Despite the recent price crashes, the electric car manufacturer under CEO Elon Musk is currently on everyone’s lips. But competitors of the electric giant are also making a name for themselves: In addition to US manufacturer Nikola, China in particular can score points with some competitors.
?? Nikola on the up after GM announcement.
?? The Chinese e-car market is growing
?? Other manufacturers plan to go public
Tesla shares face headwinds – Nikola benefits from GM deal
The US electric car manufacturer has Tesla currently struggling with drops in its share price, according to MarketWatch reporter Philip van Doorn, the development of the paper is still impressive. It wasn’t until the end of August that the company under Elon Musk completed one Share split at a ratio of 1: 5. In the meantime, the Market capitalization of the Palo Alto, California-based group based on the value of US retailer Walmart.
While Tesla’s shares fell in value, so did Tesla’s NikolaShare recently up after the automaker General Motors announced a strategic partnership with the electric car manufacturer wanting to enter. Currently, the company, led by Trevor Milton, has a market capitalization of more than $ 13 billion.
Strong competition from China
Also the Chinese e-car manufacturer NIO has a market valuation of more than 22 billion US dollars, even surpassing Nikola. NIO CEO William Li recently announced that it would be in the next few years wanting to tackle European markets. In addition, the group presented a subscription model for its batteries, which is intended to motivate consumers to buy through lower vehicle prices. However, additional costs arise from leasing the batteries. The French automobile manufacturer offers a similar model Renault for his electric car ZOE. Analyst Christopher Robinson from Lux Research in Boston reckons that the price of electric cars for both companies could be reduced by $ 10,000, but the battery subscription would result in between $ 100 and $ 150 per month. Robinson praised NIO’s approach that buyers could, for example, replace the batteries during long car journeys and also choose between different capacities without having to buy a new vehicle.
Competitor Li Auto, which is also based in China, only dared to go public on the NASDAQ at the end of July. The company now has a market value of more than $ 14 billion. With Xpeng Motors Another Chinese manufacturer also went public on August 31. The NYSE-listed company had at times a market capitalization of more than $ 15 billion. The car manufacturer BYD, which is listed on the Hong Kong stock exchange, recently had one Major order in Germany land, benefits from high government subsidies and manufactures not only electric vehicles but also cars with internal combustion engines.
Robert Cowell from 86Research in Shanghai said that Tesla had proven its concept and thus deserved a premium rating. Chinese manufacturers adapting Tesla’s strategy could now also benefit from this: The Chinese market for electric vehicles will grow by 20 percent every year between 2020 and 2025. NIO and Li Auto in particular should benefit from the growth and sell 130,000 and 160,000 vehicles respectively in 2025, according to the expert, according to MarketWatch.
Further IPOs planned
Special attention should also be paid to four companies that are planning to go public through acquisition companies, MarketWatch said. The US auto company Fisker announced in July, with Spartan Energy Acquisition wanting to merge. Spartan is owned by the US private equity firm Apollo Global Management managed. The electric car startup Canoo meanwhile plans to go public through a reverse merger Hennessy Capital Acquisition. The resulting company is to be listed on NASDAQ under the company name Canoo. The maker of electric pick-ups Lordstown Motors is said to be using a takeover DiamondPeak traded on NASDAQ. The group founded in 2015 HYLIION from Texas makes electric trucks and plans to join this fall Tortoise Acquisition merge. Robinson sees this trend as problematic: “It is quite disturbing to see so many companies that have not yet made sales go public. It feels like we are in a small bubble,” MarketWatch quoted him as saying .
Focus on suppliers
Shawn Kim of Gabelli Funds advises not to find a single winner among the electric car manufacturers, but also to focus on their suppliers, as these companies could also benefit from the trend. So be Aptiva for example one of the world’s leading suppliers of electrical vehicle components and safety systems. Aptiv’s main competitors in the security sector Continental and Bosch, says Kim. With Lear, one of the largest suppliers of vehicle seats, but which also supplies electrical parts, he also named another important player. Robinson also recognized important roles in the context of electric vehicles for the three manufacturers. The portfolio manager Simon Webber from the London investment firm Schroders also relies on the German semiconductor manufacturer Infineon. Webber sees the company, in which his fund owns shares, as the global leader in semiconductors in electric vehicles. He also stated that investors are underestimating the potential of the electric car market. In 10 to 15 years in large parts of Europe and the USA, electric vehicles are expected to achieve a market penetration of almost 100 percent. In Norway, half of all new cars sold are already electrically operated.
Traditional manufacturers also play an important role
But traditional automobile companies are also using harder guns in order to be able to assert themselves in the electric car industry. So Kim expects Tesla and Volkswagen will occupy a duopoly position in the long term. “VW is clearly a size, and Tesla is synonymous with electric vehicles, especially among younger consumers,” he said. Webber also suspected these two companies BMW as an important market player because the company invested in electric vehicles long before VW. “BMW has already sold a considerable volume of electric vehicles with the i-series and the MINI,” said the portfolio manager. “They are way ahead in this transition. It is companies trying to make money from gasoline vehicles that are causing concern.”
According to George Schultze, the executive director of New York investment management firm Schultze Asset Management General Motors also play a crucial role in the transition to electric vehicles. In an interview, he is reported to have stated that the company has both traditional and modern elements and has enough funds to invest in the development of electrically powered and autonomous vehicles. The partnership with Nikola also supports this thesis.Redaktion finanzen.net
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