$NIO is a player in a massively competitive market
$NIO Inc.(NIO)$ $NIO-SW(09866)$ has one of the highest cost to borrow shares (borrow fee) for short-sellers at 2.29% annualized.
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The recent investment by strategic investors in Nio China ($470B for 3.8%) does not dilute NIO shareholders' ownership in the listed company. But it does slightly dilute their indirect ownership in Nio China, which contains all the assets and businesses of the company on the mainland.
The agreement, however, allows NIO to subscribe to RMB 20B ($2.8B) in additional Nio China shares at the same price by December 2025, which will more than restore its ownership in the China business.
https://twitter.com/BrianTycangco/status/1840723819994267710
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