AutoBeta(AutoBeta.net)10/08 Report--

Since the announcement of the results, the share price of Xilai has continued to fall. NIO shares closed down 4.32% at $1.550 a share on Oct. 8, with an intraday low of less than $1.50, with a total market capitalization of $1.629 billion.

Compared with its debut on the New York Stock Exchange a year ago, the highest share price has gone to $13.80, and its market capitalization has shrunk by 87% since it exceeded $13 billion at one point.

Not long ago, analysts at investment firm Bernstein pointed out in a report that Xilai may run out of cash within weeks and lowered its target price to $0.90. You know, $1 is the risk line for delisting.

Affected by weak demand, intensified market competition, reported profits and losses, product recalls, layoffs and so on, the share price of Xilai continued to fall, and the new car startup ushered in a dark moment.

On September 24th, Xilai announced its second-quarter results, showing that the net loss attributed to shareholders in the second quarter of 2019 was 3.285 billion yuan, which was higher than market expectations. Immediately, NIO announced the cancellation of the conference call after the financial report. CEO Li Bin clarified in the conference call that taking into account factors such as dividends, the actual loss over the past four years was only about 22 billion yuan, of which 10 billion was spent on research and development.

The "crazy money burning" model of Wei Lai has put more and more pressure on its funds, but now with the fade of the boom and policy changes, great changes have taken place in the capital environment, and investors have become extremely cautious about the investment projects of building cars on the Internet. NIO has difficulties in financing.

In early September, Xilai announced that it had reached a subscription agreement for convertible bonds with Li Bin and subsidiaries of Tencent Holdings. Lai Automobile will issue and sell convertible bonds with a total principal of US $200 million to Li Bin and Tencent through private placement.

Some analysts said that even if CEO Li Bin and shareholder Tencent Holdings continue to inject new money into Xilai, the fund may only last for a few weeks.

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