Why Shares of Chinese EV Maker NIO Collapsed in September
Shares of Chinese electric vehicle maker NIO (NYSE: NIO) were clobbered in September, after a disappointing earnings report raised the possibility that the company would soon run out of cash.
NIO's American depositary shares lost about 45.5% of their value in September, according to data provided by S&P Global Market Intelligence.
Its second-quarter earnings report was delayed from early August to Sept. 24 amid rumors that the company was scrambling to raise additional cash. Those rumors had a basis in fact: When it was finally released, NIO's report showed that it had burned about $620 million in cash in the quarter, and had just $503.4 million remaining as of June 30.
Source Fool.com
