by the end of September. Nio,...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222