Nio Shares Drop – But What’s Behind This Decline?
There’s no doubt that the electric car and battery market has enjoyed sustained growth in recent times, with US brand Tesla leading this lucrative and increasingly global market.
Another key and disruptive player within this space is the Chinese brand Nio Inc., which hit the headlines recently after the company saw its share prices nose-dive following the announcement of plans to sell up to $2 billion in fresh US shares.
But who exactly is Nio Inc., and what does the recent share price decline mean for the company in the near or medium-term?
Who is Nio Inc.?
Global sales of electric cars accelerated at an exponential rate through 2020, by a whopping 43% to more than three million. This was despite overall car sales slumping during the coronavirus pandemic, with Tesla and Volkswagen leading the market in terms of units shifted.
However, Nio Inc. remains one of the fastest-growing companies in this space, while the brand’s unique and cutting-edge technology continues to make waves through the burgeoning EV industry.
The firm was founded in 2014 under the brand name ‘NextEV’, with its first vehicle (a quad-motor supercar called the EP9) featuring four motors that produced a total of 1,341hp. This isn’t far off what you get in a 1,500hp Bugatti Chiron, while it enabled the car to do 0-60mph in just 2.7 seconds.
While the car’s speed and £2 million price tag may be eye-catching, however, it’s the technology that underpins it that’s really impressive.
More specifically, Nio utilised battery-swapping technology that enables users to switch between units and boost their vehicles to 100% charred in under 10 minutes. This process can be carried out at dedicated Nio garages, while it’s also completely free for first-time owners (second-hand buyers are only required to pay for the energy that they use).
In contrast, typical electric cars such as Tesla feature batteries that are fixed units with the vehicle, and it can take between 30 and 45 minutes on average to boost a battery from empty to 80% capacity.
Appraising Nio’s Share Price Decline
Traders may have observed a marginal price decline through trading platforms on Oanda, after the company filed a prospectus with the Securities and Exchange Commission to sell up to $2 billion in American depositary shares.
This would see available shares priced at the going market rate, with the news prompting a brief sell-off and causing prices to decline accordingly (they closed on Tuesday at a slightly under par $40.59).
Overall, Nio could look to sell as many as 50 million shares depending on pricing, with the proceeds set to be used for general corporate purposes and to strengthen its burdened balanced sheet.
In total, Nio shares fell by more than 3% in the hours following the announcement, while they remained similarly stricken premarket the following day. They’ve since slumped further to $35.70, although there are now signs that upward momentum is returning to the stock as the speculation begins to settle down.
This suggests that the recent share price dip is little more than a temporary market event and that the stock will soon resume its incremental growth path.
8 Tips to Teach International Business Education Online
International business is a lucrative field that many young people choose to pursue academically. It allows them to develop relevant skills to run their businesses, become financial experts, or work as inbound marketing, sales, or PR professionals afterward. Due to COVID-19, however, many academic institutions…
The Importance of Note Taking Skills for Students
In a student’s life, one of the most important skills they must be familiar with includes notes taking. Taking good notes comes with multiple benefits, but the most important one being they will be able to ace their academics. For other reasons, read ahead to…
7 Ways to Spark Creativity and Imagination in Your Kids
There are several phases and methods for kids to learn and grow. A number of researches have proved that kids get innovative, creative, and imaginative if they experience certain scenarios and instances. One may think that imagination is not an important aspect of a kid’s…
How might students earn money while studying
Studying in a college is a splendid chance, and numerous school attendees guarantee that they’re probably the most significant long periods of their lives. You’re given a ton of leisure time to acquire remarkable encounters. Bring money for studies, and blend with individual students. Nonetheless,…
The Secret to Maximizing Your In-House Writing
When it comes to hiring in-house content writers, ghost writers are the best option you can opt for. Ghostwriting is the voice of a company and work under their tagline as an author and don’t get credited for their work. They write content for a…
Biggest Website For Downloading Torrents Files – Zooqle (2022)
Zooqle: Torrent Sites Here is an updated listing of right now’s excessive torrent sites. Torrent9 is a fast BitTorrent seek engine with ONLY tested torrents. So, listed here are the pinnacle torrent video streaming websites, which allow you to circulate torrents online! Also, you need…
How To Activate Pluto.tv – Pluto.tv / activate
Actually, the Pluto TV works easily on pretty plenty of systems which includes Fire TV Stick, iOS devices, Android gadgets, 4th Gen Apple TV gadgets, Roku, Amazon Kindle, Smart TVs, and additional. If you are exterior America, then you’ll be able to even get satisfaction…
How To Activate natgeotv.com on Roku, Apple TV, Smart TV & Xbox – Natgeotv/activate
Are you in life with a flora and fauna narrative? In the event that without a doubt, you should have unhindered admittance to Natgeotv com. To try this, you need to get the Natgeotv com to spark off to enroll in. With the Natgeotv com…
How To Activate Peacock TV Code – Peacocktv.com/tv
The app on your tool then refreshes, and you will have get entry to to Peacock streaming. Please keep in mind that you in reality should have the Peacock TV app in your tool to accomplish the above-noted steps. Take observe which you without a…
Karen Radio Host Fired From the Radio Station
Diana Ploss is an American journalist in New Hampshire. She was condemned for creating a disdainful video on the Morin’s Company workers. She filmed a video and posted a live video on Facebook during which she was harassing the common Hispanic street workers for not…