Electric Vehicles

Capital Calls: Russian cash, Chinese car feud

25 May 2023

Concise views on global finance: European plans to divert Russian money to Ukraine are ill-thought-out; a feud between China’s BYD and Great Wall Motor is spooking investors.

Geely’s Aston Martin stunt could backfire

19 May 2023

The Chinese auto giant is doubling its stake in the storied carmaker to 17%, and snagging a board seat. But the 45% premium looks rich. Aston Martin needs to speed electrification and sales in China, but Geely will struggle to squeeze value from a stalling British business.

Tesla pushes limits of India’s electric-car dreams

18 May 2023

Elon Musk hopes to make and sell cars in the country. Giving up demands for import tax breaks and building a factory at scale makes sense if his $550 bln company is a market-maker as it was in China. Tesla would need to follow Apple’s roadmap and engineer a new export hub too.

Tesla’s governance autopilot heads for disaster

17 May 2023

Despite a 60% drop from peak market value and Twitter distractions, shareholders backed the EV-maker’s board yet again. Boss Elon Musk’s indulgence of conspiracy theories and avowal to keep speaking his mind raise more red flags. The supine stance invites dangerous consequences.

EU can afford to extend UK car sector’s pit stop

17 May 2023

Stellantis wants Britain to tweak its trade deal with Europe to avoid tariffs on electric vehicles. Delaying rules on where carmakers source material would help both EU and British manufacturers. Moreover, a reprieve would still leave the bloc streets ahead in the EV race.

Vietnam’s Tesla debuts with wrong kind of power

15 May 2023

VinFast is going public at a sales multiple seven times its rival. Merging at a $27 bln valuation with casino mogul Lawrence Ho’s SPAC secures it a listing in the US where the electric-vehicle maker is expanding. But it needs funding and an inflated 2021-style deal doesn’t help.

Volkswagen has increasingly narrow recovery track

4 May 2023

The $77 bln German auto giant reported bumper revenue, but faces an era of slowing growth as slick rivals like Tesla expand. CEO Oliver Blume hopes to boost car sales by 15% and avoid a collapse in prices. Neither looks easy, but at least its stock is priced for the worst.

Tesla’s California slump will be a US slump

24 Apr 2023

The $510 bln electric-car kingpin saw its share of battery-powered sales in California, a bellwether US market, tumble by 13 percentage points from 2022. Emerging rivals and a nascent price war are taking their toll; Musk’s position in Twitter may only make it worse.

Tesla can no longer succeed just on its own terms

19 Apr 2023

The EV maker’s key margin gauge tumbled 11 percentage points, below its own forecast, as it slashed prices to boost sales. Costs are at least under control, but sagging growth is a concern. A lot now rides on producing new models to fend off technological and competitive threats.

Capital Calls: H&M, UK car goals

30 Mar 2023

Concise views on global finance: The $20 bln Swedish retailer’s investors seem to think the worst has passed; Britain has loosened its ambition to phase out combustion engine cars, but the big question is how many green vehicles will be made domestically.

Ferrari’s green journey takes surprise turn

30 Mar 2023

Europe’s plan to support carbon-neutral fuels is good news for the $50 bln luxury carmaker, CEO Benedetto Vigna says on the Exchange podcast. It will allow the group to flog the roaring engines that made its fortune. Electric cars remain a goal, but self-driving Ferraris are not.

Europe throws ignition cars a thin lifeline

28 Mar 2023

A last-minute EU deal will exempt autos running on carbon-neutral propellants from a 2035 combustion engine ban. That may help sports carmakers like Ferrari. Such fuels are costly and energy-intensive. Brands betting big on electric rides, like VW, will struggle to change tack.

Ford’s path to electric glory requires rocket fuel

23 Mar 2023

The US carmaker revealed $3 bln of losses in its electric-vehicle unit, with $3 bln more coming this year. Its targets suggest $8 bln of operating profit by 2027. That gives investors a roadmap for Ford’s race against Tesla, and a clearer vision of how ambitious that is.

Capital Calls: Gas station M&A

16 Mar 2023

Concise views on global finance: Canada’s $44 bln Alimentation Couche-Tard pays 3.1 bln euros for TotalEnergies’ European gas station cast-offs.

EU and US green arms race misses bigger picture

16 Mar 2023

The European Union’s response to Joe Biden’s Inflation Reduction Act gives member states leeway to push back with their own green subsidies. Yet plans for production targets are misguided. To decarbonise while managing China risks, it’s better to seek common ground with the US.

Stellantis has well-padded airbag for car crunch

22 Feb 2023

The Jeep maker’s operating income hit record levels in 2022, but it faces weaker demand from punters and rising competition. Still, CEO Carlos Tavares’s cost cutting and low exposure to China give cause for positivity. Those pluses aren’t reflected in the Stellantis share price.

Capital Calls: Ford and CATL

15 Feb 2023

Concise views on global finance: A new battery plant shows U.S. electric-car makers may struggle to cut China out of supply chains.

America isn’t quitting gas guzzlers yet

3 Feb 2023

Despite tit-for-tat discounts in the electric market, GM and Ford wrung $6 bln of operating profit by increasing prices overall this quarter – and they don’t expect to give it up. It’s an indicator that, even after a banner year for EVs, the U.S. may be slow to give up trucks.

Europe’s autos have weak defences against China

1 Feb 2023

Carmakers like Stellantis and Volkswagen are facing greater competition on their home turf from Chinese rivals. Higher tariffs or government subsidies might soothe the pain, but could also prompt a backlash in the Middle Kingdom. And Europe may even welcome the competition.

Capital Calls: Data falsehoods

26 Jan 2023

Concise views on global finance: Better-than-expected U.S. GDP and durable goods data suggest the country might be spared from a recession. But exclude Boeing sales and corporate stockpiling, and the economic outlook is less rosy.