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Another Shocker From China’s ‘Tesla Killer’

Chinese electric vehicle maker NIO is losing money on every car it sells and will soon need to raise more cash

China’s answer to Tesla is in the breakdown lane.

The company, New York-listed electric-vehicle maker NIO Inc., said it lost $483 million last quarter, a 25% greater loss than the previous quarter. That was partly because of a June recall of 4,803 cars—equivalent to around a quarter of those it had ever delivered—for battery problems. Even excluding recall costs, though, NIO’s gross margin was still minus 10.9%.