$NIO Inc (NIO.US)$ People here are wondering how NiO can hav...
$NIO Inc (NIO.US)$ People here are wondering how NiO can have a maximum capacity of only 20k? Why is NiO opening a new factory instead of going double shift like Xiaomi? I think the CEO is laying ground for raising additional money. Later, he will say that NiO is earning well but needs to raise more money to build additional factories. I bet they will have a new funding round in a couple of months, and the shareholders' position will be diluted again.
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量子狄拉克 : they only got the approval to build, doesn't mean they want to build now. maybe their rich dad gives them money to build? 1 or 2b is cheap for their rich dad, just needs the oil price increases by 1%.
102332870 : Nio current capacity about 400k/year, or about 30k a month. May capacity is max out as their orders around 30k, deliveries is official 20.5k.
73275314 : A monthly output of 20,000 represents a maximum annual output of 240,000. One factory has an annual output of 200,000, which is a lot. They need a second and third plant to expand production capacity. Moreover, NIO just got the license to build a car. It takes some process and time. The investment is definitely huge, and the risk is definitely there.
VIVEK SURANA OP 102332870 : In that case, if they produce 30 K in May and demand is still strong , the June delivery should go up to 30K since the current waiting time is 2 to 3 week. Why is June expected delivery only 17 to 19k
ZnWC VIVEK SURANA OP : According to Reuters, NIO president and co-founder Qin Lihong confirmed the EV maker has started building its third factory. The new plant will be used to build NIO and Onvo brand electric cars. Lihong told Blue Whale News that NIO’s current production capacity (at its two existing plants) had reached its single-shift capacity due to higher demand.
I agree with you that Nio will be raising new fund soon. The likelihood of selling more convertible bonds (may be called a different name) is high, risking further stock value dilution - long term shareholders are paying the bill.
NIO is building its third EV plant as it can no longer meet demand - Electrek
Teck Wang Pang PaPa VIVEK SURANA OP : conservative figures..
Lovely_Moo Teck Wang Pang PaPa : Another explanation is that the 400k/year is shared between Nio and Onvo. Currently Nio max capacity is 20k/month because they are preparing the factory for Onvo 10k/month. But this is a pure speculation as of now.
bullshyt : shuddup la
ZnWC VIVEK SURANA OP : Based on the latest earnings report, NIO doesn't have sufficient money to build a new factory. The report said delivery is declining but the CEO is still forecasting an unrealistic high sales figure - implying high demand to justify that the current production is not overcapacity.
Nio Inc (09866) fell 7.4% after the earnings report, with first quarter losses expanding and average auto prices and deliveries declining.
https://www.moomoo.com/t/news/post/39203709/Y3jFRA2jba
VIVEK SURANA OP bullshyt : Why are you wasting your precious time in commenting on our post. You have the option to just ignore .
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