What is the gold content of new energy car companies?

　　Our reporter Zhao Yuhan

　　"Golden Nine and Silver Ten" domestic new energy vehicle sales doubled year-on-year for two consecutive months. The State Council issued the "New Energy Vehicle Industry Development Plan (2021-2035)"... Recently, a series of new energy market positive news stimulated a batch of new energy vehicles Enterprises usher in a bright moment in the capital market.

Among them, NIO, which was still on the line of life and death last year, and whose market value has evaporated by 75%, turned up against the wind this year. Its stock price has continued to rise, and its market value has successively surpassed GM, BMW and other well-known car companies. But it still ranks among the top ten global auto companies by market value.

　　In addition to NIO, Tesla, which has always been optimistic about the capital market, surpassed Toyota Motor in June this year, taking the first place in the market value of global auto companies.

Also this year, BYD, which was earlier in the new energy market, also completed the surpassing of SAIC and became the “big brother” of the market value of Chinese auto companies.

Compared with established car companies such as Toyota, General Motors, Volkswagen, BMW, etc., new energy car companies that have entered the market as new forces are still not in the same order of magnitude as traditional fuel car companies in terms of production, sales, and profit, but why do they frequently have market value? Go ahead?

How much real gold and bubbles are there?

　　Weilai headwinds market value into the top ten

　　As of the close of US stocks on November 13, Eastern Time, Weilai's market value has reached 60.107 billion U.S. dollars, and is firmly in the top ten position of global auto companies by market value.

And just a year ago, this new car-building force was still struggling with life and death.

　　Perhaps many people still remember that Li Bin, the founder of Weilai last year, was ridiculed as "the worst person in 2019."

At that time, due to the spontaneous vehicle combustion incident, the hindrance of financing progress, the departure of the co-founder, and the loss of many years of burning money, the stock price once dropped to 1.15 US dollars, the market value evaporated by 75%, and even went to the edge of delisting.

　　Entering 2020, the outbreak of the new crown pneumonia epidemic has made Weilai face a more severe test.

After the previous cooperation with the Chinese headquarters in Yizhuang, Beijing could no longer be achieved, Weilai decisively chose to locate the Chinese headquarters in Hefei, and obtained tens of billions of government financing, and finally received "life-saving money."

Since then, Weilai has shown tenacious resilience and has continuously proved its status as a new domestic car-making force with steady growth in sales.

As of October this year, Weilai has delivered 31,430 vehicles, an increase of 111.4% year-on-year, ranking first among new domestic car manufacturers.

　　While sales continue to rise, Weilai's gross profit margin has also turned positive for the first time in the second quarter of this year, reaching 8.4%, allowing it to gradually get rid of the dilemma of "selling one and losing one".

However, Weilai has not yet achieved profitability in the second quarter, with a net loss of 1.17 billion yuan (approximately US$166.5 million) in the second quarter, and the loss has further narrowed.

　　Stimulated by a series of data such as sales growth, narrowing losses, and increased production capacity, Weilai's stock price began to rebound.

In addition, Weilai’s innovative models such as battery exchange and separation of vehicle and electricity have also gained recognition from the capital market.

In the end, under the recent "assistances" of favorable policies in the new energy market, Weilai's market value has increased one after another, completing its surpassing of well-known companies such as GM, BMW and Baidu.

　　The market value of new car-making forces overtakes the old car companies

　　The rise in the market value of NIO is just a microcosm of the capital market's preference for the new energy market.

In addition to NIO, the market value of the two new domestic car-making forces, ideal and Xiaopeng, which have successively landed on the US stock market this year, has risen to varying degrees.

　　As the "leading brother" of new energy car companies, Tesla has been sought after by the capital market all the way, and its market value has surpassed the old traditional car companies one after another. On June 10 this year, it finally completed the surpassing of Toyota Motor and became a global car company. The first throne in market value.

　　The rise in Tesla's stock price is closely related to the rapid completion and commissioning of its Shanghai super factory and the strong performance of the Chinese market.

Since the beginning of this year, even in February when the epidemic was more serious, Tesla still obtained nearly half of the domestic new energy vehicle market share with its domestic Model 3.

Since then, Tesla's sales in China have basically stabilized at tens of thousands of units per month.

Recently, the domestic Model 3 has opened the way to export to Europe.

　　In addition to Tesla, BYD also surpassed SAIC in market value this year, not only becoming the “big brother” of Chinese auto companies, but also entering the top three global auto companies by market value.

According to industry analysis, BYD’s market value rise is closely related to its earlier deployment of new energy vehicles and power battery industries.

　　Is there a bubble in Weilai's short-selling high market value?

　　Looking ahead, car companies that mainly promote new energy vehicles have occupied three positions in the top ten global car companies by market value. However, based on the current market size, in 2019, about 2.2 million new energy vehicles were sold globally. A year-on-year increase of 10%, it only accounts for 2.5% of the entire automotive market.

With such a small market share to obtain such a high market value, is there a bubble in this?

　　There have been short-selling agencies that have taken actions against the madly growing NIO.

Before the market on November 13, the short-selling agency Citron Capital issued a tweet saying that Weilai's target price was only $25, which was half of the stock price at that time.

The reason is that Weilai is facing two major dilemmas, making the stock price unsustainable at high levels. One is the competition brought by Tesla’s upcoming launch of the domestic Model Y, and the other is that the valuation is too high and the short position is too small, which leads to the stock price. The opportunity of empty and rising is lost.

Under the influence of this, Weilai accelerated its decline after midday on November 13, with the deepest drop of 16% and finally closing down by 7.35%.

　　Despite the short-selling, some people maintain confidence in Weilai.

Tesla has also been short-selling many times before, questioning the false high of the stock price, but as it began to make profits in the fourth quarter of last year, the stock price has been unstoppable.

Wang Guanqiao, chief analyst of electric smart cars at Western Securities, analyzes: "As the saying goes,'things are more expensive'. Why are Tesla and other new energy car companies selling much less than traditional car companies, but still have such a high market value ?Because the capital market considers them to be scarce." In Wang Guanqiao's view, the current automobile is developing in the direction of electrification and intelligence, and the concept of smart cars, which is different from traditional travel tools, is increasingly sought after by the capital market.

New power car companies such as Tesla have been affirmed by the capital market by redefining automotive intelligence and the innovative product development logic of software-driven hardware.

　　How do traditional car companies view the skyrocketing market value of new power car companies?

Chen Hong, chairman of SAIC Motor, believes: “Tesla is not a car company in the traditional sense, but more like a technology company.” Toyota President Akio Toyoda said on a recent earnings call: “Tesla has more The high market value exceeds the total of seven Japanese automakers including Toyota. But its business is like a restaurant that is still selling recipes, and Toyota is more like a restaurant that has already served a large number of customers. The number and types of cars sold and sold are much higher than Tesla."

　　Regarding the recent good performance of the new domestic automakers in the capital market, Cui Dongshu, secretary general of the National Riding Federation, believes that the changes in the market value of auto companies must be treated rationally, because the market value is a constantly changing process.

He said that rising stock prices is a good thing for auto companies and also a good thing for the entire market, which can give positive confidence.

Even if there is a bubble in the market value, it is normal. The bubble is not terrible. The key is to be yourself.