Why The Rumored NIO And GAC Deal Is Bad News

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About: NIO Limited (NIO), GNZUF
by: Bram de Haas
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Bram de Haas
Deep Value, special situations, long-term horizon
Summary

There are Chinese articles circling that point to a financing deal between GAC Motor and NIO.

There is no official corroboration of these rumors.

If the rumors are true, it is unlikely to be great news for shareholders.

Earlier this month, I publicly released a note on the Chinese electric vehicle company NIO (NYSE:NIO), which is effectively out of funding. Today, the company is up strongly (13.3%) in the pre-market on