INVESTORS appear to be gaining confidence in Nio : NIO 0%, with the China-based electric vehicle (EV) manufacturer attracting fresh funding to shore up its war chest. However, amid falling selling prices, slowing demand and subsidy cuts, it may be unrealistic to expect Nio to achieve profitability anytime soon.

Last week, the company raised a further US$2.2 billion from Abu Dhabi-backed fund CYVN Holdings, with the completion of the placement of 294 million new shares at US$7.50 apiece.

This followed CYVN’s move in July to invest US$738.5 million to subscribe to about 84.7 million in newly issued shares at US$8.72 apiece.