Nio Inc, the Chinese electric vehicle (EV) startup, held exploratory talks with Mercedes-Benz, which would involve the German automaker investing in Nio in exchange for its technology and its research and development (R&D) capabilities, Reuters reported, citing people with direct knowledge of the matter.
The media outlet noted the talks did not get as far as discussion on details on the technology to be transferred and the potential financial investment, with one source saying it was highly unlikely the partnership would proceed.
Both companies denied any recent discussions had taken place, with a Nio spokesperson calling it "untrue".
Earlier this year, though, Nio's founder and chief executive William Li discussed a potential collaboration with Mercedes CEO Ola Kaellenius.
Strapped for cash, EV startups have been increasingly trying to sell their technology to established automakers for survival.
Elon Musk has credited a $50 million investment from the Mercedes group with saving Tesla in 2009.
Nio's net loss more than doubled to 6.12 billion yuan ($839.51 million) in the quarter that ended June.
Mercedes, meanwhile, has stated it is planning further investments in the Chinese market to expand its R&D team and accelerate innovations in electrification and digitalization.
Shares of Nio climbed 5% to finish at $8.91 on Thursday but have fallen 8% year to date.
Contact Sean at sean@proactiveinvestors.com