(Bloomberg) — NIO Inc. reported a worse-than-expected quarterly loss, prompting the struggling Chinese electric-vehicle maker to raise more money, pursue thousands of job cuts and spin off some businesses.Second-quarter net losses increased 83% from a year earlier to 3.29 billion yuan ($462 million), according to a statement. The deficit was worse than the 2.6 billion yuan average estimate of two analysts surveyed by Bloomberg, and it was the Shanghai-based company’s second-largest based on available data dating back to 2017.Cost overruns, weak sales and major recalls have sent NIO shares plunging from where they debuted when listing in the U.S. a little over a year ago. The company’s struggles also lend credence to mounting concerns that state support of China’s burgeoning electric-vehicle market inflated a bubble that’s at risk of bursting.“People are wondering whether the company can continue to survive,” said Jason Chen, an analyst from Blue Lotus Capital Advisors Ltd. NIO’s advance depositary receipts plummeted as much as 26% to $2.01 as of 9:55 a.m. Tuesday in New York.The company, which is backed by technology giant Tencent Holdings Ltd., has accumulated about $6 billion in losses since it was founded by William Li in 2014. Fire risks led to a mass callback of nearly 5,000 vehicles in June, a significant portion of the 17,550 units the company had sold as of the end of May.Li said in the statement that a target has been set to reduce global headcount to 7,800 by the end of the third quarter, from more than 9,900 in January. There will be additional restructuring and some non-core businesses will be spun off by the end of the year, he said, without elaborating.A Tencent affiliate and Li have agreed to buy $200 million of convertible notes through a private placement that’s expected to close before the end of the month, NIO said in its earnings statement. The company canceled its earnings conference call without explanation, a move Chen called “very strange.”Though revenue surged more than 3,000% from a year earlier, that was a time when the company was just getting started to sell cars. It fell 7.5% from the first quarter. The company delivered 11% fewer vehicles from the first quarter but it forecast the number will rebound to between 4,200 and 4,400 units in the third quarter. Third-quarter revenue will rise as much as 10% from the second quarter, it said.The picture for China’s EV market as a whole has dimmed in recent months. Deliveries in the country, where half of the world’s electric cars are sold, declined in July for the first time, and then again in August as the government scaled back subsidies.NIO previously scrapped plans for a manufacturing plant in Shanghai after the government decided to provide support to Tesla, which aims to start production in China this year, another challenge for Li’s company. Annual capacity at the Tesla facility could eventually top 1 million vehicles, chief executive Elon Musk has said.\–With assistance from Courtney Dentch.To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at czhang714@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, ;Craig Trudell at ctrudell1@bloomberg.net, Will DaviesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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