Chinese electric car manufacturer Nio receives €1.7 billion cash injection

Chinese electric vehicle manufacturer Nio is receiving a financial injection of 3.3 billion yuan, equivalent to around 420 million euros, from existing investors. Furthermore, Nio Inc. plans to invest in shares of its subsidiary Nio China to the tune of 10 billion yuan (around 1.3 billion euros). In the field of electromobility, Chinese providers have been taking a leading position for some time. Electric vehicle manufacturers from China frequently receive substantial government subsidies, giving them a competitive advantage. Now, the automaker and Tesla competitor Nio has received another financial boost.

Nio receives investments and issues new shares

In a press release, Nio Inc. announced that its subsidiary Nio China will be provided with a total of 13.3 billion yuan, equivalent to around 1.7 billion euros. The financial boost consists of two components. On the one hand, 3.3 billion yuan (around 420 million euros) were provided by strategic investors. On the other hand, the parent company invested 10 billion yuan (around 1.3 billion euros) in new shares to be issued.

As a consequence of these transactions, the parent company's stake will decrease from 92.1 percent to 88.3 percent, while the remaining 11.7 percent will be held by external investors. The transaction still needs to be approved by the relevant authorities and will be carried out in two tranches, as stated in the press release.