Tesla has been in the news for all the wrong reasons recently. From Elon Musk’s bizarre tweets to him smoking a blunt with Joe Rogan to various other things, Tesla is swimming troubled waters and now one more storm is coming its way.
The second largest shareholder of the Tesla stock, Baillie Gifford & Co., has invested in Nio, one of the fiercest rivals of Tesla. The Chinese electric automobile manufacturer which recently became a publicly traded company has operations in U.S., U.K., and Germany as well.
Around 20% of the Tesla stock is owned by CEO Elon Musk, making him the largest shareholder followed by The U.K. investment management a firm— Baillie Gifford which owns 9%.
Now, Baillie Gifford has purchased 85.3 million shares in Nio, amounting to $515 million, giving it an 11.44 percent stake in the company.
Driven by ambition to become the Tesla of China and more, the four-year-old Tencent-backed startup raised $1 billion last month when it was launched on the New York Stock Exchange.
Nio delivered its first volume-manufactured vehicle — the ES8. With 7 seat capacity, the SUV is priced at 448,000 RMB, which comes up to $65,000.
Tesla is slightly pricey after new higher import tariffs have been imposed. This added with shipping costs is forcing U.S. carmakers to fasten its Chinese plant plans