Warren Buffett-backed BYD and Nio could partner soon. This is why.

Warren Buffett-backed BYD and Nio Inc representatives met at Nio facilities potentially to discuss a merger between the two companies. The news has fueled rumors that BYD is considering launching a Nio sub-brand model.

The exact location of the meeting is unknown, and sources also reported that the two CEOs – BYD chairman Wang Chuanfu and Nio CEO William Li – were present at the meeting.

The potential partnership between the two companies comes as no surprise to analysts. Not long after its inception, Nio demonstrated its intention to disrupt the automotive industry, a quality highly appreciated by BYD. Moreover, with its own proprietary electric vehicle platform called e-Genesis, Nio has launched many models to cater to various market segments. 

The Chinese EV brand has been teasing the existence of its first all-electric SUV for months now, and, because of its rapid expansion, many investors consider it one of the best stocks to buy now.

The electric vehicle market is experiencing a boom period. As demand for cleaner forms of transportation increases, the demand for electric vehicles increases. As a result, almost every major car manufacturer has jumped on the EV bandwagon and is launching new electric car models or expanding its existing lineups with electric models. However, growing in the electric vehicle industry presents many challenges. The automotive industry is undergoing a major transformation, with electric vehicles (EVs) playing a key role. The adoption of EVs is set to accelerate in the coming years, and the market opportunity is huge.