Nio released its second-quarter financial results on Tuesday and they weren't good.

The struggling Chinese EV startup, often described as the Tesla of China, reported a net loss of 3.29 billion yuan (approximately $462 million) for the quarter, or 83 percent higher than in the same period a year ago.

And the company's sales are already on the decline, which points to further losses ahead. Nio reported sales of 3,553 units in the second quarter, which was down on the 3,989 in the previous quarter. It didn't help that the company had to recall 4,803 vehicles in June over battery fire concerns.

Nio's lineup consists of the ES6 small SUV and ES8 mid-size SUV, which are currently built by contract manufacturers and sold exclusively in China. The company has also presented a concept for a sedan model.

Nio ET Preview concept

Nio ET Preview concept

Nio's share price took a 20-percent dive after the results were released. Its U.S.-listed shares hit a low of $2.17, which is down from a high of $10 at the start of the year.

To turn the ship around, Nio will offload some non-core assets and reduce its head count from 9,900 to 7,800 by the end of the third quarter. The company will also raise $200 million from key shareholder Tencent and co-founder William Li through a special bond issue.

“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 a statement.

Nio definitely has an uphill battle ahead. Car sales in China are declining, including sales of EVs which attract government incentives. Then there's the issue of Tesla starting production in China, which will allow its cars to avoid tariffs and offer sharper pricing.