Nio Inc (NIO)

[stingervf]

Nio's stock drops after report that talks of funding for a new factory were halted

Published: Oct 16, 2019 8:17 a.m. ET

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TOMI
KILGORE
REPORTER AND EDITOR

Shares of Nio Inc. NIO, +1.31% dropped 5.2% in active premarket trading Wednesday, after a report that talks for a sizable investment to build a factory in China were called off. On Tuesday, the China-based electric car maker's stock rose 1.3% after the National Business Daily (NBD) reported that Nio was in talks with Wuxing District of Huzhou City on funding of over 5 billion renminbi, or about $704 million at current exchange rates, for a factory in the district with a capacity to make 200,000 vehicles a year. On Wednesday, NBD reported the talks were halted given the heavy risks, with no agreement of intent having been reached. Nio's stock has plunged 53.0% over the past three months through Tuesday, while U.S.-based rival EV maker Tesla Inc. shares TSLA, +0.36% have gained 2.2% and the S&P 500 SPX, +1.00% has eased 0.3%.