Nio Secures Massive $2.2 Billion Investment Deal, CYVN Holdings Takes 20.1% Stake – CEO William Li Holds Key Voting Power!”
Chinese electric vehicle manufacturer Nio (NYSE:NIO) revealed on Monday that it has inked a $2.2 billion investment pact with CYVN Holdings, based in Abu Dhabi.
Expected to be finalized in the closing week of December, this agreement will elevate CYVN’s ownership to 20.1% of Nio’s total issued and outstanding shares. Notably, this follows their earlier $1 billion investment in July, as disclosed in Nio’s official statement.
Nio
As a consequence, CYVN is poised to become Nio’s largest individual shareholder. Despite this increased ownership stake, founder and CEO William Li will retain the highest voting authority, thanks to his ownership of Class ‘C’ ordinary shares.
This development arises amid stiff competition from Tesla, impacting Nio’s electric vehicle sales and profits. In response, the company has implemented cost-cutting measures, including a 10% reduction in its workforce and the postponement of non-core projects.
Renowned for its Nio-branded electric vehicles in China, which compete with the likes of Mercedes-Benz and BMW, the company has strategic plans to introduce two new mass-market brands in Europe by 2025. In a bid for further efficiency, Nio is considering the possibility of spinning off its battery production unit and concentrating on the in-house development of crucial components.
