Tesla’s Chinese rival, NIO Inc., (NIO) is continuing to struggle, reporting a net loss of $462 million for the second quarter of 2019. This has led the company to reduce its workforces by as much as 20 percent, which it said was due to “market conditions.”

According to William Bin Li , founder, chairman and chief executive officer of NIO, the company’s global headcount will reduce from 9,900 to about 7,800 by the end of the third quarter. Li went on to say in a statement that the layoffs were an attempt by the automaker to make its operations leaner through restructuring. Li also mentioned spinning off some of its non-core businesses by the end of the year but gave no indication what these businesses might be.

“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,” Li said in NIO’s Q2 earnings statement. “These measures aim to further improve efficiency and streamline operations within our sales and service network and R&D activities.”

NIO saw its net losses increase 83 percent from the year previous, sending the Chinese electric automaker’s stock plummeting. The company has continued to mount losses in the amount of about $6 billion since it was introduced by Li in 2014, Bloomberg reported.

Some of the losses may be attributed to a recall of nearly 5,000 vehicles in June due to a fire risk out of the 17,550 models sold as of the end of May as well as a diminished demand for EVs in China over the last few months, the news outlet said. Deliveries for electric cars reportedly decreased in July for the first time and again in August after the Chinese government reduced its subsidies to electric vehicle automakers.

Based on the challenges that NIO is facing and dismal Q2 earnings report, the company canceled its earnings conference call. No reason was given by the company for the cancelation.

Shares of NIO stock were down 23.35 percent as of 1:52 p.m. ET on Tuesday.

NIO EV
Visitors look at a Nio ET Preview car at the Shanghai Auto Show in Shanghai on April 16, 2019. GREG BAKER/AFP/Getty Images
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