NIO, the Chinese electric car startup that bills itself as a Tesla rival, sold stock at the lower end of its target range in its US initial public offering.
The Tencent-backed firm raised $1 billion selling 160 million shares at $6.26 apiece. This is almost half the expected $1.8bn and comes at a time when investor sentiment for Chinese companies looks to be weakening.
The sale values NIO, which was founded by Chinese entrepreneur William Li in 2014, at around $6.4 billion. NIO had initially hoped for a valuation closer to $20 billion.
The pricing comes as NIO's natural rival Tesla continues to suffer a torrid month and car giant rivals such as BMW and Jaguar Land Rover debut mass production electric cars.
NIO made a loss in the six month period ahead of the listing made a loss of $500m. NIO shares began trading on Wednesday with the offering set to close on September 14.
The Chinese carmaker has around 4,000 employees spread between China, the US and the UK. It has around 30 staff based in Oxford. The company's main Chinese business has been in the process of ramping up its car production.
The company said as of August it had delivered 1,602 of its new ES8 electric SUV, its planned mass market vehicle, and had 15,778 reservations for the new car.
According to estimates by Sanford Bernstein & Co, NIO must sell around 100,000 car annually before it begins to make a profit.
In its registration documents with the US Securities and Exchange Commission, NIO said it saw growth opportunities in the Chinese premium electric vehicle market, with "only Tesla ... in the premium segment" in 2017.
NIO's listing comes as Tesla continues its efforts to increase production of its mass market Model 3 car. Tesla has lost around 18pc of its share price since chief executive Elon Musk claimed he was planning to take the company off of public markets.
NIO also runs a Formula E team in the electric racing championship, while it has developed the EP9, a supercar that holds the record at lap time for a street legal car at Germany's Nürburgring. Its Formula E team and concept vehicle teams are spread across London and Oxford.