Electric Vehicles

Nissan’s green drive hits yellow light

30 Nov 2021

Shareholders booed the Japanese automaker’s plan to invest $18 bln in clean cars over the next five years and make half its fleet electric by 2030. The erstwhile electric-car leader wants to regain ground, but it’s a financial stretch with profit weak and the stock overvalued.

Capital Calls: Software AG logs onto buyout boom

26 Nov 2021

Concise views on global finance: A subdued valuation and eager bidders increase the 3 billion euro German company’s chances of a possible sale.

Capital Calls: China’s data centre sale

24 Nov 2021

Concise views on global finance: Global Switch is attracting big-name private equity interest, but its quirky setup might justify suitors asking for a discount.

Australia deserves to pay climate risk premium

18 Nov 2021

Canberra adopted a net-zero emissions target mainly to keep the country from being punished by investors. Its newly released assumptions on electric vehicles, mining and more confirm a lack of seriousness in the plan. Sustained pressure from fund managers could make a difference.

Elon Musk can afford Biden’s EV snub

11 Nov 2021

Teslas won’t qualify for an extra $4,500 U.S. tax credit due to non-union labor. Instead, the cheaper Chevy Bolt wins in the president’s $1.8 trln spending plan. Still, Musk’s firm has surging sales in a growing Chinese market and large U.S market share. Biden is an afterthought.

Capital Calls: Tesla, Daimler

11 Nov 2021

Concise views on global finance: The electric-car maker’s directors have, like Elon Musk, cashed in; the German company is racing against Agnelli-controlled CNH Industrial to spin off a trucks division.

Rivian’s IPO pushes EV optimism over the limit

10 Nov 2021

The Amazon-backed electric-car company tore past expectations in its stock market debut, hitting a valuation above $90 bln. While the $1 trln Tesla is showing that electric vehicles might be a better long-term business than gas guzzlers, enthusiasm for the sector is in overdrive.

Carmakers muddy private sector’s COP green sheen

10 Nov 2021

Volkswagen and peers have snubbed a Glasgow pledge to end petrol vehicle sales by 2040. Banks’ net-zero promises last week suggested companies might offset inadequate state action. The carmaker rebuff is a reminder that governments still have their hands very much on the wheel.

Electric-vehicle deals get racier than ever

10 Nov 2021

Even more revealing than Rivian’s immodest IPO price is the $1.4 bln sale of battery-powered-van maker Cenntro to a lingerie merchant. The SPAC-like transaction models rather flattering growth curves. Only in a risqué market could there be a hint of logic to such naked ambition.

Capital Calls: BT’s fibre, Ford vs. Toyota, SocGen

4 Nov 2021

Concise views on global finance: Leaner broadband rollout boosts the UK telco’s defences against uppity investor Patrick Drahi; the two carmakers trade at similar multiples despite the Japanese outfit’s racier performance; the next leg of the French bank’s revamp will be harder.

Capital Calls: KKR, Ferrari, HelloFresh

2 Nov 2021

Concise views on global finance: The private equity company is making the most of ideal market conditions; the Italian sports car maker raises its guidance; and a positive sales update turbocharges the German meal-kit delivery firm’s share price.  

Capital Calls: Darktrace’s stock wobble

1 Nov 2021

Concise views on global finance: The UK cybersecurity group’s share plunge reflects both short- and longer-term problems.

Stellantis has chance to close in on Volkswagen

28 Oct 2021

Hit by a chip shortage, quarterly sales at the Jeep maker fell harder than at the $140 bln German giant. But its operating margin is better, and boss Carlos Tavares is tackling a weakness in battery electric cars. That should help Stellantis narrow a valuation gap with its rival.

Capital Calls: Fantasy-sports group M&A flop

26 Oct 2021

Concise views on global finance: DraftKings has walked away from Entain but the UK target may still attract interest.

Capital Calls: Zooplus frenzy, Volvo

25 Oct 2021

Concise views on global finance: Buyout barons EQT and Hellman & Friedman are going halves in their pursuit of the $4.3 bln petfood supplier; the $19 bln Swedish carmaker priced its IPO at the bottom of the range.

Volvo Cars’ IPO valuation is suitably smoggy

19 Oct 2021

The marque owned by China’s Geely could be listed at around $21 bln. Hiving off the combustion engine unit was meant to boost its green bona fides. Yet a reliance on gas guzzlers and optimistic battery targets mean the Swedish group will struggle to stand out from dirty rivals.

Foxconn cars powered by both hype and substance

19 Oct 2021

The $53 bln iPhone-maker showcased its first electric-vehicle prototypes as part of an ambitious pivot into autos. Founder Terry Gou's track record of overpromising is enough to warrant doubt. Look past the fanfare, though, and there's much to like about Foxconn's EV progress.

Tata’s new backseat drivers charge electric course

14 Oct 2021

The Indian carmaker added $4 bln in market cap after buyout firm TPG and others backed its battery-powered passenger-vehicle unit at a $9 bln valuation. Extra funding is welcome in the capital-intensive business. It should help Jaguar’s owner race ahead in a fast-growing market.

GM reinvents itself as a moonshot on wheels

8 Oct 2021

Perhaps tired of watching newcomers like Tesla race ahead of its valuation, the $82 bln automaker plans to double revenue, mostly through new businesses like self-driving cars. Beneath boss Mary Barra’s big bets, though, the projected car company of 2030 looks little changed.

Tesla’s move to Texas further mars ESG credentials

8 Oct 2021

Elon Musk is relocating the electric-vehicle champion’s home base after a Covid-19 spat with California. It will put it in a state building a weak record on green energy and women’s rights. A company already hit by bad governance is giving investors more reasons to think twice.