, Columnist
A Bailout Won’t Help China’s Tesla Wannabe, NIO
The electric-vehicle company is burning through cash. It needs to steer clear of hype and make cars.
Cash guzzler.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Will a provincial government be able to save China’s Tesla wannabe? Investors seem to think so. The reality may be different.
New York-listed NIO Inc., a self-described pioneer in China’s premium electric vehicle market and rival to Elon Musk’s company, said Tuesday that it has made a tentative agreement with the municipal government of Hefei in Anhui province for funding support. The company will move its China headquarters there from Shanghai and says it plans to raise more than 10 billion yuan ($1.43 billion) in light of the partnership. Other details were sparse. The stock surged as much as 34%.