Nio Ltd. (NYSE: NIO) shares dipped on Friday after the electric vehicle (EV) manufacturer said it would be conducting a secondary offering. While COVID-19 put a damper on many companies this year, Nio has thrived and is looking to capitalize yet again.

The company announced that it would be offering 60 million American depositary shares, each representing one Class A ordinary share of the company. There is a 30-day overallotment option in which underwriters may purchase up to an additional 9 million shares.

The underwriters for the offering are Morgan Stanley and China International Capital Corporation Hong Kong Securities.

The company plans to use the net proceeds from the offering mainly for research and development of new products and next generations of autonomous driving technologies, as well as for sales and service network expansion and market penetration, and for general corporate purposes.

Note that Nio’s stock has risen about 1,025% year to date. Over the past 52 weeks, the stock is up closer to 1,900%. The company has a market cap of roughly $57.8 billion.

Earlier this week, Tesla had entered into an agreement with some brokerage houses to conduct a secondary offering as well. Also, only three months ago, Nio conducted a separate secondary offering for 88.5 million shares that were being offering for $17 apiece.

Nio stock traded down 7% on Friday to $42.12, in a 52-week range of $2.11 to $57.20. The consensus price target is $37.74.

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