GAC Group says report about its $1 billion investment in NIO is not true

Jan 23, 2020 NIO

"GAC Group plans to invest $1 billion in NIO" - no matter the news is truth or not, NIO seems to be expected to usher in turn.

It is a tough time for NIO and Li Bin, the helmsman of NIO, in the past 2019. It suffered some problems, such as financing difficulties, spontaneous combustion of vehicles, ES8 recall, and team turbulence… Some media even joked that Li Bin was the most unlucky person in 2019.

However, just entering 2020, all of a sudden, things are turning around. In December, the total quantity delivered of vehicles reached 3170, a new high in a single month. The third mass production vehicle of the brand, EC6, was also released at the end of December. At the same time, at the policy level, relevant leaders of the Ministry of industry and information technology recently announced that the subsidy for new energy vehicles will remain relatively stable in the near future. And it will not decline significantly before July 1, 2020. However, when the news of "GAC Group plans to invest $1 billion in NIO" came out on January 15, NIO's opening soared, triggering a circuit breaker, which led to the suspension of trading on NYSE for about one hour, up 17.15% before the suspension.

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