In less than two months, the wealth of the founders of China’s three new car making forces evaporated by 10 billion US dollars

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Tencent technology news on February 25: with the recent reversal of the rise of Tesla’s share price, the upstarts in the field of electric vehicles in China have also been affected. The share price has plummeted, and the founder’s wealth has lost about $10 billion.
The share price of Xiaopeng automobile, which is listed in the United States, has dropped 33% from its recent high, and ideal automobile has dropped 27% from its high in early January. The share price of Weilai, which is known as “China Tesla”, has dropped from its peak to its bottom, with a drop of 22%.
The combined wealth of the founders of the three companies, he Xiaopeng, Li Xiang and Li Bin, is about $10 billion less than the peak in January, according to the index.
Robert Cowell, equity research analyst at 86 research in Shanghai, said: “electric vehicle stocks reflect a long-term strong growth trend in price, but it also makes them particularly vulnerable to changes in market sentiment. Competition may also be one of the factors. After all, only a few companies can be market leaders in the long run. ”
The Hong Kong listed shares of China Evergrande new energy automobile group, which have fallen 23% this week, have also been affected. BYD, the Chinese electric car maker backed by Warren Buffett, has lost 18 per cent from its recent high.
Tesla’s share price plummeted on Tuesday, almost offsetting its gains so far this year and once falling below the level it had when it was included in the S & P 500 index in December. Xiaopeng, ideal and Weilai all benefit from the rapid development of Tesla and the market boom around the trend of electrification, especially the companies facing the Chinese market. China is the world’s largest electric vehicle market and one of Tesla’s most important markets.
The share prices of Xiaopeng and ideal are still more than twice as high as when they went public last year, while Weilai’s share price soared by more than 1100% in 2020, even more than Tesla’s. Last year, driven by the strong rise of Tesla’s share price of 743%, a large number of speculative funds poured into the automobile industry. Xiaopeng’s share price rose more than three times compared with the IPO price, and ideal rose more than two times. The stock rose 3.8% in early trading on Wednesday.
Although Tesla’s share price has recently plummeted partly due to Musk’s comments, such as that bitcoin’s price seems too high, there are other factors, including the readiness of traditional car manufacturers such as general motors and Ford to compete in the field of electric vehicles.
Hyundai launched its IONIQ 5 earlier this week and said it plans to sell 70000 vehicles this year and 100000 next year. (Tencent technology reviser / Jinlu)