On March 3, the financial world network reported that the battle for cash between electric vehicles companies will continue until the cattle year. Because the capital-intensive industries invest billions of dollars in new models and build infrastructure in China, the world’s largest auto market.
As electric vehicle (EV) start-ups increase production, and traditional automakers such as BYD and Geely are turning The use of fossil fuel internal combustion engines to produce electric vehicles is the largest single investment in the automotive industry in a century.
All these companies need well-functioning financing machines to raise funds for the development of cars with longer mileage per charge, while maintaining a perfect safety record. In addition, automakers must also invest heavily in building charging stations in China to sell cars to 1.4 billion consumers.
As stock prices soar, 2020 is a golden opportunity for electric vehicle companies. We counted the fact that electric vehicle companies have reacted swiftly to changes in the fortunes of the industry since January 2020, and have made the most of the data on investors’ desire to participate in the growth of the industry.
To be sure, these companies use a variety of funding sources, including internal resources, government funds, and external investors. Start-ups are also competing with giants that do not need to use capital markets.
The government is providing support to the electric vehicle industry in the form of subsidies to reduce exhaust emissions. According to news reports, Beijing plans to have one out of every five new cars on the roads driven by pure electric, hybrid or fuel cells by 2025, and this number may represent a market of 4 million vehicles. Electric car manufacturers such as Weimar Motors and Xiaopeng have received support from the government and state-owned enterprises in expanding production.
Analysts warn that funding for the switch to electric vehicles has just begun. Bank of America stock analysts said in a research report that the complete electrification of the industry will cost $2.5 trillion. But the next generation of fully self-driving cars will require further investment.
The window of opportunity since January 2020 has given more mature participants in the industry the opportunity to open more paths between themselves and new entrants who have not yet been listed (such as Leapmotor and always). It helps them retain talent, build factories, and install manufacturing equipment.
Open market investors have also joined this trend. Because they want to upgrade their investment portfolios in terms of environmental, social and corporate governance factors. And Tesla’s stock price is nearly 9 times higher than that at the beginning of 2020.
Given the current market boom, it can be said that the funds raised by leading companies may exceed the funds they can effectively use. With this in mind, based on data from Refinitiv, Bloomberg, and company sources, and their key use of earnings, we have compiled long-term financing records of major electric vehicle companies.
No5. Ideal car
2020 to present:US$2.46 billion
Funding Total:US$3.16 billion
Among the most prolific fundraisers in the past 14 months, the first thing I saw was Li Auto, which was supported by Chinese online service giant Meituan Dianping. In July this year, the Chinese electric car manufacturer raised US$1.0925 million in the Nasdaq initial public offering (IPO). Then in December, it quickly issued 1.363 billion US dollars of stock.
The ideal car created by serial entrepreneur Li Xiang is China’s first commercialization of electric vehicle range extension technology The technology helps solve the problems of lack of charging infrastructure and limited battery power. If the car’s battery is dead, the internal combustion engine will start.
According to Crunchbase data, Ideal Auto has raised US$676 million in Series A to Series C financing. On the eve of the company’s IPO, China Cangu, a Chinese car display platform, invested US$30 million.
According to Refinitiv and Bloomberg data, Ideal Auto has no outstanding debt.
2020 to present:US$3.1 billion
Total financing:US$20 billion
Tesla was founded in 2003 as a fundraising machine. According to public records, Tesla has raised approximately $20 billion from outside investors.
This Palo Alto-based company was listed on the Nasdaq on June 29, 2010 and raised US$260 million. Tesla is now the most valuable car manufacturer in the world. As of the close on March 2, Tesla’s stock price was $718, which was 43 times its IPO price of $17. Driven by the soaring Tesla stock price, CEO and early investor Elon Musk is now one of the richest people in the world.
In January 2019, Tesla began to build its Gigafactory in Shanghai. This is Tesla’s first factory outside of the United States. Its fashionable models have become popular models in China . The company’s Model 3 was the best-selling electric car in China last year, beating the state-owned SIAC Motor’s Wuling HongGuang Mini EV to rank second. In 2020, 21%of Tesla’s sales will come from China, which is Tesla’s second largest market after the United States.
On January 1, Tesla launched the second electric car produced in Shanghai, the Model Y, which may boost sales this year.
According to Refinitiv’s data, Tesla’s total financing is divided into 13 stock issuances of US$13.45 billion and 8 bondsclass="entity-word" data-gid="1938607"> span> issued 5.4 billion US dollars. Before the IPO, Tesla raised approximately $705 million from private market investors through bonds and equity. According to LinkedIn, John Lin, a former banker of Mitsubishi UFJ Financial Group (MUFG), is a member of Tesla’s global capital markets team.
2020 to present:US$4 billion
Total fundraising :US$11.3 billion
Unlike Tesla and China’s new energy vehicle companies, BYD was an established fossil fuel vehicle company before turning to electric vehicles.
The Shenzhen-based automaker started producing electric cars as early as 2002 with the support of billionaire Warren Buffett. By December of last year, its sales of electric cars surpassed traditional cars. Also in 2002, BYD was listed in Hong Kong, and in 2011 it was listed in Shenzhen.
According to data from Refinitiv, China’s largest automaker by market capitalization raised 29.8 billion Hong Kong dollars ($3.8 billion) through the issuance of new shares in January this year. This is the company’s first public listing since 2016. . The company also ventured into the bond market last year and raised 282.8 million US dollars.
Established in 1995, BYD said that the sale of shares is to accelerate the replacement of gasoline or diesel cars with new energy vehicles and smart cars.
By market value, BYD is the world’s third-largest automaker, second only to Tesla and Toyota. Its electric vehicle brands include Qin, Song, Han and Tang. It is also the world’s largest manufacturer of electric buses. The company started as a manufacturer of rechargeable batteries. According to data from Refinitiv, the company has raised $7.9 billion from stock investors and $3.4 billion from the bond market.
Total funding:US$7.7 billion
Xiaopeng Motors surpassed BYD to rise to second place in the ranking of the ability of interest. Since the beginning of 2020, the Guangzhou company has raised a total of US$5.1 billion. As of March 2, its American depositary shares rose to $35.50, more than double the IPO price ($15 per share).
In August last year, this smart electric car manufacturer went public on the New York Stock Exchange and raised US$1.72 billion . Xiaopeng Motors was founded in 2014 and is led by He Xiaopeng. In December last year after the IPO, He Xiaopeng quickly issued up to $2.484 billion in additional stock to investors.
The company is investing funds in research and development, and its third model is scheduled to be officially launched and delivered this year. The company delivered 27,041 cars last year.
Without accounting for the capital market, we noticed that Xiaopeng Motors received 4 billion yuan (approximately US$620 million) support from the government in September to build a second Electric car factory. At the same time Xiaopeng also obtained a credit arrangement worth 12.8 billion yuan from a Chinese state-owned bank in January. Although it has not yet been fully utilized, it can be said that it is ready for emergencies and its cash flow is stable.
Xiaopeng Motors completed the C+ round of financing in August last year, from Alibaba Group Holdings, General Post Office, Qatar Investment Bureau and Mi and other investors raised a total of US$900 million. Crunchbase’s data shows that from 2016 to 2019, from the A round to the C round of financing, the company has raised about 2.64 billion U.S. dollars. According to data from Refinitiv and Bloomberg, Xiaopeng has no outstanding bonds.
In 2018, Xiaopeng Motors hired Brian Gu of JPMorgan Chase in the United States as the head of its financing.
2020 to present:US$6.11 billion
Total funds raised:US$9.6 billion
In the past year, NIO has experienced a roller coaster ride. From the brink of bankruptcy in April, it has become the world’s fifth-largest auto manufacturer by market value. Quotient.
In 2018, this Shanghai-based electric vehicle start-up raised $1.151.8 billion by listing in the United States. As of the close on March 2, Weilai Auto’s ADS share price was US$49.76, nearly 8 times its IPO price of US$6.26.
Since its listing, NIO has raised funds through various methods including equity, bonds and loans. Created one of the more diversified capital structures in electric vehicles headquartered in China. According to LinkedIn, Weilai Automobile appointed Feng Wei as its head of capital markets in 2018.
According to Refinitiv, NIO’s investor relations team was very active last year, raising US$4.8 billion from stock investors at least three times. Recently, in 2014, Weilai Automobile, founded by Li Bin, issued convertible bonds worth US$1.5 billion in January, which is 7.5 in 2019. Twice the size of the US$100 million issuance. The company also privately issued $200 million in convertible bonds in 2020.
Data from Crunchbase shows that before the IPO, Weilai Automobile raised $1.409 billion through Series A to D financing. Pre-IPO investors include Internet giant Tencent Holdings and Edinburgh-based investment management company Baillie Gifford.