Tesla of China soars as it shakes off its first ‘underperform’ rating

REUTERS/Damir Sagolj

• Nio,
  known as the Tesla of China, is up more than 22% on Thursday
  despite receiving its first “underperform” rating.
• The Chinese electric-car maker debuted on US public
  markets on Wednesday.
• Watch
  Nio trade in real time here.

Nio,
known as the Tesla of China, is soaring, up more than 22%, during
its second day of trading as a public company on US markets
despite receiving an “underperform” rating.

On Thursday, Bloomberg reported Bernstein analyst Robin Zhu
slapped an “underperform” rating on shares with a price target of
$4.20 — some 36% below where shares settled on their first day of
trading. Zhu sees a capital raise coming in the next 12 to 18
months.  

The Chinese electric-car maker that’s backed by Tencent had a
dissapointing debut on US public markets Wednesday as shares
opened at $6 apiece, shy of the $6.26 initial-public-offering
price. Nio raised $1 billion through the IPO, missing the $1.8
billion that it had targeted. 

And while Nio’s IPO was a big one, it’s not the largest by a
Chinese firm on US markets this year. iQiyi, known as the
Netflix of China, raised $2.42 billion from a Nasdaq IPO in
March. Pinduoduo, an
online group discounter, is the second largest at $1.63
billion. 

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