Chinese EV maker Nio nabs $1B lifeline
Nio has faltered in recent months, but this new injection of capital secures future product development.
Nio, a newcomer to the electric car market, has found a lifeline in the form of a new $1 billion investment from various Chinese investment funds. The crucial funds secure Nio's financial future and will ensure new vehicles continue to be developed.
Reuters reported on the investment following a Nio press conference on Wednesday. The company said the investment doesn't impact any current partnerships with other companies, nor its listing on the New York Stock Exchange.
Last year, Nio announced its co-founder was to depart the company, and shortly after that, it laid off 1,200 workers. Meanwhile, Nio's been pushing its two production cars as it looks to find a footing. Early hype saw it labeled the Chinese Tesla and the company had big expectations to fill. The Nio ES8 launched first with Model X-rivaling specs, though slow sales followed. The more affordable ES6 electric SUV made up a larger portion of its deliveries towards the end of 2019. Nio sold just under 4,000 cars so far this year through March, and the company said it's starting to see a recovery.
China's slowing auto market was partially to blame for Nio's rocky start, and this year, the coronavirus pandemic put a halt to any presumed gains in the country. Nio said any negative impact on the company due to COVID-19 has since passed, however, and its suppliers are in good shape going forward. Nio sold just under 4,000 cars so far this year through March, and the company said it's starting to see a recovery.
First published April 29.
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