In 2018, Wei Qing and his private equity investment group had tripped to almost 20 Chinese electric vehicle manufacturing startups. After the visit, the officials decided not to invest in any of the startups. The decision was taken on the bases of the uncertainties regarding the company’s early stage to the production level followed by the funding and mass production. Qing has decided to keep the names of the EV makers a secret as he finds only a few of them to survive. Sailing has agreed to carry out business with an EV parts supplier. According to the bankers, it is a tough revenue time for the Chinese EV makers as the funding and future factors need a lot of attention in terms of profitability.
Tesla Inc. has a number of questions being raised against its profit sustainability and sales issues with the Chinese startup Nio Inc has currently put the investors on their guard. In 2019, Chinese EV makers had raised about $783.1 Million by the mid of June in comparison to $6 Billion raised the previous year during the same period and an overall gain of $7.7 Billion in 2018. EV makers are trying to convince a number of bankers but are unable to meet up to their criteria. The fundraising programs do not function as fast as the EV makers want them to.
The EV makers find the bankers to not even be interested to listen or negotiate with them. To build its own auto-industry, China has urged to start new energy vehicles (NEVs) program that will include hybrids, fuel cell, and plug-in hybrids cars so as to increase its sales by 2025. The group EV could possibly compete with each other and also the global makers like Tesla are showing interest in starting a business in China by the year-end. Around 350 EV companies have enrolled in a subsidy relying on the government funds. This year, NEVs showed 1.8% growths in May than the 18.1% growth in April last year, which shows the slowdown in the startups. Byton, Leap Motor, CHJ Automotive, and more are waiting for the funding raising whereas the Baidu Inc and Nio are under the successful funding belt. Tesla and Nio are struggling to increase their business in China.
A Bachelor’s degree in Finance and Marketing has not limited Wilburn from shifting his career towards content writing. As the content writing is blooming field, Wilburn is proud to have chosen this as a career and provide the Industry News Reports platform with some of the most elegant and precise articles. The influence in English and immense knowledge on the grammatical skills have helped him woo a major of the audience on the platform. Wilburn has spent the last 5 Years of his career on the Industry News Reports platform and is still going strong. He plans to write vocalistic contents so as to tingle the ears of the audiences.