Carpooling

2 October 2019 By Katrina Hamlin Follow @KatrinaHamlin

Nio is sputtering. Making snazzy rides for the world’s largest market is burning up cash, and the $1.4 bln electric-car maker is now contemplating more cuts just to keep up. That could tarnish a shiny brand. Pooling with a more experienced peer, like BYD, may be a better option.

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Chinese electric-car maker Nio’s second-quarter net loss widened by 83% from a year earlier, to 3.3 billion yuan ($463 million), it said in a regulatory filing on Sept. 24. Revenue from vehicle sales fell nearly 8% from the first quarter, to 1.41 billion yuan.

In a conference call on Sept. 25, Nio’s management detailed planned cost-cutting measures and said they would consider spinning off non-core businesses.

Nio’s shares closed on Oct. 1 at $1.32, down 15.4% on the previous close and 51% from a level closer to $2.72 before the earnings release.

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