Nio, which last year fired its Danish CEO and consolidated its business in Stockholm, came out of the fourth quarter of 2024 with a deficit of more than 6 billion kroner.
Chinese Nio, which fired its Danish CEO last year, came out of the fourth quarter of 2024 with a significant deficit of 6.2 billion kroner.
The Chinese electric car manufacturer operates in a highly competitive market and has faced ongoing financial challenges.
During the last quarter of 2024, Nio's financial statements showed a loss of around 6.2 billion Danish kroner.
It is not a new phenomenon for the car brand to run at a loss. In fact, Nio has been selling its electric cars for a long time without making any profit from it.
However, the repeated losses are putting increasing pressure on the company's finances. Sam Evans from the YouTube channel The Electric Viking says that Nio is now in a particularly critical situation.
Nio expects to make a profit despite billion-dollar losses
– They have lost so many Nio, who last year fired their Danish CEO and consolidated their business in Stockholm, came out of the fourth quarter of 2024 with a deficit of more than 6 billion kroner. -that's crazy.
According to assessments from several analysts, the situation for Nio is now particularly critical. Without a noticeable improvement in financial results, the company's future may be uncertain.
Alongside the publication of the negative quarterly result, Nio announced that the company had found it necessary to raise new capital to survive.
This is an amount equivalent to approximately 3.5 billion Danish kroner, which was raised through the issuance of new shares.
However, the new capital injection does not seem to have immediately convinced investors, as the news caused the share price to fall to its lowest level in five years.
This indicates continued skepticism in the market regarding Nio's financial situation.
The management at Nio expects that with billions of dollars they can stay afloat until the end of 2025. A year that the CEO, William Li, actually expects to make a profit from.
On an annual basis, the whole of 2024 was a disaster for Nio. The brand, which focuses on electric cars that require batteries to be changed instead of being charged, lost an awful lot of money. Read more about it here .
