Tesla-Fighter Nio Pursues $1.8 Billion IPO
Nio publicly offered the biggest share by a Chinese company amounting to an initial share of $1.8 billion to the American Stock Market on Monday. The company will compete with other electric system powered cars that aiming to drive on a global scale and simplify some aspects of driving.
Nio, founded in 2014, the company aims to dominate the production of high-tech electric cars. The company started delivering cars to customers in June. Moreover, the company said that it has about 17,000 standing orders from customers.
The company has 6,200 employees and it is a newcomer to the market that started its first set of electric vehicles, the seven-seat ES8, in 2017. The company is looking forward to selling the next series of its more affordable vehicles, the sport-utility vehicle ES6, in 2009 and it is planning to produce its ET7 sedan in 2020. The company projects to launch a car model annually to increase their trade.
The company will exceed the second highest listing by a Chinese firm in 2018, the online group discounter Pindouduo Inc shares, of about %1.63 billion floats this year. The first highest listing is by the Nasdaq IPO, a video streaming service provider, of about $2.42 billion in March.
The company claims to be the first premium electric vehicles manufacturer in China. It is backed by a powerful China-based tech company, the Tencent Holdings Ltd. The company is originally registered as Nextev. The company's chief development officer, Padmasree Warrior, also sits as one of the boards of directors of prominent tech companies like Microsoft and Spotify. Additionally, CEO, Bin Li also holds the chairmanship of the Bitauto Holdings Limited.
In the first quarter of 2018, NIO suffered a net loss of $502.6 million over it's $6.95 million revenues. Automakers like the Xpeng Motor and the WM Motor Technology Co have increased their funds to billions of dollars. This massive investment comes from big tech companies like Tencent, Baidu, and Alibaba.
Tencent's profit fell to $2.59 million as reported in the Reuters due to the slowdown in mobile gaming and setbacks created by their "Monster Hunter: World" debut.
The company recognizes issues that concern self-driving technology and it uses its Pilot technology that includes automatic emergency and other car functions in its ES8 Cars. Tesla, however, indicated the autopilot system was issued in time of fatal death and an Uber Technologies Inc. autopilot system struck a pedestrian in a fatal accident.
Nio was criticized because of its reliance on its other partners like Jianghuai Automobile Group Co. The launch is also threatened by the U.S. - China trade war and the US policies in the sale of Electric and China-made cars.