Porsche IPO has two investor roadblocks to clear 16 Sep 2022 Volkswagen is listing the sports-car maker. To get the best outcome, it will need to persuade potential buyers to value it more like Ferrari than an ordinary auto group, and shrug off its complex governance. A 70 to 80 bln euro price range would adequately reflect this balance.
Biden graces Detroit but Musk steals the show 15 Sep 2022 The U.S. president’s visit to the Motor City auto show coincides with vast subsidies to aid carmakers in going electric. But Elon Musk’s Tesla, which eschews the event, is why they need help in the first place. Government support is less picking winners than consoling runners-up.
China’s battery maker has an IPO charging problem 15 Sep 2022 China Aviation Lithium is low on power ahead of its $1.5 bln Hong Kong float. The CATL wannabe is growing fast but its profit leans on government subsidies. Throw in high dependence on a single automaker and ties to a sanctioned entity, and it looks like a difficult ride.
Capital Calls: SPACs’ long shadows 12 Sep 2022 Concise views on global finance: While electric-vehicle startup Nikola is moving beyond its founder, both it and its SPAC-partner peers are mired in supply chain challenges, slipping deadlines and tumbling share price performance.
Capital Calls: Porsche’s bold IPO 6 Sep 2022 Concise views on global finance: German carmaker Volkswagen is pushing ahead with its plan to list the luxury brand, despite torrid markets.
China’s BYD can navigate a Buffett selldown 31 Aug 2022 The Shenzhen electric-car maker’s shares fell more than 10% after the billionaire offloaded a sliver of his $7.5 bln stake. Fears of further sales are weighing on the company’s stock. But BYD is enjoying a stellar run as vertical integration and a daring move upmarket pay off.
Do hybrid vehicles help or hurt the environment? 25 Aug 2022 Automakers like Toyota still favour cars that run on both batteries and fossil fuels. In this Viewsroom podcast, Breakingviews columnists debate whether this is smart given shoddy power grids and rising cell costs, or a dangerous distraction in the battle against climate change.
Geely’s export success warns global rivals 19 Aug 2022 The $21 bln Chinese carmaker is growing overseas, despite political headwinds and consumer skepticism. Electric vehicles are targeted to make up half its sales by 2023. Boss Li Shufu is best known for acquiring Volvo, but now his own brands can compete in Europe and beyond.
Anti-Beijing bandwagon sideswipes Biden’s EV push 16 Aug 2022 Only cars with a good chunk of U.S. battery parts and critical minerals qualify for a $7,500 tax credit passed by Congress. A global supply chain that relies on China means few vehicles will qualify. The race against climate change takes a back seat to the America First drive.
CATL can pull off its risky reshuffle 2 Aug 2022 A director and second-largest shareholder at the $194 bln battery maker has quit and founder Robin Zeng is now both chair and general manager. Such moves can be red flags for investors. But as CATL goes global, a familiar face at the top is for now more reassuring than not.
Time for Volkswagen to park its Porsche IPO 28 Jul 2022 The 82 bln euro German group’s plan to list the luxury marque has been tarnished by its decision to name the same CEO for both companies. The IPO could be a distraction at a time when carmakers face a recession. The best option right now is a delay, plus a governance rethink.
Tesla investors bet on recovery and fantasy 20 Jul 2022 The electric-car leader’s 10% quarterly fall in sales reflects factory woes shared by other carmakers too. Yet with a market capitalization of $770 bln, Tesla is valued like none of its peers. The stock is buoyed by promises of a bigger revolution up boss Elon Musk’s sleeve.
China Inc offers 360 view of SPAC last hurrah 14 Jul 2022 Carmaker Chijet is merging with a blank-cheque vehicle that planned to scout for healthcare firms. Video streamer Glory Star, bought by a SPAC in 2020, is accepting a net buyout price barely equal to last year’s earnings. They are fitting examples of a distorted and dying market.
Capital Calls: Fed faces inflation divergence 30 Jun 2022 Concise views on global finance: The central bank’s preferred measure of rising prices, the U.S. personal consumption index, rose 6.3% in May. That’s more subdued than the surging consumer price index. But the latter offers a better read on household spending.
Texas becomes Tesla’s new China 29 Jun 2022 The U.S. state has been good to the carmaker, offering tax breaks while the top prosecutor backed Elon Musk’s Twitter bot claims. That’s similar to how his relationship has worked with China. Musk returned favors to Beijing. Soon, he could become a dutiful friend of Texas, too.
Green deals overcome markets flashing red 28 Jun 2022 Despite widespread investor risk aversion, China’s EV battery giant CATL just raised $6.7 bln in new equity. The decarbonisation theme is dominating big stock sales. Supply chains and higher costs are a concern, but the Ukraine war will help keep capital coming to clean energy.
Lithium landgrab sparks new electric-car risk 24 Jun 2022 Tesla, Stellantis and others want to lock in long-term supplies of the battery component. Elon Musk might even try mining it. Such steps are enticing after the metal’s price rose tenfold in two years. But deals struck under duress can be a shock to the system down the road.
Capital Calls: SoftBank Arm-twisting 22 Jun 2022 Concise views on global finance: The UK government may be eyeing desperate measures to keep SoftBank-owned chip group Arm's IPO in London.
Ferrari races into a greener, pricier world 16 Jun 2022 The luxury sports carmaker wants to boost revenue to 6.7 bln euros by 2026 and nearly double EBITDA. That will fund investment in electric vehicles, where new CEO Benedetto Vigna needs to catch up. Success rests on convincing its millionaire clients to pay ever higher prices.
Didi’s vertical integration strategy distracts 9 Jun 2022 The ride-hailing giant may buy a stake in Sinomach’s electric vehicle unit. Didi’s $5 bln cash pile, plus its data and technology, could revive the struggling state firm, which until recently focused on importing cars, not making them. It can’t help rebuild Didi’s core business.