Nio Announces Abrupt Resignation Of CFO Amid Fundamental Woes At The Chinese EV Maker

Beleaguered Chinese electric vehicle maker Nio Inc – ADR's 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.

Related Links:

Nio Shares Drop On Poor Sales; UBS Remains Neutral

BofA: Nio Faces 'Weak' Orders, Stiff Competition, High Refinancing Risk

Photo courtesy of Nio.

Posted In: Louis HsiehNewsManagementTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.