Electric vehicle maker Nio Inc.'s CEO said it may list a new Nio China entity, as the cash-strapped company eyes a rebound after selling fewer vehicles during the coronavirus outbreak.
Nio secured a 7 billion yuan ($989 million) investment in Nio China from state-controlled investors last month.
The company will make a comprehensive decision about a stock market listing based on capital market conditions, CEO Li Bin said on an earnings call Thursday.
Nio's revenue stood at 1.37 billion yuan ($191.46 million) in the first quarter, the company reported earlier, compared with an average analyst estimate of 1.67 billion yuan, according to IBES data from Refinitiv.
The company's shares fell 3 percent in early New York trading.
Auto sales in China tumbled 31 percent in the first four months of the year as the coronavirus outbreak disrupted production and delivery of vehicles.
Li said the company's overall gross margin was expected to reach 3 percent in the second quarter, from -12 percent in the first quarter, as the cost of battery packs, a key component, drops.
Nio delivered 3,838 vehicles in the first quarter ended March 31, down from 3,989 vehicles in the same period of 2019. Sales from vehicles fell 18 percent to 1.26 billion yuan, the company said.
However, the company added that growth in orders since late April has rebounded to levels seen before the virus outbreak. Nio said it expects to deliver 9,500 to 10,000 vehicles in the second quarter, while Li expects monthly production in China's eastern Hefei city to reach 4,500 to 5,000 units in August or September.