Nio Has To Raise More Money to Survive

Nio Has To Raise More Money to Survive

A large interest repayment arrives Feb. 1, but Nio will probably go out of money upfront

Many reports arrived on Wednesday, Jan. 15 that Nio had raised $1 billion in funding from Guangzhou vehicle Group (OTCMKTS: GNZUF ).

Nonetheless, on Thursday, the Southern China Morning Post stated that Guangzhou Automobile had verified it would potentially invest as much as just $150 million in Nio.

Nio Is Starving for Money

Nio’s third-quarter report ended up being released on Dec. 30, 3 months following the end of their matching quarter. The report shows Nio’s cash position was down seriously to just $274.3 million.

But on June 30, 2019, Nio had $503 million in cash and assets readily available. Which means Nio lost $228.7 million when you look at the quarter that is third.

And so the ongoing business cannot afford to continue burning through such considerable amounts of money.

Through the quarter that is third Nio burnt through $228.7 million. As well as the business probably burned through an equivalent quantity into the 4th quarter.

Will $150 Million Really Assist Nio?

Nio will probably need certainly to raise a lot more than $150 million to be able to survive.Read more