Chinese carmaker NIO Inc. went public in New York today under the ticker symbol NIO but its IPO failed to impress Wall Street. The electric car company, which sees itself as a Tesla (TSLA) rival, priced its stock at $6.26 per share, slightly above the low end of its target of $6.25 to $8.25 per share. However, the stock was trading up more than 8% at 3:00 PM ET.
The proceeds from the IPO amounted to $1 billion, well below the expected level of $1.8 billion, with the company’s valuation coming to $6.4 billion. The Wall Street Journal had previously reported that Nio, which is backed by Tencent and Baidu, had set a target of $2 billion to $3 billion earlier.
Nio had sales of $7 million in the first half of 2018 with a net loss of over $500 million. The company rolled out its ES8 electric SUV last year at a price of $65,000. Nio reportedly had 17,000 orders at July-end but deliveries were below 500.
Although China is the largest global automobile market, the electric vehicle space is getting very crowded and there is tough competition from carmakers both within China and around the world. Nio has been facing a tough market environment amid general trade and currency issues in China which has affected Chinese companies in general.
Nio does not yet own a factory in China and has to depend on JAC Motors for its vehicle production, which poses certain limitations for the company. Despite this, Nio has plans to broaden its sales internationally.
Tesla meanwhile has grand plans to build a factory in Shanghai with the goal of producing 500,000 vehicles annually and the company also gets a meaningful amount of annual sales from China.
Tesla looks to tackle production woes with lesser paint options
Most Popular
Intensity Therapeutics is establishing a new field of localized cancer reduction: CEO
Intensity Therapeutics, Inc. (NASDAQ: INTS) is a clinical biotechnology company engaged in the discovery development, and commercialization of first-in-class cancer drugs that attenuate tumors with minimal side effects while training
INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues
Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came
Riding the AI wave, Nvidia looks set to stay on the high-growth path
After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on