Evergrande’s electric car unit receives funding to compete with Tesla, NIO in China – tech2.org

Evergrande’s electric car unit receives funding to compete with Tesla, NIO in China


Evergrande Group Chairman Xu Jiein attends the Evergrand New Energy Auto Global Strategic Partners Summit on November 12, 2019 in Guangzhou, Guangdong Province, China.

VCG | Visual china group | Getty Images

Guangzhou, China – Shares of the electric vehicle unit of Chinese property giant Evergrande rose 67% on Monday as the company raised significant funds through a new share sale.

The China Evergrande New Energy Vehicle Group made all the high-level increases of 50 Hong Kong dollars before surpassing some of those gains. The company’s shares closed at 45.35 Hong Kong dollars.

The Chinese electric car company issued 952.38 million shares to six investors valued at $ 27.30 Hong Kong dollars and raised net income of $ 26 billion ($ 3.35 billion).

The funding is another sign that China’s electric car market is heating up, and Evergrand may present a challenge for Tesla as well as domestic rivals such as Nio and Xpeng Motors.

Last year, Evergrand featured six new electric vehicles under a brand called Hengchi, with hopes of starting production this year. The company has not yet sold a single car.

In September, the company raised nearly $ 4 billion Hong Kong through the sale of shares to investors, including Chinese internet giant Tencent Tencent and ride-hailing service Didi.

The China Evergreen New Energy Vehicle Group is also preparing a listing of Shanghai’s Nasdaq-style Science and Technology Innovation Board or Star Market.

China’s electric car companies are aggressively raising capital to increase production and gain a competitive market edge.

Xpeng Motors raised $ 1.5 billion in an initial public offering in the US last year and secured a 12.8 billion yuan ($ 1.98 billion) credit line this month.

This month, BYD – backed by Chinese electric car maker American billionaire Warren Buffett – said it raised $ 29.9 billion Hong Kong through the issuance of new shares.

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