Autos

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.

Capital Calls: BlackRock, Tim Cook’s pay

13 Jan 2023

Concise views on global finance: The asset manager edges closer to its Blackstone roots by expanding in private investments; compensation for Apple’s CEO re-enters Earth’s atmosphere.

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.

Capital Calls: Southwest, U.S. jobs and wages

6 Jan 2023

Concise views on global finance: Financial bumpiness caused by the airline’s major flight disruptions should be temporary, partly due to limited competition; slower U.S. wage growth raises the chances that the Fed won’t have to crush the labor market to bring down inflation.

Capital Calls: Amazon, Flying cars

5 Jan 2023

Concise views on global finance: The $855 billion e-commerce giant's layoffs could actually help its antitrust defense; Stellantis’s possible $150 mln investment in Archer Aviation is less crazy than it seems.

Automakers won’t go back to normal

4 Jan 2023

Covid-era shortages weren’t all bad for the industry. Prices soared amid tight supply, adding $7 bln to profits at GM alone. Car companies are trying to manage inventory so that supply and demand – now falling – will match up. They only have so much in their control.

Capital Calls: Tesla merges into slower lane

3 Jan 2023

Concise views on global finance: The $370 bln company led by Elon Musk is better than rivals at making electric cars, but signs of a demand shortfall – including fourth-quarter deliveries that fell short of expectations – threaten ambitious growth plans.

Foxconn reinvents itself, and EV supply chains

3 Jan 2023

The Taiwanese giant plans to make electric vehicles, and the chips and batteries that go into them, for global automakers. That’s a twist on its business of churning out iPhones for Apple in China. As far as strategic pivots go, this one is ambitious and much needed.

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.

Female fans will fuel Formula One in 2023

23 Dec 2022

Liberty Media’s testosterone-powered franchise is ready to shift gear. A docuseries following its drivers was among Netflix’s best-watched shows and lured more women to the racing stands. Forget Lewis Hamilton: finding a Louise Hamilton could rev up that trend and boost revenue.

Vietnam’s Elon Musk challenger turns heads in 2023

21 Dec 2022

Le Thi Thu Thuy is steering VinFast onto Western roads to race the entrepreneur’s premium marque, Tesla. She’ll have to convince investors in its New York IPO to look past niggles at its powerful parent. It’s a complex route, and puts the former Lehman banker in the spotlight.

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.

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.

Clunky salvage-car deal skids into M&A snarls

21 Nov 2022

Scrap-vehicle marketplace IAA’s market cap fell 40% in a classic post-pandemic comedown. A $7.3 bln sale to peer Ritchie Bros suits the times, but investors in both companies are displeased. It’s clear buyers and sellers need more time to see eye to eye on deal valuations.

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.

Geely and Renault engineer new model for old tech

9 Nov 2022

The Chinese and French duo will jointly supply hybrids and gas guzzlers to rivals. Doubt over the role of Renault’s Japanese partner Nissan is awkward, but as automakers hesitate on investing in legacy vehicles, the idea is smart. Scale and moving first will help them rev up.

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.