AutoBeta(AutoBeta.net)05/03 Report--

According to the California Department of Employment Development, China-based electric vehicle manufacturer NIO is cutting 20 jobs in San Francisco and 50 jobs in Santa Clara. NIO Automobile submitted the notice on April 9, which will take effect on June 8.

The temporary report did not mention the reasons for NIO's job cuts, but in 2018, NIO's total annual revenue was 4.95 billion yuan, net loss was 9.639 billion yuan, and the total output of its ES8 models was 12775 vehicles, with a total delivery of 11348 vehicles. Some analysts estimate that after the loss in the early period or in order to save costs in the sea and make layoffs, Wei Lai has not announced further actions.

The vehicle delivery results of NIO in the first quarter of 2019 show that a total of 3989 ES8 vehicles were delivered in the first quarter of NIO as of March 31,2019. Of these, 1373 were delivered in March, up 69.3 percent from 811 delivered in February. Some securities analysts believe that the reason why NIO realized the increase in delivery volume in March is related to the decline of subsidy policy for new energy vehicles. Many consumers who are waiting to see are worried that they will not be able to enjoy the current subsidy policy after the first quarter and choose to buy cars in advance. ES8 deliveries in the first quarter exceeded the company's previous forecast range of 3500 to 3800 vehicles, NIO said.

In the first quarter of the performance of Wei to the net loss reached 90%, the industry believes that although the increase in delivery volume but in the heavy losses under Wei will also have a difficult way to go.

In the fourth quarter, NIO's total R & D expenses were 3.997 billion yuan, up 53.6% year-on-year; total sales and management expenses were 5.3418 billion yuan, up 127.2% year-on-year, and total share payment expenses were 679.5 million yuan. The surge in spending in the fourth quarter was explained by an increase in research and development costs and related staffing and the development of the ES6 model.

However, Wei Lai explained that the production capacity of its partner Jianghuai in the next three years can meet its needs. Li Bin, a member of Wei Lai, explained that stopping the construction of the Shanghai factory will help Wei Lai optimize its capital expenditure in 2019. "We believe that with the way of manufacturing cooperation, we can meet the capacity demand faster, do not think this is the bottleneck of the company's development, but also help us save a lot of capital expenditure." However, industry insiders believe that in view of the current shortage of capital flow to Wei failed to allow it to continue large-scale investment in fixed asset projects.

As a local high-end electric vehicle enterprise, NIO is facing the huge challenge of Tesla's factory production in China and Tesla's announcement of price reduction of its models, and the top three German models will be put into production in China.

In contrast, Mercedes-Benz and Audi, BMW and other traditional automobile enterprises have also announced that their pure electric vehicles will be launched in domestic production, although for consumers, Wei Lai's brand appeal is not as good as foreign automobile enterprises with a long history. Wei Lai's survival situation will be the point of survival through cracks.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat