Chinese EV Company, NIO

NIO is a People’s Republic of China (PRC) electric vehicle (EV) manufacturer, headquartered in Shanghai. NIO has recently launched an initial public offering (IPO) worth over US $1 billion on the New York Stock Exchange (NYSE).

NIO was founded in 2014 and currently has 6,000 employees around the world. In the PRC, NIO markets it’s EVs in the PRC as superior in quality and cheaper in price to Tesla. NIO was initially funded by government owned banks, which is a common practice in the PRC. To date, the company has manufactured only a few hundred EVs.

Will NIO become a major manufacturer of EVs in the foreseeable future? Unlike Tesla, NIO doesn’t own an EV manufacturing plant. In the past three years, NIO has spent over US $1.5 billion on research and marketing and has virtually no tangible assets. In my opinion, NIO has a murky financial future, similar to numerous solar photovoltaic panel companies that also launched an IPO in the United States.

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