Why Shares of Chinese Electric-Car Maker NIO Are Flying High Today
Shares of Chinese electric-car maker NIO (NYSE: NIO) were sharply higher on Wednesday morning after a Chinese business-news outlet reported that the cash-strapped company had secured new financing from a major automaker. As of 12 p.m. EST, NIO's American depositary shares (ADS) were up about 16% from Tuesday's closing price.
According to a report from Chinese business-news site Sina Finance that cites a person familiar with the matter, NIO will soon receive a cash infusion of about $1 billion from Guangzhou-based GAC Group (OTC: GNZUF). (At press time, neither NIO nor GAC had confirmed -- or denied -- the report.)
NIO's best-seller is the ES6, an upscale five-passenger electric SUV. Image source: NIO, Inc.
Source Fool.com
