You are here: Home » Reuters » News
Business Standard

Chinese electric carmaker NIO recovers from bumpy U.S. debut


(Reuters) - Shares of Chinese Inc bounced back from a 15 percent plunge in their market debut on Wednesday, a day after the company's IPO was priced at the lower end of the expected range.

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 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

began deliveries of its in June and in August sold 1,121 units. The company plans to launch a second, lower-priced electric sport-utility vehicle, the ES6, by the end of this year.

NIO, founded by Chinese 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 by a Chinese firm this year - comes as Chinese EV makers seek fresh capital to develop new products and in areas including autonomous driving and

NIO, formerly known as NextEV and backed by Chinese tech heavyweight 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

Having begun promoting EVs in 2009, aims to become a as it bids to curb vehicle emissions, and promote

Several EV makers such as and have also raised funds from heavyweight investors including Holding Ltd , and

Goldman Sachs, and led the IPO. Lynch, Credit Suisse, Citigroup, and were also part of the process.

(Reporting by in Bengaluru; Editing by and Anil D'Silva)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, September 13 2018. 00:05 IST