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Nio joins Tesla and other rivals in rush to offer more shares in electric-vehicle companies

Electric-car companies may be selling more shares than cars at the end of 2020.

As stock prices of electric-vehicle manufacturers skyrocketing, Chinese EV company Nio Inc. announced Thursday afternoon that it plans to sell at least 60 million fresh American depositary shares, along with an additional 9 million shares available to underwriters. Nio stock dropped more than 4% in after-hours trading following the announcement.

Nio’s move follows similar offerings by three other public EV companies in roughly the past week. Tesla announced a $5 billion at-the-market offering Tuesday. It was the second $5 billion stock offering from Tesla in three months, and third stock offering in a year.

XPeng Inc. XPEV, announced the sale of 40 million new shares on Monday, and Li Auto announced the sale of 47 million new shares last Wednesday.

Despite the car sales slump during this pandemic, EV stocks are enjoying surge in 2020. Tesla stock has gained roughly 650%, Nio shares is up more than 1,000%, Xpeng gained more than 111%, and Li Auto stock is up more than 97%.

Nio’s share sale will be led by Morgan Stanley and China International Capital Corporation Hong Kong Securities Ltd.

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