NIO Inc NIO shares are trading higher and trending. The company on Wednesday announced the completion of a $1.16 billion equity offering. Here’s what you need to know.
What To Know: Nio on Wednesday said it completed a $1.16 billion equity offering, selling American depositary shares at a public offering price of $5.57. The company also noted that the underwriters exercised their full option to purchase additional shares in the offering.
Nio plans to use the net proceeds to invest in research and development for EVs, develop future technology platforms and vehicle models across its brands, expand its battery swapping and charging network and further strengthen its balance sheet.
Nio had approximately $3.8 billion of total cash, cash equivalents, restricted cash and short-term investments as of June 30.
Nio shares may also be getting a boost on Wednesday from increased AI spend in China, as previously reported by Benzinga.
Bloomberg Intelligence forecasted that capital expenditures among China’s largest tech companies will more than double to $32 billion in 2025. Recent reports also suggest Chinese tech companies are ramping up AI spending and product launches.
Nio began shipping its new ES8 SUV to retail locations across China this week ahead of the official launch at Nio Day 2025 on Saturday.
NIO Analysis: Nio shares show strong momentum with a recent price increase, currently testing resistance at $7.50. Support is solid around $6.80, which aligns with recent swing lows. Volume is robust at around 17.3 million shares, indicating strong buying interest. This uptick in volume confirms the price movement and suggests a potential continuation of the trend.
The RSI is calculated at 65.20, approaching overbought territory but still allowing for further upside. The MACD is bullish, with the signal line at 0.15 and the MACD line at 0.25, indicating positive momentum.
The market structure shows higher highs and higher lows, confirming an uptrend. A bullish flag pattern is forming, suggesting a potential breakout if the stock can maintain momentum above the $7.50 resistance level.
Analyst sentiment remains positive, with UBS maintaining a Buy rating with a $9 price target earlier this week, Freedom Capital Markets maintaining a Hold rating with a $7 price target on Sept. 4 and Mizuho maintaining a Neutral rating with a $6 price target on Sept. 3.
Benzinga Edge rankings show moderate fundamentals, with Growth ranking 13.35/100 and Momentum ranking 80.83/100.
NIO Price Action: Nio shares were up 2.35% at $7.20 at the time of publication Monday, according to Benzinga Pro.
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