Chinese car battery giant reaps crackdown dividend 17 Aug 2021 CATL is raising $9 bln through a private placement, as jittery investors rotate funds into sectors insulated from policy risk. Able to easily raise cash at frothy valuations and plough it into overseas expansion, CATL could give rivals LG Chem and Panasonic an electric shock.
Capital Calls: Oatly, Sonos/Google 16 Aug 2021 Concise views on global finance: The Swedish oat milk producer’s decent results are only good in parts; Sonos gets a boost with a preliminary trade ruling that Google infringed its patents.
Jakarta’s battery drive is on a bumpy road 11 Aug 2021 Hyundai and LG are among those investing to make electric vehicle batteries in Indonesia. The nickel producer is limiting exports as it claws up the resource value chain but its long timeline to electrification means technologies may be disrupted before there is enough demand.
Li Auto’s Hong Kong debut extends battery hedge 3 Aug 2021 The New York-traded carmaker aims to raise $1.9 billion by adding an HKEX listing. Unlike peers Xpeng and Nio, it sells hybrids, with no pure-electric models on the road until 2023. It’s a wager on a slower energy transition in China that could bring profitability before rivals.
Ferrari’s new boss faces early electric test 2 Aug 2021 The EU wants to ban new fossil fuel-powered cars from 2035. That’s likely to force incoming CEO Benedetto Vigna to accelerate the $42 bln sports-car maker’s plans to shift to battery power. How to do that without denting its luxury margins will require some deft driving.
SPAC sheriff shows up not a moment too soon 29 Jul 2021 The U.S. Department of Justice accused electric-truck maker Nikola’s founder Trevor Milton of making false and misleading statements. He had already stepped down from the $5 bln firm. But investors have started pushing back elsewhere. These are needed steps to legitimize SPACs.
Volkswagen makes timid bet on brave new car world 29 Jul 2021 A group led by the German carmaker will pay $3.4 bln for Europcar. The rental company’s city sites may help CEO Herbert Diess sell new services like subscriptions and self-driving taxis. But keeping the unit at arm’s length suggests caution at odds with the optimistic vision.
Apollo SPAC offers cheap ride on EV hype freeway 28 Jul 2021 Electric vehicle charging group Allego is listing through one of the buyout firm’s blank-cheque companies for $3 bln. It’s a crowded space, but a valuation multiple of 5 times 2024 sales is less racy than rivals. Still, only booming battery car demand will avoid a short-circuit.
Tesla comes of age at just the right time 26 Jul 2021 Elon Musk’s carmaker charged past $1 bln in quarterly profit for the first time. Margins finally rival leaders like Toyota. It’s yet to mature into its $620 bln valuation. But growing pains at Lucid and other upstarts make Tesla’s push to validate its price look less fanciful.
Self-driving is pricey route to car parts future 23 Jul 2021 Magna International is paying $3.8 bln for Sweden’s Veoneer, which makes systems that help cars steer themselves. It reduces the $25 bln Canadian group’s exposure to combustion engines. But CEO Swamy Kotagiri will have to put his foot down to keep financial returns on the road.
Capital Calls: Volvo, Moderna, Mediobanca 21 Jul 2021 Concise views on global finance: The Swedish automaker boosts its appeal ahead of a possible IPO by buying out its Chinese joint venture partner; joining the S&P 500 will cut both ways for the vaccine maker; another Italian tycoon ups his stake in the Italian investment bank.
Car-battery SPAC deal is joyride at electric price 13 Jul 2021 U.S. auto charge maker SES Holdings is going public via a merger with Robert Friedland’s blank-cheque vehicle at a $3.3 bln valuation. That’s chunky given a controlling founder and zero near-term sales. Investors must hope big backers like General Motors help swerve potholes.
Combustion shift helps electrify Volvo IPO 8 Jul 2021 The Swedish carmaker is steering its petrol engine unit into a joint venture with parent Geely before a stock market listing. Focusing on future electric car sales helps drive Chairman Li Shufu closer to a racy valuation. Still, ongoing gas guzzler sales dent green bona fides.
Capital Calls: It sure feels good to be a banker 1 Jul 2021 Concise views on global finance: Global deals in the first half of the year broke all records.
Capital Calls: Microsoft, U.S. bank footprint 25 Jun 2021 Concise views on global finance: The $2 trillion software giant’s avoidance of antitrust scrutiny may be coming to an end; a new study challenges the received wisdom that American banks do better in faster-growing states.
Volkswagen’s Tesla race hits wrong gear in China 23 Jun 2021 Boss Herbert Diess wants the country to account for much of the $156 bln German automaker’s electric-car sales by 2025. But VW is falling way short of this year’s target, despite an overall market-leading position. That bodes ill for hopes of challenging Elon Musk’s dominance.
Battery deficit risks UK driving electric jalopy 22 Jun 2021 Britain needs more so-called gigafactories to supply power for green cars, ahead of import caps and a ban from 2030 on gas guzzlers. Current expansion plans may electrify just 20% of local output from BMW, Nissan and others. Prime Minister Boris Johnson faces an uphill drive.
SPAC boom gets “come to Jesus” moment in Lordstown 14 Jun 2021 The electric-pickup-truck maker admitted some pre-orders were nebulous, saw its CEO and CFO step down and warned it may not remain a going concern. This implosion, less than a year after going public, makes it easy for critics and regulators to latch onto specific SPAC problems.
Tesla disrupted by traditional mechanics 4 Jun 2021 May orders nearly halved in China, The Information reports, after safety concerns. This week’s triple recall in the United States makes a deeper dent in its reputation. Car upstarts have quality crises like everyone else, but they do more damage on the bleeding technology edge.
Lambo bid tests Volkswagen’s electric bona fides 27 May 2021 CEO Herbert Diess wags on and on about Europe’s biggest carmaker challenging Tesla for the green automotive crown. Selling the sports car favoured by the crypto-sheikh set, which has attracted a bid worth $9 bln, would allow him to put his money where his gaffe-prone mouth is.