Auto

Chinese electric carmaker NIO eyes US$1.8b IPO in America

Friday, September 14, 2018

Print this page Email A Friend!


BEIJING, China (AFP) — Chinese electric carmaker NIO has filed for a US$1.8-billion initial public offering in the United States as the burgeoning company seeks to compete with US rival Tesla.

NIO is one of dozens of new automakers to crop up in China as policymakers in Beijing push an all-electric future for the world's largest auto market.

American, Japanese and European auto giants dominate sales of combustion engine vehicles in China, but homegrown firms unencumbered by the billions sunk into refining gasoline engines are in the driver's seat when it comes to electric cars.

While Tesla chief Elon Musk is in talks with Saudi Arabia's sovereign wealth fund and other investors to take his company private, NIO filed papers at the US Securities and Exchange Commission on Monday to go public.

But the upstart Chinese automaker faces a long road ahead for its proposed float of up to US$1.8 billion on the New York Stock Exchange.

The company had delivered only 481 of its first mass production electric SUV model the ES8 by the end of July, with reservations and deposits in place for an additional 17,000.

NIO is backed by tech giant Tencent and several private equity firms.

It brought in US$7 million in sales during the first half of the year while racking up a loss of more than US$500 million.

The new energy vehicle market is exploding in China as Beijing uses carrots and sticks to prod carmakers and consumers down the electric path.

Last year the market grew 53 per cent to 780,000 units, though new energy vehicles still constitute only 2.7 per cent of total car sales.

ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT