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.
SPACs and electric cars drive hype feedback loop 23 Feb 2021 Ex-Citi exec Michael Klein has struck the largest ever blank-cheque merger with a deal valuing Lucid Motors at $24 bln. Investors already think it’s worth more than double that. Lucid is a decent bet on battery power but its absurd multiple outstrips all rivals, including Tesla.
Porsche IPO would be valid twist in VW soap opera 19 Feb 2021 More than a decade ago the sports-car maker’s parent tried to buy Volkswagen but wound up ceding control of the brand instead. VW is now mulling a partial float to fund an electric push. A mooted 100 bln euro value looks set to revive old wrangling over what Porsche is worth.
A stripped-down BYD would run faster 17 Feb 2021 The Chinese automaker’s $3.8 bln share sale tapped a craze for electric vehicles. Yet even after a 500% rally over the last year, its Hong Kong stock looks cheap next to Nio and others. Separating battery-powered cars from other businesses could be one way to narrow the gap.
Capital Calls: Third Point, Kraft Heinz/Hormel 11 Feb 2021 Concise views on global finance in the Covid-19 era: Dan Loeb’s hedge fund gets a good start in 2021, while Hormel Foods buys peanuts, but pays anything but.
Japanese carmakers add gas to global autos rally 10 Feb 2021 Toyota and rivals like Ford and GM have recently been trading at multiples not enjoyed for years. Now the world’s largest car manufacturer and local competitor Honda are cranking up profit forecasts. If the semiconductor crunch is the biggest headache, 2021 should be a good year.
Shaky electric-car maker zips into market mania 29 Jan 2021 Faraday Future, which has yet to sell a vehicle, will get yet another lease on life by way of a SPAC. Chinese automaker Geely is also backing the $3.4 bln venture. There are red flags galore, including internal control weaknesses. The biggest may be founder Jia Yueting himself.
China’s BYD builds sleek concept car factory 27 Jan 2021 The $100 bln electric-vehicle maker’s chip unit is in the spotlight with an upcoming IPO. BYD also produces batteries, giving it an edge over rivals grappling with supply-chain woes. Such vertical integration only looks feasible with generous government support, however.
Shared scooters jump into a profitable future 14 Jan 2021 The pandemic has given a new boost to startups offering two-wheeled rentals, previously dented by high operating costs and safety fears. With increased demand, more European cities legalising e-scooters, and funding from investors like SoftBank, the business is gaining speed.
Corona Capital: Bond bonanza, Albertsons 12 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: U.S. companies' bond issuance in 2020 hits records across the board; and America’s No. 3 grocer continues to take advantage of the shopping habits created by Covid-19 lockdowns.
Nio helps justify a little bit of the hype 12 Jan 2021 The Chinese electric-car maker unveiled a new sedan and plans for a battery pack with over 1,000 km range. That should smooth its fourth capital hike in seven months. So much needs to go right, though, to merit a $100 bln valuation that exceeds those of Ford, GM and Daimler.
Tech and auto bosses form an awkward carpool 11 Jan 2021 Shares of South Korea’s Hyundai are up 30% on reports of a tie-up with Apple for self-driving vehicles. Selling software could ramp up margins for carmakers and alleviate technology headaches. But joining forces is a shortcut that could prove hazardous down the road.
Corona Capital: U.S. college football 6 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: U.S. college football programs are in a talent arms race for coaches, a bit like companies' quest for top-ranked CEOs, despite the pandemic's impact on revenue.
Brexit throws down electric gauntlet to UK cars 4 Jan 2021 Britain’s motor industry has escaped European Union tariffs that would have hobbled half its output. But to meet export rules on low-carbon vehicles by 2024, Prime Minister Boris Johnson needs to ramp up battery output. Convincing groups like Nissan and BMW to stay will be tough.
Volkswagen pact helps CEO more than returns 15 Dec 2020 The German carmaker has made a statement in support of boss Herbert Diess, allowing him to appoint key allies and cut some costs as it moves to electric cars. The agreement should end a long-running dispute with unions. Investors hoping for higher returns face a lengthier wait.
Daimler could be Elon Musk’s Time Warner 3 Dec 2020 AOL merged with the media group back in 2000, parlaying its bubblicious share price into an old-line business. Electric-car maker Tesla, worth an eye-popping $540 billion despite a puny 0.8% global market share, could do something similar. The Mercedes owner is the best fit.
VW boss dilemma is about more than Herbert Diess 1 Dec 2020 The $90 bln carmaker’s CEO wants a contract extension beyond 2023. Diess is gaffe-prone but has the right strategy for moving to electric vehicles and extracting efficiencies. His contract debate is a proxy for whether VW’s board can face down unions trying to muddle that shift.
GM takes weak middle road with banged-up Nikola 30 Nov 2020 The $65 billion automaker says it will sell its fuel-cell tech to the troubled zero-emissions-truck company, but has shelved plans to take an equity stake. Cutting ties or doubling down with Nikola, whose value halved since early September, would have been bolder choices.
Beware Chinese used-car dealer’s sticker price 27 Nov 2020 Kaixin Auto is riding electric-vehicle enthusiasm with an odd plan to merge with e-commerce outfit Haitaoche. After going public by way of a shell company in 2018, just 2% of its shares are freely traded. The 2,300% rise in market cap requires a closer look under the hood.
Musk passes Gates, but not yet in impact 24 Nov 2020 The Tesla mogul’s wealth edged past the Microsoft founder’s, at just under $128 bln. That’s because Gates has given vast sums to charity and supercharged vaccine development, especially for the poor. Helping out humanity beats amassing wealth. Musk may one day achieve that too.