Autos

Elon Musk’s supply-chain dream might come true

29 Jul 2020

The Tesla boss says the company is willing to provide rivals with batteries, powertrains and self-driving software. That may appeal to startups and even some traditional automakers. As with other Musk projects, though, Tesla-as-a-parts-service will take time to become reality.

Corona Capital: GM, Glaxo, Shopify, Movies, Pemex

29 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: General Motors pulls further ahead; GlaxoSmithKline’s vaccine-order boost; Shopify fills its revenue basket; AMC bows to online streaming’s growing power; Mexico’s oil giant puts on a brave face.

GM deserves more faith from shareholders than Ford

28 Jul 2020

The carmaker run by Mary Barra is holding up better in the pandemic than its Detroit rival. It’ll also zip back to profit more quickly and remains ahead on electric and autonomous cars. Yet Ford’s shares offer a smoother ride and better multiple. That doesn’t track.

Corona Capital: Baseball, Gas cloud, Luxury goods

28 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Baseball’s Covid-19 cases put popular college sports competitions in jeopardy; a recovery in drilling for gas is bad news for the environment; Gucci and other luxury retailers finally embrace the digital revolution.

Nio’s Chinese rival offers family-friendlier ride

23 Jul 2020

A 200% surge in Tesla and Nio shares this year inspired China’s Li Auto to try its luck in New York. The electric SUV maker is unprofitable, but its designs are less dependent on government support, and its margin is higher than Nio’s. That makes it a safer, if less sporty, play.

Tesla’s wacky valuation has a link to reality

22 Jul 2020

At $295 bln, Elon Musk’s firm accounts for a third of the market worth of the world’s big carmakers. Its surge has helped upstarts like Rivian, Nikola and Fisker raise cash, too. Tesla is way overpriced. But as a proxy for overall electric-vehicle success, it’s not far off.

Fiat and Peugeot throw stardust into new car mix

16 Jul 2020

Is it a new cocktail, a lost city, a painkiller, the easyJet founder? By renaming themselves Stellantis, FCA and Peugeot are seeking to add futuristic sparkle to their marriage. Like others before them - from Diageo to Mondelez to Altria - actions will mean more than new words.

Navistar should be thankful for Volkswagen deal

15 Jul 2020

Activist Carl Icahn’s bet on the U.S. truck maker looked dead after Covid-19 upset a $2.9 billion cash bid from the German auto company. But VW insists a deal still makes sense. Given the sector’s grim outlook, accepting the offer – and bagging a juicy premium – is a no brainer.

Corona Capital: Nursing homes, Airlines, Walgreens

9 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Nursing home investments will get a rethink; airline travelers get the upper hand; and Walgreens’ LBO heyday is in the past.

Car finance giants are skidding into the ditch

8 Jul 2020

The Financial Conduct Authority is forcing big auto-finance players to freeze customer payments. The losses mean they may have to buy back more of the loans in securitisations that helped fuel the market’s breakneck rise. That in turn will make it harder to fuel future growth.

Corona Capital: Texas hold it

7 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: The iconic State Fair of Texas has been canceled as coronavirus cases in the region soar. The decision adds some $500 mln to the Lone Star State’s economic and human toll from the pandemic.

Viewsroom: Wirecard, Hong Kong and Tesla

2 Jul 2020

The German fintech scandal shines a light on its hapless regulator; China’s new security law stinks up the fragrant harbor and Elon Musk hasn’t just surpassed Toyota in market value, he’s becoming as rich as Croesus. Breakingviews columnists around the world weigh in.

Corona Capital: Tesla, OPEC

2 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Tesla speeds past its traditional rivals, and OPEC’s next meeting shapes up to be a bruising encounter.

Tesla market milestone puts Musk pay in overdrive

1 Jul 2020

The Silicon Valley upstart has overtaken Toyota to become the world’s largest carmaker by market worth. Its rapid ride to a $210 bln value also starts the clock on another huge payout for CEO Elon Musk. But production and income show investors have gotten ahead of themselves.

Agnellis can win twice from EU auto merger probe

29 Jun 2020

Brussels is worried the union of Peugeot and Fiat, controlled by the Italian clan, will dominate van sales. High margins make it hard to justify outsized market share. Selling models to a smaller rival like Agnelli-backed CNH would boost competition and let the merger pass.

Corona Capital: Amazon, Car perks, College sports

29 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Companies are trying to bolster pocketbooks. Amazon makes extra payments to employees while car companies are offering major discounts. Plus: Under Armour ditches its UCLA deal.

VW’s Europcar takeover would be a rough round trip

24 Jun 2020

The German carmaker is considering buying the $500 mln French car-rental firm, which it sold in 2006. Beleaguered boss Herbert Diess could use its airport and city locations to launch ride-sharing services. Plummeting rentals and high debt will make bumpy economic returns ahead.

The Exchange: Pehr Gyllenhammar

23 Jun 2020

Long-time Volvo CEO Pehr Gyllenhammar was pushing radical environmental and social changes at the carmaker long before they became fashionable. One of Sweden’s most admired businessmen argues why CEOs should be paid less and how it felt to become a father again at 81.

Corona Capital: SpongeBob, Cirque du Soleil

23 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Cinema chains raring to reopen may find that movie studios have already made other plans. Meanwhile, Cirque du Soleil may get new financing, but with strings.

Hertz shares may yet be roadworthy

18 Jun 2020

The bankrupt car-rental firm halted plans to sell stock after the SEC raised concerns. Equity is usually wiped out in Chapter 11. But if a re-emergent Hertz could rev its EBITDA up to, say, 60% of pre-pandemic levels, shareholders could stay along for the ride.