Jim Cramer’s Latest Lightning Round: 10 Stocks to Watch

8. NIO Inc. (NYSE:NIO)

Number of Hedge Fund Holders: 20

NIO Inc. (NYSE:NIO) is engaged in the design, development, manufacturing, and sale of smart electric vehicles in China, offering a range of five and six-seater electric SUVs as well as smart sedans.

It differentiates itself through its comprehensive power solutions, which include Power Home for home charging, Power Swap for battery swapping, as well as both Power Charger and Destination Charger options. Additionally, the company offers a mobile charging service, Power Mobile.

Upon being asked about the company, Cramer said “I want you to hold on”.

Recently, NIO (NYSE:NIO) announced a significant cash injection of $1.9 billion. The investment comes from a group of strategic investors based in Shanghai, which includes Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment Co., and CS Capital Co.

Together, the investors will contribute approximately 3.3 billion yuan, or about $470.6 million, to the subsidiary, NIO China. Alongside this investment, the company has committed to injecting 10 billion yuan, or roughly $1.43 billion, to acquire newly issued shares in NIO China.

It will increase its controlling interest in the subsidiary to 88.3%, while the remaining 11.7% will be held by strategic investors and existing shareholders.

The financial arrangement will be executed in two phases, with 70% of the funds expected to be delivered by November 2024, and the remaining 30% scheduled for December 2024. According to NIO’s (NYSE:NIO) press release, this strengthened financial foundation is designed to improve its long-term capabilities in technology, product development, services, and community engagement.