Nio raises $1b from IPO

Photo credit: Nio

Falling short of its aim to raise US$1.8 billion, China’s upstart electric automaker Nio has pocketed US$1 billion from its IPO today in New York.

The firm set its offering at US$6.26, near the bottom of its desired range, before trading started moments ago at US$6 per share on the New York Stock Exchange. It’s valued at just over US$6 billion. (Update on Thursday, September 13: It ended the first day of trading up slightly, at US$6.60.)

Nio’s product manager Li Tianshu rang today’s opening bell.

Nio has its Formula E race car, its limited-edition supercar, one concept car, plus its production SUV on display on the sidewalk outside the exchange.

Photo credit: Nio

Established 2014, Nio started selling its first model in China this summer – the all-electric ES8 SUV. Priced from US$65,000, it’s designed to take on luxury barges from the likes of Porsche, BMW, Audi, and Mercedes – plus Tesla’s Model X.

Here’s how Nio is shaping up so far, according to its earlier filing:

• 6,200 employees, most based in its Shanghai headquarters
• Other offices in California, Oxford, and Munich
• 481 units sold since ES8 launch in June
• 17,000 more reservations for the SUV
• Revenue: US$7 million in first half of 2018
• Net loss: US$503 million in same period
• 2016 net loss: US$759 million
• 2017 net loss: US$503 million

Watch: Who are China’s most realistic Tesla challengers?