Shares in China's Tesla rival Nio soar more than 75% in a day

Electric car company Nio's second day on the stock market was a lot more spectacular than its first.S...

Posted: Sep 14, 2018 12:47 PM
Updated: Sep 14, 2018 12:47 PM

Electric car company Nio's second day on the stock market was a lot more spectacular than its first.

Shares in the Shanghai-based rival to Tesla jumped a staggering 76% in New York on Thursday. At one point in the day, the stock was up 92%.

The spectacular leap is remarkable after Nio had to scale back the size of its IPO. It raised $1 billion from the offering, at the bottom of its price range. It was hoping to raise as much as $1.8 billion.

On its trading debut Wednesday, Nio stock closed up 5%, having plunged as much 15% earlier that day.

The company's chief financial officer, Louis Hsieh, told CNN on Wednesday that the timing of the company's IPO "was not excellent," pointing to the bear markets for stocks in Hong Kong and Shanghai.

An investor relations representative for Nio declined to comment Friday on movements in the stock price.

Its stunning gains came on a strong day for Chinese tech stocks listed in the United States. E-commerce firm Pinduoduo leaped 30%, video site iQiyi popped almost 6%, and gaming and media company NetEase jumped more than 5%.

The company, which was founded only four years ago, is attempting to take on Tesla in China, the world's biggest electric vehicle market.

Nio's ES8 electric SUV, which was unveiled last year, sells for about $65,000, or about half the price of the most basic version of Tesla's Model X in China.

Nio has wealthy backers including Chinese tech companies Tencent and Baidu, but its operations are still small scale.

At the end of July, it had 17,000 vehicles on order from customers, but had delivered fewer than 500, according to a regulatory filing for its IPO. In the first half of this year, it recorded just $7 million in sales, posting a loss of $503 million.

Auto analyst 'unconvinced'

It's entering a very crowded market. Besides Tesla, Nio faces competition from Chinese manufacturers including Warren Buffett-backed BYD and Byton. Global carmakers including Volkswagen and Ford are also ramping up plans to develop electric cars specifically for the Chinese market.

Some analysts are skeptical about Nio's chances of success.

Robin Zhu, an Asian auto industry expert at investment research firm Bernstein, put an "underperform" rating on the company's stock on Thursday, equivalent to advising clients to sell.

He said the company will struggle to meet its ambitious sales targets and is selling its cars too cheaply to make sufficient profit.

Zhu thinks the stock is worth about a third of its current price.

"We're unconvinced Nio's shares represent a sound investment," he wrote.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 30674

Reported Deaths: 1107
CountyConfirmedDeaths
Hinds248039
DeSoto157216
Madison129634
Jones112049
Neshoba98571
Rankin91612
Lauderdale90879
Harrison88610
Forrest86042
Scott77015
Jackson61616
Copiah60216
Washington5789
Leake57519
Holmes55141
Lee54718
Wayne54213
Oktibbeha54126
Warren51118
Yazoo5056
Leflore48651
Lowndes48312
Grenada4795
Lamar4567
Lincoln45434
Pike43112
Monroe39930
Lafayette3894
Sunflower3737
Attala35923
Covington3475
Panola3456
Newton3399
Bolivar33414
Adams31018
Simpson3103
Pontotoc2836
Tate27810
Chickasaw27618
Marion27511
Claiborne27010
Jasper2616
Noxubee2618
Winston2596
Pearl River25432
Clay24910
Marshall2263
Smith22011
Union2079
Clarke20624
Walthall2004
Coahoma1996
Kemper17814
Lawrence1741
Yalobusha1717
Carroll16411
Humphreys1479
Tallahatchie1364
Itawamba1358
Montgomery1312
Tippah13011
Calhoun1294
Hancock12613
Webster12510
Jefferson Davis1114
Prentiss1083
Jefferson1073
Greene1058
Tunica1003
Wilkinson949
Amite892
George863
Tishomingo781
Quitman760
Choctaw744
Alcorn682
Perry664
Stone641
Franklin452
Sharkey350
Benton340
Issaquena91
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 41362

Reported Deaths: 983
CountyConfirmedDeaths
Jefferson4944152
Montgomery4021103
Mobile4005134
Tuscaloosa222642
Marshall170210
Lee135937
Madison13597
Shelby122723
Morgan10715
Walker91424
Elmore90314
Franklin88914
Dallas8799
Baldwin8469
Etowah72713
DeKalb7075
Butler62428
Chambers62427
Tallapoosa58869
Autauga58312
Russell5450
Unassigned50323
Lauderdale4896
Limestone4810
Houston4794
Lowndes46721
Cullman4394
Pike4205
Colbert3916
Coffee3732
Bullock36810
St. Clair3662
Covington3547
Barbour3472
Escambia3376
Calhoun3325
Hale31021
Talladega3037
Marengo30211
Wilcox2908
Sumter28412
Dale2820
Clarke2736
Jackson2682
Winston2543
Chilton2392
Monroe2342
Blount2301
Pickens2276
Marion21913
Conecuh2047
Randolph2009
Choctaw19512
Bibb1871
Macon1859
Greene1838
Perry1701
Henry1323
Crenshaw1253
Lawrence1070
Washington1057
Cherokee857
Geneva790
Lamar751
Fayette681
Clay642
Coosa581
Cleburne361
Out of AL00
Tupelo
Clear
82° wxIcon
Hi: 92° Lo: 73°
Feels Like: 87°
Columbus
Clear
81° wxIcon
Hi: 91° Lo: 71°
Feels Like: 87°
Oxford
Clear
75° wxIcon
Hi: 88° Lo: 70°
Feels Like: 75°
Starkville
Clear
79° wxIcon
Hi: 89° Lo: 69°
Feels Like: 82°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather