Musk charges Tesla at least one-quarter full 24 Oct 2018 The delayed Model 3 ramp-up revved up the electric-car maker’s latest sales and drove it into the black. The gains may not be sustainable, and the CEO’s behavior and potential capital needs remain worries. But after a riotously unstable quarter, any hint of normalcy is welcome.
Daimler and Ford dividends have whiff of roadkill 24 Oct 2018 The duo are the car sector's worst stock market performers this year and on track to pay out a higher share of earnings than peers. They will have to dip into cash reserves to do so. Weak sales and investments in electric and autonomous vehicles make such largesse unsustainable.
Renault deserves its battered valuation 23 Oct 2018 The French carmaker trades at one of the lowest multiples in an unloved sector. Shrinking third-quarter sales show why that is merited. An alliance with Nissan and electric-vehicle investments offer glimmers of hope, but neither will turbo-charge shares in the coming year.
KKR throws autos shareholders into a spin 22 Oct 2018 The buyout group is paying $7.1 billion for a Fiat Chrysler-owned supplier. The double-digit earnings multiple is a coup for new FCA CEO Mike Manley. The big premium to where the industry trades needs some justifying. But regular investors may also be too gloomy about the sector.
Bond investors add fuel for Uber’s profit bonfire 18 Oct 2018 The ride-hailing company has tapped the junk market for $2 bln, even though it generates no EBITDA from which to pay interest. Investors are betting either that Uber will turn a profit – or more likely, that its dash for growth will lure future investors who can pay them back.
Volvo fumes are second hazard for truck investors 16 Oct 2018 The $31 bln Swedish group’s warning on engine emissions could scarcely have come at a worse time. Investors are already fretting that demand for commercial vehicles has peaked for the current cycle. When two truck-dashboard lights are flashing, the safest thing to do is bail.
Tesla can find a better chair than James Murdoch 11 Oct 2018 The media executive is in line to lead the board, the FT says. He’d be a better pick than any of the $45 bln electric-car maker’s other directors. But Elon Musk’s tweet denying the story is a reminder that Tesla and its investors need a strong outsider to oversee the CEO.
BMW writes China JV owner manual for its rivals 11 Oct 2018 The luxury carmaker will take control of its venture with Brilliance Auto for $4.2 bln, making it the first to take advantage of new rules. Share weakness has helped it drive a bargain, even if the deal doesn’t close until 2022. Others like Daimler may follow in the slipstream.
Car parts could be China’s trade sledgehammer 10 Oct 2018 Beijing is running out of U.S. imports to tax but it has other ways to make things ugly. American carmakers depend on an uninterrupted flow of imported parts, and China is the No. 2 supplier. Any attempt to disrupt component shipments could throttle the likes of Ford and GM.
Activists may soon arrive by truckloads to Germany 9 Oct 2018 Whether uppity investors will rattle the cages of VW and Daimler depends on how they separate their commercial-vehicles arms. Resorting to standard, crummy German governance through partial listings, rather than clean-break spinoffs, will earn them the enmity of investors.
Electric-car crash gives Evergrande a tech lesson 8 Oct 2018 Jia Yueting’s Tesla wannabe wants to scrap a $2 bln rescue agreed with a unit of the Chinese property giant. In June, the deal sent Evergrande Health stock soaring. Much of that gain is now lost. Investors are left with few reasons to trust future efforts to swerve into new lanes.
Toyota and SoftBank press accelerate on AV jargon 4 Oct 2018 The duo are pairing up to build "Autono-MaaS" vehicles. The $200 bln carmaker gets introduced to Masayoshi Son’s stable of ride-hailing apps and his telco gets a big potential data customer. As wild bets proliferate, for now, this one helps Toyota catch up on the buzz.
Carmakers self-drive closer to Marchionne’s ideal 3 Oct 2018 Honda is buying a stake in GM’s autonomous vehicle unit. Daimler and Renault-Nissan may cooperate more on Autos 2.0. Joint ventures help with costs, but are tricky to run. Full-blown mergers, advocated by late Fiat Chrysler boss Sergio Marchionne, make longer-term sense.
Fiat car-parts sale needs private equity mechanics 3 Oct 2018 The carmaker may spin off or sell its Magneti Marelli unit. Handing it to shareholders would let them keep any upside. But the outlook for parts makers is mixed, and valuations low. Selling to the likes of KKR makes more sense, even if CEO Mike Manley has to accept a price cut.
Tesla investors get unsubtle hint from SEC 30 Sep 2018 The watchdog is using its settlement with CEO Elon Musk to impose some much needed adult supervision. The $45 bln electric-car maker must install an independent chair and find two new unbiased directors. It's up to shareholders to push for a broader governance overhaul.
Musk suit could uncover Tesla’s true value 27 Sep 2018 The U.S. securities regulator wants Elon Musk removed as CEO and director, saying he lied about a plan to take the $53 bln electric-car maker private. His exit would leave Tesla much depleted, but also more rationally valued – if it can motor past a looming liquidity crunch.
TomTom is risky option on carmakers beating Google 27 Sep 2018 The $2 bln navigation group may sell a sideline business a week after key customer Renault said it would use Google Maps. After the sale, TomTom would look cheap – unless the search giant wipes the floor with rival mapmakers. The U.S. group’s track record makes that a dicey bet.
Japan bends without breaking on U.S. trade 27 Sep 2018 After resisting for months, Prime Minister Shinzo Abe finally agreed to bilateral talks with Donald Trump. He had little choice given how vulnerable Toyota and other carmakers are to U.S. tariffs. Sticking with TPP, however, has given Japan leverage in areas such as agriculture.
Daimler’s new CEO to drive without steering wheel 26 Sep 2018 Ola Kaellenius, Mercedes’ head of development, will in 2019 replace Dieter Zetsche. The chief executive of 13 years will return as chairman in 2021. The risk is that Kaellenius will be hamstrung in the interim. The carmaker can ill afford to be stuck in neutral for two years.
BMW justifies carmakers’ slow lane valuation 25 Sep 2018 Investors fled the sector this year on trade-war fears and new emission rules. At around six times earnings, Europe’s automakers were starting to look cheap. The German group’s profit warning, however, is a reminder of carmakers’ limitless capacity to generate bad news.