[ad_1]
China’s NIO electric vehicle stock has increased more than 1,200 percent since last Friday, as the capital market outlook for the Chinese electric vehicle market is generally positive.
Often considered one of Tesla’s main rivals, NIO has a market value of $ 73.1 billion after its share price rose, far exceeding that of Daimler, the parent company of Mercedes-Benz with a value of market of about $ 57.3 billion.
Other Chinese electric vehicle newcomers like XPeng, which has only been public for a few months, had a market value of $ 23.6 billion, while Li Auto’s market value reached $ 17 billion.
There have been good financial results behind the rise in inventories of US-listed electric vehicles. NIO’s third-quarter sales increased 146% year-over-year, according to its latest earnings report, while both XPeng and Li Auto expressed optimistic expectations for the future.
According to Securing America’s Future Energy (SAFE), the major automakers plan is to spend a total of $ 300 billion on the development and production of electric vehicles over the next 5-10 years, nearly half of which will be invested in the market. Chinese.
Of the 142 super lithium-ion battery plants that are under construction around the world, 107 are under construction for the Chinese market, compared to just nine for the US market, SAFE added.
“In the coming years, the supply chain will become increasingly important for the development of the electric vehicle market,” said Huang Jian, Asian equity portfolio specialist at Eastspring Investments. “Because we know that many countries are now promoting clean energy and pushing electric vehicles on the road.”
Tesla expected China to account for 40% of its global sales by 2022, while mainstream auto giants including GM are expanding their investments in electric vehicles to try to catch up.
Local Chinese electric vehicle manufacturers represented by NIO will face a tough challenge to compete with both forces.
Source link
