Shanghai, 10 September 2025 – Chinese electric vehicle (EV) manufacturer NIO has announced plans to raise approximately US$1.14 billion through a new share placement, aiming to bolster its development and capital base amid a heated pricing war, according to a filing published late on Wednesday.
In the statement, NIO revealed that it will issue 181.8 million new shares, comprising both American Depositary Shares (ADS) traded on the New York Stock Exchange and ordinary shares listed in Hong Kong and Singapore. The offering is expected to net the substantial figure based on the ADS closing price of US$6.28 in New York on the prior trading day.
A consortium of underwriters—Morgan Stanley, UBS, and Deutsche Bank—will lead the placement. They are also granted a 30-day option to purchase an additional 27.3 million ADS, which could further extend the capital raised if exercised.
This fundraising drive comes as NIO grapples with narrowing losses. In Q2 2025, the company reported a loss of 4.99 billion yuan (around US$701 million), marking a 26 percent improvement from the preceding quarter, though nearly flat year-on-year.
Strategic Implications for Investors and the EV Sector
NIO’s decision to tap capital markets reflects both the pressures and potential within the EV ecosystem. The fresh funds are intended to support ongoing product development, preserve operational flexibility, and reinforce its balance sheet. A stronger capital base could help NIO sustain crucial investments in innovation—ranging from battery tech to smart vehicle systems—while maintaining competitiveness on price.
Wall Street has observed a similar theme: NIO’s US-listed shares recently fell 8.1 percent to US$5.77, despite generational gains earlier, as the company confirmed its share offering. Equity markets are digesting the dilution risks even as the funds may enable further growth initiatives.
