Nio inks a $1.4 billion bailout as coronavirus sinks sales

Leading Chinese electric vehicle startup Nio has struggled over the last year or so, and recently warned shareholders that it needs new outside investment in order to make it through 2020. This week, the Tencent-backed company announced a potential $1.4 billion deal with a local government that just might fit that bill. And with the coronavirus cratering car sales in China, it couldn’t have come at a better time — if the deal closes.

Nio said Tuesday that it has entered a “framework agreement” with the municipal government of Hefei, the capital of China’s Anhui province. In exchange for a fresh $1.4 billion injection, Nio will move its headquarters to the city and will “further expand its operations and deepen its relationship with local...

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