The stock price plummeted after being short-selling. Are new car-building forces a real skill or a fake bubble?

NIO's current valuation is twice that of Tesla.

While the new car-building forces were advancing all the way, "Big Brother" Wei Lai was short-selling, driving the share price of Xiaopeng and Ideal to plummet.

On November 13, Citron issued a short selling report stating that Weilai’s target price should be $25, which is only about half of Weilai’s current stock price. Affected by the Citron short-selling report, Weilai plunged 7.74% that day, which also drove Xiaopeng down 6.13%, ideally down 1.83%.

Citron said that two years ago, when Weilai's stock price was only at $7, he recommended everyone to buy Weilai stock. At that time, Citron was mainly attracted by the personal charm of Weilai CEO Li Bin. Today, whether it is from the perspective of NIO's position in the Chinese electric vehicle market or the short-term development prospects, NIO's current stock price is unreasonable.

Strong competitor: Tesla

Citron gave two reasons. The first is the competitive relationship between Tesla Model Y and NIO. Citron cited Deutsche Bank’s point of view that Tesla may reduce the price of the domestic Model Y from 488,000 yuan to 300,000 yuan. It will be a direct competitor of Weilai EC6 and ES6, which may harm market sentiment. And slow down the momentum of Weilai's order growth.

Second, Citron believes that Weilai's current valuation is too high. Weilai's current valuation is twice that of Tesla, and its premium to Tesla has reached the highest level in history. At the same time, Weilai also faces more intense competition than Tesla.

When Tesla as like Wei to deliver 5000 vehicles, Tesla US electric vehicle market share of 45%, while Wei to now in the country's new energy share of the car market was 3%. Citron believes that " Nio investors now seem to prefer'gambling'" and suggested that it is time for investors to clear out NIO and find the next disruptive technology.

Fancy China's market potential

China’s new car-making forces have undoubtedly been the target of the capital market before, and the market value of Weilai has surpassed traditional automakers such as GM, Ford, and BMW successively within this year.

The capital market values ​​the value that new car-building forces may create in the Chinese market in the future, but it also seems to require some rationality. BYD has also skyrocketed by 355% this year, but its market-to-sales ratio is only 3 times, while the current market-sales ratio of Weilai has reached 17 times.

Comments

Post a Comment

Popular posts from this blog

It is inevitable for technology companies to enter the market to build cars

Image
  The matter of building a car has changed. Since 2014, building a car has become the most desirable thing for entrepreneurs.  Not only are successful entrepreneurs working hard to start their second and third ventures, but countless "grassroots" teams have also begun to move around, as if the threshold of building a car was suddenly pulled to non-existent. But facts have proved that there are indeed barriers to building cars, and it limits most players.  Li Bin, the founder and chairman of Weilai  Automobile  , once said that an electric car company needs at least 20 billion yuan to reach mass production. Xiaopeng Motors Chairman He Xiaopeng also sighed: "It used to be an exaggeration to see others making cars. I jumped in and realized that 20 billion is not enough to spend.” In the end, the new car-building forces ran out of three first-tier players, but at the same time it also made people realize how difficult it is for a new company to build cars. People's attit
Read more

Tesla released a major facelift, Model S Plaid, which is as different as ever

Image
  The news of the newly redesigned 2021  Tesla  Model S was suddenly mentioned by Musk at the beginning of the year. Everyone was pleased with the Model S that had not been updated for a long time.  However, when the pictures came to light later, everyone found that the change didn't feel much, and there was almost no change in appearance. Tony teachers just repaired it and it was over.  However, after the interior was exposed, everyone found that it seemed like a new generation without looking at the exterior, which was shocking.  Many people still don't believe that this is the real car, so today Musk will give you an official announcement. Currently the fastest mass-produced electric car Today, Tesla officially released Model S Plaid, and it was also a delivery ceremony. Excited Musk specifically brushed  a  track out of the  Fremont factory  , and then drove directly to the stage. Two days ago, Musk just announced the cancellation of the Plaid+ version. The reason was that
Read more

Who is the "stumbling block" that prevents Tesla from going to the countryside?

Image
  New energy is the trend of automobiles, and the sinking market is the vast world of new energy automobiles.  However, for many new energy vehicle brands, there is still a long and rugged mountain road to go before they truly reach the "willows and flowers in another village". New energy vehicles are accelerating toward the sinking market, looking for new incremental space. However, for more new energy vehicle brands, how to break the dilemma of low prices in the sinking market, increase the added value of products, and obtain more profits in addition to the increase in sales are long-term problems that need to be faced. On the other hand, after  Baidu  , Xiaomi also intends to enter the game. Traditional car companies continue to launch new new energy brands, and more and more players are entering the game. In 2020, the power of new cars will usher in strong growth, and  Tesla  will also achieve sales of over 100,000 vehicles in the Chinese market.  Many high-end brand new
Read more