Chinese EV Giant Nio Secures $471M Investment for New Models, Reducing Stake in Subsidiary to Fuel Sustainable Growth

A division of Chinese electric vehicle manufacturer, Nio, has secured $471 million in new financing to fund the release of new models. The subsidiary has received this sum from a group of investors supported by the Hefei government in Anhui province, which is also the location of two Nio factories.

The company based in Shanghai announced on Sunday that it plans to invest 10 billion yuan in purchasing new shares from its subsidiary, Nio China. However, this move will decrease its ownership stake in the subsidiary from 92.1% to 88.3%.

After the stock allocation, the Hefei Jianheng New Energy Vehicle Investment Fund Partnership, Anhui Provincial Emerging Industry Investment, CS Capital, and other current shareholders of Nio China, will boost their stake from 7.9% to 11.7%, as reported by Nio.

Nio, listed in both Hong Kong and New York, stated that its improved financial situation will strategically allow it to hold its edge in areas like technology, products, services, and its user community. The company also plans to implement a strategy involving multiple brands, strive for success in wider markets, and drive the company towards the next phase of sustained growth.

The report also mentioned that the car manufacturer based in Shanghai has the option to purchase additional shares in the subsidiary worth 20 billion yuan by the close of 2025.