windows 10 pro kaufen office 2019 pro kaufen office 365 pro kaufen windows 10 home kaufen windows 10 enterprise kaufen office 2019 home and business kaufen office 2016 pro kaufen windows 10 education kaufen visio 2019 kaufen microsoft project 2019 kaufen microsoft project 2016 kaufen visio professional 2016 kaufen windows server 2012 kaufen windows server 2016 kaufen windows server 2019 kaufen Betriebssysteme kaufen office software kaufen windows server kaufen https://softhier.com/ instagram takipçi satın al instagram beğeni satın al instagram görüntüleme satın al instagram otomatik beğeni satın al facebook beğeni satın al facebook sayfa beğenisi satın al facebook takipçi satın al twitter takipçi satın al twitter beğeni satın al twitter retweet satın al youtube izlenme satın al youtube abone satın al https://takipci33.com/

Google News Approved

Subscribe Now
Trending News
Nio Shares Drop – But What’s Behind This Decline?
Feature, Finance

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.

Related posts

Leave a Reply