It’s called Evergrande, and– as China’s second-largest developer with developments in over 170 cities– it’s one of the largest real estate companies in the world. Impressive as that is, it seems to be just the beginning of Evergrande’s story. That’s because the company just invested twenty-three billion (with a “b”) dollars into building manufacturing facilities for electric carmaker NEVS, with plans to build 1 million electric cars and 500 GWh of batteries per year.
“Evergrande aims to invest 160 billion yuan in Guangzhou’s Nansha district to set up three major bases for new energy vehicles,” according to a statement the Nansha local government sent to the Global Times last Wednesday. “One of the bases will have the capacity to manufacture 1 million vehicles annually. The other two bases will be able to produce as much as 500 GWh of batteries annually and electric motors and electronic control systems to equip the 1 million electric cars,” the statement said.
With production facilities seemingly lined up and the company recently taking on stakes in both NEVS and Swedish supercar maker Koenigsegg, it certainly feels like Evergrande has what it takes to take on Tesla in China. That’s the plan, anyway. “Some industry observers said that Evergrande could pose a threat to Tesla several years down the line,” reports the Global Times. “As the Chinese developer (Evergrande) has an incomparable advantage in capital and integrating technologies from the industrial chain, whereas Tesla is reported to face a cash flow problem and tight credit.”
Say what you will about Evergrande’s ambitions and/or their odds of taking on Elon Musk; I’m just excited about the prospect of Saab coming back for– what is this now, the eighth time? Saab has more lives than a cat! What do you think about all this? Is Evergrande going to be able to hit Tesla where it hurts, or is this just another round of Chinese-funded vaporware? Let us know what you think in the comments section at the bottom of the page!