Nio’s stock suffering worst day in 11 months after convertible debt offering

Shares of Nio Inc.
NIO,
-17.07%
tumbled 15.1% toward a three-month low in afternoon trading Tuesday, after the electric vehicle maker announced plans for a $1 billion debt offering that can be converted into shares. The selloff was on track for the biggest one-day percentage decline since it sank 15.7% on Oct. 24, 2022. The stock has shed 14.8% so far in September, after tumbling 32.9% in August. The stock has now lost 10.2% year to date, while the S&P 500
SPX,
-0.22%
has gained 15.8%. Among other China-based EV makers, shares of Xpeng Inc.
XPEV,
-5.25%
dropped 5.2% on Tuesday and of Li Auto Inc.
LI,
-3.25%
shed 3.3%. Meanwhile, shares of Tesla Inc.
TSLA,
+0.46%,
which generated 23% of its total second-quarter revenue in China, rose 0.8%.