Over the last few months in China, Nearly 5,000 of NIO’s ES8 electric SUVs have recalled, because multiple reports of battery fires surfaced over. NIO is the leading Chinese EV startup and it will have to replace the battery packs of the SUVs which are built between April 2nd, 2018, and October 19th, 2018, as these are included in the recall. The company says that it will take two months to swap out battery packs on all of the affected vehicles.

NIO performed an investigation with the help of “industry experts,” the supplier of the pack, and other concerned parties. The results of this investigation indicates the issue is with the battery packs themselves. Moreover, findings were that in some cases, a module in the battery pack was pressing up against a voltage sampling cable in the wiring harness. This repeated contact, after some time, wore down some of those cables, which resulted in short circuits that led to a handful of fires.

In October 2018, company introduced a battery pack with a different structural design because of that the recall stopped there. About the compensation, company says that:

all users that incurred property losses in the incidents caused by battery quality and safety issues, in accordance with relevant laws.”

In another statement, company said:

NIO would like to sincerely apologize to our users and the public for the trouble caused by the battery safety incidents,

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Almost exactly one year ago, NIO started shipping its first car, the ES8 electric SUV. In China, we have seen over 17,000 of them on the road by the startup. In that time, NIO has ambitions to eventually expand beyond its home country, so it has also became a publicly traded company in the United States.

In the first quarter of 2019, after experiencing lower than expected sales, the startup indefinitely delayed an upcoming electric sedan in May. One of its offices in Silicon Valley was also get closed, about 3 to 4 percent of its global workforce were also laid off. So we can say that the battery fires is not the first type of trouble NIO had to face, since it started shipping cars. NIO is one of the first high-profile EV startups to ship a car, it is backed up Tencent. However, It is not only one that is dealing with battery fire issues. Recently, a few hundred E-Tron SUVs has been recalled by Audi, also. A software update has been installed by Tesla in some of its cars which is named as “out of an abundance of caution,”. A few reports of battery reports has also followed it and one of them is also recorded in a video.