Nio Stock Plummets Nearly 10% Following $1 Billion Equity Offering Announcement

Nio's American depositary shares (ADS) tumbled as much as 11% after the Chinese EV Maker revealed plans for a $1 billion capital raise, marking its first equity offering since August's record delivery numbers. The stock pared losses slightly but remained down 9.5% midday, erasing part of its 30% rally preceding the announcement.

The capital injection will fund R&D for smart EV technologies, battery-swapping infrastructure expansion, and balance sheet strengthening. Pricing the new shares at $5.57 per ADS—an 11.3% discount to Tuesday's close—Nio explicitly cited its recent share price appreciation as the strategic window for dilution.

August's delivery record of 31,305 vehicles, driven largely by new mass-market brands Onvo and Firefly, had fueled investor Optimism before this corrective move. The offering underscores the capital intensity of EV manufacturing despite improving operational metrics.