Autos

Chips may yet drive Japanese carmakers closer

12 May 2021

Shares in Nissan closed down 10% after it dashed hopes for a return to profitability. Yet Toyota predicted operating earnings will grow 14%. The semiconductor shortage helps explain the difference. The longer that drags on, the more Toyota risks a slowdown, too.

Tesla will give up pole position in China

12 May 2021

A series of blunders has made Elon Musk’s marque a target for state media. Its huge share of the electric-vehicle market and lack of local partner also leave it exposed as Beijing backs domestic carmakers. The $600 bln brand can still prosper, but not as leader of the pack.

Cobalt angst will turn carmakers into mine owners

10 May 2021

The chip shortage has taught auto groups harsh lessons in supply chain security. Cobalt’s importance to batteries is an existential risk for firms like Tesla and VW. Equity stakes in mines, rather than supply deals, would ease delivery headaches and hedge against price spikes.

Winner-takes-most electric car bet risks collision

7 May 2021

Tesla and Volkswagen shares have leapt as they steal a lead in the booming market for battery vehicles. Yet meeting supercharged expectations implies they will need to hold a market share of nearly 40% by 2025. Rivals’ zero-emission goals will make such dominance unlikely.

Capital Calls: Peloton, Honest Co, Office Depot

5 May 2021

Concise views on global finance: Treadmill recall leaves investors in the workout app stranded; shares in Jessica Alba’s consumer packaged goods company opened more than 30% above their IPO price; the office-supply company paper-shuffles its way to a higher valuation.

Capital Calls: Pfizer, ConocoPhillips

4 May 2021

Concise views on global finance: About $6 bln of additional earnings from Covid vaccines at the U.S. drug giant should mean more capital returned to investors; the independent oil group is offloading stock in Canada-based Cenovus it collected as part of a deal four years ago.

Nio and rivals take their race off-road

30 Apr 2021

China’s Tesla is revving R&D spending back up after slamming on the brakes last year. BYD and others are scrambling to do the same. Investing in new ideas is crucial for growth down the road. But it also makes it harder to know when Nio will fit into its $64 bln valuation.

Europe’s $36 bln chip runt is coming into its own

29 Apr 2021

Shares in Franco-Italian STMicro have lagged the soaring semiconductor sector. Now CEO Jean-Marc Chery is boosting sales targets thanks to a global shortage. And his rising market share in cars and digital everyday gizmos should help close the valuation gap with bigger rivals.

Ford gives investors a sense of crisis déjà vu

29 Apr 2021

The $49 bln automaker powered earnings last quarter by turning the global chip shortage to its advantage. It’s also touting ways to become more efficient. The situation evokes a 2008 turnaround effort. Newish CEO Jim Farley’s job is to ensure Ford stays the course this time.

Tesla finally justifies its year-ago valuation

27 Apr 2021

Elon Musk’s carmaker posted record quarterly earnings despite selling few high-margin models. It’s boosting production and investment, growing revenue faster than costs, and has pots of cash. That supports last April’s $140 bln of market worth, not the near fivefold jump since.

Latest Hertz saviors put hope over history

23 Apr 2021

The rental-car firm may exit bankruptcy covering some $6 bln in debt and, unusually, with something left for equity holders. An industry shortage of cars has helped valuations. Even so, new private equity owners would have to reinvent Hertz, yet again, to make the plan add up.

India Insight: Electric cars charge up tycoons

12 Apr 2021

A drive on Mumbai’s pot-holed roads in Tata’s slick Nexon EV brings to life an opportunity that disruptors Tesla, Reliance and Uber rival Ola are all chasing. Incumbents are playing down the potential, but India is set for the fast lane of the battery-powered vehicle revolution.

Viewsroom: Asia’s E-car mania, U.S. infrastructure

8 Apr 2021

Huawei makes telecoms, Haier dishwashers, Xiaomi phones, Evergrande condos. Now, these Chinese companies all want to make battery-powered vehicles too. And while on the subject of building, U.S. President Joe Biden is going big. Maybe too big for the bean counters in the Senate.

TuSimple $8 bln IPO destination looks out of range

8 Apr 2021

It values the self-driving truck firm run by financiers and a gamer at 4,260 times 2020 sales. Volkswagen’s Traton, UPS and others are partners. But autonomous vehicles are years off, TuSimple is hauling a load of governance issues and has an investor in a U.S. regulatory probe.

Who wants to be an electric-car billionaire?

8 Apr 2021

In China, who doesn’t may be the better question. Dishwasher maker Haier, property developer Evergrande and smartphone maker Xiaomi are piling into the over-invested sector. They may disrupt the industry; they will certainly accelerate the coming bloodbath.

Capital Calls: Trucking IPO

7 Apr 2021

Concise views on global finance in the Covid-19 era: Startup TuSimple will be listing shares via a traditional initial public offering.

Capital Calls: Volvo IPO, Walgreens, Saudi Arabia

31 Mar 2021

Concise views on global finance in the Covid-19 era: Geely’s mooted $20 bln valuation for its Swedish brand still looks ambitious; Amazon can't match the transatlantic pharmacy chain's in-store clinics; Mohammed bin Salman grabs private cash to pay for a switch away from oil.

Xiaomi becomes ultimate electric-car test driver

31 Mar 2021

The smartphone maker is spending $10 bln to expand into smart vehicles. There are no shortcuts to success. But it has ample resources, manufacturing experience and a formidable founder, Lei Jun. If Xiaomi falters, it could prompt other tech industry EV wannabes to steer clear.

Cazoo’s $7 bln deal depends on European car drive

29 Mar 2021

The UK online used-car seller is going public in New York through a blank-cheque merger. A multiple of more than twice projected 2022 sales is lower than U.S. peer Carvana. Still, those numbers require the company to grab a big chunk of a growing market at home and in the EU.

ESG wave crashes into Volkswagen’s narrow straits

26 Mar 2021

U.S. eco-investors have pushed ordinary shares in the $153 bln automaker way above equal preference stock after CEO Herbert Diess upgraded battery car plans. Investors’ need for voting rights plus VW’s small free-float may explain why. But the lack of clarity invites a snapback.