Tesla Competitor Nio Witness Over 50% Jump in Shares

Tesla Competitor Nio Witness Over 50% Jump in Shares

Shares of Tesla competitor Nio climbed 53% on Monday after the EV manufacturer reported a smaller-than-anticipated loss, benefiting from selling its lower-priced cars even as the sector faced weak demand.

The loss-making electric carmaker mentioned its sales grew in September and that it delivered 4,799 automobiles in the quarter ended September 30 compared with 3,553 deliveries in the second quarter.

This comes at a time when EV manufacturers are battling an uncertain demand in China, the world’s largest automotive market, as it withdraws subsidies on new energy automobiles amid criticism that some corporations have become overly dependent on the funds.

China’s Nio had stated grants for its dearer ES8 model, a seven-seater sport-utility EV that’s broadly seen as a competition to Tesla Inc’s Model X, have been slashed by almost 83% beginning June.

Including to its miseries, Nio on Monday warned it didn’t have adequate cash for “steady operation in 2020” and was seeking to obtain external financing.

The corporate, which counts Chinese internet giant Tencent Holdings and Hillhouse Capital Management as its shareholders, raised $1 billion last year in an IPO that valued it at $6.4 billion.

In May, Nio inked ann agreement with a government-supported fund for funding of about $1.5 billion.

The corporate stated on Monday its money balance and cash equivalents, restricted cash, and short interval funding was 1.96 billion yuan as of September 30.

More significant competitor Tesla stated on Monday it has begun delivering Model 3 EV from its strategic manufacturing facility in Shanghai that started operations less than a year earlier, and that it intends to increase deliveries in January.

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