Nio (NYSE: NIO) announced Monday after the market that it plans to offer $1.3 billion in convertible notes.
The Shanghai-based electric vehicle maker is offering $650 million in notes due 2026 and $650 million due 2027. The company expects to use the funds for general corporate purposes and to further strengthen its balance sheet positions.
On Saturday, the company unveiled its luxury sedan called ET7. The competitively-priced sedan is poised to become a direct competitor to the Tesla (Nasdaq: TSLA) Model 3 and Model S in China, as well as the P7 Smart Sedan from Nio's closest rival Xpeng Motors.
The ET7 is an all-wheel-drive sedan with electric motors for the front and rear axles. The powertrain will offer a combined output of 400kW, according to local media in China. The range is expected to be over 450km (280 miles). The ET7 accelerates from 0 to 60 mph in under five seconds, according to Eric Walz from FutureCar, our sister site.
Shares of Nio closed at $62.7, up 6.42%, but fell 2% aftermarket on the convertible news.