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Throw stones to ask for directions, is it wise to build a car?

Although the new forces of car manufacturing have risen, and the transformation and electrification of traditional car companies has been halfway through, the territory occupied by these car companies is only the tip of the iceberg, and the new energy vehicle market still has a vast and boundless open space. Many companies want to come in and occupy a territory, such as technology companies Xiaomi, Baidu, real estate giants Wanda Group and Evergrande Group, etc., whether they can stand in the new energy vehicle market.

Throw stones to ask for directions, is it wise to build a car?

Second entrepreneurship intention to "build a car"?

Wang Shi, who has been away from Vanke for five years, is now 71 years old, but at this age, he did not want to drink tea, play tai chi and play chess with his peers, but now he is out of the mountains again, returning to the rivers and lakes, starting again, pointing to the field of electric vehicles, and wanting to break out of a new world.

On April 8, according to the website of the Hong Kong Stock Exchange, Destone Acquisition Corp. (Chinese name: Shenshi Acquisition Enterprise Co., Ltd., hereinafter referred to as Shenshi Acquisition), a special purpose acquisition company (SPAC) jointly initiated by Wang Shi, founder of Vanke Group, formally submitted a listing application.

Throw stones to ask for directions, is it wise to build a car?

According to the information, Shenshi Acquisition was established in May 2021 as a newly incorporated special purpose acquisition company of Cayman Islands Exempted Limited Company, aiming to conduct mergers, share exchanges, asset acquisitions, share purchases, restructurings or similar business mergers with one or more enterprises, that is, special purpose acquisition company mergers and acquisitions transactions, also known as "SPAC", which means that the company is currently in a "zero income" state.

What is "SPAC"? "SPAC", also known as "shell companies", the purpose of the establishment of such companies is to raise funds through the initial public offering of shares, and to acquire or merge the target companies with business activities with the proceeds of the funds raised, so that the latter can achieve the purpose of listing; because such companies do not have clear operating income and assets at the beginning of listing, they are also called "blank check companies", which have the advantages of short listing cycle, low cost, strong risk controllability and relative certainty.

Throw stones to ask for directions, is it wise to build a car?

According to the prospectus, Deepstone's work in identifying potential special purpose acquisition companies will not be limited to a particular industry, sector or geographic region. It intends to focus on the following two main lines of investment, one is green technology, including but not limited to urban technology, smart city, real estate technology, electric vehicle (EV), clean energy, Internet of Things (IoT), automation, intelligent manufacturing, intelligent construction and carbon capture, application and storage (CCUS).

The second is environmentally friendly consumer goods and services, which can adapt to the growing awareness of sustainable consumption and enhance social and personal well-being, including but not limited to digital services, fitness and entertainment, sports entertainment, clothing, food and beverages, and household products.

From the investment revealed by the acquisition of Deep Stone, it is not excluded that the company may enter and lay out the electric vehicle field in the future, and it is the best period for the development of electric vehicles, can Wang Shi show his skills in the field of electric vehicles?

Is it easy to get in and build a car?

From the current market point of view, oil prices are rising, so that the sales of traditional fuel vehicles are declining, while the sales of new energy vehicles are rising, and the new domestic car-making forces have also ushered in the spring, while sales have also set a new record. The new energy vehicles owned by the traditional car company BYD also ushered in a new high in sales, and also announced the suspension of traditional fuel models, becoming the first company in the world to stop production of traditional fuel models.

Throw stones to ask for directions, is it wise to build a car?

All kinds of market phenomena can be seen that the field of new energy vehicles is already a trillion blue ocean, and the wind of the outlet is gradually getting bigger. But not every "pig" standing at the outlet can fly up, once the market optimistic WM Motors, in 2020 once may become the fourth master of the new car-making forces, but now the heat of WM Motors has been reduced again and again, and even has hovered on the edge of the market, when other new car-making forces have released the delivery volume in March this year, WM Motors has closed its mouth.

There are also many new car-making forces that have lost in the wave, which is the uncertainty of entering the field of car-making. Of course, there is no shortage of top bosses in various industries to test the water in the field of car manufacturing, such as the acquisition of Yinlong New Energy by Dong Mingzhu, the queen of air conditioning, Li Ka-shing's investment in Yangtze River new energy vehicles, And Baoneng Group's acquisition of Qoros Automobile, etc. They either leave the market in disgrace or stand at the exit.

Throw stones to ask for directions, is it wise to build a car?

Among them, there is no lack of acquisition of car companies to enter the car manufacturing field, but most people have failed, although they have huge financial support, but they lack understanding of the new energy vehicle market, one is not to use the funds on the blade, the second is not to investigate the consumer's car buying preferences, and there is no market foundation, the third is no specific development direction and car-making experience, no preparation to plunge into the field of car-making will naturally fail.

Throw stones to ask for directions, is it wise to build a car?

If the deep stone acquisition also enters the car manufacturing field in this way, it will most likely fail. In addition, from the perspective of the management team of Deep Stone Acquisition, almost all of them are big guys in the real estate industry and technology industry, and there are no big guys in the automotive industry, who lack experience in understanding the car industry, and can only feel the stones to cross the river.

Of course, there is no experience in the car industry, which can be made up by recruitment, after all, there is no shortage of money for the acquisition of deep stones, but everyone has ignored a question, can we recruit talents? Nowadays, the enterprises that have entered the car industry include Xiaomi, Baidu, Ningde Times and OPPO, which need a large number of talents with new energy vehicle experience, but there are so many talents in this area, it is not enough for these groups, how can Deep Stone Acquisition grab these groups!

The people evaluate the car

For the acquisition of deep stones, it is not a wise move to enter the car-making industry, and it is necessary to solve the problems of car-making qualifications, talent recruitment, development of new cars, market research, etc., each of which is the top priority, coupled with the rapid changes in the market, too many competitors, and a little carelessness will drink and hate defeat. However, the deep stone acquisition can be like Huawei, cooperate with car companies, and then launch a joint model, and then gradually convert into its own brand. Of course, at present, the acquisition of deep stone is only possible to enter the car industry, and it depends on Wang Shi's subsequent operation.

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