Losing 100 times revenue but management keeps pouring in cash. Advertising a production line they don't have whilst only making spare parts... You may have stumbled on an embezzlement scheme, WSM.
There is no chance this firm will achieve anything. The best that could be expected is that its assets are acquired by a real car company for pennies on the dollar.
The other car company will likely buy it for the building and land footprint. Then look over the designs and realise that they were loaded with flaws and were unreliable junk designs. Honestly though the gold one shown at the end is just a body copy of the big tesla sedan.
Any sane investor would see Tesla as the cautionary tale. Off the charts brilliant CEO, their pick of the best engineers in the world, zero competition, a billion dollar factory bought for $42 million. Almost went bankrupt three times anyway. Your new EV startup X has none of those advantages, why don't you think the odds are high it will go bankrupt?
@tribalypredisposed This. This right here. I really, really *_really_* wish someone could push this comment in the face of every single person who is claiming that "EV company X, that have 0 sales, but a market cap greater than Ford, is totally-totally the next Tesla" On a sidenote though - did Tesla actually manage to acquire a billion dollar factory for 42 million?
@@Ashadow700 , yep, Tesla bought the Fremont factory, previously called Nummi and a joint venture between GM and Toyota, for $42 million which was literally their budget for a factory at the time. Toyota sold it when GM was in bankruptcy. Imagine if Tesla had instead built some tiny $42 million dollar factory and not had the land and factory space to add new lines and so on...I think bankruptcy would have been inevitable given how close they came as it was.
The difference now, though, is that Tesla has proved that the technology works. Because of that, investors have much more appetite to invest in EV, unlike a decade ago. Now that they don’t have to pioneer the tech and money is not a problem, it’s just down to who can poach from Tesla to design their own car, and who can poach from Toyota, to build the production lines.
@@evanh9301 there's a story to it. In China all companies must be majority China owned, so Tesla must take on partners and all partners must have the blueprints (this is how Chinese knockoffs have been made for decades). A lot of Tesla's car parts require multi-million dollar machines to make. Like how one piece involves the world's biggest hydraulic press and plastic mold using liquid metal to form one part. Given the need for multi-billion dollar investments and expertise many auto makers don't have, Chinese auto makers are unable to make any knockoff of Tesla. Their cars cost more and do less. So that's why the harassment/libel/vandalism campaign started against Tesla's Shanghai gigafactory.
Rip Saab/Nevs if they had invested in just one brand at a time and start mass production might have given them a chance since nevs was basically 90% ready to use the Saab body and start production but they went to autonomous taxi cars
Evergrande's diversification strategy reminds me of all the MLM scams in America during the 1990-2000s. Claiming all sorts of greatest, and firsts to attract investors and victims.
Greetings from PERU, Evergrande's It is a political issue rather than an economic one. The Chinese government has already supported its support for the company.
They should have based their new models on nevs cars and just updated the design a bit. That way they would at least have had cars to sell. Then they could have made more ambitious goals for the future.
Insightful video. Evergrande’s EV company Hengchi just sounds like a desperate attempt at financial salvation. Evergrande can’t even manage their real estate sector which is supposed to be their bread and butter. They are bleeding money in one industry hoping to look at other industries to bail them out WHICH NEVER WORKS. This reminds me of Enron when they were so desperate, they thought about going into the video rental business which has nothing to do with oil and energy. If Hengchi isn’t a major red Chinese flag that the company Evergrande is on the brink of collapse, I don’t know what is. You don’t see successful companies spontaneously jumping into industries they know nothing about. Even Apple which is a tech company has veered away from starting a EV car company because they know the risk. You don’t Tesla jumping into the restaurant industry. It makes no sense, that’s not their business model. Expansion into different industries is a very challenging endeavor that most businesses fail in - see Donald Trump bleeding money in many different businesses. Evergrande is desperate and we all know it. Next they might start a strip club and go stripping for you to raise money. Who knows with this company.
95% of trumps businesses have been a success. His foray into airlines was terrible, and the Atlantic city casino was a flop but he got in too late. His buildings, few hotels and golf courses have gone well though.
They couldn't make it with all the added regulations and the closest modern incarnation was the Tata Nano, a car the was unsellable either in domestic or international markets. The lack of 'basic transportation' something that people gripe about but in actuality few will spend actual cash to get, especially when you have a used market.
@@kenon6968 I have owned several Beetles over the years all pre-1970.. After they become un-roadworthy I chopped them into dune buggies. They were tough little cars and easy to work on. I'm just an old fart. Stay safe eh:)
I really don’t get Chinese conglomerates. Big American/Japanese companies buy companies with strategic value. Like Toyota buying a supplier or Apple buying Siri. What is the value in buying completely unrelated businesses and how did the shareholders think that was a good idea?
WSM I am a great fan of your content. I'd like to leave feedback as I have noticed that you have recently started repeating informtion within your videos. Over and over. This time around I heard three times that New Energy was more valuable than Ford or GM. I got you the first time. Are you filling content?
That is funny. 7:00 they have to compete with Tesla. Nope Tesla fell out of favor for the CCP a long time ago. That is like trying to sell foreign light pickups in the US. (You can't because 25% tariff)
I don’t understand your comment. TESLA is the number one EV brand in china. And tariffs does not really prevent selling because they just tack it in to the price. If it’s a worthy product consumers will buy irregardless of price. Again maybe I am misunderstanding you.
@@lombardo141 Why do you think the best pickup of all time was never sold in the US? Because Toyota knew people wouldn't pay 25% premium over a F150. Also Tesla isn't even close to number one. Wuling Mini outsold Tesla and is the most popular EV in the world.
@@nicholasdean3467 i would like to apologize. I did not really know you where referring to the chicken law. You just threw out 25%. As far as Wuling, doesn't their EV cost like $3500 ? it it fair to compare that to TSLA, NIO and Xpeng ?
Wow... Didn't Tesla make their designs open source? With that much money how do you mess up copying them? For that matter why is noone else up to snuff either? I have heard bad QC news for the Tesla pipeline but it seems they are still doing better at making them at least
They made the patents open source. Those patents describe solutions, not step by step instructions. Things like how to cool the motor, or how to protect the electric circuit. It doesn’t really do you any good until your designs encounter those same problems, which won’t happen until they actually put the work into designing one.
Building an EV is hard because of battery issues. You can either try to compete with other carmakers for generic ones which limits the range and becomes a bottleneck in your supply chain. EV production lines shut down all the time because there’s not enough batteries. Or, produce your own like Tesla which requires huge investments and scale which other EV makers don’t have.
You are consistently and extremely pro Tesla. It's understandable, but unless you are able to see into the future and guarantee that you're right, your lack of counter-arguments against Tesla is really hurting the neutrality (and hence credibility) of your content. e.g. "How Car Dealerships Tried And Failed To Ban Tesla" "Rivian, The Biggest Bubble In History?" (that Rivian's aim is to become the next Tesla) "The Hedge Fund Manager Addicted To Shorting Tesla" (heavily 1-sided view against shorting Tesla) "After Tesla Short Disaster Burry Calls For Market Crash . . . Again" "How Tesla Took Down A $12 Billion Hedge Fund" "$25,000 Tesla Is Final Nail In Coffin For Internal Combustion Engine"
got here faster than a chinese real estate fund runs out. thanks for the content!
😄😄😄
😂😂
Lmao
Evergrande's EV startup is just another Nikola (except they used CGI, instead of gravity).
Nikola used both.
No actually Hengchi models have been spotted on the streets driving around.
“Cash incinerator” is my phrase of the day.
But fear not. Great leader will print more.
They didn't even bother rolling it down a hill.
I’m thinking Evergrand and the gang are going to be eating tomato soup for a while
Losing 100 times revenue but management keeps pouring in cash. Advertising a production line they don't have whilst only making spare parts...
You may have stumbled on an embezzlement scheme, WSM.
What Chinese company isn't?
@@Tiniuc Most probably
Let's face it. Evergrande ITSELF was a ponzi scheme with shoddy apartment buildings as the pawns in the game.
There is no way Evergrande will recover from this mess especially they still have problem with their real estate.
Being a conglomerate sounds good on paper and is good for the CEO’s ego but rarely works out successfully….
Having governmental support can go a long way. Just look at Samsung
@@shanep.7184 Sometimes conglomerates work, sometimes not….
It was rumored that Evergrande wanted to invest in the cemetery and coffin business....
The never ending greed of Evergrande knew to bounds!
Such Chinese mentality!
Shared this to Twitter and LinkedIn and my Facebook page
Evergrande is the disastrous gift that keeps on giving 😅
Worst effort to try to take over Tesla market to date. It's scary to think a real estate company wanted to switch to EVs just out of nowhere 😑
I am 63 and not to much surprises me anymore, but your video did, Great Job!
There is no chance this firm will achieve anything. The best that could be expected is that its assets are acquired by a real car company for pennies on the dollar.
The other car company will likely buy it for the building and land footprint. Then look over the designs and realise that they were loaded with flaws and were unreliable junk designs. Honestly though the gold one shown at the end is just a body copy of the big tesla sedan.
Hustler homie putting out good content 🙏
Thank you. Good luck today 👍
Any sane investor would see Tesla as the cautionary tale. Off the charts brilliant CEO, their pick of the best engineers in the world, zero competition, a billion dollar factory bought for $42 million. Almost went bankrupt three times anyway. Your new EV startup X has none of those advantages, why don't you think the odds are high it will go bankrupt?
As Elon Musk has said, “Prototypes are easy, production is hard”.
@tribalypredisposed
This. This right here.
I really, really *_really_* wish someone could push this comment in the face of every single person who is claiming that "EV company X, that have 0 sales, but a market cap greater than Ford, is totally-totally the next Tesla"
On a sidenote though - did Tesla actually manage to acquire a billion dollar factory for 42 million?
@@Ashadow700 , yep, Tesla bought the Fremont factory, previously called Nummi and a joint venture between GM and Toyota, for $42 million which was literally their budget for a factory at the time. Toyota sold it when GM was in bankruptcy. Imagine if Tesla had instead built some tiny $42 million dollar factory and not had the land and factory space to add new lines and so on...I think bankruptcy would have been inevitable given how close they came as it was.
The difference now, though, is that Tesla has proved that the technology works. Because of that, investors have much more appetite to invest in EV, unlike a decade ago. Now that they don’t have to pioneer the tech and money is not a problem, it’s just down to who can poach from Tesla to design their own car, and who can poach from Toyota, to build the production lines.
the goal is to make money from stock market not make actual evs, it is like the nikola scam
Yes scams to steal money and run.
The US should delist ALL chinese companies
Actual Chinese car makers couldn't copy Tesla even when they had the blueprints.
chinese made tesla is like 90% local sourced parts
@@evanh9301 there's a story to it. In China all companies must be majority China owned, so Tesla must take on partners and all partners must have the blueprints (this is how Chinese knockoffs have been made for decades).
A lot of Tesla's car parts require multi-million dollar machines to make. Like how one piece involves the world's biggest hydraulic press and plastic mold using liquid metal to form one part.
Given the need for multi-billion dollar investments and expertise many auto makers don't have, Chinese auto makers are unable to make any knockoff of Tesla. Their cars cost more and do less. So that's why the harassment/libel/vandalism campaign started against Tesla's Shanghai gigafactory.
@@samsonsoturian6013 nope, tesla is the first to set up a car company that is own 100% by foreign entity
@@evanh9301 LOL
@@evanh9301 They still had to surrender patents, sorry for not making that clear.
Evergrande needs to hire Trevor Milton.......obviously.
Rip Saab/Nevs if they had invested in just one brand at a time and start mass production might have given them a chance since nevs was basically 90% ready to use the Saab body and start production but they went to autonomous taxi cars
They do not survive on local market. International market is completely different ball game.
Don't name your company Evergrande because when you too close to the Sun, you going to burn up.
Evergrande's diversification strategy reminds me of all the MLM scams in America during the 1990-2000s. Claiming all sorts of greatest, and firsts to attract investors and victims.
Greetings from PERU, Evergrande's It is a political issue rather than an economic one. The Chinese government has already supported its support for the company.
good vid, keep it up!
EverGrande...Tofu Corp
The conglomerate has to be split up into focused branchrelated firms. NEVS has most of their platform ready, just have to get rid of Evergrande.
Apparently they had it ready because firmer Saab people done all the designs and that came with the sale.
I love your channel man!
the new name is
Evercorrupt
You nailed it well!
What more to expect?
They should have based their new models on nevs cars and just updated the design a bit. That way they would at least have had cars to sell. Then they could have made more ambitious goals for the future.
This is beyond ridiculous. A real estate developer messing around with EVs. Talk about lack of focus. Next on the agenda space.
Insightful video. Evergrande’s EV company Hengchi just sounds like a desperate attempt at financial salvation. Evergrande can’t even manage their real estate sector which is supposed to be their bread and butter. They are bleeding money in one industry hoping to look at other industries to bail them out WHICH NEVER WORKS. This reminds me of Enron when they were so desperate, they thought about going into the video rental business which has nothing to do with oil and energy. If Hengchi isn’t a major red Chinese flag that the company Evergrande is on the brink of collapse, I don’t know what is. You don’t see successful companies spontaneously jumping into industries they know nothing about. Even Apple which is a tech company has veered away from starting a EV car company because they know the risk. You don’t Tesla jumping into the restaurant industry. It makes no sense, that’s not their business model. Expansion into different industries is a very challenging endeavor that most businesses fail in - see Donald Trump bleeding money in many different businesses. Evergrande is desperate and we all know it. Next they might start a strip club and go stripping for you to raise money. Who knows with this company.
95% of trumps businesses have been a success. His foray into airlines was terrible, and the Atlantic city casino was a flop but he got in too late. His buildings, few hotels and golf courses have gone well though.
Everyone says they will beat Tesla. None even made a dent.
Someone should look at the VW Beetle success. An inexpensive no frills transportation.
you can get a dacia spring for 8000 euros
A girl's car.....
They couldn't make it with all the added regulations and the closest modern incarnation was the Tata Nano, a car the was unsellable either in domestic or international markets. The lack of 'basic transportation' something that people gripe about but in actuality few will spend actual cash to get, especially when you have a used market.
@@kenon6968 I have owned several Beetles over the years all pre-1970.. After they become un-roadworthy I chopped them into dune buggies. They were tough little cars and easy to work on. I'm just an old fart.
Stay safe eh:)
Now we wait for Xiao Mi
Got here faster than ccp members taking bribes
EverGrand should build pot pies 🥧 seriously 😳 their is money to be made their
hey i have some pretty good gains from shorting docusign? would you consider putting me in one of your videos?
I really don’t get Chinese conglomerates. Big American/Japanese companies buy companies with strategic value. Like Toyota buying a supplier or Apple buying Siri. What is the value in buying completely unrelated businesses and how did the shareholders think that was a good idea?
Losing so much money is sick 😰
Ask the saying goes don't bet against Elon
NICE VIDEO
Rivian and especially Lucid definitely are way over priced. But they’re both 10 steps further than this disaster. Faraday Future implosion 2.0!
Except that Lucid is actually making cars
8:01 not anymore
I don't know what a cash incinerator is but it doesn't sound like a good business model.
Maybe Tesla will buy them for 2 cents on the dollar...
Damn! 3 ads in the first 5 minutes
WSM I am a great fan of your content.
I'd like to leave feedback as I have noticed that you have recently started repeating informtion within your videos. Over and over. This time around I heard three times that New Energy was more valuable than Ford or GM. I got you the first time. Are you filling content?
I keep seeing Ariana Grande when this company pops up . 😂
This makes me wonder how much money is invested in worthless companies? I bet its a lot.
He thought he could just hire people to make it for him! Simple
Get a better mic bro it would up the production quality so much
That man is genetically greedy...
Can we say *G-R-I-F-T* ?
But when its that big it's okay then....right ?
Thanks. It’s the new game, fool the public
So they will be a Chinese Rivian
That is funny. 7:00 they have to compete with Tesla. Nope Tesla fell out of favor for the CCP a long time ago. That is like trying to sell foreign light pickups in the US. (You can't because 25% tariff)
I don’t understand your comment. TESLA is the number one EV brand in china. And tariffs does not really prevent selling because they just tack it in to the price. If it’s a worthy product consumers will buy irregardless of price. Again maybe I am misunderstanding you.
@@lombardo141 Why do you think the best pickup of all time was never sold in the US? Because Toyota knew people wouldn't pay 25% premium over a F150. Also Tesla isn't even close to number one. Wuling Mini outsold Tesla and is the most popular EV in the world.
@@nicholasdean3467 i would like to apologize. I did not really know you where referring to the chicken law. You just threw out 25%. As far as Wuling, doesn't their EV cost like $3500 ? it it fair to compare that to TSLA, NIO and Xpeng ?
Let’s juz get a Tesla and leave the condos to them. Some condo developers install ev chargers 🔌 in the condo basement
Wow... Didn't Tesla make their designs open source? With that much money how do you mess up copying them? For that matter why is noone else up to snuff either? I have heard bad QC news for the Tesla pipeline but it seems they are still doing better at making them at least
They made the patents open source. Those patents describe solutions, not step by step instructions. Things like how to cool the motor, or how to protect the electric circuit. It doesn’t really do you any good until your designs encounter those same problems, which won’t happen until they actually put the work into designing one.
Building an EV is hard because of battery issues. You can either try to compete with other carmakers for generic ones which limits the range and becomes a bottleneck in your supply chain. EV production lines shut down all the time because there’s not enough batteries. Or, produce your own like Tesla which requires huge investments and scale which other EV makers don’t have.
buying puts on FFIE all week. trash
Your brother and you should get on the camera.
FF is cursed.
Another greedy billionaire trying to flex
Not easy to get into the electric car buisseness, it needs a lot of knowledge, of state of the art technologies 🤔 ........
Goooooo🇺🇸🇹🇼🇯🇵🇺🇸🇹🇼🇯🇵🇹🇼🇯🇵🇺🇸🇹🇼🇯🇵🇺🇸🇹🇼🇯🇵🤜🏻🤛
Let's GO Brandon!
waste of time to make such report, how about a report tiltled " How a chinese con man can have debts of $20,000 while he has merely $36 in his pocket'
You are consistently and extremely pro Tesla. It's understandable, but unless you are able to see into the future and guarantee that you're right, your lack of counter-arguments against Tesla is really hurting the neutrality (and hence credibility) of your content.
e.g.
"How Car Dealerships Tried And Failed To Ban Tesla"
"Rivian, The Biggest Bubble In History?" (that Rivian's aim is to become the next Tesla)
"The Hedge Fund Manager Addicted To Shorting Tesla" (heavily 1-sided view against shorting Tesla)
"After Tesla Short Disaster Burry Calls For Market Crash . . . Again"
"How Tesla Took Down A $12 Billion Hedge Fund"
"$25,000 Tesla Is Final Nail In Coffin For Internal Combustion Engine"
TREVOR? Trevor, you trust teh anti Hill gravity of NIKOLA Trucks? You believe also that the earth is flat..." TESLA WON. PERIOD
I think it's just to get more views than some sort of agenda, because I bet Tesla does well with the algorithm
EverGrande...Tofu Corp