Chinese EV maker Nio raises going concern doubts

(Reuters) – Cash-strapped Chinese electric vehicle (EV) maker Nio Inc said on Wednesday there was substantial doubt in its ability to continue as a going concern.

The carmaker has been hurt by dwindling demand in China, the world’s largest car market, and reduced government subsidies for electric vehicles.

Its cash balance of $151.7 million as of Dec. 31 was not adequate to provide the required working capital and liquidity for continuous operation in the next 12 months, the company said in a statement.

(Reporting by Supantha Mukherjee in Bengaluru; Editing by Saumyadeb Chakrabarty)