After a not-so-great initial public offering, Chinese electric car company NIO had a remarkable surge in its stock price on its second trading day.
NIO share price jumped +76% in New York on Thursday. The leap might seem comforting to the company especially after its IPO fetched $1 billion - much less than its anticipated $1.8 billion.
The company apparently is targeting Tesla as a rival. NIO's ES8 electric SUV, which was unveiled last year, sells for about $65,000, or about half the price of the most basic version of Tesla's Model X in China. However, NIO recorded just $7 million in sales in the first half of this year, while Tesla has generated $2 billion in annual sales in China.
Alongwith NIO, other Chinese tech companies Pinduoduo, iQiyi and NetEase listed on U.S. stock exchanges also saw sharp rises in their stock prices on Thursday.