Investors are pumping billions of dollars into China’s electric vehicle start-ups as they seek to turn out the next Tesla, creating a window of opportunity for Beijing to forge a national champion in the industry, reported the Financial Times.
EV makers in the country have benefited from the glow of the nearly 900% rally in Tesla’s stock price over the past year, as well as signs of recovery in the Chinese market, the world’s largest.
But some analysts fear the boom may be premature, pointing to bottlenecks in China’s charging infrastructure and a crowded market. with intensifying competition from both the California-based EV company and traditional carmakers.
Shares in Xpeng Motors, a Chinese EV maker backed by ecommerce group Alibaba, soared more than 40% on their New York trading debut last Friday after the unprofitable company raised $1.5 billion. Shares in Li Auto, an EV rival that has turned a profit, are up nearly 70% since it raised $1.1 billion on the Nasdaq in July.