The NIO funding comes as no surprise
The NIO funding comes as no surprise!
$NIO Inc.(NIO)$ $NIO Inc.(NIO.SI)$ $NIO-SW(09866)$ With $3.7b in cash and $1.9B in debt in a price war scenario, did NIO’s $1B convertible as high as 4.75% notes announcement come as a surprise? No.
Did it come at a bad time? Looks like it. Sentiment is just not forgiving of such moves esp with rates low in China. Why go for expensive US debt at conversion just 27-32% premium over share price? They paid no interest on CNs back in 2021.
Market appetite has deteriorated it seems.
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- Brrnie·2023-09-20look at their cash burn. it's just ridiculousLikeReport