CYVN Holdings invests in EV maker Nio: Abu Dhabi-backed investment firm CYVN Holdings is investing USD 738.5 mn in Chinese electric vehicle automaker Nio through a share subscription agreement, according to a statement. The agreement will result in CVYN acquiring a 7% stake in the EV firm and grabbing a seat on Nio’s board of directors. The transaction is subject to customary closing conditions, and is expected to close early next month, according to the statement.

The details: CYVN will purchase 85 mn Class A shares issued by Nio for USD 8.72 per share, and another 40 mn shares from an affiliate of Chinese internet giant Tencent, the statement disclosed. Once the transaction is closed, Nio will jointly pursue global business ventures with CYVN, the statement added. Following the announcement, Nio’s US share price fell by around 1%, Reuters reported.

Nio is struggling to compete with dominant EV giant BYD: Nio is looking to grab a larger EV market share in China, the world's largest automotive market that is currently dominated by giant car manufacturer BYD, Reuters said. Nio’s first quarter shipments slumped, and the company saw a worse-than-expected net loss, forcing it to slash prices on all of its models in China as well as delay its goal to break even by the end of the year.

About CYVN: CYVN, which is majority owned by the Abu Dhabi government, specializes in investments in smart and advanced mobility sectors aiming to accelerate the green transition, the statement notes. The fund is working on creating a smart mobility platform by partnering with industry leaders around the world.

About Nio: Nio designs, develops, jointly manufactures, and sells premium smart electric vehicles, including one of the fastest electric cars today. Nio operates in eight European cities and is one of three Chinese EV makers listed in the US. The company’s goal is to deliver more than 20k cars each month in 2H 2023 and to double sales to 250k electric vehicles this year, Bloomberg reports.