Autos

Tesla success is less fleeting than AV upcharge

7 Nov 2022

Boss Elon Musk charges $15,000 a car for self-driving tech that doesn’t yet work. Ford wants to do that too, even as it ditches plans for robotaxis. Like power steering, fees for hands-free driving may disappear. Good chance Musk’s technology innovates before competitors.

Capital Calls: Japan baulks at U.S. car credits

7 Nov 2022

Concise views on global finance: Tokyo warns America’s Inflation Reduction Act could discourage Japanese investment into the world’s biggest economy.

Elon Musk’s $44 bln Twitter challenge begins

3 Nov 2022

The Tesla boss is now the proud owner of the social media platform. In this Viewsroom podcast, Breakingviews columnists discuss the billionaire’s plans to boost revenue, the implications for the electric carmaker’s shareholders, and what the saga tells us about mega-deals.

Capital Calls: Ocado in South Korea

1 Nov 2022

Concise views on global finance: The $6 bln online grocer’s shares surged almost 40% after it announced a partnership with Lotte Shopping, showing that its strategy of building warehouses for global supermarkets may have legs.

Tesla investors have reasons to fret over Twitter

31 Oct 2022

Boss Elon Musk’s new $44 bln social-media toy offers the potential benefit someday of being hitched to an “everything app.” That possibility looks slim, however, compared to the risks of divided attention, conflicts of interest and geopolitical blowback to the whole empire.

Tesla’s China price cut plays offence and defence

27 Oct 2022

Elon Musk’s $700 bln carmaker says lower production expenses prompted it to lop up to 9% off the cost of vehicles in the country. But it also smacks of a price war in the world’s largest auto market where BYD is gaining ground. Either way, the move sends strong signals to rivals.

Detroit automakers head for light at end of tunnel

26 Oct 2022

Supply woes wrecked Ford’s quarter, but it can take heart from its crosstown rival, which bounced back from issues of its own. Economic threats loom, but GM’s unexpected $4.3 bln in operating profit suggests the industry could yet emerge smoothly from pandemic turmoil.

Toyota’s new, new EV plan suggests smarter driving

25 Oct 2022

The $218 bln Japanese automaker is mulling its third electric-vehicle reboot in 13 months as rival Tesla leaves it in the dust. Frequent rejigs can mean bigwigs are flailing for ideas. But Toyota’s latest overhaul implies boss Akio Toyoda is addressing missteps with more speed.

Zooming car sales will hit China’s growth limit

20 Oct 2022

The country’s drivers bought 2.3 mln vehicles in September, a one-third acceleration. But incentives greased a fragile recovery by pulling demand forward. The truck market is already decelerating after a short-lived boom: carmakers from BMW to Volkswagen could be next.

Tesla’s Apple-sized goals have cash risks

19 Oct 2022

The electric-vehicle leader’s growth keeps it on track to have iPhone-like dominance of its industry. That could justify its $700 bln valuation, unless worrying signs that demand might be flagging transpire. In that context, returning cash to shareholders is a bad idea.

Capital Calls: Netflix struts

18 Oct 2022

Concise views on global finance: The $109 bln streaming service reversed its subscriber losing streak and reminded rivals of its first-mover advantage.

Nissan’s Renault reorg will drive capital raise

12 Oct 2022

The Japanese automaker would drain almost half its $10 bln cash pile if it buys back stock from its French partner and invests in its EV unit. But slow growth and a $14 bln pledge for Nissan’s own electric plans mean CEO Makoto Uchida will have to ask investors to chip in.

Renault, Nissan messy breakup is least-bad option

10 Oct 2022

Signs that the $9 bln carmaker might cut a 43% stake in its Japanese partner hiked its share price. Renault CEO Luca de Meo’s gambit could mean more EV investment, but the French state would have to OK any reduction in its influence. Still, Renault has few good alternatives.

Capital Calls: Peloton races tough economic cycle

6 Oct 2022

Concise views on global finance: The $2.9 bln fitness company is laying off staff for the fourth time this year in a turnaround bid for survival.

Porsche IPO leaves VW stock in Skoda territory

29 Sep 2022

The German carmaker listed its luxury unit at 75 bln euros, nearly matching its own market capitalisation. That makes the rest of VW look cheap. Unfortunately for shareholders, a complex spinoff and muddied governance mean that discount is there for a reason.

Capital Calls: EasyJet, Nexi

27 Sep 2022

Concise views on global finance: The budget airline scraps its offset plan and focuses efforts on cleaner technology; the 12 bln euro payment company’s valuation gap with peer Worldline looks increasingly hard to justify.

Ford’s supply wreck overshadows Detroit’s optimism

21 Sep 2022

The carmaker saw $7 bln wiped off its valuation after saying shortages would crimp results. Still, both it and General Motors have clung to upbeat full-year profit predictions. Add in spiraling costs and tightening credit, and their happy outlook is increasingly discordant.

Nissan’s Ashwani Gupta on the need for speed

20 Sep 2022

The arrest and escape of former Chairman Carlos Ghosn in 2019 put a harsh spotlight on the Japanese auto giant. Covid and inflation have added pressure since. In this episode, Nissan’s COO talks to Pete Sweeney about electrification, fast cars and turning the business corner.

Musk can only wish Twitter was an Aussie company

19 Sep 2022

The Tesla CEO has to go to court to try and worm his way out of buying the microblogging site. Acquirers Down Under are allowed to revise their agreed price even after the target’s board approves a sale. Link Administration’s troubled $1.3 bln takeover saga is a case in point.

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.