Embattled Chinese Residential Or Commercial Property Tycoon Turns to Electric Cars. Cue $87 Billion Evaluation.
< img src=" https://images.wsj.net/im-337021/social" class=" ff-og-image-inserted"/ > SHANGHAI– Guests at a personal August dinner hosted by billionaire entrepreneur Jack Ma were interested by a fellow diner who presented himself as a simple car salesman.
It was Xu Jiayin, much better called the chairman of China Evergrande Group, the nation’s greatest real-estate designer and one of China’s many indebted companies. At the time of the dinner Evergrande was just weeks away from a potentially destructive showdown with its financial institutions.
If he was feeling desperate, Mr. Xu didn’t reveal it, according to among the people present at the meal at one of Mr. Ma’s homes in Hangzhou, where Mr. Ma’s Alibaba Group Holding Ltd. is based. He was pitching his most audacious venture to date: a brand-new electric-vehicle business that aims, according to its own public declarations, to surpass Tesla Inc. and others in ending up being the world’s “largest and most powerful” EV maker by 2025.
The Chinese federal government’s drive to make the nation a world leader in electrical cars has spawned lots of start-ups jockeying for position in its little but fast-growing market. Mr. Xu’s not likely fusion of car-making and home development, which he’s building from scratch, is the wildest of them all.
Evergrande’s Hong Kong-listed EV unit, China Evergrande New Energy Vehicle Group Ltd., or Evergrande Auto, saw its market capitalization skyrocket last month to roughly $87 billion, more than the majority of global auto makers, including Ford Motor Co. and General Motors Co., and four times the worth of its own moms and dad business– all without having sold a single lorry.
Published at Wed, 19 Might 2021 14:04:00 +0000
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