Proactiveinvestors USA & Canada NIO Limited https://www.proactiveinvestors.com Proactiveinvestors USA & Canada NIO Limited RSS feed en Mon, 22 Jul 2019 11:15:19 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Tesla's China rival NIO reports wide 3Q loss, but investors pleased by revenue numbers ]]> https://www.proactiveinvestors.com/companies/news/208624/tesla-s-china-rival-nio-reports-wide-3q-loss-but-investors-pleased-by-revenue-numbers-208624.html Shares in Shanghai-based electric-car maker NIO Inc (NYSE:NIO), which has billed itself as a potent rival to Tesla, climbed Tuesday in premarket trade after it posted a wide loss in the third quarter as production revved up.

For the quarter ended September 2018, the car maker posted a loss of $1.51 per share on revenue of $214.0 million.

Investors sent the shares of the car maker up 10.04% to $7.34 as revenue rose dramatically from virtually nothing a year earlier. NIO reported net losses in 2016, 2017 and the first half of 2018, according to its IPO filing.

NIO deliveries of its electric premium seven-seater SUV, the ES8, reached 3,268 vehicles, with production of 4,206. This is a big jump from the 500 ES8 cars that were produced in the second quarter.

The Chinese carmaker is already demonstrating a strong cost advantage. In December 2017, NIO launched the NIO ES8, at about half the price of Tesla's Model X in China. The ES8 is NIO's first mass-produced model for the China market and has a base price of 448,000 yuan (US$65,000). The ES8 takes on the Tesla Model X in China's large market for luxe cars, electric vehicles and sports utility vehicles.

READ: One of Tesla's biggest investors takes 11% stake in Chinese rival NIO

The four-year-old company said that October deliveries were “partially impacted” as NIO made “production line modifications” to accommodate ES6 production, the lower-priced 5-seater premium SUV targeted for launch by the end of 2018.

“The third quarter marked multiple milestones for NIO in the journey to achieve our ‘blue sky coming’ vision,” said NIO Inc founder CEO William Li. “We completed our first full quarter of production and delivery of the ES8 and successfully executed the Company’s initial public offering on the New York Stock Exchange.”

The Chinese electric-car maker listed on the New York Stock Exchange in September through the sale of 160 million American depositary shares which raised approximately $1 billion. Through the NYSE listing, NIO is building its war chest to take on Tesla, which is arguably the world’s No 1 global electric-vehicle maker.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Tue, 06 Nov 2018 07:36:00 -0500 https://www.proactiveinvestors.com/companies/news/208624/tesla-s-china-rival-nio-reports-wide-3q-loss-but-investors-pleased-by-revenue-numbers-208624.html
<![CDATA[News - One of Tesla's biggest investors takes 11% stake in Chinese rival NIO ]]> https://www.proactiveinvestors.com/companies/news/206782/one-of-tesla-s-biggest-investors-takes-11-stake-in-chinese-rival-nio-206782.html The second-biggest investor in Tesla Inc (NASDAQ:TSLA), Baillie Gifford & Co has taken an 11.4% stake in Shanghai-based electric-vehicle maker NIO Limited (NYSE:NIO), which has billed itself as a potent rival to Tesla.

Baillie Gifford disclosed that it owns 85.3 million NIO shares in a regulatory filing Tuesday. The holding was worth about $515 million as of the close of trading Monday.

Turns out that Baillie Gifford is also the largest outside shareholder of Tesla stock, while CEO Elon Musk, Tesla’s largest shareholder, owns about 20% of the company.

The filing pushed shares of NIO up 9.8% to $8.12 in premarket trade Wednesday.

READ: IPO Roundup: China's wannabe 'Tesla killer' NIO Ltd trading above US$14 on NYSE

Naturally, the investment represents a vote of confidence in the Chinese electric-car maker which listed on the New York Stock Exchange in September through the sale of 160 million American depositary shares which raised approximately $1 billion.

Through the NYSE listing, NIO is building its war chest to take on Tesla, which is arguably the world’s No 1 global electric-vehicle maker.

The Chinese carmaker is already demonstrating a strong cost advantage. In December 2017, NIO launched the NIO ES8, a seven-seater electric SUV, at about half the price of Tesla's Model X in China. The ES8 is NIO's first mass-produced model for the China market and has a base price of 448,000 yuan (US$65,000).

As of July 31, 2018, NIO delivered 481 ES8s and had unfulfilled reservations for more than 17,000 ES8s with deposits, of which 4,989 reservations were made with non-refundable deposits.

It plans to launch a second lower-priced, five-seater electric SUV, the ES6, by the first half of 2019.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Wed, 10 Oct 2018 07:38:00 -0400 https://www.proactiveinvestors.com/companies/news/206782/one-of-tesla-s-biggest-investors-takes-11-stake-in-chinese-rival-nio-206782.html
<![CDATA[News - Tesla rival NIO's shares recharged as SEC sues Elon Musk for fraud ]]> https://www.proactiveinvestors.com/companies/news/206011/tesla-rival-nio-s-shares-recharged-as-sec-sues-elon-musk-for-fraud-206011.html Shares of NIO Inc (NYSE:NIO) moved higher on Friday just as the US Securities and Exchange Commission sued Tesla Inc (NASDAQ:TSLA) CEO Elon Musk for fraud over his failed go-private plan.

Nio is the Chinese electric vehicle giant and is aiming to be a Tesla killer.

READ: Analysts’ take on electric carmaker Nio will give Tesla investors déjà vu

Shares of Nio increased by 1.8% in New York to trade at $7.14, havinghit a session high of $7.28.

Tesla was hit with downgrades after the SEC accused it of misleading investors, demanding that Musk be removed as a director in the company. 

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Fri, 28 Sep 2018 11:09:00 -0400 https://www.proactiveinvestors.com/companies/news/206011/tesla-rival-nio-s-shares-recharged-as-sec-sues-elon-musk-for-fraud-206011.html
<![CDATA[News - Analysts’ take on electric carmaker Nio will give Tesla investors déjà vu ]]> https://www.proactiveinvestors.com/companies/news/204943/analysts-take-on-electric-carmaker-nio-will-give-tesla-investors-dj-vu-204943.html Electric vehicle company Nio Limited (NYSE:NIO) recently made its public debut on the New York Stock Exchange with investors hailing it as the “Chinese Tesla.”

Wall Street analysts have begun to weigh in and their concerns about Nio may give Tesla Inc (NASDAQ:TSLA) investors déjà vu.

READ: Chinese Tesla rival NIO revs up US$1.3bn IPO on NYSE

Bernstein analyst Robin Zhu, lead analyst on the note, pointed to a number of issues, including the company’s cash burn, its lofty volume targets and reports of declining reservation numbers.

The analysts don’t see Nio reaching profitability in the near future, expecting the company to burn cash through 2025.

While analysts think Nio will overcome manufacturing problems, distribution issues will follow as the demand for electric vehicles struggles to expand outside of China’s major cities.

“Longer term, we question whether the premium EV segment will be big enough to support Nio’s volume ambitions,” said analysts, according to a Market Watch report.

Analysts foresee the company selling 50,000 vehicles by 2020 and 160,000 vehicles by 2025.

Bernstein gave its shares an Underperform rating with a price target of US$4.20

Shares of Nio jumped revved up nearly 12% to US$12.96 in Friday pre-market trading.

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Fri, 14 Sep 2018 09:12:00 -0400 https://www.proactiveinvestors.com/companies/news/204943/analysts-take-on-electric-carmaker-nio-will-give-tesla-investors-dj-vu-204943.html
<![CDATA[News - IPO Roundup: China's wannabe 'Tesla killer' NIO Ltd trading above US$14 on NYSE ]]> https://www.proactiveinvestors.com/companies/news/204755/ipo-roundup-china-s-wannabe-tesla-killer-nio-ltd-trading-above-us14-on-nyse-204755.html Shares of Shanghai-based electric-vehicle maker NIO Limited (NYSE:NIO), which has billed itself as a potent rival to Tesla, were trading at US$14.67 Thursday morning after an underwhelming IPO.

NIO priced its initial public offering in New York Wednesday and came in at the bottom of its range of $6.25 to $8.25 per share. The 160mln American depositary shares sold raised US$1bn, which was lower than expected. The IPO pricing places a $6.4bn valuation on Nio.

The Chinese electric-car maker went ahead with its New York IPO despite the tough environment exacerbated by President Trump’s trade war.

READ: Chinese Tesla rival NIO revs up US$1.3bn IPO on NYSE

Swedish luxury car maker Volvo Cars and its Chinese owner Geely postponed plans Wednesday for a dual Stockholm and Hong Kong listing, blaming trade tensions and a downturn in car stocks.

“The startup, backed by Chinese internet giant Tencent Holdings Ltd (HKG:0700), had to contend with a difficult market environment. Shares in rival car makers have slumped and Chinese stocks have been buffeted by concerns about growth, trade and currency weakness,” reported The Wall Street Journal.

“The fundraising was also a test of investors’ confidence in the development of electric cars in the world’s biggest automobile market,” the Journal added.

Through the NYSE listing, NIO is building its war chest to take on Tesla, which is arguably the world’s No 1 global electric-vehicle maker.

The Chinese carmaker is already demonstrating a strong cost advantage. In December 2017, NIO launched the NIO ES8, a seven-seater electric SUV, at about half the price of Tesla's Model X in China. The ES8 is NIO's first mass-produced model for the China market and has a base price of 448,000 yuan (US$65,000).

As of July 31, 2018, NIO delivered 481 ES8s and had unfulfilled reservations for more than 17,000 ES8s with deposits, of which 4,989 reservations were made with non-refundable deposits.

It plans to launch a second lower-priced, five-seater electric SUV, the ES6, by the first half of 2019.

Investors shouldn’t get the impression that NIO is just a cheap electric-car maker. It has higher aspirations. In 2016, NIO developed the EP9 supercar, a 1,360-horsepower speedster to challenge high-end sports cars with British racing driver Oliver Turvey and Italian racer Luca Filippi behind the wheel.

The intent with the supercar or concept racer was to check out the performance, assess the technology, and reuse a lot of that in NIO’s mass-market vehicles.

READ: Tesla may soon swing to a profit as Model 3 demand revs up

Corporate America first woke up to the Chinese presence when NIO founder William Li, dubbed the “Elon Musk of China,” managed to lure Silicon Valley innovator Padmasree Warrior from Cisco SystemsInc (NASDAQ: CSCO) two years ago to head up NIO in America and be global chief development officer. She has built NIO’s 85,000-square-foot R&D center in San Jose, California by hiring some of America’s top artificial intelligence, robotics and electric car experts.    

NIO now has research and design centers in Shanghai, London, Hong Kong, Munich and California.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Wed, 12 Sep 2018 10:27:00 -0400 https://www.proactiveinvestors.com/companies/news/204755/ipo-roundup-china-s-wannabe-tesla-killer-nio-ltd-trading-above-us14-on-nyse-204755.html