Price jump in NYSE shares NIO shares: billion-dollar investment and collaboration with NVIDIA drive shares

• Billion investment: Strategic investors invest 3.3 billion RMB in NIO China
• The parent company is also investing on a large scale
• NVIDIA collaboration

Tesla competitor NIO has landed a massive investment deal. The electric car manufacturer’s Chinese subsidiary, NIO China, is being supported by investors with billions. The parent company also digs deep into its pockets.

3.3 billion RMB from strategic investors

In total, strategic investors are expected to invest 3.3 billion RMB in NIO’s China unit. The parent company, which is the majority owner of the unit with 92.2 percent, will inject an additional ten billion RMB to subscribe for newly issued shares in NIO China, according to a press release. After the transaction is completed, the majority will change and NIO will then only hold 88.3 percent of the group subsidiary. The strategic investors – together with other existing shareholders – will then have a stake of 11.7 percent.

In addition to the announced investment amount, NIO has the right to invest an additional RMB 20 billion to subscribe for additional shares of NIO China until December 31, 2025, based on the same price and terms as the investment transaction, the statement said further.

The investment transaction is subject to regulatory and internal approvals and the satisfaction of customary closing conditions. The strategic investors and NIO will each contribute cash to NIO China in two installments, with 70 percent of the strategic investment amount and the NIO investment amount to be paid by the end of November 2024 and the remaining 30 percent by the end of December 2024.

Deutsche Bank sees NIO measure positively

Experts at Deutsche Bank viewed the news from NIO with favor. “We view the above-mentioned RMB 3.3 billion capital raising for NIO China as positive as this move reduces some investors’ concerns about the listed company’s immediate share dilution,” CNEVPOST quotes from an investor note by analyst Wang Bin and his Team. “In other words, we expect the stock price to respond positively to Nio China’s capital raising.”

NVIDIA’s message is also well received on the market

The price actually does that: NIO shares ultimately rose by 16.79 percent to HKD 56,350 on the Hong Kong stock exchange on Monday. In US trading on the NYSE, the stock ultimately gained 2.45 percent to $6.68 after ending Friday trading there 12.8 percent higher at $6.52.

Another piece of news also contributes to the good investor mood: Last week, the electric car manufacturer presented its intelligent electric SUV ONVO L60, which is based on NVIDIA DRIVE Orin. The ONVO brand, which stands for “On Voyage”, was established by NIO as an affordable mainstream family brand.

NVIDIA Drive Orin serves “as the AI ​​brain of ONVO’s intelligent driving system,” according to the AI ​​giant NVIDIA’s company blog. The system delivers up to 254 trillion operations per second of high-performance computing power, enabling diverse and redundant processing of sensor data from the L60’s vision-based sensor suite with high-resolution cameras (with a maximum forward detection of 687 meters) and a 4D radar (with a maximum detection range of 370 meters).

Customers have to buy the L60 base model, which will cost around 149,900 yen, the equivalent of USD 21,000, without a battery, with the battery-as-a-service option established by NIO.

Editorial team finanzen.net

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