Tesla is risky vehicle for Saudi reform drive 14 Aug 2018 The Gulf state wants to diversify away from oil and might help take the auto group private, reckons CEO Elon Musk. That’d be a mistake. Tesla could flop even if electric cars take off, and Musk’s buyout price is too high. There are cheaper ways to play the energy transition.
China’s Tesla bets on hot-wired dream for IPO 14 Aug 2018 Electric-car maker Nio wants to raise up to $1.8 bln in a New York listing. Chinese drivers are getting greener and richer. But with less than 500 cars delivered and 2017 net losses near 14 times those of Elon Musk’s outfit before a more modest 2010 listing, this is a hard sell.
Musk missive reveals more than he might like 13 Aug 2018 Tesla’s CEO has given extra details about his mooted buyout of the $59 bln electric-car maker, including that the Saudis want to finance it. Yet how he’s handled the disclosures, and his too-free definition of “secured” financing, confirm how ill-suited he is for his public role.
Viewsroom: Tesla’s wild and crazy ride 9 Aug 2018 CEO Elon Musk’s tweet about wanting to take the company private is causing a stir. Unorthodoxy aside, its volatile boss and weak corporate governance means Tesla is better off the public roads. Plus, Pakistan’s likely new leader Imran Khan will have to go hat in hand to the IMF.
Good riddance to a publicly traded Tesla 8 Aug 2018 CEO Elon Musk wants to take the electric-car maker private. That’s where it belongs. Tesla loses money, routinely reneges on promises, engages in execrable corporate governance – and Musk’s outbursts on calls and Twitter are a liability. The market is better off without Tesla.
Tesla buyout would need to go short on leverage 7 Aug 2018 Elon Musk wants to drive the unprofitable electric-car maker off the public market at a $72 bln sticker price. Banks would balk at lending much more than a third of that, so he’d need to persuade shareholders to stay and big investment funds to jump in. That’s eminently doable.
Elon Musk ekes out Tesla breathing space 1 Aug 2018 The electric-car maker burned less cash last quarter, but owed more to suppliers and has debt coming due. The volatile CEO reckons Tesla will avoid having to raise more equity. But investors are already punishing the scourge of “bonehead” analysts for taking on the dare.
Ford’s pain deserves more blame than GM’s 25 Jul 2018 While the largest U.S. automaker’s stock lost almost 5 pct after it said tariffs helped make commodities pricier, Ford has been warning about these costs for a while. But its deeper-seated problems in Europe, China and elsewhere warrant more severe punishment from shareholders.
Tesla sends wrong message to right stakeholders 23 Jul 2018 Elon Musk asked some suppliers to cut prices. He’d be nuts not to. It’s a way for the $53 bln electric-car maker to control costs while dangling the prospect of more business for parts makers if Tesla succeeds. But pitching it as a do-or-die moment undermines Musk’s credibility.
Sergio Marchionne leaves a giant sweater to fill 21 Jul 2018 Ill health has forced FCA’s CEO to leave early. Successor Mike Manley runs Jeep, its most profitable brand and core to Fiat Chrysler’s five-year plan. That provides continuity. But without jumper-wearing Marchionne, Fiat’s independent future may be harder to guarantee.
Viewsroom: Europe puts Google in a bind 19 Jul 2018 The search firm can easily cover the EU’s $5 bln fine for using its Android phone system to stymie rivals. But the order to stop forcing handset makers to pre-install its software could clip innovation. Plus: Goldman Sachs and Tesla put lackluster corporate governance on show.
CATL’s overseas charge has lasting power 10 Jul 2018 The Chinese battery champion will build its first factory abroad in Germany after scoring a $5 bln supply deal with BMW. It establishes a base in a promising market for electric vehicles. The newly listed company is cementing its lead over compatriot Warren Buffett-backed BYD.
Tesla can beat Ford out of China trade pits 9 Jul 2018 Absorbing new tariffs on U.S. cars would probably have killed any chance of CEO Elon Musk hitting his goal of a profitable second half. Ford can soak them up. Strategically, the balance is different: Ford needs new ideas, while Tesla just has to get on with building a factory.
Tesla upshift puts focus on bigger battles 2 Jul 2018 Elon Musk had to pull out all the stops to hit his oft-postponed Model 3 production target. It will cheer his faithful followers and make it easier to raise capital. But for the electric-car maker to really cruise, he must prove he can sustainably increase output and make money.
BP’s electric car foray is imperfect oil hedge 28 Jun 2018 The British giant is spending 1 pct of its $16 bln capex budget on battery-powered vehicle chargers. That’s unlikely to protect against a drop in crude demand. But after writing down most of its last $8 bln push into new energies, investors doubt BP can reinvent itself.
China’s $2 bln electric car rescue is an odd turn 26 Jun 2018 A subsidiary of property giant Evergrande has agreed to bail out a troubled U.S.-based Tesla challenger. Faraday Future’s Chinese founder Jia Yueting gets breathing space, but why Chinese or U.S. regulators would clear this deal is a puzzle. Investors may be celebrating too soon.
Elon Musk’s paranoia may be justified 19 Jun 2018 Tesla’s boss says an employee tried to “sabotage” the firm and thinks rivals, energy firms and short-sellers are out to get the $60 bln electric-car maker. He’s partly right, but it comes with the territory for someone who wants to overturn the industry with his radical vision.
Tesla job cull is more signal than maneuver 12 Jun 2018 Cutting 9 pct of workers won’t tip the $60 bln electric-car maker into profit. Even if it halved its sales and admin budget it would probably still lose money this year. There’s a message in the economizing, though: boss Elon Musk is eyeing small things, not just the big picture.
China’s giant battery-maker can outrun IPO hype 11 Jun 2018 CATL shares rose by the maximum 44 pct in its market debut. While such ardour is common in China’s frothy markets, the $12 bln local champion could live up to high expectations. Its success will also rev up demand for the next listings that ride the global electric vehicle boom.
Fiat Chrysler revs up for new hair-raising ride 31 May 2018 CEO Sergio Marchionne is about to unveil the $32 bln carmaker's next five-year plan after hitting most previous targets. He has to show how the company can fix its stalling Europe unit while catching up on electric and self-driving vehicles, all without him at the wheel.