Written by Cláudio Afonso | LinkedIn | X
Geode Capital Management has nearly exited its position in electric vehicle maker Nio, four and a half years after first investing in the company.
According to its latest quarterly filing, the asset manager reduced its stake in the Shanghai-headquartered company by 94.07% in the third quarter of this year. Geode Capital, which is Fidelity’s passive / quanty subsidiary, said Tuesday it held 467,564 Nio shares as of September 30, down from the 7,885,425 it held on June 30. The current holding is valued at around $3.1 million, down from $32.6 million.
From the first quarter of 2023 through the second quarter of 2024, Geode had been increasing its position in the EV maker by 3% to 5% each quarter. However, in the third quarter of 2024, it reversed course and sold 94% of its holdings.
| Quarter | Shares Held | Change |
| Q1 2019 | 39,425 | — |
| … | … | … |
| Q4 2023 | 7,332,851 | +3% |
| Q1 2024 | 7,653,290 | +4% |
| Q2 2024 | 7,885,425 | +3% |
| Q3 2024 | 467,564 | -94% |
The fund bought its first shares in Nio in the first quarter of 2019, shortly after the initial public offering. At the time, Geode bought 39,425 shares and has been accumulating almost every quarter over the last 5 years.
In the second quarter of the year, the asset manager reported a small increase adding 232,135 shares, a 3.03% rise in its position.
Nio shares have lost 49.50% of their value year to date. After reaching a new 4-year low at $3.61 in April, the stock more than doubled to $7.71 in late September on China’s fiscal stimulus. However, the company’s shares have been giving up part of those gains and closed at $4.58 on Tuesday.
In October, Nio Group delivered a total of 20,976 electric vehicles including 4,319 units of its sub-brand Onvo and 16,657 vehicles of the Nio brand.
Nio will release its third-quarter earnings next week, on November 20, with a conference call scheduled for 7:00 a.m. Eastern Time.
As reported earlier this week, the Swiss National Bank (SNB) also reduced its stake in the company by 67% between July and September.
The central bank lowered its holdings from 3.08 million shares at the end of the second quarter to 1.005 million shares as of September 30, representing a sale of 2.07 million shares — the largest one since it opened a position in Nio back in 2019.
Written by Cláudio Afonso | LinkedIn | X
The post Fidelity Subsidiary Nearly Exits Nio, Sells 7.4 Million Shares in Q3 first appeared on EV.