Exclusive: China's Leapmotor to supply EV platform to Hongqi, also in talks with Ferrari
1. Leapmotor partners with FAW for EV platform targeting overseas markets. 2. This could increase competition for luxury car brands like RACE.
FAQ
Why Bearish?
Increased competition in the luxury EV sector could pressure RACE's market share. Historical data shows similar partnerships often disrupt established brands, impacting stock performance.
How important is it?
The emergence of Hongqi as a competitor may take sales from luxury brands, including RACE, influencing investor sentiment negatively.
Why Short Term?
Immediate effects might be seen as new competitors enter the market affecting RACE's sales. Past trends indicate initial impacts within 1-2 quarters following such deals.