Autos

Tesla’s California slump will be a US slump

24 Apr 2023

The $510 bln electric-car kingpin saw its share of battery-powered sales in California, a bellwether US market, tumble by 13 percentage points from 2022. Emerging rivals and a nascent price war are taking their toll; Musk’s position in Twitter may only make it worse.

Tesla can no longer succeed just on its own terms

19 Apr 2023

The EV maker’s key margin gauge tumbled 11 percentage points, below its own forecast, as it slashed prices to boost sales. Costs are at least under control, but sagging growth is a concern. A lot now rides on producing new models to fend off technological and competitive threats.

Pirelli will help read China investment tea leaves

4 Apr 2023

Sinochem has denied plans to ditch a 37% stake in the Italian tyremaker. But Beijing’s pressure on state-controlled firms to boost shareholder value and dump non-core assets may lead to a sale. Pirelli’s fate will have a bearing on China’s $1 trln overseas portfolio.

Capital Calls: H&M, UK car goals

30 Mar 2023

Concise views on global finance: The $20 bln Swedish retailer’s investors seem to think the worst has passed; Britain has loosened its ambition to phase out combustion engine cars, but the big question is how many green vehicles will be made domestically.

Ferrari’s green journey takes surprise turn

30 Mar 2023

Europe’s plan to support carbon-neutral fuels is good news for the $50 bln luxury carmaker, CEO Benedetto Vigna says on the Exchange podcast. It will allow the group to flog the roaring engines that made its fortune. Electric cars remain a goal, but self-driving Ferraris are not.

Europe throws ignition cars a thin lifeline

28 Mar 2023

A last-minute EU deal will exempt autos running on carbon-neutral propellants from a 2035 combustion engine ban. That may help sports carmakers like Ferrari. Such fuels are costly and energy-intensive. Brands betting big on electric rides, like VW, will struggle to change tack.

Ford’s path to electric glory requires rocket fuel

23 Mar 2023

The US carmaker revealed $3 bln of losses in its electric-vehicle unit, with $3 bln more coming this year. Its targets suggest $8 bln of operating profit by 2027. That gives investors a roadmap for Ford’s race against Tesla, and a clearer vision of how ambitious that is.

Capital Calls: Maserati

21 Mar 2023

Concise views on global finance: The Italian sports car maker owned by Stellantis wants to lift its operating margin to 20% before considering a spinoff.

Capital Calls: Gas station M&A

16 Mar 2023

Concise views on global finance: Canada’s $44 bln Alimentation Couche-Tard pays 3.1 bln euros for TotalEnergies’ European gas station cast-offs.

Capital Calls: SVB found old concentration risk

10 Mar 2023

Concise views on global finance: The busted bank counted half of all U.S. venture capital-backed startups as clients. As with financiers to oil barons in the 1980s, monomaniacal focus on a booming industry is a way to court disaster.

Tesla prepares for its next production hell

2 Mar 2023

Boss Elon Musk addressed “anyone who is an investor in Earth” at a rambling event, but there was no unveiling of a much-hyped $25,000 car. New cost-cutting goals imply the cheaper vehicle may deliver healthy 20% gross margins. Whenever it comes, though, it will be a tough drive.

Capital Calls: Monte dei Paschi, Abrdn

28 Feb 2023

Concise views on global finance: Insurer AXA is selling shares in the Italian bank just four months after joining a risky capital increase; meanwhile, the UK asset management group run by Stephen Bird is still shrinking.

Scrap-car deal battle is a heaping mess

23 Feb 2023

Ritchie Bros’ $7 bln deal for salvage-yard operator IAA has seen dueling activists, wild synergy projections, and a big hit to the buyer’s stock. The deal’s value looks slim unless optimistic promises pan out – the problem is, they include gains investors can get on their own.

Stellantis has well-padded airbag for car crunch

22 Feb 2023

The Jeep maker’s operating income hit record levels in 2022, but it faces weaker demand from punters and rising competition. Still, CEO Carlos Tavares’s cost cutting and low exposure to China give cause for positivity. Those pluses aren’t reflected in the Stellantis share price.

Capital Calls: Ford and CATL

15 Feb 2023

Concise views on global finance: A new battery plant shows U.S. electric-car makers may struggle to cut China out of supply chains.

BYD’s world-beating EVs brace for a rougher ride

15 Feb 2023

The Chinese electric-car star outsold Tesla last year, and net profit zoomed up more than 1,000%. Economies of scale rule in a young industry. But even the leaders will struggle to keep up the pace as overcapacity and accelerating competition slam the world’s largest auto market.

America isn’t quitting gas guzzlers yet

3 Feb 2023

Despite tit-for-tat discounts in the electric market, GM and Ford wrung $6 bln of operating profit by increasing prices overall this quarter – and they don’t expect to give it up. It’s an indicator that, even after a banner year for EVs, the U.S. may be slow to give up trucks.

Lotus SPAC calls for scrutiny under the bonnet

3 Feb 2023

The merger with a blank-cheque company backed by LVMH values the marque at $5.4 bln. That’s cheaper than rivals it’ll race against. But plans to electrify a brand known for speedy gas guzzlers are ambitious, and outsourcing manufacturing to China’s Geely could be costly.

Europe’s autos have weak defences against China

1 Feb 2023

Carmakers like Stellantis and Volkswagen are facing greater competition on their home turf from Chinese rivals. Higher tariffs or government subsidies might soothe the pain, but could also prompt a backlash in the Middle Kingdom. And Europe may even welcome the competition.

Rejigged Renault-Nissan alliance looks headless

30 Jan 2023

The French and Japanese automakers clinched a deal to save their 24-year partnership. Renault will only vote 15% of its stake in Nissan, which now has a similar say in its partner. It avoids a messy divorce, but the lack of a clear leader may make decision-making trickier.