Li Auto shares led the decline of EV Stocks in Wednesday morning trading.Li Auto was down 7%,Xpeng Motors was down 4%,Nio was down 2% and Tesla was down 0.6%.
Li Auto announced a new $750 million debt offering, which the China-based electric vehicle maker said would be used to fund research and development.
Li Auto Inc., an innovator in China’s new energy vehicle market, today announced that it proposes to offer up to US$750 million in aggregate principal amount of convertible senior notes due 2028, subject to market conditions and other factors. The initial conversion rate, interest rate, and other terms of the Notes have not been finalized and will be determined at the time of pricing of the Notes Offering. The Company intends to grant the initial purchasers in the Notes Offering a 13-day option to purchase up to an additional US$112.5 million aggregate principal amount of the Notes.
The Company plans to use the net proceeds from the Notes Offering for (i) research and development of new vehicle models, including BEV models, (ii) research and development of leading technologies, and (iii) working capital and other general corporate purposes.
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