Chinese electric vehicle maker Nio (NIO) - Get Report was down nearly 20% Tuesday in trading after the company announced it was reducing its headcount to 7,800 from 9,900 amid "overall tempered market conditions."
The company, which is one of Tesla's (TSLA) - Get Report biggest rivals in China, made the move after reporting second-quarter sales fell 7.9% quarter to quarter, though they did risee year over year. Deliveries totaled 837 vehicles in July and 1,943 vehicles in August.
"In response to the overall tempered market conditions, we are also working hard to maximize returns on our resources and have implemented comprehensive efficiency and cost control measures across the organization," said Chief Executive William Bin Li.
The company also reported that vehicle margins were negative at 24.1% compared with a negative margin of 7.2% in the first quarter.
"These measures aim to further improve efficiency and streamline operations within our sales and service network and R&D activities," Bin Li said.
Nio shares were trading below their all-time low close of $2.42 in trading, falling 19.11% to $2.20.