The market value of the new forces counter overtook the traditional car companies, who will be eliminated by the market first?

Perhaps by the influence of the Guangzhou Auto Show, a lot of car companies' stocks have started to move upward, and in recent times there has even been some stopping,? The performance of the new domestic car-making forces is even more stunning in all directions, continuously surpassing the traditional car companies and becoming the meat and potatoes in the market.

November 24, Chinese stocks Xiaopeng Automobile soared 33.92%, Ideal Automobile soared 14.48%, and Azure Automobile soared 12.45%, all of which hit new closing highs. The once unpopular new forces also finally ushered in the turnaround day. Perhaps the once-unpopular new car-making forces have really seen their day of recognition?

The new forces' comeback

For Chinese stocks, it's not surprising to see share prices rise, but what's difficult is to see multiple consecutive surges, and even the emergence of new car-making forces that are much higher than traditional car companies. Tesla also soared in the market, will its own market value exceeded the 500 billion U.S. dollars mark, became the first market to break through the 500 billion U.S. dollars barrier in the automobile brand, more than Toyota + Volkswagen + Azure + Daimler + BYD market value of the sum of the rest of these is also exactly the second to the sixth in the current automobile market, visible Tesla's value is. Tesla's dominance has been recognized by the market.

And China's own brand, Azalea, has a market capitalization of more than $73.1 billion, surpassing Daimler to rank fourth in the world, and becoming the No. 1 Chinese car company. Even if consumers don't recognize it, even if keyboard warriors keep cursing it, and even if none of us bought it, Azalea has proved in the capital markets that it is the future.

Small Peng Auto, also a new car-making force, also gained in the stock price, which is said to be "crazy". 27 August 2020, Xiaopeng Automobile officially listed on the New York Stock Exchange in the United States, under the ticker symbol "XPEV".

Listed less than three months, Xiaopeng car shares ushered in a crazy surge. Its market capitalization exceeded the $50 billion mark for the first time, reaching $51.97 billion. This also allowed it to surpass Honda and rank among the top ten global car companies in terms of market capitalization. Car Wiki also witnessed the madness of Peng on the day of its crazy rise, which is really smashing. It opened at 56.75 yuan per share and peaked at 73.06 yuan per share, making it one of the most explosive stocks of the day.

Ideal Motors, on the other hand, surpassed Ford to rank 14th in global car company market capitalization with a market value of $36.5 billion, bearing in mind that Ideal Motors still has only one? Ideal ONE model is on sale, while Ford has many models under its umbrella but is still overtaken by Ideal ......

At present, the stock market there is a new car-making forces valuation is too high, and there is a very large part of the inflated component, that is, the market bubble. The stock price rose, and Tesla led the way, but the stock market reflects the future value, in layman's terms, is that U.S. stock investors are optimistic about the future of these new car-making forces. These new car-making forces in the U.S. stock amazing performance, after all, the current investors seem: even if these new car-making forces are not currently worth this price, but the future will be worth this price.

The market capitalization is a kind of capital market expectations, the higher the market capitalization means the higher the expectations.

The scales are tilting

When Azera, Xiaopeng and Ideal were first born, perhaps none of them would have thought that they could overtake Daimler, BMW and Ford in just a few years and become one of the most valuable companies in the market. As you can see, the weight of new energy vehicles in the balance has far overwhelmed the weight of fuel vehicles, and it is clear who the market is waiting for to end.

Tesla autopilot accidents, Azure recall, Xiaopeng plagiarism, ideal product single ...... countless new forces are experiencing the market's negative news and market supervision, their every move will be amplified, countless pairs of eyes are staring closely at this future market. China is currently in the stage of promoting new energy vehicles, the emergence of hundreds of new car-making forces is more a manifestation of the fierce competition in the market.

The opposite of market capitalization is sales in the market. From January to October this year, the total number of cars sold by Azure was 31,430, the total number of cars sold by Xiaopeng was 17,117, and the total number of cars sold by Ideal was 22,160. The total sales of the three car companies only amounted to 70,707 units, which is not enough to arm wrestle with traditional car companies. Toyota sold 847,000 units worldwide in October alone. With such a big difference, the new forces can only look on and sigh.

In fact, the new forces can rely on the market value of a distant second, this is because the stock market valuation of the standard is different, the new car-making forces and traditional car positioning is different, the new forces are more like a technology company, their products more in accordance with the positioning of intelligent mobile terminals, which is the automatic driving, scenarios of application of the emerging industry is to lead investors to its future is very optimistic about the market, which is the fundamental reason.

Of course, at present, the new car-making forces share price soaring, market value is high whether it is reflecting the market investment potential or there is blind optimism, which the final answer must be the market to answer.

To this day, there are still people who say, "Electric cars are definitely not the way of the future, and I'm still going to buy fuel cars." Perhaps pure electric vehicles will indeed change the current state of the car, but the future of the market must be in the direction of the development of electric vehicles, the market has also given a very clear answer. At present, what the new forces have to do is to increase production capacity, improve sales and ensure the quality of vehicles, a firm new energy direction will eventually beat the fuel car.

This article was written by the author of AutoNavi, and does not represent the viewpoint of AutoNavi.