NIO secures USD 1.16 billion in financing to accelerate technology research and development and market expansion
NIO Inc. (09866) announced on September 17th that it has successfully completed a financing of USD 1.16 billion, which will be used for technology research and development, vehicle model development, and the expansion of charging and battery swap infrastructure. UBS has upgraded its investment rating to "Buy" and raised the target price to USD 8.50. The successful financing and positive sentiment from institutions drove NIO's Hong Kong stock up over 11%, while its U.S. stock rose over 8%. The all-new ES8 model will be launched this week, with strong delivery performance further boosting market confidence
According to Zhitong Finance APP, on September 17, NIO Inc. (09866, NIO.US), a leading company in the global smart electric vehicle industry, announced the successful completion of a $1.16 billion financing. This financing was conducted through a public offering of new shares, and the funds raised will primarily be used for the research and development of core technologies for smart electric vehicles, the development of new generation technology platforms and models, the expansion of charging and battery swapping infrastructure, as well as further optimizing the company's balance sheet and enhancing its financial strength to provide solid support for NIO's long-term strategic development.
UBS subsequently released a research report, upgrading NIO's investment rating from "Neutral" to "Buy," with a significantly raised target price of $8.50. The bank pointed out that NIO's growth prospects are clear, driven by improved financial conditions, enhanced competitiveness of new products, and a rebound in market confidence. The current valuation level is highly attractive, and the company's stock price is expected to have considerable upside potential in the next 12 months.
Deutsche Bank analysts believe that the new ES8 demonstrates strong competitiveness, reiterating a target price of HKD 75 for the Hong Kong stock. Morgan Stanley, Bank of America, CICC, JP Morgan, Daiwa, and Goldman Sachs have also raised their target prices.
Driven by the successful completion of financing and the positive sentiment from institutions, NIO's Hong Kong stock closed up over 11% on the day, while its U.S. stock closed up over 8% the previous day, both reaching new highs for the year. In addition, the company's new ES8 model is scheduled to officially launch this week at the NIO Day event in Hangzhou, and the L90 has accumulated 14,500 deliveries in just 45 days since its launch. It has entered the top three of the large SUV weekly rankings for seven consecutive weeks. With its dual flagship large three-row SUV product matrix, NIO is leading the large three-row SUV into the pure electric era with outstanding market performance, further boosting investor confidence in the company's operational prospects
