(Reuters) - Shares of Chinese electric carmaker NIO Inc
NIO shares were up about 1 percent at $6.30 in afternoon trading, giving it a market capitalisation of $6.46 billion.
The rebound in shares was a welcome relief for NIO, whose offering came under pressure as investors have turned wary about electric carmakers due to struggles at its chief rival Tesla Inc
Investors have worried about Tesla's cash-burn rate as the company struggles to meet its production targets amid its efforts to become a mass-market automaker.
NIO, founded by Chinese entrepreneur William Li in 2014, incurred a net loss of $502.6 million in the first six months of 2018 on $6.95 million in revenue. It has $677 million in cash and cash equivalents as of June 30.
The listing - the third-biggest in the United States by a Chinese firm this year - comes as Chinese EV makers seek fresh capital to develop new products and finance investments in areas including autonomous driving and battery technologies.
NIO, formerly known as NextEV and backed by Chinese tech heavyweight Tencent Holdings Ltd <0700.HK>, is one of several largely Chinese-funded EV startups betting on the benefits of local production to compete with firms such as Tesla.
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