VinFast charges up its stock market unsuitability 9 Jan 2024 The $16 bln electric-vehicle maker has replaced both its CEO and CFO within five months of going public via a SPAC. The new boss is founder Pham Nhat Vuong, who owns almost all its stock. The latest moves are a reminder that VinFast looks and acts like a private firm.
Tesla-BYD rivalry is mostly manufactured, for now 3 Jan 2024 Elon Musk’s outfit ceded its title of world’s biggest EV maker to the Chinese company. In a growing industry, that’s irrelevant, plus BYD has a home advantage. The longer-term danger to Tesla, assuming geopolitics doesn't upend its supply chain, is if its peer advances in tech.
Toyota will engineer a half-electric renaissance 27 Dec 2023 The world’s largest carmaker is playing catchup with electric upstarts like Tesla and China’s BYD, just as global demand for EVs slows. But boss Koji Sato will capitalise on the Japanese giant’s edge in hybrid vehicles as the tech enjoys a sudden renaissance.
China’s automakers will defy the great uncoupling 22 Dec 2023 There are industries, like microchips, where American trade warriors can cleave friendly supply chains from China. Cars aren’t one of them. Despite $80 bln of announced investments, lagging tech holds US champions back. In 2024, that will prove the limits of protectionism.
Nio’s $2 bln Christmas gift requires some strings 19 Dec 2023 Shareholders welcomed the money-losing electric-car maker’s latest infusion from CYVN. But cash alone won’t put Nio on track unless it focuses and cuts costs. With a 20% stake and two board seats, the Abu Dhabi investor could push for some New Year’s Resolutions to boost returns.
Stellantis will cruise with GM and Ford 18 Dec 2023 The maker of Jeeps and Opels run by Carlos Tavares is one of Europe’s lowest-valued carmakers. Yet it generates much of its income in the US, and boasts industry-leading profit margins. Keeping a single New York listing could see its valuation match Detroit rivals.
CATL prepares to power up wildest electric dreams 5 Dec 2023 The world’s largest battery maker boasts $14 bln in net cash, making a possible Hong Kong listing seem unnecessary. But the extra funds would help CATL grow in Europe and could potentially fuel explosive expansion in Southeast Asia and the US too.
Capital Calls: Saks and Neiman Marcus 1 Dec 2023 Concise views on global finance: The two luxury retailers are once again contemplating a merger. Fickle consumers, even for high end items, make the marriage ideal.
Tesla should dig the Cybertruck’s grave 30 Nov 2023 Elon Musk is about to launch the bizarre, angular pickup two years late after warning that it will be a financial drain. GM and Ford will fight to guard their cash cows; Rivian has a leg up; and pickup buyers are electric skeptics. Releasing this albatross is a mistake.
GM’s big buyback is welcome dose of realism 29 Nov 2023 The Detroit carmaker is falling further behind electric supremo Tesla, its robo-taxis are on ice, and wages are up. Its response: buy back $10 bln of stock. Returning money to investors suggests CEO Mary Barra thinks they can spend it better than she. They would probably agree.
Capital Calls: Barclays, Rolls-Royce 28 Nov 2023 Concise views on global finance: Initial glimpses of the $27 bln UK bank’s new plan suggest it won’t gee shares that trade at 0.4 times tangible book value; the engine-maker’s CEO has set out bold profit targets as part of its strategy overhaul.
Capital Calls: Amazon shipping 27 Nov 2023 Concise views on global finance: The online retailing giant’s push to distribute packages itself has been a costly way to attract customers, but some numbers suggest it is becoming more efficient and speed is helping boost profit.
Capital Calls: Carlyle, Panasonic 22 Nov 2023 Concise views on global finance: The US private equity firm is making a decent return selling its stake in McDonald’s China back to the burger chain. The $25 bln Japanese conglomerate is offloading a chunk of its low-margin automotive unit and will consider a listing, too.
Geely unit IPO will test geopolitical speed limit 21 Nov 2023 EV maker Zeekr, owned by China’s largest auto group, may raise almost $500 mln by going public in New York. Sales of cars, batteries and research are zooming at home, but plans to list and expand abroad look ambitious unless Beijing’s tensions with Washington and Brussels abate.
Renault electric acceleration can swerve IPO 15 Nov 2023 The French carmaker is eyeing 25 bln euros of revenue in 2031 for its battery ride unit Ampere. Capturing the full value of that through an IPO may be tricky in the short term given a sluggish EV market. A listing would be a distraction, and Renault doesn’t really need the money.
Rivian overtakes EV upstarts with Detroit playbook 8 Nov 2023 The $16 bln electric vehicle maker cut losses and raised production even as the market sags. A focus on pick-up trucks and vans apes Ford, but its results are moving in the right direction. While still a minnow, CEO RJ Scaringe’s group is pulling ahead of peers like Lucid.
China EV champs race to make leaner green machines 8 Nov 2023 Nio is ditching 10% of its staff. Rivals won’t be far behind. While electric-car startups in the People’s Republic have proven their tech can keep pace with Tesla, their losses have been rising, in part due to a persistent price war. That makes cutting costs the next big test.
Capital Calls: Aston Martin 1 Nov 2023 Concise views on global finance: The marque favoured by James Bond has lost 50% of its value since a capital increase three months ago.
Stellantis’ China deal maths may amplify US woes 27 Oct 2023 CEO Carlos Tavares is paying up to speed up his green push. At 4.4 times sales, the $1.6 bln deal values Chinese upstart Leapmotor more richly than larger EV peers. Splurging on a rival in the People’s Republic is also a bad look as he negotiates tense pay talks with US workers.
Cooled auto hotheads give labor disputes hope 26 Oct 2023 Ford Motor’s new union agreement could cost $2 bln in pay rises. That stings, but is well short of earlier asks while also recompensing workers. Much about the agreement seems reasonable. As labor pressures continue, the agreement suggests sensible outcomes are possible.