NIO abandons plans to manufacture its own cars amid widening losses

NIO abandons plans to manufacture its own cars amid widening losses

Construction of the plant began on Jan 7 and it is scheduled to start mass production by 2020, delivering 250,000 cars annually.

In the same filing, Tesla amends its ABL credit pact to increase revolving commitments by $500M to $2.425B, allow up to $200M in additional commitments, and extend the term of most of the total commitments to 2023.

The new plant will eventually have an annual production capacity of 500,000 vehicles, the California-based company has said, dramatically increasing its output.

Tesla also has Gigafactories in the Nevada deserts and in Buffalo, New York. If the Chinese EV market expands fast enough, companies like Nio will hardly be affected. Nio CEO William Li said in an earnings call that the cooperative mode is endorsed by the Chinese government. State-owned Shanghai Construction Group (SCG) will build the first phase of Tesla's assembly factory in Shanghai, Reuters reported on Thursday.

It is more evidence of deteriorating demand in the world's largest auto market, which past year contracted for the first time in two decades as the economy slowed and a trade war weighed on consumer spending. The plant is Tesla's first assembly factory located outside of the U.S. But it is willing to further promote the Chinese EV sector with Chinese carmakers.

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Tesla's China Gigafactory will help the automaker enter into China's rapidly growing market for so-called new-energy vehicles (NEVs), a category for fully-electric cars and plug-in electric hybrid (PHEV) vehicles.

However, he said that he believes the company would have to eventually offer some discounts.

Settling the US$920 million convertible bond that matured March 1 taxed the company's balance sheet, which had about US$3.7 billion in cash and equivalents at year-end.

Higher-end versions of the S and X, equipped with a 100 kWh battery, will still be made and sold by Tesla, but at a higher price, CNBC, adding that Tesla did not respond to inquires as to why the S and X offerings were pared back.

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