Electric Vehicles

ESG wave crashes into Volkswagen’s narrow straits

26 Mar 2021

U.S. eco-investors have pushed ordinary shares in the $153 bln automaker way above equal preference stock after CEO Herbert Diess upgraded battery car plans. Investors’ need for voting rights plus VW’s small free-float may explain why. But the lack of clarity invites a snapback.

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: 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.

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.

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: American Airlines, Crypto PayPal

8 Mar 2021

Concise views on global finance in the Covid-19 era: The U.S. carrier is issuing new debt and hocking some airline miles to pay back the U.S. Treasury loan that carried restrictions on pay and dividends; PayPal investors give a shrug over another dive into bitcoin-land.

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.

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.

Porsche IPO would be valid twist in VW soap opera

19 Feb 2021

More than a decade ago the sports-car maker’s parent tried to buy Volkswagen but wound up ceding control of the brand instead. VW is now mulling a partial float to fund an electric push. A mooted 100 bln euro value looks set to revive old wrangling over what Porsche is worth.

A stripped-down BYD would run faster

17 Feb 2021

The Chinese automaker’s $3.8 bln share sale tapped a craze for electric vehicles. Yet even after a 500% rally over the last year, its Hong Kong stock looks cheap next to Nio and others. Separating battery-powered cars from other businesses could be one way to narrow the gap.

Capital Calls: Third Point, Kraft Heinz/Hormel

11 Feb 2021

Concise views on global finance in the Covid-19 era: Dan Loeb’s hedge fund gets a good start in 2021, while Hormel Foods buys peanuts, but pays anything but.

Japanese carmakers add gas to global autos rally

10 Feb 2021

Toyota and rivals like Ford and GM have recently been trading at multiples not enjoyed for years. Now the world’s largest car manufacturer and local competitor Honda are cranking up profit forecasts. If the semiconductor crunch is the biggest headache, 2021 should be a good year.

Shaky electric-car maker zips into market mania

29 Jan 2021

Faraday Future, which has yet to sell a vehicle, will get yet another lease on life by way of a SPAC. Chinese automaker Geely is also backing the $3.4 bln venture. There are red flags galore, including internal control weaknesses. The biggest may be founder Jia Yueting himself.

China’s BYD builds sleek concept car factory

27 Jan 2021

The $100 bln electric-vehicle maker’s chip unit is in the spotlight with an upcoming IPO. BYD also produces batteries, giving it an edge over rivals grappling with supply-chain woes. Such vertical integration only looks feasible with generous government support, however.

Shared scooters jump into a profitable future

14 Jan 2021

The pandemic has given a new boost to startups offering two-wheeled rentals, previously dented by high operating costs and safety fears. With increased demand, more European cities legalising e-scooters, and funding from investors like SoftBank, the business is gaining speed.

Corona Capital: Bond bonanza, Albertsons

12 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: U.S. companies' bond issuance in 2020 hits records across the board; and America’s No. 3 grocer continues to take advantage of the shopping habits created by Covid-19 lockdowns.

Nio helps justify a little bit of the hype

12 Jan 2021

The Chinese electric-car maker unveiled a new sedan and plans for a battery pack with over 1,000 km range. That should smooth its fourth capital hike in seven months. So much needs to go right, though, to merit a $100 bln valuation that exceeds those of Ford, GM and Daimler.

Tech and auto bosses form an awkward carpool

11 Jan 2021

Shares of South Korea’s Hyundai are up 30% on reports of a tie-up with Apple for self-driving vehicles. Selling software could ramp up margins for carmakers and alleviate technology headaches. But joining forces is a shortcut that could prove hazardous down the road.