Chinese electric cars: Nio, BYD, Calt too much on the stock market?

Chinese electric cars: Nio, BYD, Calt too much on the stock market?

Despite the meager earnings, the shares of Chinese electric car manufacturers fly from Nio to BYD and Calt. What awaits the market?

The electric cars of Nio, BYD, Calt and others put the fifth. On the Stock Exchange. While the battery still struggles to conquer the streets, investors believe in the future of electric cars and push the share price of Chinese companies.

Bubble close? Let's go step by step.

HOW THE SHARES OF THE CHINESE ARE GROWING IN WALL STREET

Let's start with the numbers. Three of the leading Chinese electric vehicle start-ups listed in the United States, Nio, Li Auto and Xpeng, despite posting substantial net losses, boast record market valuations at $ 35.4 billion, respectively, 15.9 billions of dollars and 14.4 billion dollars.

LISTING IN GROWTH ALSO IN HONG KONG

The share price of BYD, a Hong Kong-listed company that produces electric vehicles and traditional combustion cars, is also equivalent to 245 times its earnings. The sprint also shares in Calt, an electric vehicle battery maker, which has a share price-to-earnings ratio of 117.5.

BUBBLE COMING?

That the foundations are being laid for a financial bubble? When, the Financial Times asks , does investor enthusiasm for a new technology at "its dawn" turn into irrational exuberance?

THE BELIEVERS OF EV

What is certain is that investors believe in electric cars. And they believe in the potential of China which has initiated a national plan to develop electric vehicles and can leverage dominance in the battery market.

EVALUATIONS TESLA DA CAPOGIRO

And anyway, if the share price of Chinese electric car manufacturers is on the rise, it's also true that it's still lower than Tesla's . "The valuations of Beijing's electric carmakers are high but still lower than Tesla's," said Karine Hirn, a Hong Kong-based partner at the fund manager East Capital.


This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/auto-elettriche-cinesi-nio-byd-calt-sgommano-troppo-in-borsa/ on Sat, 31 Oct 2020 11:51:50 +0000.