The Chinese electric vehicle manufacturer NIO announced a share offering worth approximately one billion dollars. The company sold over 181 million American Depositary Shares (ADS) at a price of 5.57 USD each, representing about an 11.3 percent discount compared to the previous day’s closing price. This price accounted for more than 8 percent of the company’s total market value, which before the offering stood at nearly 12 billion dollars.
The market reacted immediately. NIO’s stock price fell by around 10 percent, marking the largest single-day drop since December 2023. Such a reaction is typical in cases of new share offerings because investors fear dilution of their holdings and an increase in market supply. Nevertheless, the company took advantage of a favorable growth period — its shares gained 86 percent over the past two months — to raise additional capital for further investments.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe proceeds from the offering are intended to be used for developing new electric vehicle models, expanding the charging and battery swapping network, and strengthening the company’s financial position. It is worth noting that NIO reported sales results below expectations for the last six quarters. However, in 2025 the company recorded a delivery increase — by August it had delivered over 166,000 vehicles, representing a 30 percent year-over-year growth.
In a broader context, NIO still lags behind the leaders of the Chinese electric vehicle market. For example, BYD delivered nearly 1.9 million vehicles in the same period, Tesla over 300,000, and Xpeng more than 210,000. However, the share offering could help NIO accelerate development and increase its market share.
In summary, although the market reacted to the share offering with a drop in stock price, in the longer term this may be an important step toward financial stabilization and further technological development of the company. In the short term, however, investors must expect pressure on the stock price and dilution of the value of their holdings.
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
