News 12 september — 14:14

In Tesla's shadow, China's NIO raises $1 billion from IPO - sources

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Chinese electric vehicle start-up NIO Inc <NIO.N> priced its shares near the bottom of its targeted price range in its U.S. initial public offering, according to sources familiar with the matter, dragged down by investor concerns about the prospects of chief competitor Tesla Inc <TSLA.O>, Euronews reports.

Tesla's struggle to meet its production targets and an abandoned attempt by chief executive Elon Musk to take it private have weighed not just on its own stock, but also on peers looking to develop mass-market electric cars.

Chinese electric carmakers are seeking capital to develop autonomous driving and battery technologies. Beijing wants to rapidly expand China's production to curb vehicle emissions, boost energy security and promote high-tech industries.

NIO priced its shares at $6.26, just above the low end of its $6.25 to $8.25 target price range, according to four sources familiar with the process. The deal will value the firm at $6.41 billion (£4.93 billion). It is due to begin trading on Wednesday on the New York Stock Exchange under the symbol "NIO".

Earlier, one source told Reuters the deal would price at $6.25 a share.

A representative for NIO did not immediately respond to a request for comment.

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