Web Stories Friday, March 1

© Reuters Nio (NIO) signs investment deal with Abu Dhabi’s CYVN Holdings

Chinese electric automaker, Nio (NYSE:) announced Monday that they have signed a $2.2 billion investment agreement with Abu Dhabi-based CYVN Holdings.

The deal, which is set to be finalized in the last week of December, will raise CYVN’s stake to 20.1% of Nio’s overall issued and outstanding shares. This follows their previous $1 billion investment in July, as mentioned in Nio’s statement on its website.

As a result, CYVN would become Nio’s largest individual shareholder. However, despite this ownership increase, the founder and CEO, William Li, will maintain the highest voting authority due to his ownership of Class ‘C’ ordinary shares.

The deal comes as Nio faces tough competition from Tesla, impacting its EV sales and profits. To improve efficiency, they’ve trimmed 10% of their workforce and delayed non-core projects.

Known for their Nio-branded EVs in China, which rival Mercedes-Benz and BMW, the company plans to introduce two new mass-market brands in Europe by 2025. In an effort to streamline further, Nio is contemplating spinning off its battery production unit and focusing on in-house development of essential components.

Shares of NIO are up 4.11% in early trading Monday morning.

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