China’s mega electric vehicle company Evergrande witnessed its shares in electric vehicle production reach 67% after the company cashing into the project billions. The company raised this sum from selling its new shares. The value beats the records that other local utilities in the country in the same business line were posting. The company’s shares closed business valuing 45.35 Hong Kong dollars. This trendy appearance is among the company’s strategies to overcome the dominance of Tesla in the Chinese market.
Evergrande New Electric Vehicle Group sold 952.38 million shares to six investors, valuing them at 27.30 Hong Kong dollars, which equalled 26 billion Hong Kong dollars. This investment is a sign that the China electric car industry is ramping up its operations to ensure that companies like Evergrande compete Tesla in addition to local competitors like Li Auto, Xpeng Motors and Nio. Every company is rallying its resources to sequester the monopolization of the industry by Tesla. In 2020, Evergrande displayed six new electric vehicle models in its Hengchi branch, hinting at possible commercial production this year. However, the company has not sold any of these brands yet, probably developing them to the level of Tesla brands before releasing them to the market.
September last year, Evergrande garnered about 4 billion Hong Kong dollars after distributing its shares to investors like China’s internet guru Tencent and another service provider called Didi. Evergrande is also ready for listing on the Nasdaq stock market or the country’s Science and Technology Innovation Board to receive more support and bring high competition that stimulates technological advancement in the country. Both the local and foreign electric vehicle companies have been competing for the China market, some choosing to expand and distribute the branches while others have opted for special purpose acquisition contracts.
For instance, Xpeng Motors realized $1.5 billion in a public offer in America in 2020. This month, the company has procured a credit score of $1.98 billion. These alignments are the company’s strategy to bully its competitors and announce its arrival in the electric vehicle market. Elsewhere, BYD, which America’s Warren Buffett supports, procured 29.9 billion Hong Kong dollars after selling new shares to some investors. Evidently, Tesla will be facing stiff competition if the strategies employed by these electric vehicle companies work effectively. Nevertheless, the company is still enjoying the largest market share in China with an added advantage that its owner is the richest person globally.