Electric & Autonomous Vehicles News - 02/25/2020 - Views: 281

Tesla Competitor Nio Is Soaring. Here’s Why

The American Depositary Receipts of Chinese electric vehicle maker NIO soared Tuesday, closing up 13.6%. The Chinese EV pioneer announced a deal for more cash from the local government in Hefei, where it operates.

“Under the framework agreement, Hefei government expects to provide resources and funding support for the long-term growth of NIO in Hefei,” reads the company’s news release.

NIO (ticker: NIO) could use some more cash. The company has about $250 million in cash on its balance sheet as of September 2019, the last update available. NIO, however, is burning through about $400 million each quarter.