Autos

Capital Calls: Moderna, Qualcomm, US tax, ViacomCBS

5 Aug 2021

Concise views on global finance: The Covid-19 vaccine maker is looking past the pandemic; the telecoms group is offering $4.6 bln for Veoneer; U.S. Democrats are trying to close the carried-interest loophole; ViacomCBS is betting "South Park" can boost its streaming service.

Capital Calls: GM, Hugo Boss, NYT, Frontier tech

4 Aug 2021

Concise views on global finance: The U.S. automaker finds inflation cuts both ways; the German-listed fashion brand hopes to double sales by 2025; advertising is a bright spot for the New York Times; Zymergen vaporized 75% of its value under four months after a $3 bln IPO.

Capital Calls: Grab, Gaming, SocGen, Stellantis

3 Aug 2021

Concise views on global finance: The Southeast Asian super-app delivers some of the goods; Tencent shares tank after Chinese state-media criticism; the French lender’s investment bank overhauls goals; the carmaker hikes operating margin targets to a chunky 10%.

Ferrari’s new boss faces early electric test

2 Aug 2021

The EU wants to ban new fossil fuel-powered cars from 2035. That’s likely to force incoming CEO Benedetto Vigna to accelerate the $42 bln sports-car maker’s plans to shift to battery power. How to do that without denting its luxury margins will require some deft driving.

Volkswagen makes timid bet on brave new car world

29 Jul 2021

A group led by the German carmaker will pay $3.4 bln for Europcar. The rental company’s city sites may help CEO Herbert Diess sell new services like subscriptions and self-driving taxis. But keeping the unit at arm’s length suggests caution at odds with the optimistic vision.

Apollo SPAC offers cheap ride on EV hype freeway

28 Jul 2021

Electric vehicle charging group Allego is listing through one of the buyout firm’s blank-cheque companies for $3 bln. It’s a crowded space, but a valuation multiple of 5 times 2024 sales is less racy than rivals. Still, only booming battery car demand will avoid a short-circuit.

Tesla comes of age at just the right time

26 Jul 2021

Elon Musk’s carmaker charged past $1 bln in quarterly profit for the first time. Margins finally rival leaders like Toyota. It’s yet to mature into its $620 bln valuation. But growing pains at Lucid and other upstarts make Tesla’s push to validate its price look less fanciful.

Capital Calls: Duolingo IPO valuation

26 Jul 2021

Concise views on global finance: The language learning app has increased its price by almost 20%.

Capital Calls: Covid fibs, M&A flop, Hard seltzer

23 Jul 2021

Concise views on global finance: Forcing social media to take down vaccine misinformation is a good step on U.S. content rules. Meanwhile, a German real estate deal fails to get enough shareholder votes, and Boston Beer’s hard seltzer sales fizzle.

Capital Calls: Volvo, Moderna, Mediobanca

21 Jul 2021

Concise views on global finance: The Swedish automaker boosts its appeal ahead of a possible IPO by buying out its Chinese joint venture partner; joining the S&P 500 will cut both ways for the vaccine maker; another Italian tycoon ups his stake in the Italian investment bank.

Great Wall Motor is all thrills, no frills

21 Jul 2021

The $54 bln Chinese automaker’s no-nonsense approach tripled earnings in the first half. Its affordable conventional designs are crowd-pleasers, while smart bets on battery technology are goosing the valuation. Shareholders in flashier rivals like Geely might take note.

Capital Calls: BBQGuys go easy on the hot sauce

20 Jul 2021

Concise views on global finance: An e-commerce company for grill connoisseurs is going public via a blank-check company with a valuation that befits its side-dish status.

Car-battery SPAC deal is joyride at electric price

13 Jul 2021

U.S. auto charge maker SES Holdings is going public via a merger with Robert Friedland’s blank-cheque vehicle at a $3.3 bln valuation. That’s chunky given a controlling founder and zero near-term sales. Investors must hope big backers like General Motors help swerve potholes.

U.S. auto financing has mini subprime problem

12 Jul 2021

Prices have shot up 45% in some cases in the $800 billion car sales market, due to pent-up demand and a chip shortage. But unlike houses that can go up in value, cars depreciate as soon as they are driven off the lot. Owners will soon be underwater, and so will their lenders.

Elon Musk is stuck in an alternate past

13 Jul 2021

In testimony about the 2016 SolarCity deal, Tesla’s boss said the carmaker would “die” if he wasn’t CEO. That was true once, but not now. He’s in denial about his sway over the board then, too. It suggests governance changes since could be at risk if he becomes chairman again.

Combustion shift helps electrify Volvo IPO

8 Jul 2021

The Swedish carmaker is steering its petrol engine unit into a joint venture with parent Geely before a stock market listing. Focusing on future electric car sales helps drive Chairman Li Shufu closer to a racy valuation. Still, ongoing gas guzzler sales dent green bona fides.

Capital Calls: Gates split, Chinese IPOs, Telenor

8 Jul 2021

Concise views on global finance: Bill and Melinda Gates agree a post-divorce plan for their joint charitable organisation; medical data firm LinkDoc is among the first to pull its U.S. listing; the Norwegian telco gets just $105 mln for unit hobbled by Myanmar junta.

China puts New York IPO fine-print risk in bold

5 Jul 2021

Chinese regulators have opened investigations into two more companies listed in the city after hammering ride-sharing app Didi just days after it raised $4.4 bln there. Investors that bought into these deals may blame Beijing or bankers, but they had ample, if indirect, warning.

Aston Martin needs a James Bond-style escape

2 Jul 2021

Shares in 007’s carmaker have risen over 70% since its last rescue under billionaire Lawrence Stroll. Its $3 bln valuation defies logic given high debt and scant profit. Investors may hope for a takeover, but likely buyers like Daimler or China’s Geely would drive a hard bargain.

Capital Calls: It sure feels good to be a banker

1 Jul 2021

Concise views on global finance: Global deals in the first half of the year broke all records.