February 26, 2024

Chinese electric vehicle Manufacturer Nio just got a $2.2 billion funding boost from Abu Dhabi-based CYVN, even as its stock struggles to break the $10 mark.

CYVN, which pumped more than $1 billion into Nio in July, this time bought 294 million shares at $7.50 each. Nio said in a statement. The latest infusion brings the Abu Dhabi investment vehicle’s stake in the EV maker to more than 20%.

The war chest supplement comes as Nio “debates” A US entry by 2025which is considering “any kind of partnerships” to do so, according to Ganesh Iyer, CEO of Nio USA.

Nio’s advantage

Founded in 2014—more than a decade after Tesla—Nio calls himself a “pioneer” because of his unique battery exchange technologyenabling drivers to change batteries in minutes instead of using traditional charging stations.

Like most other EV manufacturers, Nio has struggled amid supply chain disruptions, stiff competition and Tesla’s price wars. But it is also new models announcedshe grew battery station footprint throughout Europe, and even launched a smartphone with 30 car-specific features including parking and unlocking. Although its sights are set on luxury buyers, so is Nio the debut of a second brand for the mass market next year.

“The bargaining power of suppliers, typically low due to high competitiveness in the sector, is further controlled by NIO’s strategy of vertical integration, strategic alliancesand raw material control,” three researchers from the University of Cartagena, Colombia, wrote in s study published in September. Also, even though its workforce is less than a quarter the size of Tesla’s, Nio has “a comparable number of patents” and “already has a number of charges [stations] it amounts to one-third of Tesla’s holdings,” they added.

Mapped: Nio’s sinking inventory rises a bit

Nio’s EV business, by the numbers

30,000 yuan ($4,200): Nio’s June price cut for all models, announced after months of withstand the pressure of a price war sparked by Elon Musk’s Tesla

4.6 billion yuan ($625 million): Nio’s loss for the three months ended September 30, 25% less than the previous quarter, but still a wide hole. “To consider investing, I would want to see the business make a net profit (not just an operating profit) and demonstrate that it can do this consistently,” market analyst Christopher Ruane writes. “It doesn’t look anywhere near that right now. So, while it may rise again in the future, for now at least I have no plans to buy NIO shares.”

$12,000: Loss Nio takes for every vehicle it sells, according to co-founder and president Lihong Qin, who said the company “hasn’t turned profitable yet.”

10%: Share of staff Nio cut last month due to “fierce competition”, according to CEO William Li

60%: Year-over-year increase in Nio’s car deliveries for October, when they were more than 16,000. However, a closer look reveals something less impressive. October deliveries just went up 2.77% month-to-month, way down competitors’ growth

2%: Nio’s market share in China, where it trails US rival Tesla (6%) and homegrown giant BYD (35%) by many miles

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