NIO loses after news of CFO resignation 📉

CFO Steven Wei Feng today left the company. The official reasons for his resignation are private and family problems. The CFO had held the role since 2019. Stanley Yu Qu, who previously served as Senior Vice President of Finance, has been chosen as his replacement.  

The high-level change caused a strong stir on NIO shares, which today lost more than 7%. The news of the CFO's resignation coincided with news of Tesla's inclusion on China's government purchase list for Jiangsu province, which opens a new door for the US company to fight for China's electric car market. 

Also today, the market received news of an agreement between the Turkish government and BYD, opening the door for the Chinese manufacturer to build a $1 billion electric car factory. Thus creates an opportunity for BYD's further development in the European market. 

Negative news around NIO overshadowed the positive reading of car deliveries, which reached a record 21,209 vehicles in June (+98.1% y/y). The company increased the number of vehicles sold in the whole of 2Q24 to 57,373 (+143.9% y/y), significantly above market consensus expectations (expecting an increase to 52,765).