Nio's CFO Unexpectedly Resigns Just Weeks After Company Makes Massive Job Cuts
Everything is just fine and dandy in the world of EVs.
As we anxiously await Tesla's 10-Q for an explanation of the company's "surprising" profit, competitor Nio is continuing an exceptionally dismal 2019 that has so far included shareholders being decimated and four vehicles catching fire (that we know about).
In addition to the company's stock being down roughly about 80% since the beginning of the year, Nio unexpectedly announced on Monday that its CFO, Louis T. Hsieh, was resigning.
The company said in a press release that the CFO "tendered his resignation as chief financial officer of the Company for personal reasons, effective October 30, 2019."
Hsieh had been with the company for a little over 2 years, joining in May of 2017.
Tesla investor Baillie Gifford is also an investor in Nio, having paid $670 million to buy more than 100 million shares of Nio in 2018 and early 2019. They are now down more than 80% mark-to-market on their Nio stake.
Recall, almost one month ago to the day, we reported that Nio was making massive cuts, slashing its global headcount by more than 20% to 7,800 by the end of the third quarter. This is down from over 9,900 in January 2019.
The company said in late September that the slashing of jobs was "in response to the overall tempered market conditions" in a statement. It also said at the time that it had implemented “comprehensive efficiency and cost control measures” as a result of market conditions.
The company also said it would pursue more restructuring, including spinning off some non-core businesses by year end.
We're going to venture a guess and say this strategic realignment may not be going as planned...
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