What’s Going on with NIO Inc.?
Electric vehicle firm NIO Inc. (NIO), headquartered in Shanghai, China, has just entered into a definitive agreement, via a wholly-owned subsidiary, to increase its shareholding in NIO Holding Co., Ltd., known as NIO China. Pre-market this morning, NIO stock was trading at $35.60 per share, which is a 1.14% drop in price.
What Does This Mean for NIO?
NIO Holding Co., Ltd, or NIO China, was formerly known as NIO (Anhui) Holding Co., Ltd.
The definitive agreement will see NIO “repurchase from a minority strategic investor that invested in NIO China in April 2020” — along with the remaining strategic investors, or the NIO China Strategic Investors — “1.418% equity interest in NIO China for a consideration of RMB [renminbi] 2.5 billion.” NIO will also “subscribe for newly increased registered capital of NIO China” for the subscription price of RMB7.5 billion (the Capital Subscription).
After the Equity Interest Repurchase and the Capital Subscription have gone through, NIO will have “an aggregate of 92.114% controlling equity interests in NIO China.”
NIO has a Fundamental Rank of 71. Find out what this means to you and get the rest of the rankings on NIO!
NIO Inc operates in China's premium electric vehicle market. The company designs and jointly manufactures, and sells smart and connected premium electric vehicles, driving innovations in next-generation technologies in connectivity, autonomous driving, and artificial intelligence. Its model includes EP9 supercar, ES8, ES6, and EC6. The company sells vehicles through its own sales network, including NIO Houses, NIO Spaces, and their mobile application. The majority of the revenue is earned from selling
