Report: Nio loses $35,000 per car, has lost $835 million in Q2

Nio has lost $835 million in Q2, a report by the New York Times estimates, which is around $35,000 per shipped car. Nio shipped around 8,000 EVs in that time.

The report cites China's government's "formidable" financial backing of its car companies as the reason they're as competitive, since they don't need to worry about profitability.

The European Union suspected as much and launched a probe into the matter. Should the EU conclude that the Chinese government is subsidizing its EV makers, it could impose a tariff to level the playground and protect its own auto industry.

When Nio nearly ran out of cash in 2020, the government immediately injected $1b in return for a 24% stake. Another $1.6b was invested by a state-controlled bank and a group of other lenders.

The NYT report goes on to outline Nio's large profile - it employs 11,000 people in research and development alone. Nio's investment into factory automation has allowed it to employ just 30 technicians to make 300,000 electric motors per year.

Part of Nio and other Chinese EV makers' surge into Western markets is their competitive battery tech - Chinese carmakers have pioneered new battery chemistries that allow longer range at a reduced cost.

Another key factor is the price of the workforce in Chinese EV brands - Nio employees earn up to $30,000 per year, while a comparable employee at Ford earns around $110,000. However both of them might pale in comparison to the role the government funding might be playing in this.

Source | Via