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Mainland electric carmaker Xilai Motors, which has been plagued by negative news recently, is looking for a breakthrough. Qin Lihong, co-founder and president of Lai Automobile, said that Xilai intends to raise another $3 billion to invest in new energy.

Affected by the downturn in the car market, NIO recently announced lower-than-expected results in the first quarter of 2019, and car delivery is declining. In the second half of the year, a number of senior executives of the company left, and Li Bin, founder of Xilai, said that in order to control expenses and improve operations, he would cut 1200 jobs in September and retain 7500 by the end of September.

Qin Lihong said that in July, NIO spent a lot of time discussing organizational optimization and proposed a new equity option incentive plan for core talents. NIO was indeed "slimming", but there was no "amputation", let alone "suicide". Then such organizational and budget adjustments will become the norm.

Although there is no doubt about NIO's ability to attract money, in the face of the severe international situation, economic environment and industry environment, NIO, which has always held high, has no choice but to "slim down". Not only will its FE Lai team be sold recently, but it will also lay off 1200 employees worldwide by the end of September, about 2000 fewer than at its peak in February. Qin Lihong told the online car market that the "layoffs" are not over.

According to Qin Lihong, two projects, Lulai Energy and Yizhuang Guotou, are included in the expected $3 billion financing. Among them, the Xilai energy section, which was established in the first half of 2017, is currently preparing independent financing, and more substantial progress will be disclosed by the end of this year. When new cash flow is introduced, the disadvantageous situation of continuing losses will also be alleviated.

In the past two years, NIO has insisted on launching a new car every year. It is understood that in the first seven months of this year, the total sales of Lilly cars was 9044, of which 7346 were sold by ES8, ranking eighth in the medium and large luxury SUV, slightly lower than Volvo XC90, but higher than the range Rover sports version and Tesla Model X. As of July 31, 2019, a total of 19727 ES8 and ES6 vehicles had been delivered by Xilai, of which 8379 were delivered in 2019.

According to the financial report, the operating income of Lulai Automobile in 2018 was 4.951 billion yuan and the net loss was 9.639 billion yuan. Coupled with the losses in the previous two years, NIO has made a cumulative loss of 19.856 billion yuan. In the first quarter of this year, Xilai delivered 3989 ES8, with a total revenue of 1.63 billion yuan and a net loss of 2.623 billion yuan.

The biggest immediate challenge for Xilai is the sales of the ES8 and ES6. ES8 sales began to decline in April due to spontaneous combustion, recalls and other events; ES6 began delivery in June and delivered 1066 vehicles in July. The combined sales of the two models in July were only 1502, and how to quickly generate more sales of the two models, make up for cash flow and boost investor confidence is the key to the life-and-death qualifying stage of Lulai Motor.

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