Thomson Reuters
Nio, widely seen as the Tesla of China, slid below its initial-public-offering price on Tuesday. Shares priced at $6.26 apiece on September 12. One investor recently told Business Insider that Nio is "an easy stock to steer clear of" because of its unproven management and inexperience manufacturing cars. Watch Nio trade in real time here.Nio, which has been touted as the Tesla of China, slid below its initial-public-offering price nearly three weeks after going public, touching a intra-day low of $5.88 per share on Tuesday.
Shares priced at $6.26 apiece on September 12, the low end of its range, causing the electric-car maker to fall short of raising the $1.8 billion it had sought. But on the next day, after touching its record low of $5.35, the stock soared 75%, sending its market capitalization above $12 billion â despite Bernstein analyst Robin Zhu assigning an "underperform" rating and saying he thinks a capital raise is coming in the next 12 to 18 months.
The stock would top out a day later at $13.80. Since then, shares have fallen in 10 of the last 12 sessions, shedding about 36% over that time.Â
"Nio's not a stock we have any interest in," said Mark Tepper, president and CEO of Strategic Wealth Partners, managing over $1 billion in assets, told Business Insider. "An unproven management team along zero experience in manufacturing cars makes this an easy stock to steer clear of."
The four-year old Tencent-backed electric-car startup delivered its first volume-manufactured vehicle â the ES8 â to users on June 28, and started to generate revenue this year, according to its IPO filing. Nio said it made $6.95 million revenue in the first half of 2018, and that it had 6,201 unfilled ES8 reservations by the end of August, for which non-refundable deposits had been made but customers could still cancel their orders.
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