Surpass BYD Weilai to become the highest market capitalization car company in China

SMM Network News: at present, new energy vehicles continue to be favored by the capital market, and as a representative of the new forces of car-building, Weilai has also risen sharply in stock prices. As of press time, Xilai Motor was trading at $54 a share, with a total market capitalization of $73.411 billion (482.58923 billion yuan), surpassing BYD (464.112 billion yuan) to become the most valuable car company in China.

In October 2019, Weilai's share price fell to $1.19, and in just over a year, it rose from $1.19 to $54, making it more famous at home and abroad.

The rise in stock prices is related to the positive development trend of Ulai. According to the third-quarter results released by Weilai, the revenue of Weilai in that quarter was 4.526 billion yuan, an increase of 146.4% over the same period last year, of which the gross profit margin on car sales reached 14.5%. In addition, Weilai also mentioned that its cash reserves have reached 22.274 billion yuan, a big increase from the second quarter of 2020.

In terms of sales, a total of 5055 new cars were delivered in October, up 100% from a year earlier, a record monthly delivery by the brand and the eighth consecutive month of year-on-year growth since March this year. From January to October this year, the cumulative delivery volume of Xilai reached 31430 units, an increase of 111.4% over the same period last year.

In a conference call after the release of Weilai's third-quarter results, Li Bin, founder, chairman and CEO of Weilai, mentioned that Weilai is "entering the car market". In addition to the immediate release of a car, the new model it is developing is also a car product, thus improving the layout of Weilai's products.

Editor's comments:

Founded in November 2014, Weilai Automobile is only six years old, but it has become the largest car company in China by market capitalization, which shows not only the advantages and potential of the new power of car-building, but also full of uncertainties. Just a few days ago, he Xiaopeng released a full email saying that he should not pay attention to the short-term ups and downs of Xiaopeng's share price and keep a balance in the fast run. For Ulai, the most important thing is to lay a solid foundation and keep rising sales and revenue.