Chinese electric vehicle manufacturer Nio Inc - ADR (NYSE: NIO) is leaving no stone unturned as it wrestles with a weak domestic EV market and softer macroeconomic fundamentals.
Apart from stepping up focus on services and innovation, which was evident from Nio's tie-up with Intel Corporation (NASDAQ: INTC)'s Mobileye for driverless consumer vehicles, Nio is trying out unconventional means not only to prop up its plateauing sales but also to reinvigorate the Chinese EV market as a whole.
In what might be called a win-win proposition, Nio and domestic EV rival Xpeng Motors have agreed to share charging stations as well as related services and data, Bloomberg reported Wednesday.
This arrangement will allow customers of both companies to use each other's charging stations at no extra cost. Nio has also reportedly agreed to provide home charger installation services for Xpeng customers.
The partnership is an attempt to embolden potential customers waiting on the sidelines due to fears of limited EV driving ranges and a lack of charging infrastructure to take the plunge.
Additionally, the companies could also rein in their costs, which in turn would help bolster bottom lines.
The Verge reported Tuesday that Nio has laid off 141 employees in Silicon Valley at its North American headquarters, citing a filing with the Employment Development Department of California. It's Nio's third round of layoffs in the U.S. this year.
Nio reported earlier this month sales of 2,528 vehicles in November, nearly flat with October's 2,526.
After a summer lull, the company has seen some momentum in sales, although the overall industrywide softness is threatening a slowdown for Nio as well.
Xpeng, founded in 2014 and headquartered in Guangzhou, China, is an EV startup that has the backing of UCWeb founder He Xiaopeng. The company has been funded by investors including, Alibaba Group Holding Ltd - ADR (NYSE: BABA), Foxconn Group and IDG Capital.
Nio shares were down 0.88% at $2.26 at the time of publication Wednesday.
Nio CEO Confident Following Rebound In Deliveries: 'Spring For Electric Vehicles Is Near'
Nio To Eliminate 21% Of Global Workforce As Q2 Loss Widens, August Deliveries Miss Mark
Photo courtesy of Nio.
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.