Baillie Gifford, the second-largest shareholder of Tesla stock, has bought the 11.44percent stake in Chinese electric vehicle making start-up NIO, as per regulatory filings.
The start-up disclosed that Baillie Gifford purchased 85.3 million shares, which were valued at about $515 million. While CEO Elon Musk owns nearly 20 per cent of Tesla, UK-based Baillie Gifford owns 7.7 per cent stake in the start-up, as per Bloomberg.
Nio raised $ 1 billion when it debuted on the New York Stock Exchange last month and the company has operations in the U.S, U.K and Germany, although it only sells its ES8 vehicle in China.
The 7-seater ES8 SUV is priced at 448,000 RMB, around $65,000. That is cheaper than Tesla’s vehicles since new higher import tariffs have driven up the price of its Model X SUV and Model S sedan.
The tariffs and other costs like shipping Tesla vehicles overseas, is forcing the U.S. automaker to accelerate its China factory plans.
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