Electric Motor Firm Wolong Clarifies Business Relationship With Tesla
Wolong, a Chinese provider of electric motors and driving solutions, said on August 5 in response to investors’ questions that “the company provides Tesla with robot production lines.” In order to avoid misleading investors, the company issued a clarification on August 7.
Wolong was founded in 1984 and listed to the Shanghai Stock Exchange in June 2002. According to the announcement, the main businesses of Wolong are motors and driving control, power batteries, photovoltaic energy storage, and more. The motors and driving businesses are mainly divided into industrial motors and driving, daily motor control, and electric transportation. Wolong provides Tesla with system solutions for equipment automation, only covering the industrial robotics field, accounting for a small proportion of the company’s overall business.
Besides Tesla, Wolong’s products are also supplied to other customers. The specific business is mainly carried out by Soluzioni Industriali Robotizzate S.p.A. (SIR), a holding subsidiary of Wolong.
Since 2017, the accumulated orders received by SIR from Tesla do not contribute 0.5% of the company’s operating income in 2021. Therefore, Tesla’s orders have little impact on SIR’s operating performance.
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Wolong has established R&D centers for motors and driving in China, Europe and Japan, and it has established a unified product R&D platform for leading products. In the first quarter of 2022, the company’s revenue was 3.527 billion yuan ($522 million), up 18.02% year-on-year, and the net profit attributable to shareholders was 198 million yuan, up 50.46% year-on-year.