The electric car manufacturer NIO plans to launch its first smartphone this month. This is behind the plans of the Chinese Tesla competitor.
• NIO launches its own smartphone in September
• The Chinese e-car manufacturer is thus following a trend
• Investors unsettled
The time will probably come at the end of September: NIO will launch its first self-developed smartphone, the “NIO Phone”, as the Chinese electric vehicle manufacturer recently announced. The Tesla competitor from China is thus following a trend that is now widespread.
NIO wants to offer its users the “best experience”.
The interaction between car and smartphone is becoming increasingly relevant. With the help of the NIO Phone, the drivers of the NIO vehicles should have more options – in addition to opening the doors, switching on the air conditioning or starting the car, many other functions should be possible.
The electric car manufacturer is thus pursuing the goal of increasing the attractiveness of its cars through better software and connectivity, as Reuters reports. “We don’t want our phone business to compete with these phone manufacturers,” NIO founder and CEO William Li said in a earnings release on Tuesday. And further: “Instead, we want to use the phone as a carrier to offer our vehicle users the best experience”.
NIO investors unsettled
However, the news is not well received by everyone in the market, so some investors reacted with concern, as reported by Reuters. Because: NIO is in a price war with its biggest competitor Tesla. The group is suffering from increasing losses and a drop in sales. For the second quarter of this year, NIO recently reported a loss per share of CNY3.70 on sales of CNY8.772 billion, up from CNY10.292 billion in the same quarter last year. In trading on the NYSE, the NIO share reacted to this with a price slide of over 14 percent at times to 9.46 US dollars. In the end, however, it closed down only 1.27 percent at $10.88.
How things will continue for NIO and to what extent the NIO Phone can increase the attractiveness of its e-cars remains to be seen.
Editorial office finanzen.net
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