US-listed shares of Nio rebounded on Thursday, erasing most of the nearly 9% drop from Wednesday after the company announced a $1 billion equity offering.
The Chinese EV maker said the funds will provide key support for its R&D, new models across its three brands, and expansion of its battery-swapping and charging network.
Goldman Sachs’ analysts team said that Nio’s $1 billion equity offering will strengthen the company’s ability to execute its product strategy.
However, the bank estimates the group to miss its sales target by 19,000 in the final quarter of the year.
The bank forecasts that Nio’s research and development (R&D) spending could reach RMB 11 billion ($1.404 billion) in 2025 and 2026.
In a new research note, the bank said the fresh capital is expected to reduce the company’s debt ratio to 92% from 98%.
The debt ratio shows how much of a company’s assets are financed through debt rather than equity.
A higher ratio indicates heavier reliance on borrowing and greater financial risk, while a lower ratio points to a stronger balance sheet and more stability.
The Group delivered 42,094 vehicles in the first three months of the year and 72,056 in the second quarter.
For the last two quarters of 2025, Goldman Sachs expects Nio to deliver 89,000 and 131,000 vehicles across the three brands after improve competitiveness showed with the latest two model launches Nio ES8 and Onvo L90.
On September 2, the company reported second-quarter earnings and guided for deliveries of between 87,000 and 91,000 vehicles in the third quarter.
On the earnings call, founder and CEO William Li set a target of 150,000 vehicles in the fourth quarter — about 19,000 more than Goldman Sachs’ forecast.
The bank gives a Neutral rating, with a target price of HK$31.8 for the H-shares and $4.1 for the US-listed shares.
As of press time, Nio shares were down 1.9% at $5.96 in New York.
The stock had closed 6% higher on Thursday at $6.07 after JPMorgan reiterated an Overweight rating and $8 price target, recovering from an 8.9% drop to $5.72 on Wednesday when the offering was announced.
JPMorgan’s Nick Lai said the equity raise itself was “not a surprise” given similar moves across the EV industry this year, but added the “timing of the issuance is somewhat a surprise right after Nio’s recent 2Q25 result release when management highlighted its robust product pipeline and profitability turnaround in 4Q25.”
