Autos

Tesla kills three birds with one Congolese stone

17 Jun 2020

The electric car giant is buying 6,000 tonnes of cobalt a year from Glencore’s mines in the chaotic African state. With China corralling 69% of the metal’s production, Elon Musk gets to guarantee supplies while minimising child labour worries. It may even squeeze Western rivals.

Nikola insiders take Tesla hype for a spin

16 Jun 2020

BlackRock, Fidelity and Norges Bank are among investors that may sell shares in the electric-truck maker barely two weeks after its merger with a blank-check firm. That’s quick for any company, let alone one with barely any sales. Even Elon Musk’s outfit isn’t quite that racy.

Corona Capital: Next crisis, Overvalued markets

16 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Deutsche Bank analysts sound a warning about future catastrophes, while investors try to square overpriced stocks with their hopes of a recovery.

Merkel’s EV gambit just flags how far EU has to go

16 Jun 2020

Germany wants to install 1 million charging points by 2030 to persuade drivers to switch to battery-powered vehicles. The EU may need six times that amount, costing $23 bln, to hit carbon reduction targets. At a time when money is tight, it’s a big ask.

Tencent’s China car deal defies and disappoints

15 Jun 2020

A consortium led by the tech giant has agreed to buy New York-listed Bitauto for $1.1 bln, the same price proposed months ago. Globally, buyers have tried to cut lower prices on pre-pandemic deals. But the outlook for China’s auto market is rosier: Tencent is getting a bargain.

Hertz throws equity wrench in bankruptcy melee

12 Jun 2020

The car-hire firm wants to raise up to $1 bln by selling shares to replace debt that usually finances a restructuring. It may pay off, but equity usually crashes into a wall in Chapter 11. The stock market’s irrational exuberance is letting Hertz test-drive an unusual vehicle.

Volkswagen boss loses control at critical juncture

10 Jun 2020

The German carmaker’s board axed Herbert Diess as CEO of its flagship brand after his loose tongue got him in trouble again. He keeps the top job after apologising. But the spat distracts VW recovering from the pandemic and taking on Tesla. Diess can’t afford any more accidents.

Corona Capital: Goldman, Vroom, Deutsche Bank

9 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Goldman does too well in Britain; shares in online used-car sales outfit Vroom double on their market debut; and Deutsche Bank gets another shot at redemption in the U.S. market.

McLaren dares bondholders to debt game of chicken

9 Jun 2020

The supercar maker wants to raise $348 mln by mortgaging its HQ and racing cars. Creditors say they already have a claim on them. If neither backs down, the company could crash. Loose lending terms before the Covid-19 crisis give McLaren reason to keep its foot on the pedal.

Corona Capital: U.S. recession, Grubhub, Airlines

8 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: U.S. falls into a recession, Grubhub looks for leverage, airlines have optimistic investors.

Corona Capital: ZoomInfo IPO, U.S. trade

4 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: ZoomInfo goes public with a big pop despite Covid-19; and America’s goods-trade deficit with Europe will test Washington’s mood.

Germany’s car bonus scheme is only half the trip

1 Jun 2020

Chancellor Angela Merkel is mooting 5 bln euros in auto subsidies. A similar plan saved jobs at Volkswagen and Daimler in 2009. But the incentives would cover 2 mln vehicles – barely half last year’s sales. If the pandemic has permanently dented demand, a bigger boost is needed.

German carmakers step on Chinese electric pedal

29 May 2020

VW is taking big stakes in two Chinese EV firms, while Daimler may invest in battery-maker Farasis Energy’s $480 mln IPO. Demand remains tepid, oil is too cheap, and the targets look richly priced. But these deals lock in supply, and position both to compete with Tesla in China.

Corona Capital: Saving/not spending, Pandemic Pig

29 May 2020

Concise views on the pandemic’s corporate and financial fallout: what to make of falling spending and the growing taste for meat alternatives.

Amazon steers towards self-driving leverage

28 May 2020

Jeff Bezos’s $1.2 trln behemoth is one of the obvious big buyers of autonomous vehicles. Acquiring startup Zoox would give it an even bigger say in how the technology gets rolled out. That would also help deepen its customers’ dependence on Amazon’s fast and cheap shipping.

Renault-Nissan repair job needs governance fix

27 May 2020

The French carmaker and its Japanese partner are merging production in a bid to revive their grim alliance. Yet the union’s uneven power split is a brake on integration. Luckily for incoming Renault CEO Luca de Meo there’s a way to mend relations, without losing control.

Hertz is a study in financial comorbidities

26 May 2020

The car-hire company’s heavy debts crushed it when Covid-19 curtailed travel. Other businesses with overengineered balance sheets have similarly come unstuck. It’s not that Hertz could have seen this coming – but the system has quickly switched to favoring flexibility over risk.

A Ford-VW tie-up would solve a ton of problems

22 May 2020

The two rivals’ souped-up electric and autonomous collaboration won’t solve their respective geographic weaknesses. A merger would. It’d also create value and give Ford’s underperforming boss a graceful exit. The biggest sticking point is the firms’ convoluted ownership.

Corona Capital: Tech laggards, MAC fight

22 May 2020

Concise views on the pandemic’s corporate and financial fallout: Troubled firms HPE, Dell and IBM are facing even more challenges while chipmaker Nvidia gathers strength. Plus: A judge denied to fast-track payment firm Wex’s MAC fight.

Corona Capital: China on Wall Street, Wind power

20 May 2020

Concise views on the pandemic’s corporate and financial fallout: U.S. senators want Chinese firms to share their audited accounts – or face being kicked off American stock exchanges. Plus: why wind energy is the key to an economic and social, as well as environmental, resurgence.