Hyperdrive

Nio Has Been at the Brink Before. Can the EV Maker Rally Again?

The Shanghai-based company once more finds itself trapped in a cycle of dismal sales, low profitability and aggressive competition.

Visitors at the Nio booth at the Shanghai auto show in China earlier this year.

Photographer: Qilai Shen/Bloomberg
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Is Nio Inc., the Chinese electric car company that has already had one near-death experience, edging toward the brink again?

Having being rescued by a local municipal government in China and loyal fans three years ago after it lost more than 70% of its market capitalization following a New York initial public offering, the Shanghai-based company once more finds itself trapped in a cycle of dismal sales, low profitability and aggressive competition.