AutoBeta(AutoBeta.net)08/06 Report--

At 16:00 EST on August 5 (04:00 Beijing time on August 6), U.S. stocks closed down sharply and the market value of the stock market evaporated by more than $700 billion. NIO Auto, a closely watched new force in the automotive sector, also fell significantly. By the close, NIO Auto reported $2.95, and its share price fell-9.79% in a single day.

Before the opening of the U.S. stock market that day, Wei Lai announced the "throttle" plan because of the impact of continued losses and difficulties. According to a number of NIO car employees, the company is laying off employees for six consecutive years. One of the former employees said that at the end of July, there were only more than 8400 employees. Subsequently, Wei Lai Auto official Weibo responded to another layoff news, saying that in March this year, some netizens claimed to be Wei Lai employees, and posted that Wei Lai had made large layoffs and sales fraud, triggering Wei Lai Auto's "layoff storm". After investigation, the users who claimed to be former employees of NIO were not employees of NIO, but "Weifang City Interconnected Trading Co., Ltd.". NIO Automobile stated that what the department said was pure fabrication and false speech, and the lawsuit has been successful at present.

And forced by tight funds, Zhang NIO Automobile has sold FE electric formula team, China's well-known racing group Lisheng Racing as FE's new owner, NIO Automobile is no longer the owner of this team, but to invest or sponsor its race.

In addition, with frequent spontaneous combustion of vehicles, NIO finally filed a recall plan with the State Administration of Market Supervision on June 27, recalling 4803 NIO ES8 electric vehicles equipped with power battery packs produced between April 2,2018 and October 19,2018. Correspondingly, 11348 vehicles were delivered in 2018, accounting for 42.3% of the recall.

Industry analysis, NIO automobile in the stock price downward aspect although to a certain extent by the overall downturn of the United States stocks, but from its long-term performance, NIO's stock price from listing to now is all the way ups and downs. At the same time, Wei Lai's previous sales decline and layoffs have greatly affected the market confidence in it.

In the first half of this year, NIO delivered 7542 vehicles (including 3989 in the first quarter and 3553 in the second quarter), far from the sales target of 40,000 - 50,000 vehicles set by NIO in 2019.

According to overseas media reports, U.S. stock investors seem to have completely lost confidence in Wei Lai. Among the stock commentators in the U.S. financial media, the vast majority sing empty Wei Lai, and a few are long-term bullish.

Under the influence of multiple disregard, the current market value of NIO Automobile has shrunk by nearly US $100 million compared with the end of July, and the current market value is US $3.447 billion. The overall offer has fallen nearly 53 per cent from $6.26 last September to $2.95 recently. Revenue for the first quarter was 1.63 billion yuan, with a net loss of 2.62 billion yuan.

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