Reputed Chinese EV maker NIO refused to fundraise, while the recent report affirms that the company is taking into account raising $3 billion from investors. As per the information reported by Bloomberg, it stated, “NIO is considering raising around $3 billion from investors.” This has been sourced by people familiar with the matter.
As revealed by the sources, NIO proceeded towards the investors in the Middle East. This indicates that fundraising could be possible by next year.
Believing the statement stated by NIO on Monday, saying it “would like to clarify that the company currently has no reportable capital raising activity, other than the recent convertible notes offering that was completed on September 25, 2023.”
The automaker declared recently the closing of its $1 billion convertible senior notes offering that was put forward freshly. While, if anything going to alter, on the same, NIO said it will “promptly announce any material information.” This is to ascertain listing rules and requirements.
NIO fundraising
In addition to this, the fundraising report came into notice after NIO received a $738.5 billion investment from CYVN Holdings. This is an investment firm assisted by the Abu Dhabi government. NIO responded that it will use the funds in order to strengthen its balance sheet. This helps it to power its global expansion.
On top of it, NIO’s Q2 earnings show falling vehicle sales, margins, and revenue, since it upgrades its lineup. And with the introduction of the new ES6 in May and the new EC6 recently this month. NIO has stepped towards the transition of all eight models to its next-gen 2.0 platform. Furthermore, the EV maker also launched its ET5 Touring, purposely designed for Europe as its first electric station wagon.
The fundraising came into observation as NIO’s losses were overreached, also the margins kept falling. Since it reduced prices earlier this year. This is to keep up with EV leaders like Tesla and BYD in the region.
CEO William Li said, “Attributed to the product transition based on the NT2.0 Platform, coupled with the expansion of our power network and the strengthening of our sales capabilities, we expect a solid growth in vehicle deliveries in the second half of 2023.”
