Why Nio Stock Moved Higher Today
Two days ago, Chinese electric vehicle maker Nio (NYSE: NIO) spooked investors by announcing a plan to raise up to $2 billion in a new stock offering. Shares tumbled 5% on the news. But the company's American depositary shares have begun to recover, including today when they were almost 3% higher in early trading. The shares have trimmed those gains, but still were up about 1% as of 11:15 a.m. EDT on Friday.
The market seemed to be surprised by the company's announcement on Wednesday of a secondary stock offering. After all, Nio already had $7.5 billion on its balance sheet as of June 30.
Nio ES8 electric SUV. Image source: Nio.
Source Fool.com