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According to Leifeng, 2020 is a big year for electric vehicle startups. On the one hand, many companies have high-profile backdoor listings (SPACs), on the other hand, after the listing, they killed all parties, making the old giants feel shameless to see Jiangdong’s father.
Investors don’t want to miss the chance to make a fortune, everyone is waiting for these new faces to replicate Tesla’s success.
In this new force of automobile construction, Wei Lai is definitely a leader. By resolving the capacity issue, NIO has essentially established a foothold in the high-end electric vehicle market: As of this Tuesday’s close, NIO’s share price rose more than 1100% over the same period of the year. ‘Last year.
This Friday, US time, the momentum of Hurricane Weilai’s advance was blocked. A brief report from well-known short-selling agency Citron sent Weilai’s share price directly plummeting, peaking at 15%.
Citron’s Andrew Left said Weilai’s share price needs to drop and that $ 25 is more reasonable (48% lower than before the short sale report). Citron wrote in the short report:
People who buy NIO stock now are not buying a company or its future expectations, but buying the three letters (NIO) that scroll across the screen.
Andrew Left believes that competition from Tesla will inhibit Weilai’s development. After all, the localized Model Y is about to go offline and Elon Musk can provide a very competitive price.Don’t forget, in the Chinese market, Tesla has undergone several cycles of price reduction with the aim of conquering the market.
For Model Y, Citron’s short report discusses the following:
To make matters worse, stock buyers obviously don’t pay attention to Tesla and Model Y’s pricing strategy in China.
We believe Tesla can reduce the price of the Model Y produced at the Shanghai plant from 488,000 yuan (73,000 US dollars) to 300,000 yuan (56,000-58,000 US dollars) in the mid-to-high range. Considering that Model Y will become a direct competitor of Weilai EC6 and ES6, this could hurt users’ desire to buy and slow Weilai’s upward momentum of orders.
Local Chinese analysts even believe that the starting price of the domestic version of the Model Y will even be set at 275,000 yuan. Bloomberg pointed out, “Another wave of price cuts in China’s high-end electric vehicle market may be on the way, and competition will be fierce at that time.” And don’t forget that Tesla’s monthly sales in China are now more than double that of Weilai.
In short, the market NIO is facing isn’t like Tesla back then, and it’s the difference between exclusive and sharing.
Andrew Left said:
Weilai has entered uncharted territory and it is completely unreasonable to use China’s current electric vehicle market or short-term conditions as an anchor.
Earlier this month, with record deliveries in October and cumulative sales of 60,000 units, NIO’s market value successfully surpassed GM, and a market value of $ 70 billion directly made NIO the fourth largest auto industry. , second only to Volkswagen, Toyota and Tesla.
However, whether Weilai’s share price can continue to rise depends on performance. Once their growth stops, I’m afraid investors won’t want to buy it. This must also apply to Tesla or other high-profile electric vehicle companies. As for Tesla, it has ramped up production to meet the needs of its expanding product line, but that seems to be far from enough.
Weilai did not respond to Citron’s brief report.
Lei Feng(Public account: Lei Feng Net)Lei Feng
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