Chinese EV maker Nio is gearing up to expand its business further on the global stage. To fund this ambition, it has secured $2.2 billion from the Abu Dhabi-backed CYVN.
The investment will give CYVN 294 million class A ordinary shares in Nio at $7.50 each. This latest investment gives CYVN a 20.1 percent holding in Nio after a $738.5 million injection in July. CYVN has also purchased shares in Nio through affiliated companies, bringing its investments to over $3 billion.
According to Nio, the latest investment round will fund its planned international expansion as it tries to enter new markets. It said, “Nio and CYVN, and their affiliates, will continue to work jointly to pursue strategic and technology collaborations in international markets following the closing of the December investment transaction.”
Analysts have speculated that Nio might be getting ready to push its more affordable brand, Firefly, in the European market next year. The Chinese automaker has another brand, Alps, expected to come to Europe in 2025. Meanwhile, Nio could borrow a leaf from fellow Chinese BYD and American Lucid by exploring the Middle East region, where its latest investor is located.
Nio has bumped up its production this year by more than 33 percent, shipping 142,026 units so far.