Sep 14, 2018 (China Knowledge) - NIO’s shares soared by more than 75% on its second trading day, following a rocky start to its IPO. NIO opened trading at USD 6.62 and closed at USD 11.60. At its high for the day of USD 12.69, it recorded a gain of nearly 92%. The advance came after a slow start on its first day, where it priced at the low end of its price range at USD 6.26 before closing at USD 6.60, an increase of around 5%.
NIO now has a market value of over USD 12 billion and known as China’s Tesla wannabe.
Analysts from Bernstein remain unconvinced about NIO’s performance, placing an “underperform” rating on its shares with a price target of USD 4.20.
The Bernstein analysts cite NIO’s high cost and low price points and believe that the company will continue to make losses up to 2025.
NIO plans to have 12 store locations by the end of the year, a third of Tesla’s in China.
Following closely behind NIO are other Chinese tech start-ups such as Byton and Xpeng Motors. Byton has raised USD 500 million from investors in June while Xpeng has secured USD 588 million in its latest funding round last august.
Copyright © 2018 www.chinaknowledge.com
Send feedback or comments to: firstname.lastname@example.org
For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com
To access our page on Bloomberg, type CKFI