Chinese electric vehicle (EV) manufacturer Nio has refuted recent speculations about the company facing the possibility of going out of business, responding to user-generated questions on Chinese social media. At the Guangzhou auto show on November 17, Nio's co-founder and president, Qin Lihong, addressed these concerns, assuring the public that there is “absolutely no possibility” of the company going under.
In his speech, Qin highlighted Nio's significant accomplishments throughout the year, emphasizing the completion of the transition from a first-generation platform to a second-generation platform. He underscored the successful release and delivery of five new vehicle models, as well as the establishment of a factory with an annual production capacity of 300,000 vehicles.
Despite Nio's delivery figures showing a 40 percent year-on-year increase in the January to October period, Qin acknowledged the intense scrutiny the company faces within the dynamic electric vehicle industry. He stated that the current market represents a historic opportunity, but the high expectations set by the industry make even a 40 percent growth rate subject to skepticism.
Qin asserted that Nio remains committed to its unique path within the electric vehicle landscape, expressing gratitude for the attention and concern shown by users. He acknowledged the challenges inherent in navigating the industry's high bar for success, emphasizing the necessity for strategic resolve and perseverance in the face of skepticism.
While Qin did not provide extensive details about Nio's new factory during the presentation, it is presumed to be the F2 plant at NeoPark in Hefei, Anhui province. Nio's other manufacturing facility, the Hefei JAC-Nio advanced manufacturing base, continues to produce Nio vehicles.
One factor contributing to recent skepticism may be Nio's delay in announcing the release date for its third-quarter earnings. Unlike local peers Li Auto and Xpeng, which disclosed their third-quarter earnings on November 9 and November 15, respectively, Nio has yet to provide a date. The absence of this financial update may have fueled uncertainty and speculation about the company's performance.
It is worth noting that last year, Nio announced its third-quarter earnings on November 10, providing a historical context for the current situation. Investors and industry observers await the forthcoming financial report to gain insights into Nio's recent performance and its outlook within the competitive electric vehicle market.