NIO executive denies IPO in U.S.

Shanghai (Gasgoo)- Zhu Jiang, vice president of NIO’s user development, denies the company’s planning for IPO in the United States and said the news was a complete rumor. NIO won’t give any comment for this.

“The company is concentrating its focus on the production, delivery and customer service of the intelligent and electric seven-seat SUV, ES8.” The company is full of confidence in the smooth delivery of the vehicle, the executive added.

At the end of last month, NIO was reported to have hired eight banks to work on its initial public offering in the United States this year. The IPO was said to be worth up to 2 billion dollars and to finance the company’s expansion and investments in autonomous driving and battery technologies.

Regarded as China’s Tesla, NIO is considered to take a similar development approach to that of Teasla. Only less than two years after its first Roadsters rolled off the production line and began to be delivered, Tesla became the first luxury battery electric vehicle maker in the United States.

Industry analysts seemed to be positive about NIO’s IPO work. Xiao Yue, an industry veteran revealed that domestic market is not the only target. The initial public offering in the United States would help the company to enhance its international influence and eventually to boost its sales.

Liu Wenguang, an asset management analyst, said the company can adjust its action in accordance with its state of operation and market conditions. “Actually, companies like NIO are the favorite of the capital market and are likely to raise funds with higher price-to-earnings ratio. But its share price may be devalued if NIO cannot achieve profit in a long time, Liu said. Up to now, the electric vehicle startup has raised a total of RMB 15 billion via five financing rounds.