Electric Vehicles

Vietnam electric car whizz takes ambitious road

9 Feb 2022

Carmaker Vinfast is going all-electric and aims to sell overseas. The strategy combines conglomerate power through parent Vingroup with potential for a faster-than-expected shift to new energy vehicles in Southeast Asia. It maps a decent drive to a mooted $3 bln U.S. listing.

Ford split idea rolls back the odometer

4 Feb 2022

Tesla’s valuation makes contemplating a breakup tempting for Ford, and boss Jim Farley even sounds open to it. But its EV business is intertwined with combustion, which still lags crosstown rival GM. Plus Delphi shows how separating linked car businesses can go wrong.

Lithium squeeze could short-circuit electric cars

1 Feb 2022

Automakers like GM battling the chip shortage face a bigger problem down the road. The price of metals in electric-car batteries is soaring as demand outpaces supply. With even market leader Tesla feeling the bite, the electric revolution looks further off – and less lucrative.

Tesla hits speed bump but with improved suspension

26 Jan 2022

Elon Musk’s electric-car maker’s revenue increased 65% in the fourth quarter. Like rivals it’s battling higher costs and parts shortages, but unlike them it has a 31% gross profit margin as a buffer. Even if the market shifts down a gear, that ought to help it remain in front.

The Exchange: Xpeng boldly goes

18 Jan 2022

The Chinese electric-car maker has navigated everything from shrinking subsidies to Covid-19. Embracing new ways of working is critical, President Brian Gu tells Katrina Hamlin. Future forays into Europe, the metaverse and flying cars will test the Tesla rival’s resilience again.

Battery IPO leaves LG Chem low on power

17 Jan 2022

The South Korean group's $11 bln spinoff was partly designed to unlock value. But the parent now trades at a discount to its 82% stake in its newly unleashed subsidiary. Its unloved petrochemicals-to-materials rump is failing to electrify investors. That looks harsh.

LG revs up Asia’s green-car capital engine

11 Jan 2022

The South Korean company’s $11 bln battery spinoff is just the start of a regional deal frenzy that also includes CATL’s $7 bln share sale. Unlike in Chinese tech, government policies are lifting growth and valuations. For now at least, investors will go along for the ride.

SocGen $6 bln car deal leaves shares in slow lane

6 Jan 2022

The French bank is helping fund the purchase of LeasePlan by its automotive unit ALD. Returns look high and the move helps the pair shift to an electric future. But since investors prefer focused banks, rather than conglomerates, CEO Frédéric Oudéa won’t get much credit.

Tesla at $1 trln must do more than just deliver

3 Jan 2022

Elon Musk’s automaker added $100 bln of market value after serving customers with almost a million vehicles in 2021. The shares tend to pop when Tesla exceeds expectations. But maintaining its valuation will turn the focus onto more ambitious and difficult promises.

Capital Calls: Intel in China, Covid-testing M&A

23 Dec 2021

Concise views on global finance: The chipmaker apologizes over Xinjiang to protect its business in the People's Republic; Quidel's deal to buy Ortho Clinical Diagnostics for $6 bln provides some future-proofing – and a windfall for private equity firm Carlyle.

Combustion engines are carmakers’ toxic assets

22 Dec 2021

The likes of Volkswagen and GM are shifting to battery vehicles while petrol-powered rides die out. Engine units are a drag on valuations, like lenders’ ropey assets after the 2008 crisis. Hiving them off into a “bad bank” would please investors and generate much-needed savings.

Booze to batteries will measure China’s transition

21 Dec 2021

Distiller Kweichow Moutai overtook lender ICBC as the country’s biggest company by market cap in 2020. President Xi Jinping’s policy upheaval, along with rapidly changing investor attitudes, augur a new champ for 2022. Look for CATL to ride the electric-vehicle craze to the top.

Toyota will send its hybrids to the breaker’s yard

14 Dec 2021

The $250 bln carmaker is dramatically increasing its electric ambitions after lagging for years. It could help defend its earnings multiple lead over Ford and GM. But Toyota still lobbies against tougher emissions standards. Powering down its hybrids will add carbon clarity.

Harley-Davidson hitches easy ride on SPAC boom

13 Dec 2021

The ageing motorcycle brand will list its electric bike unit for $2.3 bln by merging it with a blank-cheque vehicle. It’s a way of tapping into hungry, ESG-focused investors without giving away too much upside. And a less-than-trippy valuation should ensure a smooth journey.

The Exchange: Breakingviews at Reuters Next

9 Dec 2021

At the global conference, our columnists interviewed the movers and shakers at Ola Electric, Philip Morris, ViacomCBS and Klarna about disruption at scale in India, the challenges of making bold corporate transitions in tobacco and media, and Europe’s fintech frenzy.

Porsche IPO may only partly aid VW’s odd valuation

9 Dec 2021

Volkswagen could finally list its luxury marque. Porsche may be worth up to 100 bln euros or more, making VW’s own $150 bln valuation look underpowered. The value assigned to both, however, may depend on how much control VW is prepared to give up.

LG’s $11 bln battery spinoff is fully charged

8 Dec 2021

The South Korean group is eyeing a $60 bln valuation for its crown jewel in what could be the country's biggest IPO. The hot play on electric vehicles hopes to entice investors by offering a discount to peer CATL. LG's track record of recalls, though, warrants caution.

Intel Mobileye float is step back to self-driving

7 Dec 2021

The $220 bln chipmaker plans to list a minority stake in the autonomous-driving business it bought in 2017. Initially it's for Wall Street's benefit, as overheated valuations mean Mobileye might be worth $50 bln. But it may also be the start of the unit's return to independence.

VW’s CEO soap opera is darker than Tesla’s

7 Dec 2021

Herbert Diess is likely to stay as the German carmaker’s boss but with wings clipped after a clash with unions. His ambitious battery plans make Volkswagen a more credible rival to Elon Musk’s firm. Unlike the Tesla founder’s antics, its leadership dramas reflect deep challenges.

Capital Calls: Volkswagen, Turkey

1 Dec 2021

Concise views on global finance: The German carmaker may take mining stakes to secure electric-vehicle raw materials, echoing Henry Ford, the U.S. production-line pioneer; the Turkish central bank is resorting to old tricks to prop up the lira but it’s an unsustainable strategy.