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.
Bitcoin U-turn recharges Tesla governance concerns 13 May 2021 Elon Musk has stopped taking the cryptocurrency for car payments after just three months on climate concerns. But bitcoin mining is a well-known intense user of dirty energy. The flipflop suggests Tesla’s oversight of its founder remains as lax as in the bad old days.
Cobalt angst will turn carmakers into mine owners 10 May 2021 The chip shortage has taught auto groups harsh lessons in supply chain security. Cobalt’s importance to batteries is an existential risk for firms like Tesla and VW. Equity stakes in mines, rather than supply deals, would ease delivery headaches and hedge against price spikes.
Winner-takes-most electric car bet risks collision 7 May 2021 Tesla and Volkswagen shares have leapt as they steal a lead in the booming market for battery vehicles. Yet meeting supercharged expectations implies they will need to hold a market share of nearly 40% by 2025. Rivals’ zero-emission goals will make such dominance unlikely.
Capital Calls: Hella/Hueck, Evolution Gaming, 3M 27 Apr 2021 Concise views on global finance: A big block trade is good news for investors of German car parts maker Hella if it presages industry consolidation; Swedish gaming group enjoys a double whammy from locked-down punters and states jonesing for casino cash; 3M could use a pruning.
Tesla finally justifies its year-ago valuation 27 Apr 2021 Elon Musk’s carmaker posted record quarterly earnings despite selling few high-margin models. It’s boosting production and investment, growing revenue faster than costs, and has pots of cash. That supports last April’s $140 bln of market worth, not the near fivefold jump since.
India Insight: Electric cars charge up tycoons 12 Apr 2021 A drive on Mumbai’s pot-holed roads in Tata’s slick Nexon EV brings to life an opportunity that disruptors Tesla, Reliance and Uber rival Ola are all chasing. Incumbents are playing down the potential, but India is set for the fast lane of the battery-powered vehicle revolution.
Viewsroom: Asia’s E-car mania, U.S. infrastructure 8 Apr 2021 Huawei makes telecoms, Haier dishwashers, Xiaomi phones, Evergrande condos. Now, these Chinese companies all want to make battery-powered vehicles too. And while on the subject of building, U.S. President Joe Biden is going big. Maybe too big for the bean counters in the Senate.
Who wants to be an electric-car billionaire? 8 Apr 2021 In China, who doesn’t may be the better question. Dishwasher maker Haier, property developer Evergrande and smartphone maker Xiaomi are piling into the over-invested sector. They may disrupt the industry; they will certainly accelerate the coming bloodbath.
Xiaomi becomes ultimate electric-car test driver 31 Mar 2021 The smartphone maker is spending $10 bln to expand into smart vehicles. There are no shortcuts to success. But it has ample resources, manufacturing experience and a formidable founder, Lei Jun. If Xiaomi falters, it could prompt other tech industry EV wannabes to steer clear.
ESG wave crashes into Volkswagen’s narrow straits 26 Mar 2021 U.S. eco-investors have pushed ordinary shares in the $153 bln automaker way above equal preference stock after CEO Herbert Diess upgraded battery car plans. Investors’ need for voting rights plus VW’s small free-float may explain why. But the lack of clarity invites a snapback.
Geely’s electric drive is all over the road 24 Mar 2021 A new battery-vehicle unit could help the $29 bln carmaker and its Li Shufu-owned parent compete with startups like Nio. But they’re also chasing a luxury brand, contract manufacturing and a novel share-ownership scheme while shifting CEOs. A more focused route would be better.
Capital Calls: Leon Black, Happiness index 22 Mar 2021 Concise views on global finance in the Covid-19 era: Apollo’s founder still has his imprint on the Museum of Modern Art and Dartmouth College; people are proving surprisingly resilient in the pandemic, a recent poll suggests.
Capital Calls: New York, Allegro exit 17 Mar 2021 Concise views on global finance in the Covid-19 era: The Big Apple reigns in a new ranking of global cities, but the prize isn’t what it was; shareholders in Polish e-commerce group Allegro sell down early.
Volkswagen valuation merits shift to higher gear 16 Mar 2021 The German automaker’s shares rose on plans to double electric vehicle deliveries this year. Were they separate entities, the value of VW’s software arm and its battery car unit could exceed its 110 bln euro market cap. While spinoffs look unlikely, VW shares can climb higher.
Capital Calls: Elon Musk, AstraZeneca 15 Mar 2021 Concise views on global finance in the Covid-19 era: The electric-vehicle maker’s jocular new title of “Technoking of Tesla” tests the theory that deeds matter more than words; fears over the drugmaker’s vaccine risk further delaying the re-opening of Europe’s economy.
VW drives for second place in Tesla-led tech race 12 Mar 2021 Boss Herbert Diess wants to steer the $128 bln German automaker into the thick of the fast-growing market for in-car software. Closing the gap on Elon Musk’s outfit will be tough. But even a podium finish behind the leader would jump-start Volkswagen’s analogue valuation.
Capital Calls: American Airlines, Crypto PayPal 8 Mar 2021 Concise views on global finance in the Covid-19 era: The U.S. carrier is issuing new debt and hocking some airline miles to pay back the U.S. Treasury loan that carried restrictions on pay and dividends; PayPal investors give a shrug over another dive into bitcoin-land.
Stellantis finds limits of cost-cutting 3 Mar 2021 The 43 bln euro Franco-Italian carmaker’s shares rose after its maiden results following January’s merger. Savings bolster CEO Carlos Tavares’ ambitious profitability goal. To raise the group’s lowly valuation, he needs to expand in Asia and have a bolder electric vehicle plan.