The struggling Chinese electric vehicle maker Nio Inc. announced an investment of more than $2 billion from the Abu Dhabi-based investment company CYVN Holdings Monday, in another sign of the growing cooperation between the United Arab Emirates and China.
Per the agreement, CYVN will invest $2.2 billion in Nio in exchange for a 20.1% stake in the company. CYVN previously invested $738.5 million in Nio in July. The Emirati firm will be entitled to nominate two individuals to Nio’s board of directors as long as it continues to maintain a 15% or more ownership stake, Nio said in a press release.
Nio is based in Shanghai and produces electric sport utility vehicles and sedans. CYVN Holdings focuses on investments in “smart and advanced mobility solutions,” per the release.
The investment follows Nio’s financial struggles. The company was founded in 2014 but has yet to turn a profit. Nio posted a $800 million loss during the second quarter of 2023. Bloomberg reported in September that Nio had approached investors from the Middle East for help and described the $2.2 billion investment as a “big reprieve” for the company.
