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.
Tesla’s price war can only go so far 25 Jan 2023 The electric automaker is leading its industry in cutting prices, and high margins mean boss Elon Musk can be aggressive. While he might outpace electric rivals, even zeroing out profit would only lower prices to around $39,000. As a downturn looms, that might not be enough.
Capital Calls: British jolt 17 Jan 2023 Concise views on global finance: The collapse of UK battery group Britishvolt leaves a gaping hole in the country’s auto manufacturing sector.
China’s $2 bln upstart-EV deal is very racy 13 Jan 2023 After failing to pull off an IPO, mass market-focused WM Motor is reversing into smaller Hong Kong-listed Apollo Future Mobility, which makes supercars but earns most of its revenue from jewellery. The odd couple’s close shareholder ties at least rev up the financial logic.
Carmakers will reverse out of public markets 28 Dec 2022 Shares of companies like Stellantis and BMW are depressed on fears of a recession, and the threat of Chinese rivals. Yet the groups are profitable and throwing off cash. One way to make the most of low prices is to buy back shares. The logical next step is to go private.
Tesla has lost its fantasy premium 14 Dec 2022 The electric-vehicle leader’s valuation has halved this year. That’s still compatible with Tesla growing to rival Toyota in size. But it ascribes no value for boss Elon Musk’s futuristic ideas, such as humanoid robots and self-driving taxis. At $500 bln, Tesla is just a carmaker.
Vietnam’s Tesla faces daunting Nasdaq road test 7 Dec 2022 Electric-car maker VinFast has filed for a U.S. IPO. It is unprofitable, has only just gone all-in on battery power, and its dependency on parent Vingroup may be a turnoff, too. The young marque could make a case for a $5 bln valuation, but investors will kick the tires hard.
Nickel IPO puts Jakarta at centre of China EV boom 23 Nov 2022 China’s Lygend Resources, a trader-turned-producer of critical battery ingredients, is eyeing a $600 mln Hong Kong listing. A huge presence in Indonesia gives it an edge over rivals at home, where supply is scarce. That should help the company navigate a bumpy stock market.
Baby EVs’ existential crises bad news for giants 22 Nov 2022 Electric-car maker Faraday warned it may go out of business. A shrinking order book is the latest sign of flagging demand. Established rivals like Tesla or GM can better weather a downturn. But fewer smaller rivals doesn’t help, and dwindling interest is a bad sign for everyone.
Capital Calls: ABB, Italian budget 21 Nov 2022 Concise views on global finance: The $57 bln Swiss engineering group is selling a minority stake in its car charging unit, as a fallback to volatile IPO markets; premier Giorgia Meloni’s hard-right government targets a budget deficit of 4.5% of GDP in 2023.
Capital Calls: Twitter ads, Supervoting stock 11 Nov 2022 Concise views on global finance: Elon Musk is giving big brands an easy out – and a drain on advertising is harder for Twitter to overcome than Facebook; a dual-class share structure enabled the ousted CEO of TuSimple to team up with his co-founder and sack the board.
Renault’s Nissan silence undermines grand revamp 8 Nov 2022 The 9 bln euro carmaker will spin off its electric vehicle unit and partner with China’s Geely on combustion engines. But, while unveiling his strategy in Paris, Luca de Meo remained mum on his Japanese partner. Governance uncertainty makes the complex plans even trickier.
Tesla success is less fleeting than AV upcharge 7 Nov 2022 Boss Elon Musk charges $15,000 a car for self-driving tech that doesn’t yet work. Ford wants to do that too, even as it ditches plans for robotaxis. Like power steering, fees for hands-free driving may disappear. Good chance Musk’s technology innovates before competitors.
Capital Calls: Japan baulks at U.S. car credits 7 Nov 2022 Concise views on global finance: Tokyo warns America’s Inflation Reduction Act could discourage Japanese investment into the world’s biggest economy.
Elon Musk’s $44 bln Twitter challenge begins 3 Nov 2022 The Tesla boss is now the proud owner of the social media platform. In this Viewsroom podcast, Breakingviews columnists discuss the billionaire’s plans to boost revenue, the implications for the electric carmaker’s shareholders, and what the saga tells us about mega-deals.
Capital Calls: Ocado in South Korea 1 Nov 2022 Concise views on global finance: The $6 bln online grocer’s shares surged almost 40% after it announced a partnership with Lotte Shopping, showing that its strategy of building warehouses for global supermarkets may have legs.
Tesla’s China price cut plays offence and defence 27 Oct 2022 Elon Musk’s $700 bln carmaker says lower production expenses prompted it to lop up to 9% off the cost of vehicles in the country. But it also smacks of a price war in the world’s largest auto market where BYD is gaining ground. Either way, the move sends strong signals to rivals.
Capital Calls: Netflix struts 18 Oct 2022 Concise views on global finance: The $109 bln streaming service reversed its subscriber losing streak and reminded rivals of its first-mover advantage.
Renault, Nissan messy breakup is least-bad option 10 Oct 2022 Signs that the $9 bln carmaker might cut a 43% stake in its Japanese partner hiked its share price. Renault CEO Luca de Meo’s gambit could mean more EV investment, but the French state would have to OK any reduction in its influence. Still, Renault has few good alternatives.
Capital Calls: Peloton races tough economic cycle 6 Oct 2022 Concise views on global finance: The $2.9 bln fitness company is laying off staff for the fourth time this year in a turnaround bid for survival.