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That didn’t last. Tesla-challenger NIO has been on a tear since, climbing from its IPO price of $6.26 per share to a staggering $12.10 at the time of writing. That’s nearly a doubling in less than a week of trading.
Shares of NIO spiked around 75 percent yesterday, and today kept running afoul of volatility rules according to MarketWatch:
Shares of Nio Inc. are down 6% in volatile Friday morning trading. The stock was up as much as 19% and down as much as 21%. Trading was halted for volatility twice since the open.
That’s pretty amazing. What the hell is going on?
NIO’s IPO was a risky bet. The company had little history of revenue generation and lots to prove when it comes to manufacturing, marketing, and support. To see the company IPO at all was a testament to market bullishness regarding transportation companies and high-growth tech shares.
But for NIO, forced to price a single penny above the bottom of its range, to effectively double during its first week of trading is simply odd. We’ll find out more in time, of course, but something’s going on. CNN notes that other Chinese companies that went public on American exchanges had a good day yesterday as well, but the connection isn’t yet clear.