NIO, known for their EV cars and their ties to Formula E, has reportedly cancelled their original plans to build a huge factory in Shanghai due to a loss in revenue.
The company, invested in by the likes of Lenovo and TPG, has strived to create autonomous AI controlled electric vehicles and develop charging stations around China.
However as of a press release that came out on Tuesday last week they have suffered major financial issues throughout 2018.
According to the report the company suffered a loss of $1.4 Billion. Part of this is due to the fact that the company did not have their factory in production yet and were paying another Chinese manufacturer JAC Motors to build their two SUV models, the ES8 and ES6. This in turn back fired as NIO must pay JAC a portion of every car sold.
– “In 2017, NIO signed framework agreements and memorandums with the government and related entities in Jia Ding, Shanghai, to build a manufacturing plant for NIO. Recently, the Company has agreed in principle with these contractual counterparties to terminate the plan for this manufacturing plant, pending signing of the definitive termination agreement.” –
The above statement is sad news for the company who are striving to create affordable AI controlled cars. While still a company to keep an eye on it appears they won’t be ramping up production any time soon.