Much smoke about nothing at nio.

Much smoke about nothing at nio.

Around the SEC publications of NIO for the planned IPO in the USA, an astonished reader has noticed that there are definitely problems at NIO. A thorough review of the documents shows that the company is facing some not inconsiderable obstacles both in terms of demand and production of its first electric SUV, the ES8. Since NIO is obligated in the SEC publication to truthful data, now some details come to the daylight which are astonishing.

According to the data, NIO has so far only booked around 17.000 orders have been received for the ES8, of which 12.000 continue to be fully reimbursable. For these orders NIO has only received a down payment of 5000 RMB (equivalent to about 650 Euro) similar to Tesla with the Model 3. This allows customers to convert a reservation into a purchase contract or receive the down payment back if the purchase option is not exercised. Accordingly, of the orders for the ES8 received by NIO so far, only just under 5000 are firm.

Now it gets adventurous. Should NIO get all orders converted into real sales contracts, buyers would have to wait a long time for their vehicles. In the SEC publication NIO talks about 6 to 9 months. However, the company has so far been able to deliver around 500 vehicles per month, which would tend to indicate much longer delivery times. NIO produces its vehicles at JAC as part of a production joint venture. According to the data that have now become known, it was not able to utilize the capacities booked as part of the joint venture. According to insiders, penalties of around 12 million euros have already been paid to JAC. So there seems to be the worm in the production workload. So far, it is not known why a larger volume of vehicles cannot be brought to delivery despite existing capacity at JAC. Long delivery times are an absolute no-go with Chinese customers. Could prove to be a real problem for NIO in the future.

Moreover NIO loses a lot of money. The company itself says that it has lost 1.6 billion dollars in the past three years and it is estimated that NIO will lose another 1.8 billion dollars in the next three years. The company has just $668.5 million in cash, according to SEC filings. As an investor I would be concerned. Perhaps NIO should have waited a little longer before venturing onto the international stage. Maybe sell a few more cars first. Ensure secure production with your own factory. But with the accumulated losses, NIO seems to have lost the money from the USA IPO "NOW." To need.

Like this post? Please share to your friends:
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: