Thursday, February 13, 2020 2:34:01 PM
Tradition is what it is. I don't have any problem with that.
The problem remains that NIO does not have a profitable business model. Every car sold is sold at a loss. The more they sell, the greater the loss, as the quantities are at the point of diminishing returns (assuming you know what that means). The determining factor is that NIO cannot do their own manufacturing. Without that, NIO's business model is broken.
At the current volume of NIO auto production, and with NIO not having their own manufacturing facility, increases in sales has no more leverage in terms of being able to lower the cost of production.
IF NIO could have its own manufacturing facility, their cost of production would be lower (as they would not be spending money to sub-contract car production), and they could then probably make a profit. But it is not in their plan to build such a facility. Without that, NIO cannot win.
NIO's business model, as it is, is broken -- period.
I'll make a suggestion: India has auto production facilities, as does South Korea and other Asian countries. Perhaps NIO should seek to obtain competitive bids to manufacture NIO's cars from all auto manufacturers in all Asian countries (which would also include China). In exchange, NIO gives a percentage ownership of NIO to the winning manufacturing company with no special consideration given to which country or which company wins the bid; and because of that, NIO no longer pays for manufacturing. In other words, NIO becomes a multi-country company partially owned by NIO and partially owned by the winning auto manufacturing company.
Recent NIO News
- Chubb Stock Soars 9% with Berkshire Acquisition, AST SpaceMobile jumps 37% on AT&T deal, and More News • IH Market News • 05/16/2024 11:27:07 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/16/2024 10:07:01 AM
- Arm Sets 2025 Target for AI Chip Development, Amazon and Microsoft Commit Billions to French Investments, and More • IH Market News • 05/13/2024 11:16:03 AM
- Tesla’s April Sales Down 18% in China, Amazon’s Multi-Billion Dollar Cloud Expansion in Singapore, and More News • IH Market News • 05/07/2024 11:44:00 AM
- NIO Inc. Provides April 2024 Delivery Update • GlobeNewswire Inc. • 05/01/2024 09:30:24 AM
- Samsung Surpasses Apple in Q1 Smartphone Market; Salesforce in Talks to Acquire Informatica, and More News • IH Market News • 04/15/2024 11:06:48 AM
- NIO Inc. Files Its 2023 Annual Report on Form 20-F • GlobeNewswire Inc. • 04/09/2024 10:11:21 AM
- NIO Inc. Provides March and First Quarter 2024 Delivery Update • GlobeNewswire Inc. • 04/01/2024 09:30:26 AM
- NIO Inc. Prudently Adjusts First Quarter 2024 Delivery Outlook • GlobeNewswire Inc. • 03/27/2024 09:30:20 AM
- Fisker’s Shares Take a Hit Amid Speculation of Bankruptcy, Altria Divests from AB InBev to Fund Stock Repurchase Initiative • IH Market News • 03/14/2024 11:39:32 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/05/2024 12:39:45 PM
- U.S. Futures Dip, Crude Oil Fluctuates • IH Market News • 03/05/2024 11:05:54 AM
- NIO Inc. Reports Unaudited Fourth Quarter and Full Year 2023 Financial Results • GlobeNewswire Inc. • 03/05/2024 10:00:21 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/01/2024 11:06:42 AM
- NIO Inc. Provides February 2024 Delivery Update • GlobeNewswire Inc. • 03/01/2024 09:30:55 AM
- Form SC 13D/A - General statement of acquisition of beneficial ownership: [Amend] • Edgar (US Regulatory) • 02/28/2024 03:48:47 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/26/2024 02:23:07 PM
- NIO Entered Into Technology License Agreement with Forseven Limited • GlobeNewswire Inc. • 02/26/2024 10:00:59 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/22/2024 12:12:45 PM
- NIO Inc. to Report Unaudited Fourth Quarter and Full Year 2023 Financial Results on Tuesday, March 5, 2024 • GlobeNewswire Inc. • 02/22/2024 09:30:53 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/07/2024 11:20:43 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/07/2024 11:02:27 AM
- NIO Inc. Announces Board Change • GlobeNewswire Inc. • 02/07/2024 09:30:51 AM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/02/2024 11:05:49 AM
- Form SC TO-I/A - Tender offer statement by Issuer: [Amend] • Edgar (US Regulatory) • 02/01/2024 02:21:51 PM
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