NIO’s $100 Million Fundraise Falls Short for Cash-Needy Carmaker
- Company sees latest placement closing around Feb. 10
- Balance sheet remains in ‘precarious shape,’ analyst says
A NIO EP9 electric sports vehicle stands on display at the automaker's showroom in Beijing, China.
Photographer: Giulia Marchi/BloombergThis article is for subscribers only.
Shares of NIO Inc. slumped after the electric-vehicle maker announced it’s issuing convertible notes that it expects to raise $100 million, a sum that won’t be sufficient to address its cash needs.
The Chinese carmaker will sell $70 million of notes to one unidentified Asian investment fund through a private placement that should close around Feb. 10, according to a statement. NIO disclosed a similar transaction in January with another unaffiliated fund.