China Development Bank Unit to Sell Its Stake in Troubled NEV Maker Nio
Liao Shumin
DATE:  Mar 08 2019
/ SOURCE:  yicai
China Development Bank Unit to Sell Its Stake in Troubled NEV Maker Nio China Development Bank Unit to Sell Its Stake in Troubled NEV Maker Nio

(Yicai Global) March 7 -- The investment arm of China Development Bank plans to sell all of the shares it owns in Chinese electric vehicle startup Nio.

The board of China Development Bank International Investment approved the sale of 4.7 million Nio shares for at least USD7.20 each in expectation of booking a profit of about USD8.4 million, the financial institution said in a statement. The holding makes up about 0.4 percent of Nio's outstanding stock.

Dubbed the Tesla of China, Nio's shares [NYSE:NIO] fell the most yesterday since the Shanghai-based automaker went public last September after cutting its outlook for first-quarter deliveries and nixing plans to build a plant in Shanghai. The stock plunged 21 percent to close at USD8.01. Nio has traded as high as USD10.20, when it had a market capitalization of USD10.4 billion.

The carmaker also said it had a net loss of CNY9.6 billion (USD1.4 billion) in the last fiscal year while sales reached CNY5 billion.

Tesla [NASDAQ:TSLA] has fallen to USD270 from USD320 in the same period, and its market value slumped to USD47.8 billion, just 4.6 times that of Nio. Tesla's sales last year were 29 times that of Nio and the US automaker has been profitable for two straight quarters. It is also expected to make a profit in the second quarter.

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Keywords:   China Development Bank,Nio