Beleaguered Chinese electric vehicle maker Nio Inc – ADR's (NYSE: NIO) cup of woes seem to be overflowing, with the latest setback being the resignation of its CFO.
The company on Monday announced Louis Hsieh has offered to resign from the role of CFO, effective Oct. 30, citing personal reasons. Hsieh joined Nio in June 2017, responsible for fund raising ahead of the public listing of its shares. The abrupt resignation is apparently related to Nio's new financing strategy, according to National Business Daily of China.
Nio said in the release it has commenced the search for a replacement and is committed to moving quickly to fill the role.
Why It's Important
In late September, Nio reported a wider-than-expected second-quarter loss and a revenue drop, as the company struggles to push its EV vehicles amid weak macroeconomic conditions and a reduction in subsidies for EVs.
The company also said it looks to trim its global workforce from over 9,000 in January to around 7,800 by the end of the third quarter, while also planning for additional restructuring and spinning off some non-core businesses by year end.
Third-quarter deliveries released in October, however, gave some hope that a rebound is in the cards. The company seems to be pursuing a strategy of product and focus as it attempts to weather the downturn.
Nio shares were sliding 9.93% to $1.36 at time of publication.
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Photo courtesy of Nio.
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