Chinese electric vehicle maker Nio makes bumpy start following $1B IPO

Fundings and Exits

Nio, the Tesla -wannabe electric vehicle firm from China, enjoyed a mix start to life as a public company after it raised $1 billion through a listing on the New York Stock Exchange on Wednesday.

The firm went public at $6.26just one cent above the bottom of its pricing range — meaning that it raised a little over $1 billion. That’s some way down on its original goal of $1.8 billion, per an initial filing in August, and for a while it looked like even that price was optimistic. Early trading saw Nio’s stock fall as low as $5.84 before a wave of optimism took it to $6.81.

The stock closed its first day at $6.60, up 12 percent overall, to give Nio a total market cap of $7.1 billion.

Nio sells in China only, although its tech and design teams are based in the U.S, UK and Germany.

Its main model, the ES8, is designed for the masses and is priced at 448,000 RMB, or around $65,000. That makes it cheaper than Tesla vehicles in China but it has only just got to making money. Nio has accrued some 17,000 orders for the vehicle, but it only began shipping in June. As a result, it has posted some pretty heavy losses in recent times — including minus $759 million in 2017.

Ultimately, the firm raised $1 billion but its leadership may be disappointed that the final sum is well short of its original target.

Reasons behind lukewarm investor interest may include:

Meanwhile, Nio is far from the newest kid on the block. Byton, another Chinese EV firm with global operations, is preparing to send prototype SUVs to the U.S. for the first time, as TechCrunch reported earlier this month. Byton, which raised $500 million from investors in June, is one of a number of competitors to Nio which also include BYD — a startup backed by Warren Buffet’s Berkshire Hathaway — Youxia, MW Motor and others.

Products You May Like

Articles You May Like

Privacy campaigner Schrems slaps Amazon, Apple, Netflix, others with GDPR data access complaints
The new TAG Heuer Carrera Calibre Tourbillon Nanograph is a lot of buzzwords in a beautiful package
Nvidia’s T4 GPUs are now available in beta on Google Cloud
Open Bionics closes $5.9M Series A for its affordable and cool bionic limbs
A first look at Twitter’s new beta app and its bid to remain ‘valuable and relevant’

Leave a Reply

Your email address will not be published. Required fields are marked *