Chinese EV start-up NIO rings opening bell in New York as a test of its commitment begins

Source:Global Times Published: 2018/9/12 23:28:41

Chinese electric vehicle start-up NIO Inc, backed by Chinese tech heavyweight Tencent Holdings, floated its shares on Wednesday, after raising about $1 billion in its IPO.

NIO priced its shares at $6.26, just above the low end of its $6.25 to $8.25 target price range. The deal will value the firm at $6.41 billion.

NIO, founded by Chinese entrepreneur William Li in 2014, sold $1 billion in shares in the IPO, making it the third-biggest US listing by a Chinese firm this year.

Shares of NIO began trading on the New York Stock Exchange under the symbol "NIO."

The company has spent about $1.8 billion out of $2.4 billion it raised from earlier round investors to develop three models, including the ES8, the company's first mass-produced model, according to its prospectus.

The ES8 is a seven-seat sport utility vehicle that can accelerate to a speed of 100 kilometers per hour in 4.37 seconds and a one-time charge range of 355 kilometers.

As of August 31, the company had delivered 1,602 ES8 models to customers and holds a backlog of 14,376.

Feng Shiming, an automotive industry observer, told the Global Times on Wednesday that after the listing, the company will enter a period when it must prove it has the capability to deliver what it has promised.

"As a benchmark of electric car start-ups, the company will be tested in its commitment to its promises including timely delivery, tackling production bottlenecks and delivering the technologies and services it promised," Feng said.

Feng noted that like Tesla, a company Nio is often compared with, Nio often faces such issues to address the concerns of investors, analysts and the public.

"When the car is delivered en masse, it will be winter time. Customers' concern about battery endurance is likely to increase. It will be a test for the company to address such concerns," Feng said.



 



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