More Good News for Nio Investors

Nio (NYSE: NIO) has been a fun ride for investors over the past month as its stock price shot up over 65%. It's had a handful of good news items, including China's government stimulus package, the fact that its new more affordable Onvo brand is delivering vehicles, and the company has been receiving more investment. Let's dig in.Over the weekend, Nio announced it had received a cash infusion of $1.9 billion, but that's a little more complicated than it appears. Shanghai-based strategic investors, including Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment Co., and CS Capital Co., have agreed to invest an aggregate of 3.3 billion yuan, or roughly $470.6 million in its subsidiary NIO China. Nio has also agreed to invest 10 billion yuan, or roughly $1.43 billion, in cash to subscribe to the newly issued shares of Nio China. This will bring Nio to an 88.3% controlling interest in Nio China, with strategic investors and existing shareholders accounting for the remaining 11.7% equity interest in Nio China. Nio and strategic investors will funnel the cash into Nio China in two installments, with 70% due by November 2024 and the remaining 30% to be made by December 2024. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool