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Tesla’s Chinese competitor, NIO, raised just over $1B in its IPO. The Hustle Sponsored by After a slow IPO, electric carmaker NIO is unfazed by stop-and-go stock prices Why? Chinese EV subsidies. Chinese electric carmaker NIO’s $1B IPO fell short...
By: Wes Schlagenhauf
September 13, 2018
Tesla’s Chinese competitor, NIO, raised just over $1B in its IPO.
After a slow IPO, electric carmaker NIO is unfazed by stop-and-go stock prices
Why? Chinese EV subsidies.
Chinese electric carmaker NIO’s $1B IPO fell short of expectations, valuing the company at $6.42B instead of a desired $20B. As their stock swung yesterday, analysts cautioned investors that NIO would suffer due to its fragmented production and Tesla-turmoil.
But, by aligning themselves with the booming EV (electric vehicle) market in China, NIO may have a smoother road ahead than Tesla.
Betting big on China’s r-EV-olution
Last year, China produced as many electric vehicles as the rest of the world combined. Yet, China’s EV market (the world’s largest) is still growing 2x as fast as America’s.
How is this possible? Easy: Huuuge subsidies. In the last decade, the Chinese government has spent more than $22B to finance EV production.
But in the US, the private sector is in the EV market’s driver seat -- leaving Elon Musk in charge of building the country’s EV infrastructure.
Tesla is a big car... on a small highway
Right now, Tesla IS the American EV industry. And, since investors flip out anytime Elon Musk types a Tweet or smokes a blunt, it’s a volatile one at that.
But China’s EV industry isn’t so fragile -- NIO is just 1 of 7 big EV companies that have raised more than $1B (and they’re all supported by public utilities and state subsidies).
NIO didn’t outsource production and IPO in the US by accident, but because it could afford to -- thanks to a stable, subsidized market.
The road ahead is long -- but NIO’s not alone
After tumbling 15%, NIO’s stock rebounded to finish up 10% on Day 1. NIO, which had delivered 481 cars when it announced its IPO, delivered 1.6k cars at the end of August -- with 15.7k more on the way.
Tesla delivered 200k cars in the US this year. But as Tesla grows, it actually loses support from the government (Tesla customers only get the $7.5k EV tax credit up to 200k units).
Meanwhile, as NIO accelerates production to catch Tesla, the Chinese government seems happy to provide training wheels.
NIO, enter the Musk-trix
No more smoke and mirrors: The FDA gives JUUL 60 days to stop teens from vaping
The US Food and Drug Administration has given JUUL Labs 2 months to prove they can keep their products away from minors, or else be pulled from the market, with the potential of criminal or civil charges.
In addition to JUUL, 4 other vape companies face the FDA’s ultimatum: Vuse, Blue, Markten XL, and Logic (who collectively make up 97% of the US e-cig market).
In April, JUUL sent thousands of pages of records to be reviewed by the FDA -- but apparently, it didn’t bode well for the nicotine king.
JUUL says they will be compliant with the new mandate
A JUUL spokeswoman told the NYT: “We are committed to preventing underage use of our product, and we want to be part of the solution in keeping e-cigarettes out of the hands of young people.”
But, FDA Commissioner Scott Gottlieb believes JUUL has long treated the issues of teen nicotine addiction like a “public relations challenge” rather than seriously considering their legal obligations and public health mandate that these products bring.
Apple unveils a heart-tracking watch alongside heart-stopping prices
At its annual iPhone fun-fest in Cupertino yesterday, Apple unveiled a new line of expensive iPhones and a redesigned, health-conscious Watch.
Bigger, brighter, and pricier
Apple’s newest iPhone -- the oxymoronically named “XS Max” -- is the Macmakers’ biggest smartphone yet, measuring up at 6.5 inches across and $1,099 deep (into your wallet, that is).
The Max’s siblings also have XS-ive price points (the XS at $999 and the XR at $749) -- all predictably more expensive than last year’s new phones.
Apple’s annual price increases have become a rite of passage -- testament to the company’s powerful brand that keeps people coming back for more, even if it means taking out a second mortgage.
Wearable companies better Watch out
Apple also unveiled its new Series 4 Watch -- a bigger, faster $399 piece of wrist-candy with a built-in EKG that monitors heart rate. The new heart-monitor feature positions Apple’s watches as potential lifesavers, not mere exercise aids.
And, Apple’s entry into the health-wearable game raised some heart rates for competitors: Fitbit’s stock dropped more than 6% in response to the announcement.
As cryptocurrency continues to slide, Dogecoin is up 160%
Lately, cryptocurrency’s performance looks like a bad joke: Since peaking in early January, the entire space dropped close to 80%, blowing around $640B since January.
The biggest joke of all? While heavy-hitters like Bitcoin continue to slide, parody “alt-currency” Dogecoin has surged over 160% in the last month.
Not bad for a goof
Introduced to the market in 2013 as a play on the once pup-ular Doge meme, the company at one point reached a market value of more than $1B at the beginning of January, and continues to show promise.
But how does an alt-coin that, as of January, hadn’t updated its software in over 2 years, continue to stay in swing? According to Bloomberg, that’s a tough question to answer.
One of the main theories is that its gain is a result of it having been added to the popular Robinhood app as a currency available for trading in mid-July.
Good for Dogecoin, but the space is still troubled
Crypto death began early this year after the Bitcoin bubble popped, and, as TheWall Street Journal reports, it doesn’t look like it’s going to rebound any time soon.
The total value of all cryptocurrencies fell below $200B last weekend, down 76% from an all-time high of $832B in January, officially making its highly publicized plunge worse than the 2000s dotcom crash.
LIGHT: A candle that smells like a sensual cave, $23
This soy candle looks trendy, smells fantastic, and isn’t $100. The scented candle Triple Crown. With notes of sage, lavender, and orange, PF CANDLE CO’s Amber and Moss candle is one of our favorites, because it smells like a forest -- the lush, mossy kind, not the pine tree kind.
SMOKE: Da meats, with Big Green Egg, starting at $399.00
Careful, the Big Green Egg is probably the most recognizable charcoal grill on earth (so if you haven’t heard of it, pretend). This popular kamado-style outdoor grill achieves high temperatures due to the focused heat of the ceramic shell, but can also serve as a world-class smoker.
HACK: Creativity with “The Creative Curve” by Allen Gannett 40% off
Can creativity be learned? Big data entrepreneur Allen Gannett says yes. The new book “The Creative Cuve” busts the historical myths around creativity (Mozart wasn’t a prodigy), bursts the 10k hour rule (it’s BS), and interviews some of today’s most innovative minds (like Reddit co-founder, Alexis Ohanian) on hacking personal success. Get 40% off on Amazon now.
ATTEMPT: Complete all the challenges of a Cotopaxi Questival, $42
Questival is like a scavenger hunt birthday -- but with fewer clowns and more fun. Trendy gearmaker Cotopaxi now organizes this adventure race in 33 cities, pitting teams of 2-6 against each other in a 24-hour adventure race that features bucket list challenges and lots of selfies.
Scott’s Cheap Flights scours the web for international flight deals, then sends them straight to your inbox. Fly everywhere from Thailand to New Zealand for dirt cheap (we’ve even scored a few trips ourselves). All you have to do is pick your departure airports and stock up on travel shampoos.