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Tesla’s Chinese competitor Nio sinks after higher-than-expected share sales (NIO)

charging an electric carDünzl ullstein image via Getty Images

  • Nio announced Monday that it has sold 88.5 million U.S. custodian shares for $ 17 in cash.
  • Shares of Nio fell 8% in pre-trading on Monday.
  • China’s electric vehicle company, which competes with Tesla, initially plans to sell 75 million shares in a secondary offering
  • Watch Nio live trading at Markets Insider.
  • Read more on Business Insider.

Shares of Nio fell as much as 8% in preliminary trading on Monday after the Chinese electric vehicle company announced a larger secondary offer than expected.

Nio, which competes with carmakers such as Tesla and Nikola, said on Monday it had sold 88.5 million U.S. depositary shares for $ 1

7 in cash, raising about $ 1.5 billion.

The company plans to use the proceeds from the offer “to increase the company’s share capital and ownership in NIO China, to repurchase shares held by some minority shareholders of NIO China, and for research and development in the field of autonomous management technologies, global market development and common corporate goals, “the statement said.

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The secondary proposal was larger than expected. Last week, Nio announced that it intends to sell 75 million ads in the offer. The heightened supply comes amid global craze for electric vehicle companies – Tesla shares jumped sharply this year.

Nio has grown 360% so far by the end of Friday.

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Screenshot 2020 08 31 at 8.00.43Markets inside

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