Nio Stock Slides After EV Maker Prices New Share Offering At Discount: Retail Stays Bearish

NYSE-listed shares of Chinese EV maker Nio Inc. (NIO) traded 6% lower on Thursday morning after the company announced the pricing of its new share offering at a discount to its current stock price.

The company said it will offer 136.8 million Class A ordinary shares at a price of HK$29.46. Hong Kong-listed shares of NIO closed 5% lower on Thursday at HK$32.55, which is still 10% higher than the offering price.

NIO said the placement will raise around HK$4.03 billion ($518.26 million) and is expected to close on or about April 7.

The proceeds from the placement will be used for research and development of smart electric vehicle technologies and new products, further strengthening the balance sheet and general corporate purposes.

On Stocktwits, retail investor sentiment about Nio shares remained in the ‘bearish’ territory while message volume rose marginally to ‘normal’ levels over the past 24 hours.

Stocktwits users expressed pessimism about the company’s stock price.

Another highlighted the company’s high cash burn.

Earlier this month, the company said that it expects vehicle deliveries in the first quarter of 2025 to be between 41,000 and 43,000, representing an increase of up to 43.1% from the same quarter of 2024 but below the 72,689 units delivered in the fourth quarter (Q4) of 2024.

NYSE-listed shares of Nio are down nearly 13% this year and over 15% over the past 12 months.

Also See: AMD Slides Pre-Market After Jefferies Downgrades Stock Citing Nvidia Dominance, Intel Competition – Retail Sentiment Sours

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(Exchange Rate: HK$1= $0.13)