Estimating Future New Energy Vehicle Market Through Industry Giants’ Financial Status Quo

Abstract

Nowadays, people health and ecosystem are seriously threatened by increasing the amount of carbon emission. In recent years, multinational presidents actively advocate and call to solve and reduce this problem. Moreover, in order to dispose of and control the vehicle exhaust emissions trouble, many young people pay more attention against to use new energy vehicles. The article uses Discounted Cash Flow (DCF) model and Weighted Average Cost of Capital (WACC) value which are based on important indications in 5 years financial statements of giants, i.e., BYD, Tesla, NIO, and LI, to analyze the global (especially China) new energy vehicle market status quo. According to the analysis, one discovers that WACC value of BYD and LI are much lower than other two brands NIO and Tesla. Therefore, the global new energy vehicle market has an optimistic trend of development can be deducted while sunrise companies can stabilize the Chinese market and enter to the foreign market.