NIO Faces Problems With Sales and Has $5 Billion in Losses in 4 Years

In an article by Bloomberg, the website shows that the Chinese automaker, NIO, has been facing financial and sales problems.

The start-up accumulated $5 billion in losses since 2014. In just the Q2 of 2019, the company lost $369 million.

In July of this year, NIO sold only 837 units. This is a big problem mainly caused by the Chinese government having a step back on the subsides that were a great incentive to customers.

China is the country that sells half of the EVs in the world right now, and still the stock price of NIO dropped from $10 to $3 in only 7 months.

Tesla will start its manufacturing in China, and with big competition coming to the country, NIO might have to find other ways to fund their production of vehicles. Up until now nothing was revealed about its plans.

Starting in 2003, it took Tesla 15 years to mark $5 billion in losses, and they can still count on a lot of sales around the worldwide market.

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