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Electric cars in China

China's NIO to receive $1.5bn state investment as EV subsidies fade

Sales slow and losses mount but quarterly results beat expectations

A NIO ES8 electric vehicle is on display at the Auto China 2018 show in Beijing in April 2018.
A NIO ES8 electric vehicle is on display at the Auto China 2018 show in Beijing in April 2018.   © VCG via Getty Images

NEW YORK -- Chinese electric vehicle maker NIO will accept an investment of up to 10 billion yuan ($1.45 billion) from a state-owned fund, as the company braces for further blows from the gradual phaseout of EV subsidies in China.

The Shanghai-based, New York-listed company announced on Tuesday it has entered into a framework agreement with Beijing E-Town Capital to establish a new entity, NIO China, in the city's economic-technological development area. E-Town Capital, which invests on behalf of the Beijing municipal government's economic development agency, will acquire a minority stake in NIO China.

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