The Chinese EV startup Nio has encountered some issues with their planned entry to the stock market. The SEC has revealed potential delay in deliveries and low reservation numbers.
To date, only 17,000 reservations were made for the electric SUV ES8, 12,000 of which had fully refundable down payments. Furthermore, Nio has stated that if all of the 17,000 reservations are carried through, it would take the company 6 to 9 months to actually deliver the vehicles.
++ This article has been updated since Nio has managed to get listed on the stock exchange. Kindly find all information below. ++
The information was revealed by the SEC, to whom Nio has to deliver an honest appreciation of their company’s status before being allowed to be listed on the stock exchange.
So far, Nio has delivered 481 vehicles since the market launch of the ES8 in June. Financially, Nio booked a loss of 1.6 billion dollars, and expects another 1.8 billion dollars to be sunk in the next three years. Reserves have dwindled to 668.5 million dollars.
Despite these numbers, Nio has published further details to their stock market plans. They will be selling 160 million shares at $6.25 to $8.25, aiming to bring in about 1.3 billion dollars in fresh capital.
Update September, 12, 2018: NIO set the final offer price at $6.26 per share (ADR) today. That would yield proceeds of 1 billion dollars, less than the self-proclaimed Tesla rival had hoped for previously. Their listing comes at a difficult time for the electric car industry. Investors have been nervous, particularly when it comes to Tesla – and its rivals it appears. Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co led the NIO deal.
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