The Li Just one electric vehicle from Li Automobile is exhibited at the Moonstar World Harbor shopping shopping mall in Shanghai, China, Might 10, 2021.
Costfoto | Barcroft Media | Getty Images
Chinese electrical automobile maker Li Automobile said Tuesday that it options to increase $2 billion from U.S. investors through an “at-the-current market” stock giving, in which share price ranges are identified at the time they are bought.
The cash will be invested to acquire new systems, together with for autonomous driving, and for the development of future products, the Beijing-dependent enterprise mentioned in a submitting with the Securities and Exchange Fee.
A company increasing resources by using an at-the-current market supplying will generally provide a designated amount of money of inventory around time by way of financial investment banking companies at prevailing current market rates. Li Automobile mentioned that Goldman Sachs, UBS Securities, Barclays Money, and the Hong Kong unit of China Intercontinental Cash Corporation will be its brokers for the new inventory supplying.
Li Vehicle is a single of several Chinese electric auto organizations to have drawn attention from U.S. traders in the last various several years, along with rivals which includes Nio and XPeng. Established in 2015, the business specializes in upscale electric SUVs with so-identified as “assortment extenders”, which are interior-combustion engines that act as turbines to recharge vehicles’ batteries although driving.
Even though extra electrical automobiles are marketed in China than in any other country, there are nevertheless areas of China the place EV chargers are relatively scarce. A vary extender can offer reassurance for customers in all those regions and for drivers somewhere else who aren’t very completely ready to go 100% electric.
Li’s two SUV models, the midsize One and flagship L9, present 188 km (about 117 miles) and 180 km (about 112 miles) of electric-only assortment, respectively.
Li’s U.S.-outlined shares were being down about 3.3% in early buying and selling following the announcement.