Is the "new force" of car building an opponent of Tesla?

 New energy electric vehicle manufacturers became a big hit in the secondary market in November.

In the United States, news of Biden’s victory came, and the Dow Jones Industrials Index hit 30,000 points, the first time in history. In particular, the investors of electric car manufacturers are excited because he proposed several policies aimed at accelerating the transition to electric cars during his campaign, including providing operating funds for 500,000 charging piles and taxation to buyers Credits and funding for research and development.

From this, Tesla has made the most profit. Since December, since the S&P 500 Index Committee decided to include Tesla in the closely watched index, stock prices have surged and currency volumes have increased significantly.

On the western coast of the Pacific, the State Council announced in early November that the sales of electric, plug-in hybrid and hydrogen vehicles in China would increase from 5% to about 20% by 2025. The blueprint of the Chinese Society of Automotive Engineers and the Ministry of Industry and Information Technology is more optimistic. By 2035, hybrid and new energy will account for half of the total sales of new cars.

With this good news, we can often see in the US stock market that the stock prices of the “new forces” making cars go hand in hand with Tesla. In the past month, have new energy sources pet child Tesla's performance was not as good to Wei, Xiao-Peng and ideal car , the "new forces" minimum share price nearly doubled, soaring more than 220% is the highest, while Tesla's increase was only 35%.

Although Weilai Automobile was short-selling by Citron after the announcement of the financial report, this did not affect Weilai's actual performance in the secondary market. What surprised the author is that Tesla, which once relied on pioneering spirit and bright future, has fallen behind in the industry it dominates. Compared to its Chinese counterparts, Tesla is underestimated.

Tesla is better than Weilai in terms of growth and profitability. When we choose to invest in the electric car industry, isn't we pursuing growth? Some people may say that Tesla's profits are currently generated through the sale of regulatory credits, but this is indeed not something Chinese electric car manufacturers like.

From another data point of view, the price-to-sales ratio of the "new forces" in the past twelve months has exceeded 30 times, while Tesla's P/E ratio is only 18 times. Most importantly, Tesla is generating billions of dollars in cash from its operations, and the "new forces" are still in the process of burning money.

But now the "new forces" have a way to defeat Tesla, that is, the capital behind it. As the leader, Weilai has a 16.3% stake in Tencent Holdings; Alibaba has a 14% stake in Xiaopeng, and Meituan is the second largest shareholder of Ideal Auto.

In addition, the support of government agencies is also an incentive for the rapid development of new energy vehicles. Weilai has Hefei, Xiaopeng has Guangzhou and so on.

Even so, we can only think that the "new forces" may have a stronger growth rate, but the bottleneck lies in technology, and most of this technology is owned or even monopolized by Tesla. With a strong brand awareness, Tesla's economies of scale and technology ensure that its profits exceed its competitors.

Of course, Tesla also has problems. "It has become a Chinese company" is the direction that Tesla is currently discussing more, and Musk may lose control of Tesla in China.


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