Top executives from BYD Co BYDDY and Nio Inc NIO were seen together at the latter’s facility at an unidentified location, reigniting rumors of a potential partnership between the two companies, CnEVpost reported on Thursday, citing a local automotive media company.
What Happened: BYD chairman Wang Chuanfu and Nio founder and CEO William Li were spotted together at the NIO House, which the report claimed was located at Hefei.
Nio has a manufacturing facility in Hefei, jointly built by the company and the state-owned JAC. It currently makes the ES8, ES6, and EC6 electric vehicles.
Nio is also building a second factory at the Neo Park in Hefei, in China’s Anhui province. Production is expected to commence in the third quarter of 2022.
Why It Matters: Shanghai-based Nio was reportedly in advanced talks with Warren Buffett-backed BYD to launch a Nio sub-brand model. The two companies were rumored to have entered final discussions about cooperating for Nio's mass-market brand.
BYD has been making efforts to switch from gas-powered vehicles to electric vehicles. It sold 43,173 battery-powered EVs in February, more than double the deliveries of Nio, Xpeng Inc XPEV, and Li Auto Inc LI combined In February.
Tesla Inc TSLA reportedly sold 56,515 China-made vehicles in February, including 33,315 for export.
Price Action: Nio stock closed 11.9% lower at $17.7 a share on Thursday.
Photo Courtesy: Nio Inc
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