SAI Newsletter #2, August 16, 2018
Updated: Jan 29, 2019
Thank you again for subscribing to the newsletter and for your patience as we try and work through a few wrinkles to make this one of the best resources for China automotive/autonomous related news.
This week will be a shorter newsletter since I am traveling but there were a few couple major items that popped up that indirectly & directly involves the EV sector for China.
The first was the NIO announcement to IPO later this year in the U.S. People have asked why they've decided to list in the U.S. as opposed to China, so main reasons for I think they've made this decision:
1. They would need to be profitable for, I believe a minimum of 3 consecutive quarters to list in China and they are a long way away from that.
2. They do have global ambitions and do NOT want to be labeled a Chinese EV company.
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The Sino Auto Insights team
Faraday Future (FF)
Slow trainwreck that we can’t stop watching? FF apparently set up a China office recently. Can the CEO even go to this office? They plan on delivering vehicles by December and Jia Yueting secured $2B in funding from China Evergrande Health and was told he had to give up ALL of his IP in order to get that funding.
And in other news with Faraday Future. Lawsuit against EVeloczity basically stealing trade secrets and poaching employees moves forward in California. Again, FF has more drama than a Korean soap opera!
EV sharing platforms making a push for VC money. EVCard backed by SAIC and CaoCao Zhuanche backed by Geely raise funding for further expansion in China. Not a lot of coverage on these companies in the Western media but at estimated valuations of $2B (EVCard) & $3B (CaoCao Zhuanche), we will keep a close eye on this segment and these companies.
Tencent taking a beating. This matters because Tencent is a driver of investment in the AI / AV / mobility space so having $150B, or about ~25% of it’s value since January is a big deal. Earnings release today was a mixed bag as well.