Electrical-Vehicle Startups IPOs are seeing unprecedented growth, unlike any other stock during the global downturn!

Electric-vehicle manufacturers are attracted by the unprecedented numbers of investors in the industry. As energy prices rise worldwide, there is a strong demand for alternatives. And that alternative at the moment is electric cars. The newly developed industries were looking to raise money for a long time.

With Ukraine and Russia, fuel prices around the globe have been pushed to their highest level. OPEC has threatened to cut down the level of fuel production too, which will further increase the already high prices. The beneficiary of this scenario is electric-car manufacturers. In the time, when the world is going through a pandemic and war between Ukraine and Russia, most countries are witnessing the worst inflation and the global stock markets are going through a tough phase.

Western economies such UK and US are also facing the worst inflation. The federal bank has increased the record interest rate and we are hoping for a further increment. The purpose is obvious, to curb inflation. After the interest rates hike the American equity market saw a big plunge, but there was an exception.

As we talk earlier in the worst-case scenario where global stock markets are going through a tough time, the electric-vehicle manufacturers are rushing to the equity market to raise more to support their research and development. And in the process of raising funds, the IPO of other industries have seen a massive decline, on the other hand, more than $23 billion of dollars have been raised by electric-car manufacturers through initial public offerings in Asia excluding Japan.

Financial experts state that the booming EV sector is one of the few industries worldwide witnessing such growth in the time of global crunch. That’s because investors can see the future of the EV sector. Profit markup and demand in the market for electric vehicles in the future is going allure more investor to the EV industry.

Other businesses related to EV such as battery producers are on to raise funds through socks. At the current position where EV sector is, the industry has the capital to grow to survive and be relevant.

Chinese-based Leapmotor gathered $800 million in its IPO, too short of its set target of $1.5 billion. The company aimed to raise funds to invest in research and development and the expansion of its production capacities. The company is aiming to launch seven new EV models by 2025. Unfortunately, the company listed its IPO on the Hong Kong stock exchange when the index hit an eleven-year low, so wasn’t a good start for the Leapmotors.

While Calb Co. a Chinese battery supplier listed its IPO in Hong Kong on a very different day with a very different trend. The company started its IPO pricing at the bottom range and raised $1.3 billion of equity, pretty impressive for Calb Co.

The EV manufacturer would certainly want to cash in such a lucrative time for the industry by raising more and more capital. LG a South Korean-based EV firm gathered an equivalent of $10 billion in its IPO making it one of the largest listings in South Korea. The Chines based CATL raised $6.7 billion in June this year. Many investors are trying to invest in China’s booming EV and automobile industry.

China’s economy is not doing very well due to zero covid policies. Most of the major industries including real estate are witnessing major declines but the electric-vehicles market is booming. Thanks to the higher fuel prices, which is driving consumers away from traditional fuel engines to an electric engines. The Chinese government is also playing role in EV boom by providing subsidies and tax cuts to the consumers and suppliers of electric vehicles. According to data out of 2.1 million twenty-four per cent of cars produced in china in 2021 were electric and another seven per cent were semi-electric.

Many new startups in the EV sector are facing huge setbacks due to disrupted supply chains and higher battery costs. That’s why some investors are preferring to invest in those companies that supply parts and batteries to electric vehicle manufacturers.

From this, one can easily infer that EV sector has a lot of potentials and future growth. Despite this global downturn, the EV sector’s performance is impressive, providing a solid base for the many startups in the field.