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Following CFO, Nio’s vice president of finance also resigns

Written by Song Jingli Published on   1 min read

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The EV maker might need another RMB 15 billion (USD 2.1 billion) in funding between 2019 and 2020 to stay afloat.

Chinese electric vehicle maker Nio disclosed to the US Securities and Exchange Commission on Wednesday that Dongning Wang has resigned from his role as vice president of finance. Yu Qu, who has served in senior financial management roles in Nio since October 2016, will replace Wang.

This came only days after Louis T. Hsieh resigned as chief financial officer for personal reasons on Oct 30. Nio has yet to locate a replacement for Hsieh.

Behind these management shifts is mounting financial pressure on Nio. The company might need another RMB 15 billion (USD 2.1 billion) in funding between 2019 and 2020 to keep its cash balance at a reasonable level, according to analyst Victoria Li, who published her findings on Smartkarma in October.

Since its launch, the Chinese EV maker has been incurring losses. It booked nearly RMB 3.3 billion in net losses in the second quarter of this year, in part due to decreased vehicle sales that were a consequence of subsidy cuts announced in late March and a macroeconomic slowdown in China.

In October, Nio managed to deliver 2,526 vehicles, an increase of 25.1% from September’s shipments.

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