Tencent News "first Line" Ji Zhenyu from Silicon Valley on September 12
The contraction in the U.S. business of Weilai, an electric car startup, continues, with the Silicon Valley branch laying off 62 jobs, the second round of layoffs in the United States this year, according to a recent filing with the California Employment Development Agency.
According to documents released by the California Employment Development Agency, the filing of (NIO USA) layoffs in the United States was received on August 27, with 62 layoffs, of type.
According to California Employment Development Board documents, 62 jobs were laid off in Weilai USA.
According to JoAnn Yamani, director of public relations in North America, the layoff is a further step forward.
Tencent News learned exclusively last month that the number of layoffs in the US branch of Weilai was about 100, mainly related to self-driving research and development and other related positions.
Originally established in 2015, Weilai North American Headquarters is located in the core of Silicon Valley in the United States. It mainly undertakes the research and development function of automatic driving technology. At one time, the headquarters planned to expand its staff to more than 1,000 people. According to Tencent News Front Line, the headquarters in North America had more than 600 employees at most.
In September 2018, Weilai Motor, which was founded only four years ago, was successfully listed on the New York Stock Exchange, with a market capitalization of more than $10 billion, but as losses continued to expand and a recall was announced after the spontaneous combustion accident, investors in the market were worried about the prospects of the Weilai car business, with a market capitalization of just over $3 billion, less than 1/3 of the highest market value in history.
Faced with financial and business pressures, Weilai has had to control costs by reducing its size. The company has reduced its staff size from the highest of about 10,000 to about 8,000 at present, and plans to further reduce it to about 7,000. Earlier this year, Weilai also announced the abandonment of plans to build its own factory in Shanghai.
According to data released by Weilai, a total of 837 new cars were delivered in July 2019. As of July 31 this year, Weilai has completed delivery of 19727 ES8 and ES6 models, of which 8379 were delivered in 2019. Weilai said that the main reason for the low number of deliveries in July was that it focused its efforts on previous recalls that month.
In addition to their own business, tight funding, with the gradual reduction of electric car subsidies, Tesla localization and other external factors, but also make the road to build cars more difficult.