This week in EVs: Nio's big deal | Pro Recap
Investing.com — Here is your weekly Pro Recap of the past week's biggest headlines in the electric vehicle space: Nio raises $2.2B; Mullen’s third reverse split; and tearing it up with tariffs.
Get news like this in real-time by signing up for InvestingPro.
China's Nio Inc. (NYSE:NIO) announced Monday that the electric vehicle maker has signed an investment deal with Abu Dhabi-based CYVN Holdings worth $2.2 billion.
This latest deal, which is set to be finalized next week, raises CYVN’s ownership stake in NIO to 20.1%, making CYNV Nio’s largest individual shareholder. However, despite this ownership increase, the founder and CEO, William Li, will maintain the highest voting authority due to his ownership of Class 'C' ordinary shares.
Once the deal is closed, CYNV will be entitled to nominate two directors to the Company’s board, so long as it continues to beneficially own no less than 15% of the Company’s outstanding share capital.
Analysts at Deutsche Bank highlighted the deal in a recent note, saying the investment “eliminates the near-term overhang around capital runway “.
Nio was previously projected to burn between 11 and 15 billion RMB in 2024, placing the company in a net debt situation or perilously close to it. However, with this recent deal in place, NIO is expected to secure financial stability until 2025.
Shares of NIO ended the week up 0.94% after reaching a weekly high of $8.87/sh on Tuesday.
As always, InvestingPro subscribers got this news first. Start your 7-day trial to get on board.
Michigan-based Mullen Automotive Inc (NASDAQ:MULN) executed a 1-for-100 reverse stock split this week after shareholders voted to approve the proposal at a special meeting held December 18th.
The Reverse Stock Split is
Read more on investing.com
