NIO Announces At-The-Market Offering of American Depositary Shares
By - notnow_maybelater
NIO has $6B since last sell off! and operation is smooth. The only reason i see they need extra cash is they are getting some Huge opertunity in EU. Specially with Robo taxi's Germany, build up NIO factory for EU, BAAS deal? Only speculation at this time.
Investment into lotus, expanding into norway, rumor nee model et5, etc
Robo taxi needs to be level 4 autonomous level before it can roll out, this could be used for R&D for it to reach that level? Yup Lotus investment as well as going into Norway. Rumours of possibly buying a plant in Germany for NIO production (reduce amount of travel between China and Europe -> decrease cost of shipping). Two new models coming out, expansion of current plant from 150k to 300k. Building new plant of 600k by the end of 2022. BaaS stations in Norway (Apparently cost around 100k per station) and in china. Neopark.
It’s after market overreaction, They also did this in December in 2020, just before it’s started flying in Jan/Feb 2021.
Love this... Thanks for sharing this insight
I am more calm now.
Keep calm and buy the dip.
You guys should know Nio just partnered up with Geely/Lotus and Geely is weighing an IPO for Lotus cars or just the EV unit section. The whole business is valued at 15 billion. I don’t think this dilution is a bad move at all.
What do you guys think?
3 quick points
1) last time they did this, they stock hit 50+
2) this is at the market price not discounted. Which means they believe in the strength of the stock.
3) even though nio has cash on hand but if they continue to invest into projects (like entering USA). They will need more cash.
man if they used this cash and their cash on hand to announce a move to the usa market with a production site, imagine the explosion that would happen to the stock...
They are going to enter the USA market. I remember something like 2022 (end of it). They probably didn't go for it this year because of the China/USA relations. So going through EU first makes the most sense.
I know they will eventually, but an official announcement with a production plant would be a big news.
haha seems like negative news stock goes up...
good news...goes down....
With the current market cap that's only a 1,32% dilution.
That's nothing, don't sell, the more the price drop, the more shares they have to sell = more dilution.
isn't it a 3% dilution?
current marcket-cap is 46 Bn USD. So, dilution of 5% IMHO, correct?
That is deffo not the market cap.
Market cap 66.508B
Alright cool… did not expect them to shoot themselves in the foot at such a random time especially
Wtf man. Alwayd something
Wtf I thought they had enough cash
They have $7.4 billion cash, this $2 billion is for EU expansion potentially a factory in Germany.
I thought as well…
Aah shit here wo go again.
This is the shit the pisses me off with NIO. no excuse for this. Price is already depressed and they don't need money.
Yeah that depressed 125% year gain is real triggering lol
My man probably bought it 60$ in February.
Li and Xpeng both managed to list in HK but not Nio at this point due to its User Trust.
just businessmen doing business. Why spend cash when idiots will just buy more shares at an already steep valuation.
Lowest P/S ratio out of all the EV companies on earth, tell me again how it has a steep valuation?
just because all EV companies are expensive doesn't mean NIO is cheap, I know we pay a price for innovation but there are more trials and tribulations ahead.
I don't use P/S but I think we can maybe agree that an attractive one for any company shouldn't be double digits for a new investor when the ideal is closer to 1. EV/EBITDA and Forward P/E are both incredibly high.
really? alot of analyst's EBITDA have nio around 44 per share. who did the EBITDA for your analysis.
they don't. Clearly, unless they are lying during earnings calls.
More wineries in EU.
Once again they are diluting shareholders. Oh boy
Stocks are closed and price is dropping like hell. How can this be?
You’re reading it.
Stocks do trade after closing as well, hence the drop.
Not new 😉. But to be honest, I thought that stock exchange opening hours are there for a reason. In this case, to avoid panic selling if you announce something after opening hours
nio wtf lol
At what price?
I only see At the market
2 billion worth at market
I don't see any $ Amount mentioned, This seems like a generic message saying company can dilute shares as per their need (Which almost all companies can do anytime),
Can someone point me to the $Amount?
It says, “Nio announces at-the-market offering of up to US$2 bill if it’s ADSs.”
This means about 50 million shares worth
Normally gets released at a later date. Then the price will drop to around that price. Should know in the next week.
Were there talks about a second Neopark? Maybe they’re just getting extra funds for investing in it. Next to maintaining the strength of the Balance Sheet.
Is this not normal for a growth/ expanding business? Why the panic? Maybe its good for the long term.
I just made it my largest position today. Thank me for the drop
Haha best comment😊 when I sell they raise and reverse😊 so typical.
Just added 1k shares using margin. If this goes down below $38, will add 2k shares using margin again. Interest rate will then be $10k for a year. But if this goes up higher than $42.5 in one year, I will be in the money. BAFF!
Short term impact on the stock but all for good. As long as this new fund helps and expedites NIOs progress in building 1mil cap factory and populate every critical path with BaaS, we shouldn’t be worried about the short term noise in the stock price.
Super Long NIO!
Growing company trying to GROW and people complaining.. look at the price they are selling at … this is going way higher. Always has after offerings. Do your research
Welp….this is always. $2B offering at market, if they get them for $40 that’s an additional 50M shares. Not a ton, but not great. Hopefully we don’t drop too much tomorrow. I’d like to understand the purpose of this. Thought we had between $6-7B of cash on hand. Pretty odd.
I remember December 10,2020. 60,000,000 ADRs offering :) and what? In January NIO reached $62,70. I’m ready for this offering. In December I’ll see $55 per share. What I will do then? I will calculate my bloody profit 😂 I started to invest in NIO since December 2019. Who am I? I’m a millionaire 🥷🏻
Ha. I’m a millionaire too and won’t be letting any of my 9k shares go. Just surprised to see the 6-K pop up in my email while working a bit ago. Long road ahead and better days.
We will not drop tomorrow. Share will gain at least +0,5%
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This is BS....I was up 5k and now I'm down 25k in after market.
We will be okay.
Sometimes you have to take 2 steps back, and maybe a few extra steps back before you figure out a way to get to the top of next landing. I see this as a way for Nio to use this money for expansion purposes which will cause the stock to grow even further.
They’re expanding. This makes chances of long term success more likely.
Sad today. Happy tomorrow.
No big deal for long term HODLers
You can forget that $60+ EOY target now
45 EOY will good at this rate .
If bad news for NIO shouldn’t the SP go up :)
Do you remember December 10th 2020? 60,000,000 ADRs offering? And what?
I will buy in and hold. Expect it to perform well.
Not really happy about it, but we have to understand what Nio went thru in 2019. They almost went bankrupt due to cash flow issues back then and sure they are a lot more cautious with their balance sheet from that lesson. This is not a bad thing. Nio also has a lot on its pipeline and requires a ton of capital. Launching 3 models in 2022, launching a mass market car under a new brand, expanding further into EU with Germany next, building out infrastructures. Plus extra cash as reserve just in case.
I will give them a pass for this. I think offerings are expected now or later, its just the lack of explanation on how funds are being used get investors frustrated. I guess they might not want to give out too much info on their strategic moves since the industry is extremely competitive.
You don't just offer 2 Billion without something big planned. NIO already has enough cash for operating and expansions plans. You know the saying buy the rumor...sell the news, well here come the rumors!
Am I crazy or is nio just selling 2b worth of its own shares already owned and isn’t that much different from selling 50million new shares?
How do you know is dilution or company owned.
It is dilution!!
Offering your own shares does not create dilution
Where did you get that it's selling its own shares?
wtf. I believed so in this company and bought a shitton of leaps. I am already down. but this dilution now kills me. please let this be a hell of a dream. I can't believe this. I am financially ruined.
Just hold your shares for long time investment. This company is making good choices and expanding rapidly.
hopefully you went long
If you got true leaps, you’re good.
Just a thought. Could it be that they need to cash out China government (who helped them over the tough times) in the near future?
They will never completely cash out china
Are price targets going to be reiterated tomorrow or dropped?
I feel it might just dip for awhile and rip upwards.... At least its not insider selling for their own gains, it is just for company gains and progress....
Folks don’t panic, i think this is a good thing, they have lots of cash already, i think something big is in the works, we may see some announcement soon, patience
Will be loading up if we hit that sweet ol 35
Wow!! Great news!! And greater news to follow!! Happy happy happy
$NIO also needs more cash for super-cars development with Lotus
This sucks, anyone knows when this will happen?
It will happen overtime in the company’s discretion through transactions on NYSE.
Back in December it was same it might fell 3 to 8 percent
Then it will bounce back over a month
Sell it for now and buy back in lows