Chinese electric car startup Nio Inc has encountered skepticism from US investors as it kicks off its financial roadshow aimed at attracting support ahead of its upcoming initial public offering in New York, Caixin reports.
Nio told the US Securities and Exchange Commission on Tuesday that it aimed to raise a maximum of $1.5 billion in its IPO. Though this would still give the company a huge valuation of $8.5 billion, the company had previously been looking to raise $1.8 billion.
Investors have also expressed doubts about the company’s growth prospects given the fact that the company has already raised $1.9 billion from venture capital funds and tech companies but only delivered 1,400 vehicles to customers so far.
“The company has great vision, but what it lacks is something to make it stand out — other than CEO Li Bin’s charisma,” one portfolio manager that attended a Nio even in Hong Kong told Caixin.
This attitude appears to be widely shared by US investors, who have become generally bearish about Chinese tech companies seeking large valuations.