NIO's soaring market value is not an isolated case, and is bound to be discussed in the context of the dramatic changes in the entire new energy vehicle industry, said the Securities Times, China's official securities newspaper, in an article published on Wednesday.
According to the article, China's new energy vehicle sector has seen a general rise so far this year, with automakers such as BYD, Changan Automobile and Great Wall Motor also seeing their market value climb in addition to causing new forces. Therefore, what capital values is not just a single player in NIO, but a new energy smart car "track" that is constantly expanding.
Nevertheless, the outside world still has doubts about the high valuation of the new car makers including NIO. But in fact, the industry as a whole need not be overly vocal about the high valuation of "NIOs," the article says.
Looking around the world, the new energy vehicle market is still in the growth stage, and the discussion on the technology route has not yet been unified, the article says, adding that it is obviously irrational to make premature judgments about the growth trend of a single company under the intertwining of new technologies, new ideas, new models and a series of other emerging things.
In the long run, the market will sooner or later turn into a "weighing machine" to test the real capabilities of companies including NIO, so why not let the bullets of their high valuation fly a little longer, the article said.
Here is a translation of the full article:
In 2020, no one in the industry will ignore NIO's skyrocketing market value.
At the Guangzhou International Auto Show held at the end of this year, a very noteworthy phenomenon emerged: those traditional car executives who once disdained to make comparisons with new car makers suddenly talked en masse about causing NIO's stock price to skyrocket. Clearly, the power of capital is changing people's perceptions of new car-making forces, including NIO.
"A catfish can stir a pond", a few years ago, in the Internet, real estate companies and other new forces across the border to build cars, the automotive industry regulators have supported with an open attitude, and promote the Tesla in China's wholly-owned factories. The core purpose is to activate the vitality of the new energy vehicle market through the "catfish effect" and promote the improvement of the related industry chain.
Practice has proven that the arrival of new car-making forces has indeed accelerated the rate of transformation of the auto industry, driving traditional car companies to take the initiative to revolutionize and put in efforts in new technologies, new service concepts and new business models.
Because of this, China's new energy vehicle industry chain and infrastructure can be improved with faster efficiency, and the scale of the whole market is expanding at an unprecedented speed.
Therefore, NIO's soaring market value is not an isolated case, but must be discussed in the context of the huge changes in the entire new energy vehicle industry.
This year, the new energy vehicle sector has seen a general rise, and in addition to NIO, whole vehicle companies such as BYD, Changan Automobile and Great Wall Motor have also seen their market value climb.
From this point of view, the capital value is not only the single "racer" of NIO, but also the new energy intelligent car "track" that is constantly expanding. Especially, the trend of "software-defined car" has brought unlimited imagination to the whole industry.
Nevertheless, the outside world still has doubts about the high valuation of the new car makers including NIO. Indeed, in the case of sales volume has not become a scale, the performance continues to lose money, still rely on "blood transfusion" to continue the life of the new car makers, including NIO is indeed difficult to compare with the automotive giants, the existing high valuation bubble also faces the risk of burst at any time.
But in fact, the industry as a whole does not have to be overly vocal about the high valuation of new car makers. As the "godfather of value investing" Benjamin Graham said: in the short term, the market is a voting machine; but in the long term, the market is a weighing machine.
Looking around the world, the new energy vehicle market in various countries is still in the growth stage, and the discussion on the technical route has not yet been unified. With a series of new technologies, new ideas, new models and other emerging things intertwined, it is obviously irrational to make premature judgments on the growth trend of a single company.
Right now, the capital market has chosen to vote for new car makers, including NIO, in the face of the hot new energy vehicle market. In the long run, the market will sooner or later turn into a "weighing machine" to actually test the true "gold content" of these companies, so why not let the bullets fly a little longer.