Tesla Motors CEO Elon Musk might have to compete against Stephen Wong for leadership in the EV market in China. A Hong Kong business tycoon who owns electric bus maker Golden Dragon is aiming to become a leading producer of electric commercial vehicles in the country, according to a report by Bloomberg.
Golden Dragon aims to be like Tesla
Wong owns more than an 80% stake in Golden Dragon. The company’s brand manager, Shi Wenshui, announced that the company’s goal is to become like Tesla in the creation of electric vehicles, though such plans could experience stiff competition from BYD, which is the largest manufacturer of electric vehicles in China. Partially owned by Warren Buffet, the company was founded by Wang Chuan-Fu and is associated with producing both electric cars and buses.
On the other hand, Tesla is also striving to generate demand for its products in China. The company has been claimed to have excess inventory in the country. In an attempt to increase its sales there, the EV maker has been providing drivers with free charging devices and giving them free access to its Supercharger stations.
The right time to invest in electric vehicles
In China, new energy vehicles are becoming increasingly popular among investors. Moreover, the Chinese government recently launched a program to produce electric vehicles, and almost 40 new models are expected to be put on sale in 2015. Thus, this could be considered as appropriate time for Wong to enter the electric vehicle market as the government is supporting the industry.
Wong initially established a television manufacturing firm called Skyworth Digital Holdings Ltd. In 2006, the businessman had to leave the company after he was found guilty of embezzling money and other illegal activities. Consequently, Wong was jailed for three years and released in 2009. Post his release, he founded Golden Dragon and is now looking to become a leader in the Chinese EV market. For now, Wong’s net worth amounts to $1.2 billion, a majority of which is contributed by his 36% stake in Skyworth, says Bloomberg.