Robo.ai Inc. (NASDAQ: AIIO) announced that it will acquire a 51% equity interest in Chinasky Car Trading FZE (CCT), an automotive trading company headquartered in the Jebel Ali Free Zone in Dubai. The transaction, valued at US$1 million, will be paid in 7,388,799 newly issued Class B ordinary shares of Robo.ai, which are subject to a four‑year lock‑up period.
The acquisition gives Robo.ai immediate access to CCT’s established sales, leasing, after‑sales and supply‑chain finance network that spans more than 20 markets across Central Asia, North Africa and Eastern Europe. By integrating CCT’s logistics and distribution capabilities, Robo.ai aims to accelerate the deployment of its robotaxi, eVTOL aircraft and logistics robot platforms, reducing the capital and time required to build an organic channel and leveraging CCT’s re‑export trade advantages in emerging markets.
Robo.ai’s financial performance has been challenging, with revenue falling from US$37.3 million in 2023 to US$12.0 million in 2024 and net losses of US$266.7 million in 2023. The share‑for‑share structure preserves Robo.ai’s limited cash reserves while diluting existing shareholders. CCT reported approximately AED 100 million (about US$27.2 million) in revenue for fiscal 2025, a figure that will augment Robo.ai’s revenue base and provide a steady cash‑flow stream from an established automotive trading operation.
The deal positions Robo.ai to strengthen its presence in emerging markets and supports its broader strategy of combining AI software, intelligent hardware and smart‑asset services. While the acquisition offers a strategic channel for future product rollouts, Robo.ai still faces significant headwinds from ongoing cash burn and profitability challenges, underscoring the importance of disciplined execution and integration to realize the expected synergies.
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