Chinese electric vehicle start-up Nio Inc. company logo is on display on its initial public offering (IPO) day at the NYSE in New York, U.S., September 12, 2018. REUTERS/Brendan McDermid
(Reuters) – Cash-strapped Chinese electric vehicle (EV) maker Nio Inc (NIO.N) said on Wednesday there was substantial doubt in its ability to continue as a going concern.
The carmaker has been hurt by dwindling demand in China, the world’s largest car market, and reduced government subsidies for electric vehicles.
Its cash balance of $151.7 million as of Dec. 31 was not adequate to provide the required working capital and liquidity for continuous operation in the next 12 months, the company said in a statement.
Reporting by Supantha Mukherjee in Bengaluru; Editing by Saumyadeb Chakrabarty