NIO Inc. (NYSE:NIO) experienced an 8.92% drop in shares on Wednesday, closing at $5.72 due to plans for a $1 billion equity offering. The offering includes more than 181.8 million Class A shares, with ADS priced at $5.57 and ordinary shares at HK$43.36 each.

Proceeds from the offer will be used for research and development of smart electric vehicle technologies, expanding battery swapping and charging networks, and strengthening the balance sheet. Despite NIO’s potential, other AI stocks may offer higher returns with less risk. See our report on the best short-term AI stock for more information.

Read more at Yahoo Finance: NIO (NIO) Falls 8.9% on $1-Billion Share Sale