NIO Inc. (NYSE: NIO)
On Tuesday October 9th, 2018, shares of a little-known IPO that debuted on the New York Stock Exchange last month began to get increasing volume in the shares of their common stock during the regular trading session.
The company went public last month, raising about one billion dollars in revenue. The name of the company is NIO and it is a Chinese competitor to the ubiquitous Tesla line of vehicles. The company currently has one vehicle in production and plans on having a second by the end of this year.
The stock opened for trading on the New York Stock Exchange at $6.25 and has had a turbulent trading life since that day. Shares hit a high of $13.80 before slowly trickling lower daily ever since. Matter of fact, shares were as low as $6.10 during the trading session on Tuesday.
However, once news started to spread that a large investor, who is also a large investor in Tesla had taken an 11% stake in the little Chinese company – news spread fast with social media, and the volume began to pour in.
Shares skyrocketed. The stock wound up closing up $1.35 at $7.39 which was up 22.35%. It got even more crazy in the after-hours session as shares soared over the $8.00 level and closed at 8:05 which was up an additional 9.88%.
The Investor
Baillie Gifford & Co. disclosed that it owns 85.3 million NIO Inc. shares in a regulatory filing Tuesday. The holding was worth about $515 million as of the close of trading Monday.
On Tuesday, when news of the stake broke, NIO’s American depository receipts rose 22 percent. The fund manager isn’t the only major investor that Tesla and NIO share.
Another is Tencent Holdings Ltd., which holds 4.9 percent of Tesla and all of a special class of NIO stock, giving the Chinese tech giant about 22 percent voting power of issued shares.-Bloomberg.com(via Yahoo)
The Charts
The above price chart shows the regular trading session and the after hours trading session for NIO. You can see that prices surged into the close on Tuesday and then continued up into the post market before settling down and consolidating in the $8 range.
The above price chart shows NIO on the daily time frame since the company went public. It will be interesting to see how the trading in the shares Fair’s when the Market opens at 9:30 Eastern Standard Time.
Because it is an IPO, and there are limitations on shorting – there are not that many shares that have been shorted in the open market. It can be shorted only by day traders that are able to locate available shares from their brokers for intraday trading to sell short.
Company Profile
NIO Inc. designs, manufactures, and sells electric vehicles in the People’s Republic of China, the United States, Germany, and the United Kingdom. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after sales management activities.
In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People’s Republic of China.-YahooFinance
