Why Li Auto Stock Is Sinking Today
Shares of Chinese new-energy vehicle maker Li Auto (NASDAQ: LI) were trading lower on Wednesday, after the company announced a $750 million debt offering.
As of 2:30 p.m. EST, Li's American depositary shares were down about 10% from Tuesday's closing price.
Li Auto said in a statement on Wednesday morning that it is aiming to raise $750 million via a new issue of convertible bonds. The bonds will mature on May 1, 2028, unless they're converted to Li Auto stock before then, or unless certain events -- including a "fundamental change" in the company or a significant change in China's tax laws -- oblige Li to redeem the bonds before that date.
Source Fool.com
