Chinese EV maker NIO (NYSE: NIO) has made an investment in a company that is developing fusion technologies, according to a company filing, placing more bets in different areas of the energy sector.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
According to a Reuters report, citing an unknown source, the newly established company, Neo Fusion, will research and develop technologies to look at controlled fusion for commercial uses over the next two decades.
The report stated that Neo Fusion will be 50% controlled by China’s eastern province of Anhui government and was created with a registration capital of 5 billion yuan ($723.37 million). Nio invested 995 million yuan in Neo Fusion for a 19.9% stake while Nio Capital, the investment firm founded by Nio’s chief executive William Li, has invested 505 million yuan for a 10.1% share.
Nio told Reuters, “Staying true to the original aspiration of Blue Sky Coming, Nio aims to facilitate the R&D and commercialization of nuclear fusion technology by making financial investment into this project.”
Analysts are cautiously optimistic about NIO stock with a Moderate Buy consensus rating based on six Buys and three Holds.
