Earnings
Home›Earnings›Previews›NIO to sell 30% stake in battery-swapping unit to Geely
NIO to sell 30% stake in battery-swapping unit to Geely
The deal values NIO Power at about 16 billion yuan, and NIO expects to receive roughly 640 million yuan, about $95 million, plus Geely's swap business.
NIO and Zhejiang Geely Holding Group are pursuing a combination deal that includes NIO selling a 30% stake in its battery-swapping unit, NIO Power, to Geely, according to MarketBeat Ratings.
In exchange, NIO will receive Geely’s swap business and 640 million yuan in cash, about $95 million, with the transaction valuing NIO Power at roughly 16 billion yuan, about $2.4 billion.
MarketBeat Ratings said the agreement highlights NIO’s funding pressure, but it may not be enough to ease concerns about NIO’s cash burn, despite partnering with Geely to share the cost of its battery-swapping network.