Aiways is the latest electric vehicle startup in China plotting an initial public offering, according to a Reuters report on Thursday.
What Happened: Aiways President Fu Qiang told Reuters the automaker’s ambitions have been fueled by the success XPeng Inc (NYSE: XPEV) and Li Auto Inc (NASDAQ: LI) have enjoyed on bourses in the United States, and the Shanghai-based company is making similar plans.
“IPO is also in our plans, and we’re planning to push ahead with it,” Fu said. The Aiways CEO suggested that the electric vehicle maker hasn’t aggressively sought investments, and its total funding since 2017 —when it was founded— doesn’t exceed $1.4 billion.
Fu revealed that the company’s sales could reach 10,000 cars in China and another 3,000 units could be sold in Europe.
Why It Matters: Electric vehicle startups from China like Nio Inc (NYSE: NIO), Xpeng, Li Auto, and WM Motor have reportedly raised more than $8 billion as a whole since the beginning of 2020.
A surge in Tesla Inc.’s (NASDAQ: TSLA) market value and its sales in China have also enthused the country’s EV sector.
Mike Dunne, a China auto expert, told Reuters that Tesla was the main factor leading up to interest among Chinese EV consumers and investors.
Sales of new energy vehicles, which include electric cars surged 26% in August in China after contracting 19.3% in July, which put an end a 12-month period of year-on-year of declines, Reuters noted.
Photo by Alexander Migi via Wikimedia
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