What's Going On With Nio Stock Thursday?

NIO Inc NIO shares are trading higher Thursday. Reports suggest the EV maker held exploratory talks with Mercedes-Benz.

What To Know: Nio has held talks with Mercedes-Benz over a potential investment from the German automaker in exchange for a technology alliance, per Reuters. 

Two people familiar with the matter reportedly said Nio founder and CEO William Li discussed the potential deal with Mercedes CEO Ola Kaellenius at some point earlier this year. At the time, Li was seeking an investment in exchange for Nio sharing its research and development capabilities. 

The report indicates that one of the sources said Nio was seeing some pushback from Mercedes-Benz on the potential deal and that it was not likely to be completed. It's not clear when a decision on the potential tie-up is expected. 

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Nio shares on Monday traded lower after a Bloomberg report suggested the company was considering raising around $3 billion from investors in the Middle East.

In response to the report, Nio said it was aware of media speculation and wanted to clarify that it had no "reportable capital raising activity" beyond its convertible notes offering, which was announced last week. 

NIO Price Action: Nio shares were up 1.06% at $8.55 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Nio.