The Chinese Nio electric car company is considering selling its IPO stake to extract funds for its long-term ambitious plan of providing a diverse range of self-driving vehicles, city cars, and high-performance luxury supercars. The firm has already rolled out a Tesla Model X competitor, the ES8, which is already available in the market for car enthusiasts. The Chinese automaker is looking forward to extracting investments through the sale of 30% of its shares in the US operations headed by Padmasree Warrior, an ex-Motorola professional, or by initiating a public offering to meet planned goals.
The Nio in the US develops autonomous and driver-interface systems. The firm is planning an IPO launch early 2018 on the US Stock Exchange. According to sources, the Nio electric car company is valuing its 30% of the U.S operations at $300 million to $400 million that will make it stand around $1 billion.
On the other hand, Faraday Future, another electric car startup, has also managed to draw investment worth $1 billion through equity financing that was much needed by the automaker to execute its strategic plans. It also provided the firm with a lifeline to initiate the manufacturing of FF 91 electric vehicle at its California assembly plant.