The investment holding CYVN from Abu Dhabi is pumping billions into Nio, becoming the largest shareholder in the Chinese electric car manufacturer. The $2.2 billion investment will give CYVN 20.1 percent of Nio’s shares, making it the largest single shareholder, the company said on Monday.
The investment vehicle from the United Arab Emirates had already invested a billion dollars in Nio in July. Thanks to its shares, the holding company will be able to nominate two directors to the car manufacturer’s board. However, founder and CEO William Li retains most of the voting rights. The agreement on the financial injection should be finalized in the last week of December.
Nio is also under pressure in China. Demand for electric cars has weakened as consumers prefer cheaper plug-in hybrids. At the same time, the vonTeslaThe price war instigated hurts car manufacturers in the highly competitive market.