Nio Inc (NIO)

[WebSlinger]

<< So is that a good thing? >>

Not really. It would be good if NIO didn't have to resort to loans and notes. But the notes keep the lights on for a while, and kicks the proverbial can down the road.

The big issue right now is the Coronavirus. It isn't letting up and continues to keep Chinese companies shut down. If NIO can't produce & deliver cars, then they can't make money. There is a very real possibility that the Coronavirus will kill the company.

JAC Motors (the company that builds NIO vehicles) is a large auto manufacturer that makes a large variety of their own vehicles. They have been shutdown now for over 2 weeks. Once they come back online, they will have a backorder that needs to be filled. At that time, they might decide to delay delivery of NIO vehicles, in order to handle their own.