On October 15th, a news about the latest financing action of NIO revealed. It is reported that NIO is negotiating with Wuxing District, Huzhou City, Zhejiang Province for a financing intention of over RMB 5 billion (~US$714 million), in conjunction with this financing, NIO will have a 200,000-year-capacity factory located in Wuxing District. Li Bin, founder, chairman and CEO, said that “there is not much information to disclose.” Subsequently, autohome.com.cn contacted NIO’s co-founder and president Qin Lihong for verification, he has not formally replied.
What is certain is that NIO has been actively promoting multi-faceted financing. As early as May of this year, NIO signed a framework agreement with Beijing E-Town Capital, the latter plans to invest 10 billion yuan to support the development of NIO. NIO responded to this financing in mid-July and “going smoothly” However, in the second quarter earnings report of NIO, there was no mention of the progress in financing cooperation with E-Town Capital. In order to further “enrich the blood”, on September 5, NIO signed a convertible bond subscription agreement with Tencent and Li Bin. NIO will issue and sell a total of 200 million US dollars to investors in a non-public offering. Convert bonds.
Since the announcement of the third-quarter earnings on September 24, the issue of NIO’s losses and lack of money has continued, the stock price has been falling, the financing needs of NIO are also very urgent. It is reported that NIO is communicating with many governments. NIO executives also publicly stated in the third quarter earnings conference call: “We definitely need more funds to support technology research and development, and we are very confident to get more investors’ support.”
According to the latest data, NIO delivered a total of 4,799 vehicles in the third quarter, including 4,196 NIO ES6 and 603 NIO ES8, an increase of 35.1% over the second quarter. Previously, NIO had expected delivery in the third quarter between 4,200 and 4,400 vehicles. Obviously, this latest achievement exceeded expectations. NIO previously said that it has great expectations for market performance in the fourth quarter and will focus on the market in the second half of the year. From this point of view, promoting financing and increasing sales will obviously be the focus of NIO.
