Nio Stock Bounces Back In Premarket After Tuesday's 17% Plunge: What's Going On?

Nio, Inc. NIO shares were advancing in premarket trading on Wednesday, suggesting the stock could recoup some of the 17.07% plunge they experienced in the previous session.

The stock rose 2.34% to $8.75 in premarket trading, according to Benzinga Pro data.

Nio said late Monday it plans to offer $1 billion in convertible senior notes in two parts – $500 million notes due 2029 and $500 million notes due 2030. The company said it plans to use a portion of the net proceeds to repurchase a portion of the existing debt securities and the remainder mainly to strengthen its balance sheet position and general corporate purposes.

On Tuesday, the Chinese electric vehicle startup announced the pricing of the offering. The 2029 notes will bear interest at a rate of 3.875% per year, and the 2030 notes will bear interest at a rate of 4.625% per year, both payable semiannually, the company said.

Despite the capital raise not involving the sale of additional shares, the stock was hammered on Tuesday.

European registration data released Wednesday showed Nio sold 46 European cars in September.

See Also: Best Electric Vehicle Stocks

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