Chinese EV startup Nio files for $1.8 billion IPO

NIO boasts that the ES8 also offers NIO some Tesla-esque features and perks

NIO boasts that the ES8 also offers NIO some Tesla-esque features and perks

The Shanghai-based company used a placeholder amount of $1.8B in the offering filing. Nio claims to have more than 17,000 reservations for the ES8 in total.

Nio's move to sell shares in the United States comes at a time when Tesla CEO Elon Musk has a plan to set up a big factory in Shanghai, China to corner a market where the government is promoting new-energy vehicles with incentives for buyers. While Nio is now focused on the Chinese market, it plans to expand elsewhere, including in the United States where it has already established a local division. Chinese video streaming service provider iQiyi Inc raised $2.42 billion from a Nasdaq IPO in March.

The Nio ES8 on display during a media preview of the Auto China 2018 motor show in Beijing, China, April 25, 2018.

Like Tesla, Nio is burning through money. Its other backers include investment firms Hillhouse Capital Group, Sequoia Capital and a private equity fund established by Baidu. "(China's) new energy vehicle industry is just starting, it's a marathon process".

India denies China printing currency claim amid social media row
In comparison, the US Bureau of Engraving and Printing employs a tenth of the staff at two currency factories. A Chinese employee checks the pattern plates of 100-yuan banknotes in the Chengdu Banknote Printing company.

Nio has just introduced its first volume vehicle on the Chinese market in the form of the Tesla Model X-rivaling ES8, but the long-term plan is to offer a full portfolio and this will require serious funding. The company had a net loss of $502.6 million on less than $7 million in revenue in the first half of 2018, according to the filing.

The Chinese auto maker in late June began making deliveries of its first mass-produced electric vehicle, the ES8, after unveiling the $67,000 seven-seat SUV previous year.

NIO mainly plans to use the proceeds to be raised for research and development of products and technology, marketing and developing manufacturing facilities.

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