GAC Motor confirmed it’s contemplating funding in electric vehicle startup Nio; however, mentioned the amount wouldn’t go beyond $150 million, much lower than the amount speculated on in media.
It has held preliminary discussions with Nio about potential funding; however, no binding contract has been inked, GAC stated Thursday in a statement.
Even if it makes funding, the quantity could be no more than $150 million, the state-owned auto manufacturer noted.
Earlier last week, a blog post originated in China stated GAC planned to invest some $1 billion in Nio.
The blog post was picked up by global media such as Bloomberg, triggering a rise in Nio’s shares on the New York Stock Exchange Wednesday.
GAC and Nio run an EV joint-venture in the south China metropolis of Guangzhou, where GAC is predicated.
The collaboration introduced its first product, a compact crossover. The automobile is set to go on sale in April.
Nio, incorporated in Shanghai in 2014, has unveiled two products – a seven-seat SUV and a five-seat crossover.
In 2019, the EV startup delivered 20,565 vehicles, boosting cumulative sales to almost 32,000.
Because of steady losses – it posted a 2.5 billion ($364 million) loss in the third quarter of 2019, its money balance isn’t satisfactory to make sure continuous operation within the next 12 months, the corporation stated in December.