Autos

Capital Calls: Defence IPO, ViacomCBS and GameStop

24 Mar 2021

Concise views on global finance in the Covid-19 era: Italy’s Leonardo postpones the initial public offering of its U.S. unit; ViacomCBS and GameStop's rising stocks give them both a chance to raise fresh cash.

Geely’s electric drive is all over the road

24 Mar 2021

A new battery-vehicle unit could help the $29 bln carmaker and its Li Shufu-owned parent compete with startups like Nio. But they’re also chasing a luxury brand, contract manufacturing and a novel share-ownership scheme while shifting CEOs. A more focused route would be better.

Capital Calls: Chubb/Hartford, Son of Kozmo

23 Mar 2021

Concise views on global finance in the Covid-19 era: Insurer Hartford rebuffs an offer from rival Chubb without breaking a sweat; snack-delivery outfit GoPuff raises capital at an $8.9 billion valuation, giving new life to an old Silicon Valley idea.

Capital Calls: Leon Black, Happiness index

22 Mar 2021

Concise views on global finance in the Covid-19 era: Apollo’s founder still has his imprint on the Museum of Modern Art and Dartmouth College; people are proving surprisingly resilient in the pandemic, a recent poll suggests.

China’s Tesla wannabes will drive closer to home

18 Mar 2021

The country’s electric-vehicle makers have so far chosen New York to charge up on capital. Now three of them, Nio, Li Auto, and Xpeng, may plug into Hong Kong to raise some $6 bln. If green-car exuberance follows in their wake, the trio will open a new venue in the race for cash.

Capital Calls: New York, Allegro exit

17 Mar 2021

Concise views on global finance in the Covid-19 era: The Big Apple reigns in a new ranking of global cities, but the prize isn’t what it was; shareholders in Polish e-commerce group Allegro sell down early.

Volkswagen valuation merits shift to higher gear

16 Mar 2021

The German automaker’s shares rose on plans to double electric vehicle deliveries this year. Were they separate entities, the value of VW’s software arm and its battery car unit could exceed its 110 bln euro market cap. While spinoffs look unlikely, VW shares can climb higher.

Unloved Chinese car site deserves a test drive

16 Mar 2021

The $12 bln online dealer Autohome raised $688 mln in its Hong Kong secondary listing, 30% less than initially planned. It’s not a sexy electric-vehicle maker, but an asset-light model and 40% net profit margin bests peers. As demand recovers, its current discount seems unfair.

Capital Calls: Elon Musk, AstraZeneca

15 Mar 2021

Concise views on global finance in the Covid-19 era: The electric-vehicle maker’s jocular new title of “Technoking of Tesla” tests the theory that deeds matter more than words; fears over the drugmaker’s vaccine risk further delaying the re-opening of Europe’s economy.

VW drives for second place in Tesla-led tech race

12 Mar 2021

Boss Herbert Diess wants to steer the $128 bln German automaker into the thick of the fast-growing market for in-car software. Closing the gap on Elon Musk’s outfit will be tough. But even a podium finish behind the leader would jump-start Volkswagen’s analogue valuation.

Capital Calls: TV’s royal boost, Shared offices

9 Mar 2021

Concise views on global finance in the Covid-19 era: Oprah Winfrey’s interview with Prince Harry and his wife Meghan is a boon for ViacomCBS’s streaming ambitions; IWG’s revamp depends on a workplace revolution.

Next Hertz drivers face a hairy ride

4 Mar 2021

Hedge funds Knighthead and Certares want to lead an injection of up to $4.2 bln in equity to take the wheel at the bankrupt car-rental firm. It would restart less indebted and should be more efficient. The rise of ride-sharing, however, puts a speed limit on potential returns.

UK used car IPO may be more Mini than Maserati

4 Mar 2021

Founder Alex Chesterman may list online car seller Cazoo for a mooted 6 bln pounds. The pandemic has accelerated disruption in the 78 bln pound market. But U.S. peers like Carvana show it takes years to build market share. Prospective investors should be prepared to haggle.

Stellantis finds limits of cost-cutting

3 Mar 2021

The 43 bln euro Franco-Italian carmaker’s shares rose after its maiden results following January’s merger. Savings bolster CEO Carlos Tavares’ ambitious profitability goal. To raise the group’s lowly valuation, he needs to expand in Asia and have a bolder electric vehicle plan.

Chip shortages are here to stay, for some

2 Mar 2021

Pandemic-led demand swings and trade wars have left factories short of semiconductors. The chip industry’s too-successful capital discipline is also a factor. The $450 bln industry’s coming splurge on new capacity will benefit smartphone manufacturers more than automakers.

Nio risks running low on power on Europe road trip

2 Mar 2021

The $78 bln electric-car maker’s net loss halved in 2020 as revenue doubled and costs fell. It has plenty of cash, too. But sales growth has slowed. And founder William Li’s plan to drive into Europe will be expensive, and hard for a Chinese luxury brand, sapping recent progress.

Viewsroom: Electric cars share some market fever

25 Feb 2021

Toyota, Ford and GM are all trading at their highest level in years as investors start to pick some winners among traditional automakers. Fear of missing the next Tesla, though, means shareholders are keeping the heady valuations for upstarts like latest SPAC target Lucid Motors.

Capital Calls: Pharma, Volvo delay, Hotels

24 Feb 2021

Concise views on global finance in the Covid-19 era: Big Pharma’s new popularity could give it leverage in Congress; China’s Geely can profit from Volvo IPO delay; and boutique hotels feel the heat.

SPACs and electric cars drive hype feedback loop

23 Feb 2021

Ex-Citi exec Michael Klein has struck the largest ever blank-cheque merger with a deal valuing Lucid Motors at $24 bln. Investors already think it’s worth more than double that. Lucid is a decent bet on battery power but its absurd multiple outstrips all rivals, including Tesla.

Capital Calls: WeWork, HSBC offices, Wells Fargo

23 Feb 2021

Concise views on global finance in the Covid-19 era: Co-founder Adam Neumann may get a big payment for failure after all; The bank’s plan to shrink its property footprint recalls an earlier effort; And the scandal-plagued lender takes another small step towards rehabilitation.