Renault is awkward guinea pig for Tesla-like trick 13 Apr 2022 The group may list its electric-vehicle business. Automaker CEOs look enviously at the rich valuation of Elon Musk’s group. Yet Renault’s battery unit is modest, and poor profitability and messy governance would mean its rump combustion operation would look even less desirable.
Great Wall Motor drives China’s cars to go global 30 Mar 2022 The $30 bln homegrown SUV and pickup-truck specialist grew overseas sales a whopping 142% in 2021. War in Ukraine casts a shadow over its Russian business. GWM’s overall success outside China, though, blazes a trail for ambitious compatriots from Nio to Chery to follow.
Petrol forecourts can shift to fuel-free future 28 Mar 2022 Despite a push to phase out gas-guzzlers, Britain’s Motor Fuel Group may fetch 5 bln pounds. Selling pricey coffee to drivers charging electric cars offers relatively zippy returns. But beside the threat from home chargers, retailers are muscling in with the same idea.
Nio prepares for gruelling financial driving test 25 Mar 2022 The electric-car maker’s loss almost doubled last year to $1.7 bln. Yet it wants to launch three new models and expand into Europe during a supply chain crunch. Its cash pile and manufacturing partner JAC will help. But Nio’s characteristic ambition will take it on a hairy ride.
China’s electric cars are more Tesla than Rivian 22 Mar 2022 The war in Ukraine and a nickel market meltdown inflated battery costs for the industry. Shares in Nio, Xpeng and Li Auto swooned with upstarts like Rivian, while Elon Musk’s $900 bln marque gained ground. New technology and Beijing’s support will help the Chinese automakers catch up.
The climate revolution is underhyped 15 Mar 2022 Kleiner Perkins Chair John Doerr outlines in his new book a plan to reach net-zero emissions by 2050. As an early backer of Amazon and Alphabet, he also explains how saving the planet is a business opportunity akin to the internet in this episode of The Exchange podcast.
Gas guzzlers face reckoning from Ukraine shock 14 Mar 2022 Prices of raw materials and fuel have soared after the Russian invasion. That could push drivers to swap big cars like the Jeep Wrangler for more energy-efficient rides. With big vehicles currently bringing in roughly half of sales, that’s a problem for the $4 trln auto industry.
Musk’s D.C. reset sets dubious precedent 7 Mar 2022 The SpaceX boss has irked lawmakers, battled watchdogs, and even insulted the U.S. president. Offering internet access to Ukraine may catapult him out of villain status. His help is welcome now. But allowing Musk’s finger on the diplomatic scale may have unintended consequences.
Electric-car companies face test of endurance 1 Mar 2022 Lordstown and Lucid shares sank on disappointing estimates of how many cars they will be able to produce. Where it was once enough just to show that making a car was possible, electric-vehicle hopefuls must now prove they can make many, while squeezed by supply challenges.
China’s electric cars map ambitious road to Europe 11 Feb 2022 Xpeng is introducing its battery-powered brand to two more countries on the continent; Nio is close behind. There are no shortcuts from Shanghai to Stockholm, and competing with $900 bln Tesla will be tough. But an asset-light strategy limits the financial fallout if they fail.
Capital Calls: ABB’s car chargers, Airport M&A 10 Feb 2022 Concise views on global finance: The Swiss engineering group’s listing plans come at an unfortunate moment; Britain’s John Menzies takes a risk with rejection of “opportunistic” approach from Kuwaiti air services group NAS.
Vietnam electric car whizz takes ambitious road 9 Feb 2022 Carmaker Vinfast is going all-electric and aims to sell overseas. The strategy combines conglomerate power through parent Vingroup with potential for a faster-than-expected shift to new energy vehicles in Southeast Asia. It maps a decent drive to a mooted $3 bln U.S. listing.
Ford split idea rolls back the odometer 4 Feb 2022 Tesla’s valuation makes contemplating a breakup tempting for Ford, and boss Jim Farley even sounds open to it. But its EV business is intertwined with combustion, which still lags crosstown rival GM. Plus Delphi shows how separating linked car businesses can go wrong.
Lithium squeeze could short-circuit electric cars 1 Feb 2022 Automakers like GM battling the chip shortage face a bigger problem down the road. The price of metals in electric-car batteries is soaring as demand outpaces supply. With even market leader Tesla feeling the bite, the electric revolution looks further off – and less lucrative.
Tesla hits speed bump but with improved suspension 26 Jan 2022 Elon Musk’s electric-car maker’s revenue increased 65% in the fourth quarter. Like rivals it’s battling higher costs and parts shortages, but unlike them it has a 31% gross profit margin as a buffer. Even if the market shifts down a gear, that ought to help it remain in front.
The Exchange: Xpeng boldly goes 18 Jan 2022 The Chinese electric-car maker has navigated everything from shrinking subsidies to Covid-19. Embracing new ways of working is critical, President Brian Gu tells Katrina Hamlin. Future forays into Europe, the metaverse and flying cars will test the Tesla rival’s resilience again.
Battery IPO leaves LG Chem low on power 17 Jan 2022 The South Korean group's $11 bln spinoff was partly designed to unlock value. But the parent now trades at a discount to its 82% stake in its newly unleashed subsidiary. Its unloved petrochemicals-to-materials rump is failing to electrify investors. That looks harsh.
LG revs up Asia’s green-car capital engine 11 Jan 2022 The South Korean company’s $11 bln battery spinoff is just the start of a regional deal frenzy that also includes CATL’s $7 bln share sale. Unlike in Chinese tech, government policies are lifting growth and valuations. For now at least, investors will go along for the ride.
SocGen $6 bln car deal leaves shares in slow lane 6 Jan 2022 The French bank is helping fund the purchase of LeasePlan by its automotive unit ALD. Returns look high and the move helps the pair shift to an electric future. But since investors prefer focused banks, rather than conglomerates, CEO Frédéric Oudéa won’t get much credit.
Tesla at $1 trln must do more than just deliver 3 Jan 2022 Elon Musk’s automaker added $100 bln of market value after serving customers with almost a million vehicles in 2021. The shares tend to pop when Tesla exceeds expectations. But maintaining its valuation will turn the focus onto more ambitious and difficult promises.