A new share dilution is on its way.
When is or did this happen and does that mean you’ll lose stock like 1/10 share ratio?
And with the face that means bad news
Looks to be $2bn raised with a 3% dilution.
When a company issue more shares, this automatically dilute the value per share causing a dip in price. Looks like it’s happening, but I’m not sure when. However, this is not necessarily bad in the long run, if it consequently strengthens the company’s finances or serves in investments that will bring more revenue. In the short term it is painful for the investor.
Thanks for that @NeilB I understand somewhat now
I think it was in pipeline as they are down but could be the lack of production that’s been mentioned recently safety issues too regarding self drive!
It’s long term for me just issues with China American regulations more also
$NIO have issued $2bn more shares and will have $2bn more cash (minus some brokering fees). If you’re long $NIO this shouldn’t really matter.
The market doesn’t appear to like this and that could be any number of reasons, my guess is that it’s been raised for “general corporate purposes” - they have plenty of cash so the raise isn’t an urgent issue. It could point to the board feeling fully valued and striking while they have a high valuation which for a growth stock is an amber flag.
I’m not currently a NIO investor, so it doesn’t make much difference to me. I even have little information as to the reasons. I only posted it because the news came in my investment app. I’m sorry if I caused any unnecessary panic and good luck to you, NIO investors
Bored of NIO might well sell up and invest in something else.
I’m not panicking as of yet it’s a long hold for me regarding aslong as doesn’t go bankrupt which I can’t see happening but all info helps
That’s good and in a year’s time no one will remember this dilution, especially if the business continues to develop well.
I think in few years especially 2023/25 there will be more changes esp in China Norwegian market and UK with EV
Think longer time for NIO in UK tho
Long-term investment is the way
Anybody think this is a catalyst for NIO and the other big OEMs? Consolidation is necessary and will benefit them. Could be a buying opportunity?
I don’t know where the extra value comes from with a merge / buyout. R&D costs could come down but only is the technology and visions are the same.
Whats everyones thoughts on this one? sell? don’t see it recovering anytime soon and over stocks performing much better at the moment.
When China started the crackdown earlier, I sold. My personal opinion was that it was too much of a risk.
Back in. Can’t quite leave this one alone.
This is a long term hold for me …as I’m losing money atm!
I think I will be getting more when I have the funds so I’ll join you Ricky