Electric-car companies may be selling more shares than cars at the end of 2020.
Amid an explosion in stock prices of electric-vehicle manufacturers, Chinese EV company Nio Inc. NIO, +2.75% announced Thursday afternoon that it plans to sell at least 60 million fresh American depositary shares, with an additional 9 million shares available to underwriters. Nio stock dropped more than 4% in after-hours trading following the announcement.
Nio’s move follows similar offerings by three other public EV companies in roughly the past week. Tesla Inc. TSLA, +3.74% announced a $ 5 billion at-the-market offering Tuesday morning, and completed that stock sale within roughly 24 hours, according to a filing with the Securities and Exchange Commission. It was the second $ 5 billion stock offering from Elon Musk’s U.S. electric-car manufacturer in three months, and third stock offering of the year.
For more: Tesla has a $ 20 billion ‘war chest’ for 2021 and beyond
Tesla followed two of its other Chinese rivals in selling fresh shares. XPeng Inc. XPEV, +0.34% disclosed the planned sale of 40 million new shares on Monday, after Li Auto Inc. LI, +1.44% announced last Wednesday that it was selling 47 million new shares. Both stocks struggled in the wake of those announcements.
Despite the momentary dips amid stock offerings, EV stocks are enjoying a 2020 stock surge. So far this year, Tesla stock has gained roughly 650%, Nio shares have increased more than 1,000%, Xpeng shares have gained more than 111%, and Li Auto stock is up more than 97%. The S&P 500 index SPX, -0.13% has gained 13% so far this year, and plans to welcome Tesla into its ranks later this month.
See also: Tesla joining the S&P 500 is going to be ‘the mother of all’ stock-market event
Nio’s share sale will be led by Morgan Stanley and China International Capital Corporation Hong Kong Securities Ltd.
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