NIO, which has been nicknamed the “Tesla of China”, showed signs of a resurgence yesterday after crushing their Q3 sales estimates. The company delivered 4,799 vehicles, which was a 35% increase from last quarter and just what the company needed to break out of their recent struggles. NIO’s stock price had plunged all the way down to $1.19 last week after missing their sales estimates the first two quarters of 2019. This positive news jolted shares up 9% yesterday.
The company is continuing to restructure in order to cut costs and turn the company around from their extensive history of losses. They plan on cutting thousands of jobs and reducing R&D spending for the rest of 2019. The company outlook remains bleak after the Chinese government pared back subsidies for electric vehicles, but their Q3 sales numbers at least signal that NIO could still make some noise in the Asian auto industry.