The great arithmetic has begun in China. Billions in market value have been wiped out at Evergrande and the Auto Division in the past week. This is particularly unfavorable when it meets good friends who only invested a few months ago. It looks a little friendlier in Sweden. After all, Sono Motors is still firmly committed to Trollhättan, as the local newspaper wants to know.
When billions disappear
Evergrande is a special thing. There are few free float and small shareholders, the shares are in the hands of a billionaire clique around the founder. These good friends help each other when it comes to a million or more. A system that has been successfully practiced for years.
Now it has reached its limits. The heavy losses at Evergrande (HK 3333) and Evergrande Auto (HK 0708) have made billions disappear. Which is not only annoying, but also causes problems for one or the other friend. Bloomberg has made a list of casualties, with individuals and companies affected. Those who bought Evergrande Auto shares at the beginning of the year are hit particularly hard.
Before you melt with pity, you have to know that the shares went to good friends at a discount of 20%. A tribute to the risk that every investor must have been aware of.
Even today, a million or two vanished into thin air. Evergrande Auto stock was down 6,92% on the day. The electric car division is now worth around US $ 10 billion.
Sono Motors stands by Trollhättan
A solution to the problems or the entry of an investor is still not in sight. The wait in Trollhättan and at the other European Evergrande investments continues. The local newspaper in Trollhättan reports that Sono Motors is still in production at NEVS.
An understandable attitude, because the coordination between Munich and Trollhättan is already underway. Changing horses now would delay production, so a wait may be a better option. However, the local newspaper writes of 2023 as the start, so far the second half of 2022 had been given as the date.
For NEVS, Sono Motors is one of the few assets that offer prospects for the future.