Published on : Nov 10, 2017
A spate of investments from various quarters of the globe and the entry of new players in emerging regions have markedly raised the ante in the electric vehicles market. Backed by a host of investors, electric car makers are exploring new revenue streams with exciting launches in the next few years. The latest and the notable entry in the global financing round is NIO (formerly NextEV), a global start-up firm based in China, which has raised a fund of over US$1 billion, according to several sources familiar with the matter and reported by Reuters.
The fundraising round is spearheaded by Tencent Holdings Ltd, and notable investors include Lone Pine Capital, an American-based hedge fund, Baillie Gifford, an independent investment manager, and CITIC Capital, a globally prominent alternative investment management and advisory firm, according to sources quoted by Reuters. The quantum of fundraising is expected to increase in the not-so-distant future, with the electric vehicles market in China dotted by technology companies and numerous start-up firms. The details of the fundraising rounding are yet to be made public.
NIO to Launch Fully Electric SUV by 2017 End at Competitive Pricing
The massive fundraising is a welcome development amidst several initiatives by Chinese Government to combat the effects of urban pollution by supporting the adoption of electric vehicles. NIO boasts of a prominent presence in China with its scheduled launch of its first all-electric car in mid-December this year. The car to be mass-produced will be a SUV, ES8 pure-electric, and will notably offer features more than Model X by Tesla Inc., a U.S. electric car maker, and at competitive pricing, stated the automaker. The Shanghai-based car maker valued at around US$5 Bn. and is collaborating with Chongqing Changan Automobile, China’s fourth-largest automaker, to promote the development and sales of its electric cars, as announced in April 2017.
Nio has announced to introduce an autonomous electric vehicle in the U.S. market by 2020. These developments form significant news for Tencent as well. It is also an investor in Tesla, and boasts of market capitalization of approximately US$475 billion.