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A higher EV demand drives the Tesla-competitor-Nio’s quarterly sales beat, shares surge

(Reuters) – Tesla-competitor-Nio Inc. on Monday beat quarterly revenue estimates on higher demand for the electric vehicle, sending the company’s U.S.-listed shares up more than 13 percent in trading before the bell.

FILE PHOTO: a Chinese electric-car start-up, Nio, Inc. the logo can be seen on the initial public offering (IPO) a day on the new york stock exchange in New York, New York, united states of america, September 12, 2018. REUTERS/Brendan McDermid/File Photo

The turnover has increased by more than 22% up to 1.7 billion yuan from a year earlier. Nio is sold 603 units in the model and the ES8, and 4,196 units and the cheaper ones ES6 model in the community.

Nio’s ES8, a pure-electric, seven-seat sport-utility vehicle, is generally considered to be a rival of Tesla, Inc. Model X.

The company has over the Chinese internet giant, Tencent Holdings, and Hillhouse Capital Management, as well as to the shareholders, which raised $1 billion last year in an initial public offering that valued it at about $6.4 billion.

China’s currency Nio, said on Monday it does not have sufficient cash to continue operations in the next 12 months”, adding that it was looking for external sources of funding.

“The electric-car sector is experiencing considerable softness in the second half of 2019, after the reduction of subsidies in China. In spite of the challenges, the NIO, the sales improved a solid beginning in September,” said William Bin Li, the company’s founder, chairman and chief executive officer of Nio.

The company said it delivered 4,799 number of items in the quarter that ended in Sep. 30, compared with 3,553 for delivery in the second quarter of 2019.

It is expected to deliver over 8,000 units in the fourth quarter of the year.

The company has also posted a smaller-than-expected loss of 2.38 yuan per share, in the third quarter, compared to analysts ‘ estimates of a loss of 2.43 yuan.

The total revenue has increased by almost 25% to € 1.84 billion yuan ($263.38 million), beating analysts ‘ estimates of $1.63 billion yuan, according to the Refinitiv.

Reporting Ambhini Festivals in Bengaluru; Editing by Shinjini Ganguli

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