NIO Stock Rises Overnight: Nio Capital Joins Sequoia China And SMIC-Linked Backers In Robot-Sensor Bet

• Gongwang makes inductive encoders that measure movement inside robot joints and industrial equipment.
• Its sensors resist magnetic interference, require no permanent magnets and may reduce rare-earth supply exposure.
• Nio Capital’s portfolio also spans CATL, CALB, Seyond, ClearMotion and Alibaba-backed Dexmal.

U.S.-listed shares of Nio, Inc. (NIO) rose overnight as a William Li-founded investment fund expanded its robotics exposure with a 10.87% stake in Gongwang, while the EV maker’s flagship ES8 approached 150,000 deliveries within its first year.

Nio’s U.S.-listed shares slipped 0.5% on Monday, after Friday’s gain snapped a seven-session losing streak. 

Nio Capital Bets On Precision Robotics Sensors

The investment puts Nio Capital alongside prominent Gongwang backers including Sequoia China and SMIC-linked Zhongxin Juyuan. Xiamen Tungsten and solar-inverter giant Sungrow also participated in the robot-sensor maker’s nearly 100 million yuan ($14.9 million) Series A round last month, EV noted.

The buyer is Hefei Nio Industrial Development Equity Investment Partnership, a Nio Capital-managed fund that previously invested in autonomous-driving company Momenta’s chip unit. Nio Capital is an independent private-equity firm founded in 2016 by Nio CEO William Li and Ian Zhu. Li remains a managing partner. 

Founded in 2023, Wuxi Gongwang Sensing Technology makes inductive rotary encoders, which measure angle and position inside robot joints, servo motors and industrial machinery.

Earlier investor Honghui Fund called Gongwang the “first company in China to mass-produce inductive position sensors.” Its founders bring nearly two decades of experience from industrial-drive maker INVT and German encoder specialist Heidenhain.

Inductive encoders offer durability and resistance to the magnetic interference generated inside crowded robot joints. Unlike magnetic encoders, they also contain no permanent magnets, reducing exposure to rare-earth supply risks. The tech can additionally support steer-by-wire and brake-by-wire vehicle systems.

Nio Capital Pushes Further Beyond EVs

Gongwang extends Nio Capital’s portfolio beyond traditional EV investments. The firm has backed battery makers CATL and CALB, lidar company Seyond and U.S. suspension specialist ClearMotion, whose technology is used in Nio’s ET9.

Its wider technology portfolio includes robotics startup Dexmal, which later attracted Alibaba, and consumer-hardware company Ruyuan Technology, founded by former DJI research and development executive Brett Wang.

Nio itself has registered robotics trademarks and reportedly formed a roughly 20-person team focused on four-legged robots. Its Hefei F2 factory uses 310 automated guided vehicles and 941 industrial robots. Still, Li has said Nio is not rushing to enter robotics as a standalone business, unlike XPeng and Xiaomi, which have made humanoid robots a more visible part of their strategies.

ES8 Closes In On 150,000 Deliveries

Meanwhile, Nio expects its third-generation ES8 to reach 150,000 cumulative deliveries this week, less than a year after deliveries began in September 2025. The large electric SUV crossed 140,000 deliveries on Aug.21, suggesting the latest 10,000 units were delivered in about one month, CnEVPost reported.

Nio delivered 11,001 ES8s in August, up 6.9% from July and marking a second consecutive month above 10,000. Through August, the model accounted for 62.2% of main-brand deliveries and 38% of Nio’s companywide volume in 2026. The ES8 and higher-end ES9 together generated 17,480 deliveries in August, representing 82.6% of the main Nio brand’s total.

How Do Retail Traders Feel About NIO?

On Stocktwits, retail sentiment for NIO dipped to ‘bearish’ from ‘neutral’ levels a day ago amid a 278% jump in 24-hour message volumes.

One bearish user said, “$NIO I have been saying my initial buy level is 3.50 but for now i have revised it to ~3. If the current macro's keep it up NIO might get there. I want NIO to succeed because I used to be such a huge bull but i dont see it.... Yet”

Another user said, “$NIO Another great day to add shares, just like the institutions are doing, little by little in order to not increase the share price. Since the company is obviously doing so well and has such a great future it's a no-brainer to add as time goes by.”

Nio’s U.S.-listed shares have declined 41% over the past year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Tesla, SpaceX Stocks Rise Overnight: Elon Musk Fuels Merger Speculation, ‘Hints’ At Action Amid ‘Close Collaboration’