NIO Surges On $2.2 Billion Abu Dhabi Investment
Dec 18, 2023 By MarketDepth
NIO (NASD:NIO) Chinese electric car maker surged after securing a big investment from an Abu Dhabi-backed fund. CYVN is a fund who’s majority owner is the Abu Dhabi government. CYVN will be the companies single biggest shareholder with 294 million class a shares.
NIO stock is down about 10% on the year but up on the day after the news of fresh funding.
“With the enhanced balance sheet, NIO is well prepared to sharpen brand positioning, bolster sales and service capabilities, and make long-term investment in core technologies to navigate the intensifying competitive landscape, while continually improving execution efficiency and system capabilities.”William Bin Li, NIO’s founder, chairman, and CEO
Nio has been getting hit hard lately with a wider loss in quarterly earnings and a 10% reduction in employees. As competition in the EV market heats up Tesla and other rivals have done deep price cutting to continue to compete.