Why Nio Stock Could Rebound After This Week's Sharp Fall
Shares of (NYSE: NIO) slumped this week and were trading 17% lower through 11 a.m. ET Friday, according to data provided by S&P Global Market Intelligence. Despite a positive opening on the last trading day of the week, Nio stock has now lost more than 40% value since Aug. 1, thanks to this week's extended weakness.
Earlier this week, Chinese electric vehicle (EV) maker Nio announced plans to raise at least $1 billion in debt in the form of convertible senior notes. Nio said it will offer $500 million of senior convertible notes due 2029 and another $500 million due 2030. The proposal includes a potential additional offering of $150 million, which effectively means Nio is looking to raise up to $1.15 billion in debt.
Nio said it'll mainly use the funds to pare a portion of its existing debt and strengthen its balance sheet. That doesn't sound too bad, but the idea of a loss-making start-up raising so much debt is enough to rattle investors.
Source Fool.com
NIO Inc. Stock
Our community is currently high on NIO Inc. with 3 Buy predictions and 0 Sell predictions.
With a target price of 5 € there is a positive potential of 33.33% for NIO Inc. compared to the current price of 3.75 €.
