Nio’s (NIO) U.S.-listed shares surged in early trading Monday, after the Chinese electric vehicle maker announced a new investment over the weekend.
A group of Chinese investors agreed to acquire newly issued shares of Nio China for a combined 3.3 billion Chinese yuan ($470 million), while Nio China’s parent company will invest an additional 10 billion yuan ($1.43 billion), bringing the total investment to roughly $1.9 billion.
The parent company said it also retains the right to potentially invest an additional 20 billion yuan ($2.85 billion) by the end of 2025. The investment announced Sunday will be completed in two stages, with 70% of the funds arriving by the end of November, and the remaining 30% by the end of December.
Once the investment is complete, Nio will own 88.3% of the Nio China subsidiary, compared to 92.1% previously, while the group of new investors combined with the company’s existing shareholders will own an 11.7% stake.
Nio shares jumped over 10% to $7.24 early Monday following the news. Nio and other Chinese stocks have surged in recent weeks following the announcement of stimulus funding from the Chinese government to boost China’s economy.
