Tesla rival NIO secures $1bln funding from state investors, shares up 8 pct

Photo/Zhang Xiaoqing (NBD)

The investment is the first state fund for NIO and the largest fundraising since the companys IPO. Encouraged by the news, shares of the EV maker spiked as much as 20 percent in the premarket trading and closed 8.08 percent higher on Wednesday.

Upon the completion of the deal, NIO will hold a 75.9 percent stake in NIO China, while the strategic investors will have the remaining 24.1 percent.

Its noticed that NIO has been in a loss for 4 consecutive years since 2022 and its net loss in 2022 stood at 11.4 billion yuan. Despite the fund infusion, its vital for NIO itself to grow profitability to sustain development.

The 7 billion yuan investment, which is expected to be in place in the second quarter of this year, will be mainly used to better RD, customer services and cash flow as well. The investment will ease NIOs cash shortage for quite a long-term, said its founder Li Bin.

In addition to the strategic investors, NIO will invest 4.26 billion yuan in NIO China, bringing the total investment amount to 11.26 billion yuan, which is not less than what the previous framework agreement says, added Li.

Apr. 30 (NBD) — Chinese EV maker NIO (NYSE: NIO) on Wednesday finalized its headquarters program with the countrys Hefei city, Anhui Province and in the meantime the automaker secured funding from state-owned companies.

Three state-backed strategic investors will inject 7 billion yuan (roughly 1 billion U.S. dollars) into NIO China, while NIO will base its China headquarters, including RD, sales, service and supply chain, in Hefei, 300 miles west of Shanghai.皇冠注册