As per the latest reports, Evergrande, an embattled property developer from China has made an announcement in regards to its electric cars. The company has announced that it plans on rolling out its electric vehicles in the upcoming year. The company has confirmed that the production line for the vehicles will be initiated starting in 2022.
The company has revealed that so far, it has carried out meetings with the major entities involved in its electric car manufactures. Evergrande confirmed that it has carried out meetings with the local government in Tianjin as well as met with the suppliers.
The company had recently revealed that it has set up its production base in Tianjin, so it is going to bring the local government in Tianjin onboard. The company has confirmed that the Hengchi-branded cars would be the ones it would be producing on a large scale.
Since the announcement, the share prices for the Chinese all-electric car manufacturing startup experienced a significant rise. The data shows that the share prices for the company went up by 10% on Tuesday, October 12, 2021.
However, by the end of the trading day, the share prices growth percentage came down and the final growth rate for Evergrande’s shares was 4.5%. The company is reportedly listed on the Hong Kong Stock Exchange.
So far, the company has not delivered any of its all-electric vehicles to any of the customers. However, the company is very proud of its technology and has really high hopes for the project. So far, the company’s ambition has proven to be going in its favor.
In the past, the company has made several claims that it now needs to fulfill. Otherwise, the company may end up losing many of its investors for not being able to deliver. The company has claimed that by 2025, it plans to achieve a milestone of sales of 1 million cars annually.
The government of Tianjin has given assurance that it will also help the company in its production targets to meet the customer demands. The government will proceed with having meets with the financial institutions in the country to pitch and bring them into confidence. Their aim would be to bring investments and financial support to the company from financial institutions.
At present, the Evergrande Group is considered the most indebted property developer in the world. At the time of writing, the company is in $300 billion worth of debts from liabilities. Several bond payments have already been missed by the company, therefore, the company is going to have a hard time finding investors.
So far, Evergrande has carried out successful tests on the Hengchi cars it has manufactured that have brought back positive results. It is being hoped that the company would be able to manage and payoff some loans.