Chinese EV maker Nio raises going concern doubts

[March 18, 2020]  (Reuters) - Cash-strapped Chinese electric vehicle (EV) maker Nio Inc <NIO.N> said on Wednesday there was substantial doubt in its ability to continue as a going concern.

Chinese electric vehicle start-up Nio Inc. company logo is on display on its initial public offering (IPO) day at the NYSE in New York, U.S., September 12, 2018. REUTERS/Brendan McDermid

The carmaker has been hurt by dwindling demand in China, the world's largest car market, and reduced government subsidies for electric vehicles.

Its cash balance of $151.7 million as of Dec. 31 was not adequate to provide the required working capital and liquidity for continuous operation in the next 12 months, the company said in a statement.

(Reporting by Supantha Mukherjee in Bengaluru; Editing by Saumyadeb Chakrabarty)

[© 2020 Thomson Reuters. All rights reserved.]

Copyright 2020 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.