Chinese Nio received billions to compete with Tesla

Chinese Nio received billions to compete with Tesla

April 30, 2020 0 By autotimesnews

New investments will help the Chinese electric car manufacturer cope with the crisis and continue to work.

The Chinese company Nio, specializing in the production of premium electric cars, will be able to continue its work thanks to new investments. This automaker has a history dating back to 2014. He managed to make himself known among hundreds of other electromobile startups in the Middle Kingdom. It was possible to break out into the leaders of the young company with the help of an electric cross, quickly developed and immediately put on the conveyor. The flagship, which went on sale in the summer of 2018, was called ES8. Last year, the ES6 compact cross joined him.

 So far, Nio only works for the home market. In 2019, she managed to sell 20,946 of her cars. This is much less than the numbers that the automaker was counting on.

 A competent PR campaign should have contributed to the promotion of the brand outside of native China. We are talking about the electric hypercar EP9, which set the Nurburgring record. Such a campaign cost the company a decent amount, but the profits from EP9 did not wait. Last fall, due to low sales and the fall of China’s car market, Nio Inc. shares on the New York Stock Exchange, they significantly “sank”. Then there was talk of bankruptcy.

 However, the worst-case scenario was avoided. In February, Nio was able to get 10 billion yuan ($ 1.41 billion) to develop the company through an agreement with Hefei Municipality. Now, Reuters reports about 7 billion yuan received by Nio China. In a word, the company has the funds to continue working and fight against Tesla. What application will find them a company, not yet reported.