Nio Stock Is Sliding Monday: What's Going On?

NIO Inc NIO shares were seeing heavy selling pressure Monday morning following reports the company was planning to raise $3 billion. The stock bounced back after Nio addressed the rumors. 

What To Know: Nio shares were down more than 6% in premarket trading following a Bloomberg report suggesting the company was considering raising around $3 billion from investors in the Middle East.

In a new press release, Nio said it was aware of the media speculation and wanted to clarify that it has no "reportable capital raising activity" beyond its convertible notes offering, which was announced last week. 

Last week, Nio proposed a $1 billion offering of convertible senior notes due 2029 and 2030. The EV maker said it planned to use some of the proceeds to repurchase existing debt securities. The remainder would mainly be used to further strengthen its balance sheet, as well as for general corporate purposes. 

Monday morning, Nio announced the closing of its $1 billion notes offering. As of the end of June, Nio had approximately $4.3 billion in cash, equivalents, restricted cash, short-term investments and long-term deposits.

See Also: Nio And Other Big Stocks Moving Lower In Monday's Pre-Market Session

NIO Price Action: Nio shares were down 4.21% at $8.18 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Nio.