Electric vehicles and Chinese stocks in the financial market
Shares of Chinese electric vehicle manufacturers are entering the market radar!
Announcements
Chinese electric vehicle manufacturers have ousted Tesla, the company owned by billionaire Elon Musk.
Market analysts are seeing an investment opportunity as China leads the global EV race.
For this reason, Chinese companies are already standing out on some stock exchanges, such as the New York Stock Exchange.
If you want to know more about the subject, keep reading!
Chinese electric car companies want to earn more on the stock market
Chinese companies Li Auto, Nio and Xpeng are already listed on the New York stock exchanges.
However, everything indicates that by the end of the year, they will be present on one of the main Asian stock exchanges: Hong Kong.
The three Chinese automotive groups want to sell part of their capital, which would be approximately 5 billion dollars.
Since 2018, Li Auto, Nio, and Xpeng have raised nearly $15 billion in the United States alone.
And the reason startups want to go public on the Hong Kong stock exchange is simple: companies are investing heavily in technological advancements and expanding their dealer networks.
This directly impacts the growth of the electric vehicle market, which has a low environmental impact.
Market increase is equivalent to capital increase
Xpeng President Brian Gu told Reuters that "for a consumer-facing company, tapping into local financial markets is a worthwhile strategy in the long run, as it allows for increased capital raising."
The problem is that getting listed in Hong Kong is not exactly a simple task.
The stock market requires that companies listed elsewhere have shown good financial results for at least two years.
But Li Auto and Xpeng only arrived on Wall Street in 2020. Therefore, it is only now in 2022 that they will be able to be listed.
I read Auto
The financial market and investors from various countries are already keeping an eye on the automotive sector.
And as you already know, one of the companies that is attracting the most attention is Li Auto.
In fact, in July 2020, the company debuted on Nasdaq, one of the main exchanges in NY.
The initial public offering (IPO) raised US$1 billion with shares opening trading at US$15.50. They closed the day at US$16.36, increasing the company's market value.
Li Auto, founded in 2015, produces electric SUVs.
Although the market is still dominated by Tesla (which retreated a bit after Elon Musk spoke of his intention to sell part of the company), there is no doubt that Li Auto has great opportunities for expansion.
One of the company's greatest strengths is its production line, which allows for an excellent level of delivery of electric cars.
For now, the company has a single electric car model on the market: the Li ONE.
As of May 2021, Li Auto has delivered more than 4,300 Li ones.
Li Auto's debut results in 2020 are further proof of investor enthusiasm for the electric car market in the US.
Nio
Nio wants to expand its operations to more than 25 markets. The US is obviously one of them.
In September 2021, the company announced plans to sell shares to raise US$2 billion.
The news was not well received by the market, which caused the shares to fall considerably.
There was another time when the company's shares also fell, when a fatal accident occurred involving Nio's autonomous driving system.
However, the company's shares have also experienced other periods of appreciation.
In 2020, shares soared to over 1,000%. At the time, many financial market experts recommended buying Nio shares.
Already in February 2022, the company began trading its shares on the Stock Exchange after raising approximately US$1 billion by selling shares at US$6.26 each in its Initial Public Offering.
The company's CEO and chairman, William Bin Lee, celebrated Nio's IPO.
The company is already considered one of Tesla's main rivals in the automotive segment.
Xpeng
In August 2020, Xpeng began the process of going public (IPO) on the main New York stock exchange: the NYSE.
It became the third new energy car brand listed in the US after NIO and LI.
Also considered one of Tesla's main rivals, Xpeng is famous for its innovations in the automotive sector.
In fact, the company announced one of its main projects for 2024: the development of a flying car.
The vehicle will be able to perform low-altitude flights. This innovation certainly caught the market's attention and brought Xpeng even more prominence.
What is the future of electric cars?
As you can see, companies working on developing electric vehicles are attracting the attention of the financial market..
But after all, what will be the future of electric cars?
The use of these vehicles in countries that are not yet ready to receive the technology will be gradual.
Either way, it will happen, and at some point there will be no turning back.
It's important to remember that it's still impossible to predict what will happen with combustion-powered cars. However, many automakers are already preparing to operate exclusively with electric vehicles in the next decade.
Conclusion
Now you know the main Chinese electric vehicle manufacturers and why they are standing out in the market.
In fact, to promote these new cars, the Chinese government will offer consumers a guarantee and even tax exemption!
Furthermore, market expectations regarding the adoption of low-cost electric vehicles are very optimistic.
