- General
- May 30, 2018
- 4 minutes read
Nio confidentially files for $2 Billion IPO
image credit : Nio Nio, An electric vehicle manufacturer backed by a slew of Chinese companies previously raising a total…
image credit : Nio
Nio, An electric vehicle manufacturer backed by a slew of Chinese companies previously raising a total of $2.1 Billion at a value of $5 Billion has confidentially filed for IPO with the U.S. SEC.
This will see the company who currently sells its electric Sports Utility Vehicle currently in China raise up to a reported $2 Billion over the Summer in this public offering of its shares.
This comes with previous reports that major tech investor Softbank was interested in acquiring a huge amount of the shares offered in the IPO for a price of $200 million, Nio’s ES8 vehicle is a major competitor to the Tesla Model X in China where they both experience very good sales even with Nio’s vehicle being more cheaper with The Nio ES8 costing $70,000 before incentives in comparison with Tesla’s Model X which retails for over $100,000 in China due to tariffs placed on its importation which makes it more expensive than it is in the U.S.
Image credit : Nio
This major offering will give the company more capital to expand its automobile operations and eventually sell in other countries including the U.S. where it houses a headquarters but doesn’t yet sell its cars in the country with the company deciding to focus current sales in its hometown of China.
The company was founded by William Li and a group of other Internet entrepreneurs, William Li previously co-founded BitAuto which provides online content for the automobile industry and is also valued at over $1 Billion on the public market.
Electric vehicle sales rose 72% in China last year with over 570 thousand sold and is currently slated to increase in the country with Nio being a major player in this market and also slated to hugely increase its revenues, We would now watch and see how the market will play for many of the electric car companies with the EV space being very competitive for its players.
