Hyperdrive
China’s Tesla Rival Prices $1 Billion IPO Near Bottom
- U.S. IPO values Chinese automaker NIO at about $6.4 billion
- Stock debut serves as reality check for Chinese EV ambitions
The global excitement about electric cars faced a test in New York on Wednesday. After a bumpy start, NIO Inc. saw a bit of acceleration.
The Chinese upstart seeking to take on the likes of Tesla Inc., started trading on the New York Stock Exchange after raising about $1 billion selling American depositary shares at $6.26 apiece. The electric-car maker, backed by Tencent Holdings Ltd., priced the stock near the low end of its offering amid the tumult in Tesla shares, a global trade war and investor qualms over its manufacturing capabilities and profitability.