NIO Climbs After $1 Billion Investment Allays Cash Concerns

NIO Inc. struck a definitive pact for a 7 billion yuan ($1 billion) investment from entities led by a municipal government in China, alleviating concerns that the electric-car maker is running out of cash.

As part of the deal, NIO will transfer core assets and businesses in China into a new company and hand over 24.1% of that entity to the new investors. NIO will own 75.9% of the company, called NIO China, and will inject 4.26 billion yuan of cash into it, according to a statement on Wednesday.