China Electric Car Maker Nio is Near Bankruptcy
Analysts at Sanford C. Bernstein led by Robin Zhu cut their price target for NIO to just $0.90. In a note, Zhu and his team said that even with a recent $200 million raise, the company may have only weeks of cash remaining.
China has been rolling back subsidies provided for new energy vehicles and plans to phase out subsidies after 2020.
NIO sold 3,140 ES8 cars in the quarter, down from 3,989 cars in the first quarter. ES8 is a pure-electric, seven-seat sport-utility vehicle, which is seen as a rival to Tesla’s Model X. They sold 413 cars of the cheaper ES6 model.
NIO also tried to create luxury social clubs and luxury non-car product lines as part of their offering.
The stock is down to about $1.22 a share.
SOURCES – NIO, Motley Fool
Written By Brian Wang, Nextbigfuture.com
Brian Wang is a prolific business-oriented writer of emerging and disruptive technologies. He is known for insightful articles that combine business and technical analysis that catches the attention of the general public and is also useful for those in the industries. He is the sole author and writer of nextbigfuture.com, the top online science blog. He is also involved in angel investing and raising funds for breakthrough technology startup companies.
He gave the recent keynote presentation at Monte Jade event with a talk entitled the Future for You. He gave an annual update on molecular nanotechnology at Singularity University on nanotechnology, gave a TEDX talk on energy, and advises USC ASTE 527 (advanced space projects program). He has been interviewed for radio, professional organizations. podcasts and corporate events. He was recently interviewed by the radio program Steel on Steel on satellites and high altitude balloons that will track all movement in many parts of the USA.
He fundraises for various high impact technology companies and has worked in computer technology, insurance, healthcare and with corporate finance.
He has substantial familiarity with a broad range of breakthrough technologies like age reversal and antiaging, quantum computers, artificial intelligence, ocean tech, agtech, nuclear fission, advanced nuclear fission, space propulsion, satellites, imaging, molecular nanotechnology, biotechnology, medicine, blockchain, crypto and many other areas.