Nio shares fall after $2 billion stock offering announced

Nio Inc. shares fell in late trading Tuesday, after the Chinese electric-car company announced plans to sell up to $2 billion in fresh U.S. shares.

Nio NIO, +0.54% filed a prospectus with the Securities and Exchange Commission to sell up to $2 billion in American depository shares in an at-the-market offering, which seeks to price shares at the going market rate. Nio shares closed Tuesday at $40.59, suggesting Nio could seek to sell up to roughly 50 million shares depending on pricing, and said the proceeds will be used for general corporate purposes and to strengthen its balance sheet.

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