▷ Under high tension, comment on electric car IPOs by Christoph Ruhkamp


02.11.2021 – 19:15

Stock exchanges newspaper

Frankfurt (ots)

If you trust the assessment of stock investors, then the future belongs to electric cars tomorrow – and factories for combustion engines are just an expensive legacy from yesterday. With 1.2 trillion. Dollar, Tesla is valued higher on the stock exchange than the next nine largest automakers combined and at the same time about as high as half the Xetra-Dax index. Especially electrified private investors from the Elon Musk fan club are driving the course. With every new charge for Tesla’s valuation battery, the “young company”, which went public in 2010 with proceeds of just $ 260 million, sucks in even more money from index funds, which are the market capitalization weights in the stock market barometers compulsively understand.

In the Tesla fairway in the USA, the stock market flotations and IPOs via Spac mergers of likewise highly rated electric car start-ups are now increasing. The new record is set by Tesla’s young rival in California, Rivian. The company, which was previously financed by Amazon and Ford, wants to collect $ 8.4 billion from its IPO – the largest ever issue proceeds for an electric car manufacturer. Rivian has not shipped much more than 300 pickup trucks and SUVs to date and amassed a loss of nearly $ 1 billion in the first half of the year.

This is not an isolated case: the Chinese rival Xpeng had previously collected $ 2 billion in Hong Kong. And the two US manufacturers Faraday Future and Lucid received inflows from accompanying capital increases of $ 1 billion and $ 4.4 billion in Spac mergers. The Volvo electric sports car subsidiary Polestar is valued in the planned merger with a spac of 20 billion dollars as high as the parent company, although Volvo produces 66 times more cars.

Admittedly, the electric car pioneers have now resolved their initial difficulties with mass production and can now, with the support of government climate protection aid, ramp up quickly. Many of them also have a better grip on supply chain problems than the established manufacturers. But the main source of the financial quick charging station IPO remains the cheap money of the central banks. They put the IPOs under high tension. If the central banks turn off the juice, a short circuit occurs. Some investors then get a powerful blow, which is stronger the greater the high voltage was beforehand.

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