AutoBeta(AutoBeta.net)06/13 Report--

In the face of a loss of 2.6 billion yuan in the first quarter of 2019, the 10 billion financing agreement with Beijing Yizhuang International Investment and Development Co., Ltd. has attracted the attention of the industry.

Recently, Li Bin, CEO of NIO, who took Tesla as a rival, gave an interview in which he also responded to a loss of 2.6 billion yuan in the first quarter. "as a young company, it is impossible for NIO to make a lot of money in the first place, and Tesla lost 16 years to make money, and we have only been able to make money for more than four years," he said.

It means that these are a means of financing for the company, and it is impossible to ask a 4-year-old to support a family because it is only four years old. Li Bin believes that the long-term investment value of Xilai has not been fully understood by the market, and claims: "I can say for sure that it will not take more than 10 years for us to make a profit."

According to the financial report for the first quarter of 2019 released from Xilai Automobile, the number of ES8 delivered in the first quarter was 3989, sales decreased by 50% month-on-month, total revenue was 1.63 billion yuan, month-on-month decrease of 52%, net loss of 2.62 billion yuan, a decrease of 25% month-on-month, an increase of 71% over the same period last year. The company's shares continued to fall last month after demand fell further in the second quarter. Shares in Xilai have fallen 16 per cent this month and hit an all-time low in new York on Wednesday.

Previously, shareholders in Xilai had apparently lost patience due to lower-than-expected sales. The company's shares began to fall in March, when the company cut its delivery forecast and cancelled plans to build a plant in Shanghai.

Li Bin said that the decision not to build a factory in Shanghai has saved the company a lot of capital expenditure. Although he does not rule out building a factory in Beijing in the future, he said the company will now rely on third parties to produce cars in Beijing.

In the face of performance, Xilai also made a plan to launch a second SUV product, which is located lower than ES8 and sold at a price of 358000 yuan to 548000 yuan before the subsidy. According to the NEDC standard, the mileage can reach 510km, which is a great progress compared to ES8. The first commemorative version of the first 6000 ES6 will also be delivered next month.

Under the downward trend of new energy subsidy policy, NIO will face more severe challenges, especially Tesla is about to build a large number of factories in China, and the company still has a long way to go to make a profit.

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