It is worth taking a quick look at China at the end of the week. Significant, perhaps historical things have happened there in the last few days. Evergrande Auto presented 6 prototypes and the Hong Kong stock exchange burst into jubilation. In any case, expectations are huge, which is also reflected in the share price.
6 prototypes that are now being tested and a promised start of production of Hengchi 1 in the second half of 2021. There are 8 more models in the pipeline, making 14 so that more series than Tesla has at the start.
Evergrande Auto is number 1 in China.
The share price soared to 34,80 Hong Kong dollars (HKD) and has been hovering around that range since then. The rate, which was around HKD 7 in February, has multiplied since then. With a market value of around € 32 billion, Evergrande Auto leaves companies like SAIC and BYD behind without having sold a single car. According to national media, Evergrande is the most valuable Car manufacturer in the country, roughly on par with BMW. However, the people of Munich sell a lot of cars.
The bet on the further development is of course speculative. Naturally. Just as the Tesla share and its rise into ever new spheres is also speculative. It remains to be seen whether Evergrande Auto will meet expectations. However, never before has a Chinese company been so aggressively active in the automotive industry as we are currently experiencing.
Buy stocks, leave them alone, reap dream returns in 5 or 10 years? Maybe. If you have play money and good nerves, you could consider it as a challenge.
But this is about cars.
Not about stocks. A look at the hardware is always interesting, even in the age of digitization. Evergrande Auto has an official film about the 6 prototypes v.pp.com released. The clip is of course not intended for the international environment, but for the Chinese market. But it gives a first impression of the design of Hengchi 1 and the other models. It does this better than the previously published computer pictures do.
From the second half of 2021, pre-series production could also start in Trollhättan. Maybe only 22, we'll see. Much is still in its infancy and, despite all the ambitions, remains speculative. Like the share price.