Chinese new-energy vehicle firm NIO Inc received a mixed response from investors during its initial public offering in New York on Tuesday, Bloomberg reports, with the up-and-coming rival to Tesla pricing itself at the bottom of its range.
The listing priced NIO at $6.26, two dollars short of the upper end of its price range. Shares dropped as low as $5.35 before closing higher at $6.60. This earned the company a valuation of $6.4 billion.
China’s multitude of electric carmakers are looking to raise funds to stay ahead in the autonomous driving and battery technology races, with instructions coming from Beijing to strive for global dominance.
However, a recent wobble in investor outlook for market-leader Tesla made NIO’s listing a harder sell. Concerns about the industry’s profitability are borne out by NIO’s financials – the company has racked up $1.6 billion in losses since 2016 and only started generating revenue earlier this year.