Autos

Capital Calls: Software AG logs onto buyout boom

26 Nov 2021

Concise views on global finance: A subdued valuation and eager bidders increase the 3 billion euro German company’s chances of a possible sale.

Capital Calls: China’s data centre sale

24 Nov 2021

Concise views on global finance: Global Switch is attracting big-name private equity interest, but its quirky setup might justify suitors asking for a discount.

Australia deserves to pay climate risk premium

18 Nov 2021

Canberra adopted a net-zero emissions target mainly to keep the country from being punished by investors. Its newly released assumptions on electric vehicles, mining and more confirm a lack of seriousness in the plan. Sustained pressure from fund managers could make a difference.

Capital Calls: Tesla, Daimler

11 Nov 2021

Concise views on global finance: The electric-car maker’s directors have, like Elon Musk, cashed in; the German company is racing against Agnelli-controlled CNH Industrial to spin off a trucks division.

Rivian’s IPO pushes EV optimism over the limit

10 Nov 2021

The Amazon-backed electric-car company tore past expectations in its stock market debut, hitting a valuation above $90 bln. While the $1 trln Tesla is showing that electric vehicles might be a better long-term business than gas guzzlers, enthusiasm for the sector is in overdrive.

Carmakers muddy private sector’s COP green sheen

10 Nov 2021

Volkswagen and peers have snubbed a Glasgow pledge to end petrol vehicle sales by 2040. Banks’ net-zero promises last week suggested companies might offset inadequate state action. The carmaker rebuff is a reminder that governments still have their hands very much on the wheel.

Electric-vehicle deals get racier than ever

10 Nov 2021

Even more revealing than Rivian’s immodest IPO price is the $1.4 bln sale of battery-powered-van maker Cenntro to a lingerie merchant. The SPAC-like transaction models rather flattering growth curves. Only in a risqué market could there be a hint of logic to such naked ambition.

Hertz goes wheels off in post-bankruptcy listing

9 Nov 2021

The rental car firm inked a $20 bln valuation, including debt, in its stock deal. A rise in travel and surge in Avis’s shares helps justify the price. But a car shortage restrains growth and ride-sharing is still a secular threat, and Hertz is now worth more than in 2019.

Elon Musk caught recklessly tweeting again

8 Nov 2021

He vowed to sell 10% of his Tesla stake if Twitter users said he should while tastelessly taking aim at a U.S. senator. It evokes his 2018 “funding secured” fiasco. Even absent any SEC scrutiny, it exposes the $1.2 trln carmaker and its bad governance to more unwanted attention.

Capital Calls: BT’s fibre, Ford vs. Toyota, SocGen

4 Nov 2021

Concise views on global finance: Leaner broadband rollout boosts the UK telco’s defences against uppity investor Patrick Drahi; the two carmakers trade at similar multiples despite the Japanese outfit’s racier performance; the next leg of the French bank’s revamp will be harder.

Textbook supplier Chegg flunks terminal-value test

2 Nov 2021

A 48% collapse in the educational book-rental company’s shares – after it cut its sales forecast by just 6% – might seem draconian. Chegg’s misfortune shows how, for companies betting on long-term demographic trends, small shifts in assumptions can trigger huge changes in worth.

Capital Calls: KKR, Ferrari, HelloFresh

2 Nov 2021

Concise views on global finance: The private equity company is making the most of ideal market conditions; the Italian sports car maker raises its guidance; and a positive sales update turbocharges the German meal-kit delivery firm’s share price.  

Russian IPO is carsharing model’s crash test dummy

1 Nov 2021

Delimobil, which is listing in New York, maintains a fleet of 18,000 cars for short trips. It’s fast-growing and EBITDA positive, helped by municipalities offering cheap parking. Its model can accelerate in richer countries, but only if taxes make owning a car too expensive.

Capital Calls: Darktrace’s stock wobble

1 Nov 2021

Concise views on global finance: The UK cybersecurity group’s share plunge reflects both short- and longer-term problems.

Stellantis has chance to close in on Volkswagen

28 Oct 2021

Hit by a chip shortage, quarterly sales at the Jeep maker fell harder than at the $140 bln German giant. But its operating margin is better, and boss Carlos Tavares is tackling a weakness in battery electric cars. That should help Stellantis narrow a valuation gap with its rival.

Ford shareholders hit the accelerator too hard

28 Oct 2021

The $61 bln carmaker reinstated its dividend, boosted its earnings outlook and even overtook GM by revenue. That’s all good news, but doesn’t justify the after-hours share rally that widened the valuation gap with its larger rival. Ford is still losing the profit margin race.

Capital Calls: Fantasy-sports group M&A flop

26 Oct 2021

Concise views on global finance: DraftKings has walked away from Entain but the UK target may still attract interest.

Capital Calls: Zooplus frenzy, Volvo

25 Oct 2021

Concise views on global finance: Buyout barons EQT and Hellman & Friedman are going halves in their pursuit of the $4.3 bln petfood supplier; the $19 bln Swedish carmaker priced its IPO at the bottom of the range.

Elon Musk’s promises are getting more realistic

20 Oct 2021

Tesla’s boss reckons production will jump 50% a year and that the Model Y will soon be the world’s best-selling vehicle. He has a history of missing his targets. But recent performance, not least during a chip shortage, means his predictions deserve to be taken more seriously.

Volvo Cars’ IPO valuation is suitably smoggy

19 Oct 2021

The marque owned by China’s Geely could be listed at around $21 bln. Hiving off the combustion engine unit was meant to boost its green bona fides. Yet a reliance on gas guzzlers and optimistic battery targets mean the Swedish group will struggle to stand out from dirty rivals.