Nowadays, on a global scale, new energy vehicles have always been a very hot word. Many companies have chosen to enter the game, whether it is traditional car companies, new energy car companies, and even non-car companies like Gree and Xiaomi, they all want to take advantage of the current heat to harvest market dividends as much as possible.
Some time ago, Evergrande, which publicly admitted that it could not afford to pay back the arrears, actually made a lot of efforts in new energy vehicles. However, it seems that something has been wrong lately. After Evergrande's entire eight real estate projects were recovered by China free of charge, the market value of Evergrande Automobile suffered a sharp decline. At the moment when Evergrande Group is heavily indebted, the time left for Xu Jiayin may really be short.
So, what is the impact of the sharp decline in the market value of Evergrande Automobile on Evergrande? Can the new energy vehicles in the game really save Evergrande?
Evergrande's new energy vehicle market value plummeted by 672.9 billion!
In the past two months, Evergrande Automobile can be said to have experienced great ups and downs, and once, the "Hengchi" developed by Hengda Automobile was on the authoritative document of the Ministry of Industry and Information Technology. It caused a shock in the domestic market. Under such circumstances, Xu Jiayin, through clever language art, with the bright prospects of Evergrande Automobile, directly flicked the stock price of Evergrande new energy vehicles to a high of 700 billion yuan without mass production.
Xu Jiayin's ability to flicker like this, I'm afraid Jia Yueting will have to bow to the wind. However, it is not surprising that Xu Jiayin has such an ability, after all, this is a "talent" who uses 3.9 billion capital to leverage two trillion yuan. However, no matter how the tongue can be flickered, in the end, it still cannot escape reality.
With the accident of Evergrande's real estate business, the capital market has gradually recognized the true face of Evergrande's new energy vehicles, and has chosen to reduce its holdings in Evergrande Automobile's shares, and even Xu Jiayin's close friend Liu Luanxiong will cash out a large number of Evergrande Automobile shares held in his hands. As of December 17, Evergrande Automobile's market value has changed from 700 billion to 27.1 billion, directly falling by a full 672.9 billion. So, what impact will the sharp decline in the market value of Evergrande Automobile have on Evergrande?
The impact of the sharp decline in market value on Evergrande
First of all, increase the debt pressure of Evergrande
As we all know, Evergrande issued an announcement in early December this year, saying that Evergrande could not afford to pay off the debt of 260 million US dollars, so it was also interviewed by local governments in China. Today, Evergrande Automobile's market value has plummeted. At the beginning, Xu Jiayin's entry into the new energy vehicle may be to increase Evergrande's economic income and help Evergrande get out of the economic crisis as soon as possible.
However, today, with the decline in Evergrande Automobile's stock price, it may not only fail to achieve Xu Jiayin's expectations, but may also increase Evergrande's own debt pressure. After all, Evergrande's investment in new energy vehicles is not small, these funds are currently in this way, in the current huge economic losses, how can it not increase Evergrande's debt pressure?
Secondly, evergrande's new energy vehicle consumption market influence has plummeted
Evergrande new energy vehicle stock price is now plummeting, even if it enters the market in the future, in the consumer market, the influence of Evergrande new energy vehicles should also suffer a sharp fall. Although consumers have not experienced Evergrande's new energy vehicles, in the case that the capital market is not optimistic, consumers may also consider when buying Evergrande new energy vehicles.
At the moment when evergrande automobile stock price is plummeting, in the eventful autumn of Evergrande Group, evergrande, which is heavily indebted, does not seem to have given up the business of new energy vehicles. So, in such an unfavorable situation, is there still hope for Evergrande new energy vehicles?
Does Evergrande Auto still have a play?
First of all, the support and help of the Tianjin government
In fact, Evergrande's new energy vehicles are still very promising. After all, Evergrande still has a very strong partner on the road of new energy vehicles, that is, the Tianjin Municipal Government. On October 27, Evergrande publicly released an announcement on its official website, in which it said that Evergrande Automobile and Evergrande Automobile's partners held a meeting with local officials in Tianjin Binhai District, at which the person in charge of Tianjin Binhai High-tech Industrial Development Zone said that the local government would provide Evergrande with necessary help for new energy vehicles when necessary.
Therefore, with the support and help of the local government in Tianjin, presumably Evergrande Automobile is still very hopeful to continue to achieve its comeback, and Xu Jiayin is still very hopeful to realize his dream of building cars.
Second, a complete and mature industrial chain and core technology
The layout of Evergrande new energy vehicles is from 2019, Evergrande Group has completed the layout and improvement of the upstream and downstream industrial chain of new energy vehicles such as technology, battery, sales, talents and so on through the universal "banknote capacity". Not only that, in the most important and critical core technology of new energy vehicle manufacturing, Evergrande has also mastered the core technologies in core areas such as vehicle manufacturing, chassis architecture, and power batteries.
In short, if Evergrande wants to realize its dream of new energy vehicles, it is still very likely, and the current development winter should be only a small episode in Evergrande's new energy layout. However, with the future Evergrande really successfully entering the new energy vehicle, can it really help itself out of the current predicament?
Can new energy vehicles really save Evergrande?
In fact, whether Evergrande Automobile can help Evergrande get out of the current predicament, we also need to look at it dialectically. Evergrande's product quality has always been widely recognized by the consumer market. Like Evergrande's house, it has a good reputation. Therefore, if Evergrande new energy vehicles really enter the game.
With the good reputation of Evergrande products, it should also bring Evergrande a broader consumer market and greater economic benefits, and should also help Evergrande get out of the current development dilemma such as debt as soon as possible.
However, everything is not absolute. Evergrande Automobile's entry into new energy vehicles may not be able to save Evergrande, why? At present, there are many new energy vehicle companies that are very mature like Tesla in the field of new energy vehicles, in other words, the current competition in the new energy vehicle market is already very fierce.
As a novice in the new energy vehicle market, Evergrande is also a small white who has just entered the automotive industry, and if it wants to create a good performance in the field of new energy vehicles that can save Evergrande, I am afraid it will still be difficult.
summary
Evergrande Automobile's market value plummeted by 672.9 billion yuan, if Xu Jiayin does not come up with measures as soon as possible, I am afraid that Evergrande's new energy vehicle dream is just around the corner. However, from another aspect, Evergrande has technology and strong foreign aid, and it is not known whether new energy vehicles will really help Evergrande get out of the predicament in the future.
We still hope that Evergrande Group can get rid of the current decline as soon as possible, solve the current debt crisis as soon as possible, and hope that Evergrande Group can have a broader development world in the future.