Is the bubble behind the soaring price of the highest car market in China?

category:Finance
 Is the bubble behind the soaring price of the highest car market in China?


As for the overvalued value of Weilai automobile, Qu Fang, an investment consultant of Wanlian securities Xian business department, believes that the advantage of Weilai automobile lies in its foothold in the huge automobile consumption market in China. However, according to the latest financial report, the revenue of Xiaopeng automobile in the third quarter of 2020 will increase by 342.5% year-on-year, which brings great pressure on Weilai and its ideal. In terms of sales scale and technology application, the gap between Weilai automobile and Tesla, the head company, also needs to be addressed. Therefore, in the medium and long term, the valuation performance of Weilai automobile will be related to its market share.

In the view of Cui Dongshu, Secretary General of the Hong Kong Federation of trade unions, the price of new energy vehicles is higher in the US capital market, and there is a certain bubble. Valuation is the evaluation of capital market, which has no practical significance in promoting the development of enterprises. However, the high valuation reflects the mentality and expectations of investors. The bubble in capital markets is also a reflection of the future. American investors agree with Teslas development route and the development trend of new energy vehicles in the future. Therefore, it gives a high valuation to the new Chinese automobile manufacturers listed in the United States, which is also a good thing. In addition, compared with the weak competition of new energy vehicles in Europe, China has a number of new car making forces emerging, and there is no new car making force in other countries around the world. Therefore, it is easier for Weilai automobile and others to obtain the overvalued value of American capital market, which is also the evaluation performance of high valuation of some Chinese industries in the international market.

As for whether the stock price is overvalued, Li Xiang, CEO of ideal automobile, once said in an interview with the first finance and economics reporter: although enterprise Fundamentals (including sales, revenue and other core factors) will have a certain impact on the stock price, the fluctuation of the stock price is more determined by the market.

Electric vehicles will become the development trend of the automobile industry in the future, which is also an important reason for the new force of car making in the capital market. According to a report released by PricewaterhouseCoopers in the 12th China hunting list, the traditional fuel vehicle market will gradually decline by 2025. By 2030, there will be about 10 million electric vehicles registered in the Chinese market, and the market penetration rate of fuel vehicles will drop from 93% in 2020 to 56%.

At present, the traditional automobile enterprises represented by Volkswagen are making efforts in the field of electric vehicles. In terms of the sales volume of the first model of eves, the sales volume of its first model of eves, namely, zoid, is second only to that of model said, which is about 3.3 in the sales volume of its pure model SAE, which is second only to the sales volume of meid. And Volkswagen has also launched the first EV id.4 based on MEB platform in China. According to the plan, Volkswagen will launch eight ID series electric vehicles in the Chinese market by 2023.

In the future, traditional automobile enterprises will still be the main force of new energy, because the production scale of traditional automobile enterprises is relatively large and the cost control ability is stronger. It should be the traditional automobile enterprises that can compete with Tesla in cost. Cui Dongshu said.