Tesla’s Chinese competitor Nio sinks after larger-than-expected stock sell-off (NIO)

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Dünzl ullstein picture via Getty Images

  • Nio said Monday that it had sold 88.5 million U.S. depository shares for $ 17 a piece.
  • Nio shares fell 8% in pre-market trading on Monday.
  • Chinese electric vehicle firm, which competes with Tesla, initially planned to sell 75 million shares in secondary offering
  • Watch Nio trade live on Markets Insider.
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Shares of Nio fell 8% in pre-market trading on Monday after the Chinese electric vehicle maker announced a larger-than-expected secondary offering.

Nio, which competes with automakers such as Tesla and Nikola, said on Monday it had sold 88.5 million U.S. depository shares for $ 17 apiece, raising around $ 1.5 billion.

The company plans to use the proceeds of the offering “to increase the company’s share capital and stake in NIO China, to buy out stakes held by certain minority shareholders of NIO China and for research and development in NIO China. autonomous driving technologies, global market development and general business objectives, ”he said in a statement.

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The secondary supply was larger than expected. Last week, Nio announced plans to sell 75 million ADS in the offering. The boosted offer comes amid a global frenzy for electric vehicle companies – this year Tesla shares have soared.

Nio has jumped 360% since the start of the year until the close on Friday.

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Screenshot 2020 08 31 at 8.00.43 AMInsider markets

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