Nio had sales of $7 million in the first half of 2018 with a net loss of over $500 million. The company rolled out its ES8 electric SUV last year at a price of $65,000. Nio reportedly had 17,000 orders at July-end but deliveries were below 500.
Although China is the largest global automobile market, the electric vehicle space is getting very crowded and there is tough competition from carmakers both within China and around the world. Nio has been facing a tough market environment amid general trade and currency issues in China which has affected Chinese companies in general.
Nio does not yet own a factory in China and has to depend on JAC Motors for its vehicle production, which poses certain limitations for the company. Despite this, Nio has plans to broaden its sales internationally.
Tesla meanwhile has grand plans to build a factory in Shanghai with the goal of producing 500,000 vehicles annually and the company also gets a meaningful amount of annual sales from China.
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