Dahua has started a new "intelligent" car subsidiary, even as its current electric vehicle startup struggles with lower-than-expected sales, negative media coverage, and a crashing PRC car market.
Dahua's first move into electric cars was in 2015
when it founded Leap Motor, which has raised hundreds of millions of dollars ($290 million as we reported in December 2018 and an additional $51 million last August).
By starting another car company Dahua is investing more in this sector, despite its significant difference from video surveillance. In this note, we examine this move and what it means for Dahua, including:
Intelligent Car Focus
Leap Motor Struggling With Sales
Finances Lead to Negative Coverage
Leap Motor's Other Problems
Broader Market Issues
Leap Motor No Response
Conclusion: Distraction For Dahua?