Nio Inc (NIO)

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Nio in talks with Guangzhou

Jan. 15, 2020 2:31 PM ETNIO Limited (NIO)By: Clark Schultz, SA News Editor51 Comments

Nio (NIO +16.9%) confirms that it has explored financing and strategic opportunities with Guangzhou Automobile (OTCPK:GNZUF).

The company says all commercial discussion remains preliminary and no definitive agreement has been entered into between the parties.

Shares of Nio have resumed trading after a short halt by the exchange.

Source: Press Release

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badabin

Comments (195)

Yesterday, 5:17 AM

NIO market cap: $5.34 BILLION. About to become 12-20 as soon as financing is announced.

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Z.TiSlMo

Comments (36)

Jan. 17, 2020

NIO won't get any state funding because no factory means no local job creation.

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Conscious Investor

Comments (347)

Jan. 17, 2020

A news article containing critical NIO funding information was published a couple of hours ago by 36Kr (NASDAQ:KRKR): https://36kr.com/p/5286024 (in Chinese. You can use google translate to read it).
It says GAC intends to invest no more than $20 million into NIO, for the designated purpose of allowing NIO to use the fund to repay its promised yet owed initial funding deficit of over 100 million RMB to GAC-NIO joint venture. NIO intends to fund by issuing convertible debt for $150 million. GAC is not leading this round of funding. ING Capital is participating this round of funding.
GAC-NIO was seeking second round funding of 1.5 billion RMB last week. However, the first round has not been closed, because NIO is still owing the promised money to GAC-NIO. Until the initial round was completed, the progress for second round of financing could be hampered. I guess the 100 million RMB is probably the 22.5% of 500 million RMB of initial registered capital, which is just 112.5 million RMB. So the $20 million (minus issuing fees) would just be covering this amount specifically. This would allow GAC-NIO to move forward with its new funding and reach production goal.
The article also revealed that NIO had talked to other Chinese car manufacturer such as Geeley, Great Wall and BYD to seek for funding. But those talks happened a few months ago, and got nowhere, because they have their own EV program and only need some parts of NIO as useful and has special requirement for funding, such as requiring NIO cars to change battery supplier. which Lin Bin cannot agree.
In addition, the article also talked about "NIO China", an independent Chinese company that Lin Bin registered, for the purpose of seeking RMB-source funding to develop the second car platform (i.e., ET7), but this is not under the foreign registered NIO public company, because many local governments are reluctant or unable to work with a foreign company (perhaps due to increased regulatory and approval requirements). The article wonders how NIO China would use NIO's assets and technologies in appropriately without legal challenges. Lin Bin indeed has talked about seeking RMB funding lately.

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Giovinco

Comments (284)

Jan. 17, 2020

January 17 and still no financing, they literally have zero cash right now

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yjaplomb

Comments (494)

Jan. 16, 2020

Rumor has it that between 70%-80% of cars that NIO claimed being sold are bought by its own employees to make the numbers look fabulous. Beware of this biggest scam from China... SEC investigation coming?

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Fundametallica

Comments (60)

Jan. 16, 2020

Rumors has it that the shorts are getting squeezed and spreading rumors to bring down the stock price!

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Like (3)

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Conscious Investor

Comments (347)

Jan. 16, 2020

the car sells great, in a small market segment. because it's priced lower than cost and gives a lot if free service.

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ProfessorPi

Comments (53)

Jan. 16, 2020

@yjaplomb Nio recent sold is 30,000th car. The lower end of your claimed rumour is 70%, so 21,000 cars. They have c9,000 employees, perhaps less with their cost saving drive. You seem to be suggesting that on average they’re buying well over two Nios each. I’m sure Chinese pay rates are great but...seems SEC should be paying you a visit for spreading such utter nonsense.

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Like (5)

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KirillG

Comments (76)

Jan. 16, 2020

I think what matters are cars that NIO makes. They look great, have more advanced tech and are SUVs in the first place, which by definition makes them very attractive to consumers. They will be good as long as China would want the company to succeed. Same as the US has believed in Tesla.

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Like (1)

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Conscious Investor

Comments (347)

Jan. 16, 2020

couldn't any car company spent 30 billion RMB and design and build a better car? the only reason it's getting sale is it's charging less than its production cost. who could compete on that?

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Conscious Investor

Comments (347)

Jan. 16, 2020

30 billion RMB is how much NIO spent so far, yet no own factory. In contrast, GIA-NIO HYCAN-007 was designed and ready for production with 0.5 billion initial investment; and Lixiang has a great car, with total 10 Billion investment, with own factory.

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Giovinco

Comments (284)

Jan. 16, 2020

yes a lot of $$$ ($6 billions) disappeared for no good cause, there's something wrong with this company, just like when they announced a $750 million loan early 2019 (650+100 exercised) but it was already wiped out after that Q

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Peter Scholla

Comments (353)

Jan. 16, 2020

Nio’s strategy of farming out production and not having a factory is actually smarter than Tesla’s approach.

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Like (7)

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Antonio C. Mesquita

Comments (105)

Jan. 16, 2020

With money or no money, NIO will hit $10 this year. Don' ask me why, maybe is a electric cars' Gizmo? The new "Green Deal? LOL.

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CVC Research

Comments (1.04K)

Jan. 16, 2020

@clark Shultz- maybe you should highlight GAC’s response last night too

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Misseditagain

Comments (132)

Jan. 15, 2020

NIO to 10 by 6/2020, I’ll hope for that....

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Wonder68

Comments (176)

Jan. 15, 2020

Institutions are hedging holdings with put calls options

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due dil

Comments (9)

Jan. 15, 2020

rookie

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yshi_nc

Comments (186)

Jan. 15, 2020

Oh, please. Tesla got a $15B loan from Bank of Shanghai and several other lenders, not to mention favorable treatments from the Shanghai local government, who ditched NIO once Tesla is on board. Without the Chinese market and the support from Chinese government, Tesla will be in a much tougher position today. Check the stock price in the last 6 months. NIO has the same problem with funding. I am not surprised that it's getting a lifeline from a state owned enterprise. If it happens, NIO will make it hopefully.

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Like (11)

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Wonder68

Comments (176)

Jan. 15, 2020

I am holding 100 contracts $1.00 leaps 2022 calls bot at $0.70 last month now $3.50 with maximum risk $7000 invested and unlimited profit before expiration date January 2022.

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Like (6)

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iacobvs

Comments (338)

Jan. 15, 2020

Smart. I like it.

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Wonder68

Comments (176)

Jan. 15, 2020

I only invest in options. I have GCG, SPCE, ACB, GRUB, FB calls

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Julianttt

Comments (14)

Jan. 17, 2020

@wonder You realize that in a market downturn(can happen anytime) you can lose a lot quite fast?

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Ronaldo123

Comments (3.16K)

Jan. 15, 2020

First of all NIO keeps losing money and unlike TESLA (Shanghai factory) it does not manufacture its own cars. They keep borrowing money to fund the operation. Share price goes up? Doesn't make sense to me.

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Gator89

Comments (987)

Jan. 15, 2020

Tesla makes their own cars and keeps losing money and has been for over a decade. What’s the difference?

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manXtra

Comments (280)

Jan. 15, 2020

THIS IS HOW USED TESLA YEARS AGO....

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2aBrightFuture

Comments (582)

Jan. 15, 2020

Did you not follow tesla for the last decade?

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George Stobbart

Comments (1.06K)

Jan. 15, 2020

How is this ponzi scheme still trading with $0 cash balance as of Dec-19 and negative equity?

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Like (6)

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russclehman

Comments (3.60K)

Jan. 15, 2020

What's the difference between NIO and Tesla?

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Like (14)

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