CYVN to pour USD 2.2 bn into Tesla’s Chinese rival Nio: CYVN Holdings, an investment firm owned by the Abu Dhabi government, has agreed to a c.USD 2.2 bn equity investment in Chinese electric vehicle manufacturer Nio, the Shanghai-based company said in a statement yesterday.

The details: Under the share subscription agreement, CYVN will invest USD 2.2 bn to subscribe for 294 mn newly issued shares at USD 7.50 each. CYVN will also have the right to nominate two directors to Nio’s BoD. Once the transaction closes — which is set to happen in the last week of December — CYVN will hold a 20.1% stake in Nio.

Market reax: Following news of the transaction, Nio’s shares jumped 9.5% in US premarket trade before paring gains and closing up 4.6%.

CYVN’s investment will be getting Nio out of its tight spot: The EV maker has been repeatedly posting losses, losing USD 835 mn in 2Q 2023, amounting to a USD 35k loss for each car sold, the New York Times reported. However, its losses narrowed modestly by 24.8% in 3Q, posting a net loss of USD 649 mn.

CYVN is no stranger to Nio: CYVN invested USD 738.5 mn in Nio in July. Additionally, it had inked an agreement with an affiliate of Tencent Holdings to buy ordinary shares in Nio for USD 350 mn. The combined investments of about USD 1 bn gives CYVN ownership of around 7% of Nio’s shares.

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