Written by Cláudio Afonso | LinkedIn | X
Nio announced earlier in the week that it planned to raise HK$4.03 billion ($518 million) through the placement of 136.8 million Class A ordinary shares at HK$29.46 each.
Amid the announcement, the EV maker said it expected the transaction to close “on or about April 7,” subject to customary closing conditions.
However, Nio founder chief executive William Li said at a media roundtable on Saturday during the 2025 China EV100 Forum the Chinese manufacturer completed its HK$4.03 billion ($518 million) share placement in a single day.
Li added that “many long-term investors” participated in the deal showing confidence in their investment.
“This Hong Kong placement was completed in one day, with many of Nio’s long-term investors continuing to invest. The overall market response was very good,” Li said in the media round table.
The deal was unveiled during Thursday’s U.S. pre-market session, when the company’s American depositary shares were trading around $4.24. The stock has since fallen about 12% and closed Friday at $3.75, just above the four-year low of $3.61 hit last year.
Proceeds will be used to fund research and development of smart electric vehicle technologies and new products, as well as to strengthen the balance sheet and support general corporate purposes, Nio said.
Macquarie analyst Eugene Hsiao said the equity raise was unsurprising following Nio’s widening losses in the fourth quarter of 2024. In a research note, he pointed to a liquidity imbalance, citing current liabilities of 62.3 billion yuan, exceeding current assets of 61.8 billion yuan as of year-end.
R&D Investments
Li said Nio is maintaining a high level of investment in innovation despite the financial pressure. “At the ratio of R&D spending to revenue, I believe we should be one of the highest among global car companies,” he said. He added that the investment will begin to yield results this year, with the launch of nine vehicles — four facelifts and five new models.
“If you’re already asking why the seed hasn’t sprouted while you’re still planting it, that’s indeed a bit impatient,” he said.
Li also commented on the company’s in-house semiconductor efforts, including the Shenji NX9031 — described by Nio as the world’s first automotive-grade 5nm intelligent driving chip.
He said the company’s chips and operating systems are open to the broader industry. “Some partners in the supply chain have already started integrating with us based on SkyOS L and M.”
Battery Swap Push
Earlier this month, Nio reached a new agreement with CATL (Contemporary Amperex Technology Co. Ltd.) to jointly expand a battery swap network for passenger vehicles and deepen capital cooperation.
Under the deal, the Chinese battery giant will invest up to 2.5 billion yuan ($346 million) in Nio Power, the EV maker’s energy subsidiary.
Nio plans to add between 1,800 and 2,000 battery swap stations in China this year as it revamps its network expansion strategy to improve cost efficiency and boost adoption in underserved markets. The revised target marks a slight reduction from the 2,000 stations announced in December.