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Nio Delays Paychecks As Coronavirus Impacts Company: Report

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Nio Delays Paychecks As Coronavirus Impacts Company: Report

Nio Inc – ADR (NYSE: NIO) shares were higher in four straight sessions, defying lackluster deliveries statistics for January and a warning of further weakness. The stock was pulling back Thursday amid a report that the company is delaying payment of salaries to employees.

Chairman and CEO William Li told employees that salaries would be paid out Feb. 14 instead of the normal schedule of Feb. 8 as the company takes stock of the situation in the aftermath of the COVID-19 outbreak, Bloomberg reported, citing a message to employees that was subsequently confirmed to the outlet by a company representative.

Li also suggested that employees opt for restricted stock units in lieu of their upcoming bonuses, although the choice was left to the discretion of employees, the report said.

Such an alternative would give some breathing room to cash-strapped Nio, which is facing fundamental and macroeconomic woes that are now compounded by the impact of the coronavirus outbreak that has virtually shut down the country and the economy for an extended period.

After reporting a precarious cash position of $274.3 million at the end of the September quarter of 2019, Nio recently struck a debt financing deal that would give access to $100 million in funding.

The stock was down 3.2% at $3.94 at the time of publication.

Related Links:

4 Reasons Nio Shares Are Higher Despite Sales Warning

Nio Shares Continue Higher Despite Predictions Of Record Plunge In Chinese Auto Sales

Photo courtesy of Nio.

Posted-In: Bloomberg coronavirus Covid-19 electric vehiclesNews Global Media Trading Ideas Best of Benzinga

 

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