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Anonymous

23 Sep 2020

Stocks

Just wondering, are there any up and coming Chinese Tesla competitors?

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Rachelle Lye

23 Sep 2020

Digital Marketing at Fintech

Hey Anon!

Well, of course there are! Investors are actually pumping billions of dollars into Chinese electric vehicle (EV) companies and start-ups as they seek to out the next Tesla.

Here are a few more prominent ones and the latest news revolving around them.

Disclaimer: Information accurate as of 23 September 2020.

1. XPeng Inc (NYSE: XPEV)

On 26 Aug 2020 (SGT), Xpeng, an EV startup backed by ecommerce group Alibaba, raised $1.5 billion through an initial public offering (IPO) in the U.S. Their shares soared more than 40 per cent on the New York Stock Exchange (NYSE) in a day.

Source: Google

Xpeng was founded in 2014, led by former Alibaba executive He Xiaopeng. Alibaba was an early investor in the EV startup since December 2017.

Xpeng produces two premium electric vehicles, the G3 SUV and the four-door P7 sports sedan. P7, which launched at the end of June, is a rival to the Tesla Model 3 in China. A third model is expected in 2021.

2. Li Auto (NASDAQ: LI)

On 30 July 2020 (SGT), Li Auto, a five-year-old EV startup, raised $1.1bn on the Nasdaq through their IPO. Li Auto’s shareholders include online services delivery giant Meituan Dianping and owner of TikTok, ByteDance.

Source: Google

Following the listing, the company's shares rose by more than 12% over the course of the week before dropping to all-time lows in mid-August. The company's share price gains on 26 Aug came after investment bank Goldman Sachs and Bernstein Research analysts expressed their confidence in the stock and urged investors to buy Li's shares.

Li Auto is founded by serial entrepreneur Xiang Li, and is the first company in China to commercialise what is known as extended-range technology for electric vehicles, aiming to help solve the problem of a lack of charging infrastructure across China.

3. NIO (NYSE: NIO)

NIO made its debut IPO on the NYSE in September 2018. Tencent, Chinese multinational technology conglomerate and owner of WeChat had invested $510 million in Nio before its IPO.

A year ago, the NIO was bleeding cash at a rate that many analysts believed could prove fatal.

Source: Google

In April 2020, Nio received a $1 billion cash infusion from state-owned entities and it’s Nio’s shares jumped more than 14%.

In June 2020, Nio said it expects to raise up to US$344.2 million from a new share sale of 60 million American depositary receipts, which would be its first offering of shares since its listing in 2018.

In July 2020, Nio surged 13% after reporting July deliveries skyrocketed and in August 2020, UBS analysts upgraded the stock, raising their price target dramatically from around $1 per share to $16.

NIO Inc was founded in 2014 by Chinese entrepreneur William Li and has gained more than 230% year-to-date.

4. WM Motor Technology Group (Not yet listed)

Chinese start-up WM Motor Technology Group, backed by Baidu just completed a 10 billion yuan (US$1.5 billion) Series D round of fundraising.

This is especially significant because the investment exceeds those raised by its competitors Nio, Xpeng Motors, and Li Auto which raised between RMB 15 billion and RMB 20 billion before going public on US stock markets.

WM Motor was Founded in 2015, manufactures and markets affordable battery electric vehicles under the Weltmeister brand.

WM Motor is reportedly planning to file for a listing on Shanghai’s Nasdaq-style STAR Market in early 2021.

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