The EV firm saw its share price rise as 60 million previously issued American Depositary Shares (ADS) were subscribed by Tencent for USD 10 million. This allowed Tencent to hold approximately 159 million ordinary shares of the firm.
Eyes on the prize. Image credit: Ishant Mishra/unsplash
On July 1, the stock price of the NYSE-listed EV maker once rose 3.5%, hitting USD 7.99, the highest share price since March 2019. It then fell slightly, closing at USD 7.91, pushing the market value to USD 9.37 billion, just short of returning back to the ‘USD 10 billion mark.’
As positive news has surrounded the firm, NIO’s share price has nearly doubled since the start of June, rising by 93.97 % with an overall increase of 177.70% in the second quarter of 2020.
In addition to Tencent’s increased shareholding ratio, NIO’s sales transcripts have acted as a catalyst in the increase of the firm’s share price. In April, NIO delivered a total of 3155 vehicles, a record high, followed by 3436 delivered in May.
Injecting capital to build the Hefei factory has helped solve NIO’s problem of capacity delivery speed, due to which we will see even more vehicles being delivered in June as compared to previous months, hence pushing the share prices higher.