Last Friday, SAIC Motor's share price opened sharply higher and once hit the daily limit.

The incentive, of course, was that SAIC Motor issued an announcement on the same day about investing in and establishing a Shanghai Metaverse Intelligent Technology Equity Investment Fund Partnership.

To translate this announcement, it is actually led by SAIC, which has found a bunch of "circles of friends" to work on "high-end intelligent pure electric vehicles".

This wave of "circles of friends" not only includes Zhangjiang Hi-Tech, but more importantly, in the project plan, there is information about cooperation and investment with Alibaba.

The target project is tentatively named "Zhiji Auto".

As a result, investors regarded it as a "major positive".

Think about it, "high-end intelligent pure electric vehicles", combined with "Internet giant Alibaba", focus on "artificial intelligence", "autonomous driving", "chips" and "pure electricity" and so on.

In terms of scale, it plans to raise 10 billion in the first round of financing - more than any new force in the past.

Let’s look at Nasdaq’s NIO: its market value has exceeded US$70 billion, which is almost “one and a half” the total market value of SAIC Motor.

Tesla's market value has reached a "cosmic level" of more than 550 billion U.S. dollars, equivalent to ten SAIC Motor Groups.

Based on this expectation, SAIC's stock price will at least triple!

Not long ago, there seemed to be a precedent in the market.

On November 5, Zhangyue Technology announced that its controlling shareholder would transfer shares to ByteDance (its subsidiary, Quantum Yuedong), triggering a daily limit-up for six consecutive trading days, with the stock price more than doubling within two weeks.

So, for investors, what are you still hesitating about?

One word: chase!

However, why did SAIC Motor not even close the daily limit at the final close?

In fact, if you think about it calmly, this is normal.

There are three reasons.

An undefinable concept that has limited influence on large-capitalization companies. We know that the current market is no longer what it used to be, and a company could skyrocket just by changing its name.

Especially for a "giant ship" like SAIC, a large number of institutions hold positions.

For the stock price to rise, there must be a convincing logic.

To paraphrase an old saying from Balao, only when the expectations of "discounted future cash flows" change qualitatively can it trigger a short-term surge in stock prices.

So can we cooperate with Alibaba to launch high-end pure electric Zhiji? Can this be achieved?

In other words, can it provide investors with such "expectations"?

It is true that the first round of financing amounted to tens of billions, exceeding that of Weilai, Xiaopeng, etc. back then.

However, everyone in the industry knows that this scale can only be regarded as a "starting price" when it comes to "building a car".

The key is that although the concept of this matter is very good and it is in line with the hot topics, the uncertainty is too high after all.

To some extent, it is still in the "blueprint" stage.

Just like Weilai and Xpeng, what was their market value when they raised their first round of financing?

Don't forget that just over a year ago, NIO's market value was only one-fiftieth of its current value... Maybe you would say that a year ago, "the wind hadn't arrived", and even Tesla's market value was average.

Things are different now, and new energy is at the forefront.

That being the case, why are there so many new forces "making a big splash"?

Thinking back to just two years ago, do many people still think Byton is more reliable than Xpeng or even NIO?

But what is Byton’s market value now?

More importantly, even if most investors believe in the "golden partnership" of SAIC and Alibaba, it will not be enough to cause too much splash, because SAIC Group is simply too big.

Generally speaking, relying solely on concepts to trigger stock price increases is only suitable for companies with small market capitalization.

For example, Zhangyue Technology, which skyrocketed not long ago, had a market value of only tens of billions when it rose.

The key is that it is a "small company" with total assets of no more than 2 billion, revenue of no more than 2 billion, and net profit of just over 100 million.

With ByteDance's participation, the market can naturally "imagine" that it can quickly double its revenue and profits.

And what about SAIC?

It is a "giant wheel" with a total market value and net assets of more than 300 billion, revenue of 800 billion, and net profit of 20 billion.

Not to mention whether the market can copy or not, just look at expectations: even if Zhiji succeeds, with a mere tens of billions of initial investment, if it is to achieve a substantial increase or even double the "future discounted cash flow", it is estimated that the market will

No one is so optimistic.

The growth potential of Zhiji: It is not as "consistently optimistic" by the market as everyone imagines. Admittedly, you can refute the point of view in the previous chapter from two aspects.

First, the current revenue of Weilai and Xpeng is not high, and their profits are even negative, but this does not affect their market value from exceeding that of SAIC Motor.

Second, Zhiji is not just a "blueprint" at the moment.

Its actual vehicle has been initially taken shape and is about to begin road testing. It will be launched into mass production soon.

Zhiji is not starting from scratch now, but is part of the implementation of SAIC's "L Plan".

This project started as early as two years ago.

We will not discuss the first point. This will return to the "old question" of whether the current "market-to-dream ratio" valuations of Weilai and Xpeng are reasonable.

What we want to talk about now is the second point.