Why EV Giant NIO Shares Are Sliding Today

NIO Inc.'s NIO shares are trading lower amid news reports for additional job reductions aimed at cost-cutting and enhancing efficiency.

This development comes just weeks after the company's announcement of a 10% workforce reduction, according to a news report by Bloomberg.

Certain departments have been instructed to create backup lists for layoffs, potentially expanding the initial job cuts to encompass 20% to 30% of the staff within those units, the report read.

In a letter to staff, Nio's founder and Chief Executive Officer William Li said the move was "a tough but necessary decision against fierce competition," as per the report.

Meanwhile, the company has released its inaugural smartphone, which features Navitas Semiconductor Corporation NVTS next-generation gallium-nitride (GaN) GaNFast power ICs equipped with GaNSense technology.

The NIO Phone has a powerful 66 W fast charger featuring Navitas technology. This enhancement delivers flagship-level charging efficiency, providing end users with a better vehicle-centric mobile interconnection experience. 

Also Read: This EV Maker Returned More Than Tesla Over Past Year

New GaNFast ICs are replacing legacy silicon chips to enable next-gen fast-charging for mobile phones, tablets and laptops.

The flagship NIO Phone is equipped with the leading QUALCOMM Incorporated's QCOM Snapdragon 8 Gen 2 chip. It also features a 6.81-inch 2K variable refresh-rate curved screen, and is enhanced with main, ultra-wide-angle, and 50 M pixel periscope telephoto cameras.

With a single click, the driver can control over 30 functions, and equipped with ultra-wideband technology, it can completely replace traditional car keys.

Zhang Baozhou, who is responsible for NIO's mobile phone supply chain, stated, "The NIO Phone fulfills the expectations and needs of NIO users for a flagship smartphone, making their cars more intuitive and user-friendly."

Related: Chinese EV Maker Nio To Launch Debut Phone Next Month As CEO Reminds Intent Behind Foray

Price Action: NIO shares are trading lower by 4.00% to $7.43 on the last check Thursday. 

Photo Via Company