A fireworks display from Evergrande Auto for the weekend
Another memorable week for Evergrande Auto is coming to an end. The poker game about the future, which also affects Trollhättan, remains exciting and confusing. It is already quite expensive. Since the high of the stock in February it has had a net worth of US $ 75 billion destroyed. Other sources put it at 80 billion. The course fireworks at the weekend don't help much.
Course fireworks for the weekend
The share (HK 0708) went on the Hong Kong Stock Exchange (HKSE) with a significant price gain of 25,48% from trading. After a few deep red days, however, the strong profit was not enough to completely make up for the losses this week. The share remains in the red with losses. There was no visible reason for the strong profit.
Are the friends of Evergrande founder Hui Ka Yan already speculating that the crisis will end soon? It wouldn't be a surprise.
Evergrande profit warning
The Evergrande Group is busy selling everything that is salable. In order to accelerate the sale of the real estate, the prices were sharply reduced. This is said to have happened against Hui Ka Yan's will. As a result of the low prices, the group gives one profit warning out.
The situation calms down a bit
In general, it seems that the administration is doing a lot to keep the situation under control. There does not seem to be any state intervention in the context of a takeover. but Indicatorssuch as the bundling of all proceedings against Evergrande in one court speak in favor of it. In addition, banks are said to have been instructed to extend loans that are due. The reports on this were taken from the network after a short time.
According to analysts, the group's liabilities of an estimated US $ 300 billion represent 2% of China's GDP. They are system-relevant, also with regard to the 300.000 people who work through Evergrande or in the supplier environment. A restructuring of the Evergrande Group, along with its streamlining, currently seems the most realistic of all possibilities and would be in the interests of the administration.
Whether this restructured group can still afford the electric car adventure that will swallow billions in investments is another matter entirely. Selling Evergrande Auto is still the most likely solution.
Meanwhile in Trollhättan
In Trollhättan, the representative of the local trade union emphasizes, the workforce is quite busy. At NEVS, development work is done for Evergrande Auto and other companies. The impression that people are now turning their thumbs because of the crisis is completely wrong.
4 thoughts on "A fireworks display from Evergrande Auto for the weekend"
The market value is irrelevant for the company itself, I also think that it was a big bubble at the time of the stock market high. The really interesting point in time for a company is the issue or sale of (own) shares only there is money for the company to invest in the cash register.
I'm curious if we'll ever see an Evegrande car sold on the street. It is surprising that everyone reports from Nio, Tesla, Byton, Rivian and others and no one except Tom from Evergrande-Auto
Originally they were own shares when they went public. The issue price times the number of shares sold is the money Evergrande Auto has actually raised as capital.
It would be interesting to know how much% Evergrande still holds to itself and how much or little% free in the market are responsible for these enormous fluctuations?
A company that believes in itself holds as high a stake as possible in itself for as long as possible. As you quite rightly say, it can otherwise no longer convert price gains into capital because it could no longer sell shares without itself in its own house to disempower ...
As far as I know, Koenigsegg & Faraday Future still have their future in their own hands. Evergrande holds 20% each and in my opinion it shouldn't be more ...
According to the source, the 75,3 billion loss in value corresponds to 93% since the all-time high in February. According to this, Evergrande Auto's papers were last just under 6 billion and are now worth around 7,5 billion after the “fireworks”.
Evergrande Auto, with just under 8.800 employees and in comparison to producing, profitable and significantly larger manufacturers (e.g. Ford), is slowly settling in at a realistic level - with the option of price gains when production starts and the number of employees increases.
The over 80 billion market value was completely surreal in an international comparison with existing and producing manufacturers. This value has to be worked out. Speculators don't care, but investors know that. They are now on board.
always the same thing. Who was at the factory and saw what these people were working on? constantly affectionate words nothing more. May the author knows what exactly and what they are working on?
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