Despite the lack of profit since the launch of its first models in 2018, Nio still benefits from investor confidence. The manufacturer will thus receive 420 million euros from three Chinese funds.
It is one of the most influential players in China’s electric vehicle market, but Nio has yet to turn a profit. The small manufacturer therefore needs cash injections at regular intervals. He has just confirmed the injection of 420 million euros (3.3 billion RMB) by three Chinese investors: Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment, and CS Capital.
We note the marked presence of public investors from the province of Anhui, in which the manufacturer has been established since its rescue in 2020, already by the province. In fact, this new contribution is made via the issue of new shares of the Nio China subsidiary based in Hefei. To maintain its stake in this entity, the parent company (Nio Inc.) contributes 10 billion RMB (1.3 billion euros) to its main subsidiary.
Remember that Nio announced a loss of 577 million euros for the second quarter of the year and has never recorded a profit. Less than a year ago, the Abu Dhabi investment fund CYVN invested 2 billion euros in the capital of the Chinese manufacturer.
This new financing comes as Nio must both support its activity in Europe, and the launch in China of its new high-volume brand Onvo. It is precisely this brand which largely carries the hopes of development. Next year, Nio also plans to launch an even more affordable vehicle, known for the moment under the code Firefly.
The rest of your content after this announcement
The rest of your content after this announcement
