Chinese electric car maker NIO’s initial public offering valued the company at about $6.4 billion, as its shares were priced at the bottom of its targeted range, Bloomberg reports.
NIO, whose backers include Chinese internet giant Tencent, has been described as China’s answer to Tesla. Its IPO comes as Tesla’s stock has struggled recently amid executive departures and growing concerns about Elon Musk’s behavior.
NIO’s listing is a test of investors’ confidence in China’s electric vehicle market where major local players have been raising billions of dollars from investors, even though their ability to mass-produce reliable cars has largely been unproven.
In China’s growing EV market, NIO’s major competitors include Alibaba-backed Xiaopeng Motors and Byton, whose investors include Baidu and state-owned automaker FAW Group.