Shares of Li Auto Inc. took a 3.8% dive in premarket trading Tuesday, after the China-based electric vehicle maker said it filed for the sale of up to $2 billion worth of American depositary shares (ADS) through at at-the-market (ATM) offering program. The amount represents about 4.95% of the company’s market capitalization of $40.42 billion as of Monday’s closing stock price. The stock was up about 1.7% just prior to the ADS-offering announcement. The company said it plans to use the proceeds from the ATM offering for research and development of EV technologies, the development and manufacture of platforms for new car models and for working capital needs and general corporate purposes. The company said the ADS sales will be made from time to time, at its discretion. The stock has run up 21.9% year to date through Monday, while the iShares MSCI China ETF has lost 10.9% and the S&P 500 has declined 18.2%.
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