Written by Cláudio Afonso | LinkedIn | X
Nio shares slumped to their lowest level in nearly five years on Monday, extending recent losses following a stock offering and mounting pressure on new brand and model rollouts.
The Chinese electric vehicle maker fell as much as 4% in early U.S. trading to $3.57, the lowest intraday price since May 2020. The stock later reversed course to close up 1.6% at $3.81, paring intraday losses.
The stock is down 12.6% year-to-date, with the decline accelerating last week following the announcement of a $518 million share placement. Nio’s stock has lost more than 94% of its value since peaking at $66.99 in January 2021.
Institutional Ownership
At the time, institutional investors held approximately 500 million shares. By the end of 2023, institutional ownership had dropped to 229.7 million shares, the lowest level since mid-2019, according to data from Fintel.
As of Monday, 502 institutional holders collectively owned about 214.78 million shares.
Product Pipeline
Over the weekend, Nio began deliveries of the ET9, a luxury sedan priced from 788,000 yuan ($108,490) with a battery pack included. The model, the most expensive in Nio’s lineup, was first unveiled at Nio Day 2024 in December and is also available with the company’s battery-as-a-service subscription.
The ET9 marks a push further into the premium segment, even as Nio prepares to expand its reach with lower-priced vehicles with its new sub-brand Firefly.
On April 19, the company’s second sub-brand is set to launch its debut model, a compact electric car currently available for pre-sale at 148,800 yuan. The final pricing will be announced at the event.
Shortly afterward, at the Shanghai Auto Show, Nio will unveil the L90 — the second vehicle under its mass-market Onvo brand. The new model follows the L60, a five-seat SUV that fell short of expectations in early 2025.
The company is under pressure to deliver a stronger performance with the L90 as it seeks to establish a foothold in the family-oriented segment.
Equity Offering
Last week, Nio disclosed plans to raise HK$4.03 billion ($518 million) through a private placement of 136.8 million Class A ordinary shares at HK$29.46 each. The company initially said it expected the deal to close “on or about April 7,” subject to customary conditions.
However, Chief Executive Officer William Li said on Saturday at a media roundtable during the 2025 China EV100 Forum that the deal was completed in one day.
“This Hong Kong placement was completed in one day, with many of Nio’s long-term investors continuing to invest. The overall market response was very good,” Li said. He added that “many long-term investors” participated in the offering, signaling continued confidence in the company.
The equity raise was announced during Thursday’s U.S. pre-market session, when Nio’s American depositary shares were trading at around $4.24. Based on Monday’s close of $3.81, the stock has fallen roughly 10% since the announcement.
