Weak going public for electric vehicle manufacturer Nio

Weak going public for electric vehicle manufacturer Nio

Business news |
By Christoph Hammerschmidt

Nio wants to be different from many electrical manufacturers. Although the company has its headquarters in Shanghai and thus in China, the world’s largest market for electric cars, Nio has always presented itself as a kind of global company with cars for the world market. The software for the vehicles is developed in Silicon Valley, while the central design department is located in Munich (Germany). The company controls its Formula E racing activities from London. And Nio does not place its cars at the center of its product range, but the associated digital services. Behind Nio – whose name is supposed to mean “Blue Sky Coming” – stands the Chinese Internet company Tencent, among others.

So far, however, Nio has only one model in series production, the ES8 electric SUV. There are also some examples of the EP9 super sports car. With the Eve, Nio has also presented a concept design for an electric travel vehicle that can also drive fully autonomously. According to press reports, Nio has only produced a few hundred units so far; reservations have been made for 17,000 vehicles. Like his great predecessor Tesla, Nio apparently is struggling with start-up difficulties in production. Also financially it doesn’t look good; Nio has accumulated losses of $1.6 billion so far and in the next few years it won’t get any better before sometime profits are made.

Does that sound familiar to you? In any case, stock buyers on the New York Stock Exchange (NYSE) remembered Tesla’s unsolved difficulties. As a result, the stock market launch was disappointing; at $6.26, the issue price of the stock was at the lower end of expectations.

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