Tesla’s China Rival WM Motor Considers Star Board IPO

(Bloomberg) -- WM Motor Technology Co. is weighing an initial public offering in Shanghai as rival electric vehicle manufacturers battle for a domestic market increasingly dominated by Tesla Inc., said people familiar with the matter.

The Shanghai-based company is working with financial advisers on plans for a STAR board listing as soon as this year, said the people, who asked not to be identified as the information is not public. WM Motor is expected to seek an offering that would value the carmaker at more than 30 billion yuan ($4.3 billion), the people said.

The move comes at a tense moment for Chinese EV makers as the once heavily subsidized industry faces a potential shake-out, exacerbated by seemingly unstoppable market leader Tesla ramping up activity in the country.

Deliberations are at an early stage and details of the listing including venue and timing could change, the people said. A representative for WM Motor declined to comment on the matter.

Founded in 2015, WM Motor counts investors including Baidu Inc. and Tencent Holdings Ltd. among its backers, according to a press release. It recently delivered its 30,000th EX5 SUV vehicle, the company announced this month.

Though China’s auto market is recovering as the coronavirus pandemic recedes, Chinese EV startups remain under pressure. Locally built Teslas have been rolling off the production line since the start of 2020 and quickly taken the sales lead, while several mid-sized Chinese EV companies have wound down operations this year.

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With assistance from Bloomberg