Nio have recently announced that they are to raise $3bn by issuing 69 million new shares, the magic number 😉 In this video I talk about how this impacts Nio as a company and more importantly, you as an investor. And give, my Stock Price Prediction.
Nio probably wont get all of this cash as the big banks will take their fees, but now is a great time for Nio to raise cash as all EV stocks are on a massive run up and therefore, Nio will get the biggest bang for their buck.
They could use this money to pay down debt, invest in new infrastructure, expand overseas, continue research and development, open a new factory and increase production and many other activities.
Typically issuing new shares can be seen as downwards pressure and a sign of weakness that the company doesnt have enough cash or cant generate enough cash to pay back a loan.
But, many companies in their infancy issue shares all the time as it is a cheap way to raise a lot of money, quickly. Tesla have performed well over 8 capital raising with the most recent raising only 5 days ago.

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