Embattled Chinese Home Magnate Relies On Electric Cars. Cue $87 Billion Evaluation.
< img src=" https://images.wsj.net/im-337021/social" class=" ff-og-image-inserted"/ > SHANGHAI– Visitors at a personal August supper hosted by billionaire entrepreneur Jack Ma were fascinated by a fellow diner who presented himself as a modest vehicle salesman.
It was Xu Jiayin, much better known as the chairman of China Evergrande Group, the country’s most significant real-estate developer and among China’s a lot of indebted business. At the time of the dinner Evergrande was simply weeks away from a potentially destructive showdown with its lenders.
If he was feeling desperate, Mr. Xu didn’t show it, according to one of individuals present at the meal at one of Mr. Ma’s houses in Hangzhou, where Mr. Ma’s Alibaba Group Holding Ltd. is based. He was pitching his most audacious venture to date: a new electric-vehicle company that intends, according to its own public statements, to go beyond Tesla Inc. and others in ending up being the world’s “largest and most powerful” EV maker by 2025.
The Chinese government’s drive to make the nation a world leader in electric vehicles has actually spawned lots of start-ups jockeying for position in its small but fast-growing market. Mr. Xu’s not likely fusion of car-making and residential or commercial property advancement, which he’s developing from scratch, is the wildest of them all.
Evergrande’s Hong Kong-listed EV system, China Evergrande New Energy Car Group Ltd., or Evergrande Car, saw its market capitalization skyrocket last month to roughly $87 billion, more than the majority of worldwide vehicle makers, including Ford Motor Co. and General Motors Co., and 4 times the value of its own moms and dad company– all without having sold a single car.
Published at Wed, 19 May 2021 14:04:00 +0000
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