Nio Shares Drop After Geely Acquires Stake in Battery Swap Business
On September 29, Nio (NYSE: NIO) shares fell by 5.29%, closing at $3.40 after reports emerged that Geely had acquired a 30% stake in Nio Power, the battery swap business of Nio. The move has raised questions among investors about how this partnership will affect Nio's long-term profitability and valuation. The transaction values Nio Power at approximately $2.4 billion, representing nearly one-third of Nio’s current market cap of around $8 billion. Geely is the parent company of Polestar (PSNY) and owns a majority stake in Volvo Cars (VLVLY). While some see this as a sign of confidence from a major automotive player, others are concerned about potential dilution or strategic shifts. Investors remain focused on Nio’s path to profitability. Despite rising EV sales volumes, the company reported a $78 million net loss in Q2 2026 and is expected to release its third-quarter results soon.
Topics: battery swap technology electric vehicles Geely investment Nio