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Chinese electric car maker NIO slumps in U.S. debut

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By Reuters
Chinese electric car maker NIO slumps in U.S. debut
Chinese electric vehicle start-up Nio Inc. vehicles are on display in front of the New York Stock Exchange (NYSE) to celebrate the company’s initial public offering (IPO) in New York, U.S., September 12, 2018. REUTERS/Brendan McDermid   -   Copyright  BRENDAN MCDERMID(Reuters)

(Reuters) – Shares of Chinese electric carmaker NIO Inc <NIO.N> fell as much as 15 percent in their market debut, a day after its IPO was priced at the lower end of its expected range.

Shares opened at $6 and fell to a low of $5.35, giving the company a market capitalisation of $5.52 billion (4.24 billion pounds).

The company priced 160 million shares at $6.26 on Tuesday, just above the low end of its $6.25 to $8.25 target price range, raising $1 billion, dragged down by investor concerns about the prospects of chief competitor Tesla Inc <TSLA.O>.

The company, backed by Chinese tech heavyweight Tencent Holdings Ltd <0700.HK>, is the third-biggest U.S. listing by a Chinese firm this year.

(Reporting by Diptendu Lahiri in Bengaluru; Editing by Sriraj Kalluvila)