Viewsroom: Wirecard, Hong Kong and Tesla 2 Jul 2020 The German fintech scandal shines a light on its hapless regulator; China’s new security law stinks up the fragrant harbor and Elon Musk hasn’t just surpassed Toyota in market value, he’s becoming as rich as Croesus. Breakingviews columnists around the world weigh in.
Tesla market milestone puts Musk pay in overdrive 1 Jul 2020 The Silicon Valley upstart has overtaken Toyota to become the world’s largest carmaker by market worth. Its rapid ride to a $210 bln value also starts the clock on another huge payout for CEO Elon Musk. But production and income show investors have gotten ahead of themselves.
Corona Capital: Drug hoarding, Vacation-free world 1 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Stockpiling of Covid-19 treatment remdesivir may come back to haunt the Trump administration, while a forecast of $3.3 trillion in lost tourism is more than an inconvenience for some national economies.
Greening global recovery is cheaper than it looks 18 Jun 2020 Scattergun stimulus for virus-hit economies may increase carbon emissions. But new research suggests it would cost only a fraction of the $9 trillion mobilised to fight Covid-19 for policymakers to combat climate change and grow their economies at the same time. It’s worth a go.
Energy’s titans will experience a dead cat bounce 21 May 2020 The virus-led crude price crash is upending petrostates and oil majors alike. Incumbent leaders with storage capacity and low costs might seem to be the winners as smaller competitors flounder. But they’ll fall victim to the longer-term behavioural shifts prompted by Covid-19.
Carmakers’ green future gets revved up by Covid-19 18 May 2020 The virus has added pollution fears to climate-change concerns. That should be a boon for electric vehicles when production restarts. But cheap oil makes gas guzzlers look even more economical. State incentives like trading in clunkers for EV discounts would help tip the balance.
Tesla pits electric-power hope against experience 14 May 2020 A big battery upgrade could soon make Model 3s as cheap as gas guzzlers, Reuters reports. That’d be a big leap ahead for electric vehicles and could also shake up utilities. But the infrastructure needs work. And boss Elon Musk has a history of overpromising and underdelivering.
Corona Capital: Air travel, Starbucks 14 May 2020 Concise views on the pandemic’s corporate and financial fallout: Airlines’ experienced hands offer warning; Starbucks begins dance with landlords.
Trucks inch towards electric-vehicle critical mass 5 May 2020 Automakers have invested heavily in electric cars. But selling enough to justify needed infrastructure remains a chicken-and-egg problem. Putting batteries into the haulage fleets of Amazon, UPS and others could vault to a solution. A new report shows how utilities can help, too.
Tesla bulls switch on autopilot 16 Apr 2020 Elon Musk’s carmaker is now worth over $130 bln, its stock price having doubled from its coronavirus low in just four weeks. A stronger balance sheet, a reopened China, and its technology edge are all grounds for optimism. But yet again investors are ignoring hazards ahead.
Three Gorges will bridge its renewables IPO gap 15 Apr 2020 The Chinese state giant plans a $3.5 bln offer for its clean energy unit. Raising funds before the phase-out of subsidies for wind and solar projects is smart even if it will take the outfit more time to be cost-competitive with coal. A strong parent will help support the sale.
Strong dollar hits renewables when they’re down 30 Mar 2020 Plunging oil prices have already made wind and solar power less attractive. But a coronavirus-led weakening of emerging market currencies also pushes up the dollar cost of new projects. That puts a brake on growth just when the opposite is needed to hit carbon reduction targets.
Oil price war bolsters case for U.S. renewables 24 Mar 2020 The Saudi-Russia black-gold spat has drilled a hole in American energy suppliers’ finances and the country’s hopes for energy independence. Bailing out fossil-fuel companies is an option, but a more decisive switch to cleaner energy could make self-sufficiency an attainable goal.
GM’s electric plan gives Musk a fresh challenge 4 Mar 2020 Boss Mary Barra unveiled an industry-leading 400-mile-range battery and $20 bln to invest in new tech by 2025. Sure, her estimated electric car sales will only have GM crawling towards its “zero emissions” goal. But it poses a more serious threat to Elon Musk’s Tesla.
Ford boss may find he’s victim of Darwinism 4 Feb 2020 Jim Hackett was supposed to turn around the Detroit automaker’s fortunes. After almost three years in the driver’s seat, he’s finding success elusive: Ford ended 2019 with a surprise loss. Tesla’s surging valuation and overhauls at other rivals pile on even more pressure.
Tesla shareholders are zooming away from reality 29 Jan 2020 A second successive quarterly profit has them turbo-boosting shares again. Car sales and prices are up, but costs are about matching them even before investment. The tax rate’s rising, too. Only more rapid growth or widespread autonomous driving justify its value. Neither exists.
Guest view: How to cut the ESG disclosure overload 7 Jan 2020 The data Fortune 500 companies provide on environmental, social and governance risks can be overwhelming, hard to compare and lacking much financial use. Geoffrey Heal and Shiva Rajgopal of the Columbia Business School lay out a plan to clean up the informational morass.
Guest view: Cities are $24 trln green opportunity 17 Dec 2019 Metropolises account for 70% of global carbon emissions. That puts them at the forefront of the battle to keep global warming to a minimum, argues Christiana Figueres, the former UN climate chief behind the 2015 Paris accords. But cities cannot do it alone.
Nomura aims for more sustainable Wall Street role 11 Dec 2019 Japan’s biggest brokerage has tried for decades to build an enduring U.S. investment bank. Its latest attempt involves buying renewable-energy boutique Greentech Capital. It’s a small but focused deal in a growing market. That should increase the odds of Nomura making it work.
Shell’s Eneco fail flags Big Oil’s tricky pivot 25 Nov 2019 The oil group lost out to Mitsubishi’s 4.1 bln euro bid for the Dutch utility. Paying up for small European players is easy for Japanese bidders with a low cost of capital. Less so for old crude producers trying to shift to low-carbon energy, while saddled with wary shareholders.