Hong Kong-based WT Asset Management disclosed a new position in NIO on Friday, acquiring approximately $142.1 million in shares, according to its latest SEC filing.
What Happened
According to an SEC filing released on Friday, WT Asset Management initiated a new position in NIO (NIO 3.01%), acquiring 18.7 million shares valued at $142.1 million as of September 30. This entry marks NIO as one of the fund’s largest equity positions at quarter-end, based on the reported holdings.
What Else to Know
This new position accounts for 6.6% of WT Asset Management’s reportable U.S. equity assets under management as of September 30.
Top five holdings after the filing:
- NASDAQ:NVDA: $334.6 million (15.5% of AUM)
- NYSE:RBLX: $158.2 million (7.3% of AUM)
- NASDAQ:APP: $148.6 million (6.9% of AUM)
- NYSE:NIO: $142.1 million (6.6% of AUM)
- NASDAQ:HOOD: $128.8 million (6% of AUM)
As of Tuesday's market close, NIO shares were priced at $6.63, up 31% over the past year and well outperforming the S&P 500, which is up 14% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close Tuesday) | $6.63 |
| Market Capitalization | $17.4 billion |
| Revenue (TTM) | $9.8 billion |
| Net Income (TTM) | $-3.4 billion |
Company Snapshot
NIO Inc. is a leading Chinese electric vehicle manufacturer focused on the design, development, and sale of smart electric SUVs and sedans. The company leverages a comprehensive ecosystem of charging and battery solutions to differentiate its customer experience and drive recurring service revenue. NIO's integrated approach positions it as a key player in China's premium EV market, supported by a robust service network and technology-driven product strategy.
Foolish Take
WT Asset Management’s new $142 million position in NIO signals a high-conviction bet on China’s EV rebound after a punishing multiyear downturn. The Hong Kong-based fund purchased 18.7 million shares in the third quarter, making NIO its fourth-largest holding at 6.6% of 13F assets, according to its latest SEC filing.
The move follows a strong second quarter for NIO, which reported record deliveries of 72,056 vehicles, up 26% year over year, and total revenue of $2.65 billion—a 9% year-over-year increase. The company also narrowed its net loss by 26% quarter to quarter. Despite these gains, shares remain down nearly 90% from early 2021 highs, underscoring both the opportunity and risk facing long-term investors.
For context, WT’s other top holdings—Nvidia, Roblox, and AppLovin—all tie to digital platforms and growth technologies with exposure to Greater China, suggesting NIO fits a broader thematic push toward innovation-driven assets. With EV adoption rising and NIO cutting operational losses, the firm’s timing could pay off if China’s demand stabilizes. Still, profitability remains elusive, and execution risks will determine whether this rebound proves durable.
Glossary
13F assets under management: The total value of U.S. equity securities a fund must report quarterly to the SEC.
Reportable assets: Investments that must be disclosed in regulatory filings, typically large U.S. equity holdings for institutional investors.
Net position change: The difference in the number or value of shares held in a security after new trades are made.
Initiated a new position: When an investor or fund buys a stock for the first time, establishing ownership.
Quarter-end: The last day of a fiscal quarter, often used as a reference point for financial reporting.
Stake: The amount of ownership or shares held by an investor or fund in a company.
Assets under management (AUM): The total market value of investments managed by a fund or asset manager.
Outperforming the S&P 500: Achieving a higher return than the S&P 500 index over a specified period.
Premium electric vehicles: High-end electric cars that offer advanced features, technology, and luxury compared to standard models.
Integrated mobility solutions: A suite of transportation services, such as vehicles, charging, and maintenance, offered together for convenience.
Service network: The infrastructure and locations a company uses to provide maintenance and support to customers.
TTM: The 12-month period ending with the most recent quarterly report.
