Electric vehicle maker Nio has signed a pact for an investment of $2.2 billion from CYVN Holdings, an investment vehicle based in Abu Dhabi, the Chinese company said on Monday, reports Reuters. The investment comes as Nio, with its EV sales and profitability under pressure in a price war started by Tesla, has sought to boost efficiency by cutting a tenth of the workforce and deferring non-core projects.
The deal, expected to close in the final week of December, would take CYVN’s shareholding to 20.1% of Nio’s total issued and outstanding shares, following an investment of $1 billion in July, Nio said in a statement on its website.
That would make CYVN the largest single shareholder of Nio, although founder and chief executive William Li retains the most voting power, with his ownership of Class ‘C’ ordinary shares.