Chinese electric car manufacturer Nio receives billions in funding - even though it has never been profitable

Business Insider Germany Chinese electric car manufacturer Nio receives billions in funding - even though it has never been profitable Article from Business Insider Germany • 21 hours • 2 minutes reading time Nio is investing money in its Chinese subsidiary and is also receiving money from a fund linked to the Anhui provincial government. In the field of electric mobility, Chinese providers have been setting the tone for some time. Electric car manufacturers from China often receive high government subsidies that give them a competitive advantage. Now the car manufacturer and Tesla competitor Nio has received another financial injection. Nio receives investments and issues new shares As Nio Inc. explained in a press release, the subsidiary Nio China will be provided with a total of 13.3 billion yuan, the equivalent of around 1.7 billion euros. The financial injection consists of 3.3 billion yuan (around 420 million euros) from strategic investors and 10 billion yuan (around 1.3 billion euros) that the parent company is investing in newly issued shares. After these transactions, the parent company's share will fall from 92.1 percent to 88.3 percent - the remaining 11.7 percent will be held by external investors. The transaction still has to be approved by the authorities and will be carried out in two tranches, according to the press release. Regional government supports Nio As the "Bloomberg" portal writes, the company has never been profitable since it was founded in 2014 and recorded a loss of 4.5 billion (around 575 million euros) in the second quarter of this year. However, sales increased despite falling demand and slightly exceeded analysts' expectations. According to "Bloomberg", two of the investors are closely linked to the government of Anhui Province. These investors are familiar with Nio, as they had already invested $1 billion (around 900 million euros) by 2020. Nio operates two factories in the province.