Earlier in the day, news website Sina Finance reported that Nio was in talks with Guangzhou to finance up to $1 billion, sending U.S.-listed shares of the electric-car maker up about 17% in heavy trading.
Electric-car makers are battling uncertain demand in China, the world’s largest car market, as it rolls back subsidies on new energy vehicles amid criticism that some firms have become overly reliant on funds.
Nio on Dec. 30 had warned in its quarterly report that it did not have adequate cash for continuous operation in the next 12 months and it was looking for external financing.
U.S.-listed shares of the electric-car maker were jumped 17% to $4.40 in late afternoon trading.
Nio said the New York Stock Exchange had contacted it after the unusual market activity in its American Depositary Shares.