Chinese EV maker NIO (NIO) is trending after receiving $2.2 billion in funding from Abu-Dhabi’s CYVN Holdings. NIO’s stock is up over 5% Monday following the investment.
NIO stock climbs after $2.2 billion investment
With the new investment, CYVN will become a major NIO shareholder. The Abu Dhabi-backed investment company is investing $2.2 billion by subscribing to 294 million newly issued shares. The share repurchase price is $7.50, according to the press release.
The news comes after NIO received nearly $740 million from CYVN in July. After the transaction is complete, CYVN will own 20.1% of the company, up from 7%.
The transaction is expected to close the last week of December. Upon closing, CYVN can nominate two directors to NIO’s board (as long it upholds at least 15% ownership).
NIO said the partnership will look for strategic tech partners in international markets. “With the enhanced balance sheet, NIO is well prepared to sharpen brand positioning, bolster sales and service capabilities,” NIO’s CEO William Li explained.
NIO new ES6 (Source: NIO)
The news comes as NIO expands the brand overseas with new model launches. With the launch of the new ES6 and EC6, NIO’s lineup has completely shifted to its next-gen 2.0 platform.
Despite EV deliveries climbing 135% quarter-over-quarter in Q3, NIO is still losing money. NIO posted a net loss of $624 million (RMB 4.6 billion) in the third quarter. As of September 30, NIO had $3.3 billion in cash and equivalents (excluding restricted cash and short-term investments) on its balance sheet.
NIO expects to deliver between 47,000 and 49,000 EVs in Q4, up 17% to 22% from last year. Revenues are projected between $2.2 billion and $2.3 billion.
The EV maker trimmed around 10% of its staff last month amid intensifying competition. NIO also cut prices earlier this year to keep pace with market leaders like BYD and Tesla.
Following the news, NIO stock is up 5% in Monday’s trading session. NIO’s shares are down nearly 50% from a peak of $16.18 per share this summer. The Chinese EV makers’ share prices have slipped 24% over the past 12 months.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
