Written by Cláudio Afonso | LinkedIn | X
Citi Group disclosed in its quarterly portfolio update that it added 994,093 shares of electric vehicle (EV) manufacturer Nio during the second quarter of the year.
The latest portfolio update also revealed that Citi trimmed its position in Lucid Motors by nearly 48% while increasing its stake in Tesla by over 22%.
The recent acquisition brings Citi’s total holdings in Nio to 2,471,350 shares as of June 30, representing a 67% increase from the first quarter. The bank’s investment in the company is valued at $9.6 million, based on Tuesday’s closing price of $3.89 per share.
Never miss an update on Nio
Citi has been a long-term shareholder in Nio, having first invested nearly six years ago during the company’s U.S. initial public offering.
The bank’s largest purchase in this period occurred in the third quarter of 2019, when it acquired 3,757,102 shares, pushing its stake to over 5.5 million shares—the highest level it has ever held.
However, after significantly reducing its stake from over 5.5 million shares to 1.5 million in 2020, Citi resumed heavy investment in the following year, closing the second quarter of that year with 4.99 million shares when Nio’s stock was trading between $40 and $50 per share.
In early 2022, institutional ownership of Nio peaked, with nearly 600 million shares held by institutional investors as the stock traded between $20 and $30 per share. According to Fintel, Nio’s institutional shareholders now hold about 321 million shares, representing a nearly 50% decline.
As reported earlier today, Goldman Sachs significantly reduced its stake in Chinese electric vehicle (EV) maker Nio, selling nearly 5.56 million shares during the second quarter.
Nio shares have fallen 57% year to date as investors await increased production volumes from the company and its upcoming sub-brands, Onvo and Firefly, which are expected to drive the company toward profitability.
The company delivered 20,498 vehicles last month and its year to date deliveries are up nearly 44% from last year. In late September, the group will deliver the first units of the family-oriented SUV L60, the first model under the sub-brand Onvo.
As reported earlier this week, Geode Capital Management, Fidelity’s index fund arm, added 232,135 additional Nio shares during the second quarter, bringing its total holdings to 7,885,425 shares.
Written by Cláudio Afonso | LinkedIn | X
