The Tesla of China is soaring as it shakes off its first 'underperform' rating

pulse 15:01 - 13 September 2018

Nio, known as the Tesla of China, is up more than 35% on Thursday despite receiving its first "underperform" rating. The Chinese electric-car maker debuted on US public markets on Wednesday.

The Chinese electric-car maker debuted on US public markets on Wednesday.

Nio, known as the Tesla of China, is soaring, up more than 35%, during its second day of trading as a public company on US markets despite receiving an "underperform" rating.

On Thursday, Bloomberg reported Bernstein analyst Robin Zhu slapped an "underperform" rating on shares with a price target of $4.20 — some 36% below where shares settled on their first day of trading. Zhu sees a capital raise coming in the next 12 to 18 months.

The Chinese electric-car maker that's backed by Tencent had a disappointing debut on US public markets Wednesday as shares opened at $6 apiece, shy of the $6.26 initial-public-offering price. Nio raised $1 billion through the IPO, missing the $1.8 billion that it had targeted.

And while Nio's IPO was a big one, it's not the largest by a Chinese firm on US markets this year. iQiyi Pinduoduo

Now read:

A fund manager who's crushing nearly all of her peers breaks down 3 under-the-radar stocks driving her strong performance
Wall Street is turning its back on a crucial part of the tech industry — and it's threatening to tank stocks across the entire sector
Oracle's head of cloud left after butting heads with Larry Ellison, source says