NIO
📉 Nio announced a proposed offering of up to 18.8 million American Depositary Shares (ADS), leading to further dilution for existing shareholders.
💡 The company plans to use the proceeds for R&D in smart EV technologies, new products, strengthening its balance sheet, and ‘general corporate purposes’.
😠 The analyst expresses strong skepticism about management, citing a history of under-delivery, broken promises, and value destruction for shareholders, casting doubt on the effective use of the new capital.
@bernardodegarcia:
“Let’s go to Nio. Yikes. Nio, doing a bit of what GameStop was doing, announced today its proposal to offer up to 18.8 million shares, so multiply 18.8 million by $4, of Class A shares in international transactions. The company plans to use the net proceeds from the capital placement for research and development of intelligent electric vehicle technologies and new products, which will further strengthen its balance sheet and its general corporate purposes. I’ll just stick with the last part: ‘general corporate purposes.’ Ah, the management team will continue collecting salaries, continue deceiving shareholders, continue promising, continue delivering below promises, and continue destroying value. This is what they’ve been doing for years. Sad, but anyway, hopefully, their luck changes.”
Watch the exact part of the video where @bernardodegarcia talks about Nio here:
Watch the video on YouTube
Read more articles analyzing Nio (NIO) at the following link. NIO stock.
