Tesla investor Baillie Gifford acquired an 11.4 percent stake in Nio, sending shares of the Chinese electric car maker up 22 percent on Tuesday.
The U.K. investment management firm owns 85.3 million Nio shares, the company said in a filing with the Securities and Exchange Commission Tuesday morning. The stock began to rally after Bloomberg reported the investment.
Baillie Gifford is Tesla’s largest outside shareholder, with a 9 percent stake. Its largest investor is CEO Elon Musk, who owns about 20 percent of Tesla shares.
Nio’s stock closed up 22 percent Tuesday at $7.39 and was adding to those gains in trading after the bell, up an additional 6 percent. Still, Nio shares are only about half the value of an all-time high of $13.80, which the stock reached on Sept. 14 two days after it debuted.
When it listed its shares on the New York Stock Exchange last month, the company said it plans to make cars for the Chinese market initially but it also has ambitions to expand into Europe and the U.S.