*By Christian Smith*
Electric car maker NIO had a turbulent debut on the New York Stock Exchange, but the Chinese company's CFO isn't deterred.
"It's a very choppy market, as you can imagine, especially for Chinese stocks," Louis Hsieh said Wednesday in an interview on Cheddar.
Shares of the electric vehicle company opened at $6 apiece Wednesday, after pricing in its IPO at $6.26 ー already the low end of its expected range ー a day earlier. They fell as much as 15 percent before closing the day up nearly 5.5 percent.
NIO, which counts Tesla as its major competitor, reported a net losses to the tune of $503 million in the first half of the year. As it only delivered its first cars in June, the company didn't bring in revenue until the second quarter. It's so far brought in $7 million, but Hsieh is confident auto sales will accelerate ー and fast.
"Right now is obviously the ramp up phase," he said, adding that "we don't have the volume."
Hsieh said that once NIO hits 130,000-140,000 units, it should have a gross margin of 23-25 percent. The company, however, has a long way before it crosses that threshold.
NIO is on track to ship 3,000 cars this quarter, Hsieh said. And the company is banking on changing Chinese regulations to encourage sales in the near future.
Many of China's largest cities ー including Shanghai, where NIO is based ー have adopted rules limiting the number of gas-powered cars on the road, and more than a dozen other Chinese cities are considering similar regulations.
The Chinese government is also planning to implement a carbon tax, which would increase the cost of driving cars with a combustible engines. All that bodes well for electric vehicles.
At the moment, NIO is producing cars on what the company calls "platform one," which Hsieh said uses technology similar to Tesla.
Sales of cars on platform one will remain targeted at the Chinese market. NIO plans to turn toward markets beyond China with its second platform.
Hsieh said that second platform will operate on technology that is vastly different from anything else on the market. He expects to debut this iteration on the U.S. market in 2021 or 2022.
For full interview [click here](https://cheddar.com/videos/nio-goes-public-on-nyse-as-it-gears-up-to-take-on-tesla).
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
At the core of the ongoing government shutdown is a fight over the decision to end subsidies that let some 12 million Americans get health coverage.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
