What happened
Shares of Chinese electric-vehicle maker NIO (NIO 0.25%) were falling on Thursday, after a Chinese media outlet reported that the leader of its electric-drivetrain engineering team is leaving the company.
As of 3:30 p.m. EDT, NIO's American depositary shares were down about 11.3% from Wednesday's closing price.
A NIO ES8, an upscale seven-passenger electric SUV. Image source: NIO.
So what
Chinese business-media outlet 36Kr reported that Charles Huang, the senior executive who has led NIO's electric-drivetrain development efforts since 2015, will leave the company on June 30.
Huang is a key figure at NIO. He oversees over 200 employees charged with developing the company's battery-control systems, motors, and vehicle-control hardware and software -- all critical components of an electric vehicle.
According to 36Kr's report, the department is being reorganized and many of its employees are being reassigned.
It's the latest in a series of signs that NIO is in turmoil amid a scramble to raise new cash.
Now what
NIO has been struggling to stay afloat. It said on March 18 that it lost $406 million in the fourth quarter of 2019. NIO was very close to running out of cash at the end of the year; it has since raised about $435 million, but it needs a larger investment to get out of survival mode.
NIO has been negotiating a larger financing deal with a city government in China. But nothing is signed as of now. If Chinese electric-car sales don't pick up soon, NIO -- and its investors -- may run out of luck.
