RWC Asset Management Loads Up With 2.7 Million Nio Shares

RWC Asset Management disclosed a buy of Nio (NYSE:NIO) shares in its Oct. 27, 2025, SEC filing, adding an estimated $14.55 million stake based on the average price for the quarter.

What happened

According to a filing with the Securities and Exchange Commission dated October 27, 2025, RWC Asset Management bought approximately 2.7 million additional Nio shares during the quarter. The estimated transaction value, based on the period’s average closing price, was about $14.55 million. The position now stands at 2,733,551 shares, with a total value of $20.83 million as of Sept. 30, 2025.

What else to know

The Nio stake now represents 1.01% of the fund’s 13F reportable assets under management.

Top holdings after the filing:

• Macy's: $195.5 million (9.5% of AUM) as of Sept. 30, 2025
• HP Inc.: $159.9 million (7.7% of AUM)
• Exelon: $88.5 million (4.3% of AUM)
• Lear: $57.3 million (2.8% of AUM)
• Cisco Systems: $52.1 million (2.5% of AUM)

As of Oct. 24, 2025, Nio shares were priced at $6.90.

Company Overview

Company Snapshot

Nio offers smart electric SUVs and sedans, battery swapping, charging infrastructure, energy solutions, vehicle services, and used vehicle certification.

The company generates revenue primarily through vehicle sales, after-sales services, energy solutions, and financial products such as auto financing and leasing.

It mainly targets Chinese consumers seeking electric mobility solutions.

The Chinese electric vehicle (EV) manufacturer has a diversified product portfolio encompassing smart SUVs, sedans, and integrated energy solutions. The company leverages proprietary technology and innovative service offerings, such as battery swapping and comprehensive after-sales support, to differentiate itself in the competitive EV market.

Foolish take

RWC Asset Management previously held a relatively minuscule position in Chinese EV maker Nio. It increased what was a position worth about $100,000 to one worth about $20 million. That clearly indicates the firm has become bullish on the name.

That may be due to a sharp increase in Nio's vehicle deliveries. Last year, Nio introduced two new vehicle brands. Alongside its core brand, it now features the Firefly and Onvo brands, which provide more affordable, family-friendly options. These additions to its vehicle lineup contributed to Nio achieving record-breaking EV deliveries in both August and September. In September, EV sales surged by 64% compared to the previous year.

Nio has also grown its European business this year. RWC is likely betting that the sales volume increase provides the visibility for a path to profitability for Nio.

Nio remains a risky stock to own, however. Investors should treat it as a speculative bet, and allocate capital accordingly.

Glossary

13F: A quarterly report filed by institutional investment managers detailing their equity holdings.
AUM (Assets Under Management): The total market value of assets a fund or investment manager oversees on behalf of clients.
Reportable AUM: The portion of a fund’s assets that must be disclosed in regulatory filings, such as the 13F.
Quarter ended: Refers to the last day of a three-month financial reporting period.
Transaction value: The total dollar amount involved in buying or selling securities.
Top holdings: The largest investments held by a fund, typically ranked by value or percentage of AUM.
Battery swapping: A service allowing electric vehicle owners to quickly exchange depleted batteries for fully charged ones.
After-sales services: Support and maintenance provided to customers after purchasing a product, such as vehicles.
Auto financing: Financial products that help consumers purchase vehicles by spreading payments over time.
Leasing: An arrangement where a customer pays to use a vehicle for a set period instead of buying it.
Used vehicle certification: A process where pre-owned vehicles are inspected and certified to meet specific quality standards.
TTM: The 12-month period ending with the most recent quarterly report.

Howard Smith has positions in Nio. The Motley Fool has positions in and recommends Cisco Systems and HP. The Motley Fool has a disclosure policy.