(Yicai) Nov. 25 -- BYD and Nio have rebutted claims made by a person who said they work at the former that the Chinese car and battery giant will buy the electric vehicle startup and set up a joint venture.

The rumor about BYD acquiring Nio is false, Li Yunfei, general manager of branding and public relations of the Shenzhen-based company, said on Weibo, noting that people should stop spreading rumors.

Nio reported the matter to the authorities, who launched an investigation, the firm's legal department announced on Weibo.

Writing on social media on Nov. 22, the person said BYD and Nio will form a joint venture called Bi Wei Lai Automotive Group, with the former holding a 51 percent stake and the latter the rest. BYD will buy Nio for CNY16.5 billion (USD2.3 billion), but the startup will continue to operate independently after the acquisition, the person added.

Nio is in a good operational status, with positive cash flow last quarter and improved gross profit last month, Ma Lin, assistant vice president of branding and communications of the Shanghai-based carmaker, also said on Weibo. It expects to sell more than 10,000 units of its family-orientated second brand, Onvo, next month, Ma added.

The product positioning of BYD and Nio differ significantly, and Nio's founder William Li would likely oppose the sale of his brand, according to analysts. The likelihood of such an acquisition occurring before Nio faces significant operational challenges is extremely low, they added.

However, there is still a possibility for future tie-ups between BYD and Nio, the analysts noted. As China's largest automaker, BYD has a strong supply chain advantage and technical support, while Nio's high-end market positioning could provide BYD with opportunities to expand into new product lines, they pointed out.

Nio delivered 170,257 vehicles in the nine months ended Sept. 30, with its net loss remaining unchanged at CNY15.5 billion on a revenue jump of 20 percent to CNY46 billion from a year earlier.

BYD sold 2.75 million vehicles in the first three quarters, up 32 from a year ago. Its net profit rose 18 percent to CNY25.2 billion, while its revenue surged 19 percent to CNY502.3 billion (USD69.4 billion).

Editor: Martin Kadiev