Li Xiang became a famous icon in China’s entrepreneurship circles since his works are said to be parallel with Elon Musk’s innovations. According to KrASIA, Li Autos now wants to stake his claim in the electric vehicle industry.
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It was confirmed that Li Auto, the electric vehicle (EV) manufacturing company of Li Xiang, is joining the Nasdaq exchange list on July 30, after three new major Chinese companies announced that they’re potentially delisting their plans from American exchanges.
Li Auto’s IPO unexpectedly raised a staggering $1.1 billion, with an opening price that reached 34.7% above its share’s original issue price. The remarkable achievement of Li Autos was made possible by Li Xiang, the company’s eponymous founder.
Li Xiang is said to be a free-thinking visionary who has drawn similar works comparable to Elon Musk. Before Li Auto came, his first company is Autohome (NASDAQ: ATHM), an online platform for automobile-related sales. The report stated that Autohome is still under his belt. The report explained Tesla’s entry partially inspired Li’s works in China.
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“Although Musk can be a little irascible […] other American entrepreneurs cannot match up to his ability to perform for the company at key points,” he said, showing that he is also a fan of the giant tech CEO.
Li Xiang’s problem started when the competition in the market became intense after other electric vehicle manufacturers such as Geely, Nio, Berkshire-backed BYD, and Xpeng, began to surface–thus preventing Li Auto to profit since its inception. Giant tech companies such as Tesla and other traditional automakers, including BMW and Volkswagen, also joined the competition.
Although China had more than 450 electric car manufacturers in 2019, which produced a total market of at most 1.8 million passenger vehicles, the Asian country’s industry cooled down after China faced a gloomy economic outlook and dwindling government because of COVID-19, as stated by the Centre for Strategic and International Studies (CSIS), a Washington-based think tank.
“We have not touched the cash we received from our last series of funding [Series B-3],” said Li Xiang.
“We will not spend money randomly, because when you spend in areas where you should not, you will end up wasting even more money in those areas,” he added.
Originally published at En Brinkwire