ReutersJan 16, 2020 09:13:26 IST
Tesla challenger Nio Inc said on Wednesday it was exploring financing and strategic opportunities with Chinese automaker Guangzhou Automobile Group, but the talks were in a preliminary stage.
Earlier in the day, news website Sina Finance reported that Nio was in talks with Guangzhou to finance up to $1 billion, sending US-listed shares of the electric-car maker up about 17 percent in heavy trading.
Electric-car makers are battling uncertain demand in China, the world's largest car market, as it rolls back subsidies on new energy vehicles amid criticism that some firms have become overly reliant on funds.
Nio on 30 December had warned in its quarterly report that it did not have adequate cash for continuous operation in the next 12 months and it was looking for external financing.
US-listed shares of the electric-car maker were jumped 17 percent to $4.40 in late afternoon trading.
Nio said the New York Stock Exchange had contacted it after the unusual market activity in its American Depositary Shares.
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