Image credits: Nioh
Chinese electric car companies are pouring into the Middle East, where investors and consumers have a growing appetite for the country’s Tesla challenger.
Shanghai-based NIO Announce CYVN Holdings, a smart mobility-focused investment vehicle majority-owned by the Abu Dhabi government, will invest a total of $738.5 million in the Chinese electric car maker on Tuesday.
NYSE-listed Nio will issue 84,695,543 Class A common shares at $8.72 each.Additionally, CYVN has entered into an agreement with a Tencent affiliate to invest in Nio back to 2017Purchased 40,137,614 shares of Class A common stock from the social and gaming giant.
After the deal is completed, the Abu Dhabi-backed company will own about 7 percent of Nio. As long as CYVN continues to own no less than 5% of the electric car maker, it has the right to nominate a director to Nio’s board.
Abu Dhabi’s strategic investment will also launch partnerships to help NIO expand globally.Nioh Start internalization in 2021, first in Norway and then in several other European markets.But now the United Arab Emirates, in its transition to net zerohas become an attractive market for Chinese electric car companies, which face increasing price competition at home, sparked in part by Tesla.
Last year, a senior UAE minister unveiled The country plans to invest $160 billion in clean and renewable energy over the next 30 years, building on the $40 billion it has committed to clean energy over the past 15 years.
BYD, which is rapidly catching up with Tesla’s global market share, Announce It entered the UAE in March through a partnership with local dealer Al-Futtaim and plans to bring four of its models, including fully electric and hybrid vehicles, to the Middle Eastern country.
Geely, China’s largest privately-owned automaker, has an expanding lineup of electric models, also through partnerships with Luxury car importer AGMC.