00:00 Speaker A
Chinese automaker Neo planning to raise about $450 million via a share placement to develop its smart EVs according to report from Reuters. Now, this coming as President Trump’s tariff announcement weighs on some of the Chinese auto stocks here. Neo though, and this is typical when you see some of the share dilution, ultimately, as they’re kind of going through this $450 million raise. Neo shares are moving lower by about 7 and a half percent. I’m not sure if we can uh throw up a year-to-date chart for some of the Chinese used, well, not used car, but new car makers because there certainly has been a broader sentiment shift that we’ve been tracking over the course of the year-to-date scale for companies like Neo, companies like BYD. Uh at there, you’re seeing BYD on the screen and this is what I’m talking about. Up 50% year-to-date and it’s really the sentiment shift among some of the domestic consumers of those vehicles. Again, remember, if you do have any type of shift in mind share among those consumers, who are looking at some of the US options and saying, okay, well, we want to support more of the homegrown options, then that money will tend to flow towards the companies like BYD, the companies like Neo and some of the other domestic manufacturers within the Asia-Pacific region.
02:06 Speaker B
I I think it’ll be fascinating to see what happens in the European markets in particular with these Chinese automakers, if they are able to continue to withstand any impact of these tariffs. We’ve already seen BYD eclipsing revenue from competitors like Tesla, specifically due to a big bump in sales in the European region. Will that continue to be true off the back of these tariffs and are these companies kind of primed to be able to handle that. I just quickly want to mention some individual company news for Neo disclosing plans to raise about $450 million US dollars through a share placement according to a Reuters report. So you can see that’s perhaps also moving the stock today here.