Rumors are spreading like wildfire on social media that BYD will take over NIO (NYSE: NIO ) as the EV giant makes market share in China. The rumor was posted by an alleged BYD employee, but NIO denies the claim.
BYD's acquisition of NIO would be a big step as China's leading EV maker continues to dominate the market. But that won't happen.
In accordance with CnEPPostNIO's vice president of marketing and communications, Ma Lin, denied rumors that BYD is taking over the company on Friday.
Ma posted a screenshot on social media asking BYD's general manager of branding and PR, Li Yunfei if the person who sent the false rumor was an employee.
Earlier today, the suspected employee said that BYD and NIO are establishing a joint venture. In the Weibo post, the suspect said BYD will have majority control of the partnership with a 51% stake while NIO will get the remaining 49% ownership.
Ma told Li that if he was, in fact, a BYD employee, he needed to issue an official explanation and apologize. If not, they can involve the police. Li also denied the rumours, saying that these claims are not true.
NIO denies rumors that BYD is taking over the company
This is not the first time that BYD will take over NIO, but because it is suspected to be an employee, this position has attracted a lot of attention.
BYD is on a massive hiring spree as it ramps up production to meet high demand. The EV giant now has more than 900,000 employees, making it the largest A-share listed company in China.
After selling more than 500,000 vehicles for the first time in a single month in October, BYD's expansion is heating up as the EV giant expands overseas to grow.
October was BYD's fifth consecutive month of record sales as it eclipsed auto leaders such as Ford in global deliveries.
NIO is also booming, as sales topped 20,000 for the sixth consecutive month in October. With the launch of its new low-priced Onvo L60 electric SUV gaining momentum, NIO expects to continue to see high demand.
Ma said on Friday that “NIO's recent situation is really good.” The head of the PR company added, “Cash flow was good in the third quarter, gross profit improved in October, gained another RMB 100 million, and Onvo (delivery) will exceed 10,000 in December.”
NIO is launching its third model, the Firefly, with deliveries to begin in the first half of 2025. The company expects sales to double next year as it works to become profitable by 2026.
FTC: We use auto affiliate links to earn income. More.
