NIO CEO revealed that the pandemic did not significantly affect the company's supply chain and that its performance has been undisturbed since the second half of March. The company's product release schedule and research development sector also remained unwavering amid the crisis.
According to Chinese electric vehicle company NIO Inc.'s CEO William Li, the company stood firm amid the pandemic as its global chain remain stable since the second half of March. NIO also announced a product release schedule and revealed that its research and development department remains steady even during the pandemic.
He claimed that the worst effect of the pandemic has blown over against NIO Inc. he claimed that the health crisis did not lower the company's annual forecast. However, he did not that NIO experienced the adverse impacts of the pandemic to its first-quarter values, but such effects would not extend to the company's second-quarter performance. He added that the pandemic would not have much of an impact on its original plan for the rest of the year.
Li claimed that although there were minor setbacks experienced by the company through its supply chain, its output and production have been stable since the second half of March. The CEO's upbeat tone was said to have been caused by the trade of shares initiative by NIO's US conglomerate, where it lost more than a third of its value from the 2019 yield. NIO was allegedly experienced financial struggles and a drop in the domestic auto market.
On the other hand, the company's greatest rival, Elon Musk's electric car company Tesla, improved its performance in Shanghai during the second half of March.
Last Wednesday, NIO announced that the company, along with strategic investors, would inject seven billion yuan into its Chinese conglomerate this quarter. These investments would be effected in installments until the end of 2021. The investment was referred to as a previously announced plan to create its company's headquarters in Anhui province, China. According to the Wall Street Journal, Li announced that the move was not a state bailout. It was also discussed that the move would enable NIO to be more competitive against Tesla Inc. in the largest market for electric vehicles.
Li added that the investment plan would address NIO's capital needs in the long-run. He also hoped that NIO would generate profits sooner due to the influx of more significant investments. At present, the company's shares in the stock market increased by 15 percent in pre-market trading.
