Electric Vehicles

Corona Capital: U.S. college football

6 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: U.S. college football programs are in a talent arms race for coaches, a bit like companies' quest for top-ranked CEOs, despite the pandemic's impact on revenue.

Brexit throws down electric gauntlet to UK cars

4 Jan 2021

Britain’s motor industry has escaped European Union tariffs that would have hobbled half its output. But to meet export rules on low-carbon vehicles by 2024, Prime Minister Boris Johnson needs to ramp up battery output. Convincing groups like Nissan and BMW to stay will be tough.

Volkswagen pact helps CEO more than returns

15 Dec 2020

The German carmaker has made a statement in support of boss Herbert Diess, allowing him to appoint key allies and cut some costs as it moves to electric cars. The agreement should end a long-running dispute with unions. Investors hoping for higher returns face a lengthier wait.

Daimler could be Elon Musk’s Time Warner

3 Dec 2020

AOL merged with the media group back in 2000, parlaying its bubblicious share price into an old-line business. Electric-car maker Tesla, worth an eye-popping $540 billion despite a puny 0.8% global market share, could do something similar. The Mercedes owner is the best fit.

VW boss dilemma is about more than Herbert Diess

1 Dec 2020

The $90 bln carmaker’s CEO wants a contract extension beyond 2023. Diess is gaffe-prone but has the right strategy for moving to electric vehicles and extracting efficiencies. His contract debate is a proxy for whether VW’s board can face down unions trying to muddle that shift.

GM takes weak middle road with banged-up Nikola

30 Nov 2020

The $65 billion automaker says it will sell its fuel-cell tech to the troubled zero-emissions-truck company, but has shelved plans to take an equity stake. Cutting ties or doubling down with Nikola, whose value halved since early September, would have been bolder choices.

Beware Chinese used-car dealer’s sticker price

27 Nov 2020

Kaixin Auto is riding electric-vehicle enthusiasm with an odd plan to merge with e-commerce outfit Haitaoche. After going public by way of a shell company in 2018, just 2% of its shares are freely traded. The 2,300% rise in market cap requires a closer look under the hood.

Musk passes Gates, but not yet in impact

24 Nov 2020

The Tesla mogul’s wealth edged past the Microsoft founder’s, at just under $128 bln. That’s because Gates has given vast sums to charity and supercharged vaccine development, especially for the poor. Helping out humanity beats amassing wealth. Musk may one day achieve that too.

Panasonic pushes limits of rewiring circuitry

20 Nov 2020

The $26 bln electronics empire is yet again shuffling around its fax machines and electric-vehicle batteries. This latest restructuring should help streamline operations and boost profitability. If it clears the way for new boss Yuki Kusumi to lead a broader breakup, even better.

UK green revolution takes baby-step beyond slogans

18 Nov 2020

Britain is to ban new petrol car sales by 2030 and invest in hydrogen to hit its 2050 decarbonisation goal. The sums cited are modest and the targets lack detail. The plan’s success hinges on Prime Minister Boris Johnson convincing private investors to pick up the slack.

Nio mania reaches Tesla’s extra gear

18 Nov 2020

The Chinese electric-car maker narrowed its quarterly loss as sales surged. Even without the production of its U.S. rival or a bombastic boss like Elon Musk, its shares have rocketed up by 1,000% this year. Nio, too, has a long way to go to grow into a racy $63 bln valuation.

Corona Capital: Cars, Kalashnikovs, Houses

6 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Japanese carmakers put their feet down thanks to China’s bounceback; Russia’s Kalashnikov gets a new owner; and rich-country housing markets look surprisingly cheery.

Macquarie hits limits of diversification

6 Nov 2020

The $34 bln Aussie financial conglomerate suffered a 32% fall in half-year net profit as its investment bank generated a rare loss. Boss Shemara Wikramanayake likes to trumpet the array of revenue sources, but even done well, the business model provides only so much of a buffer.

The world can safely love the Tesla bubble

20 Oct 2020

The $400 bln electric-vehicle firm’s earnings won't justify this year’s fivefold share price spike. But froth is pushing investment toward EVs at startups and old-school automakers alike. As in past bubbles, that may benefit everyone except shareholders caught in the bust.

VW bid for Tesla’s crown rests on shaky optimism

14 Oct 2020

The German carmaker has launched its first mass-market electric SUV to take on Elon Musk and hit CEO Herbert Diess’s goal of selling 3 mln EVs by 2025. VW has scale and is big in China. But Tesla has 15 years of battery know-how and no legacy auto business. It gives Musk an edge.

Corona Capital: Oil, Delta, Hunger

13 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: OPEC and the International Energy Agency issue forecasts that bode ill for crude demand; the U.S. airline steers through turbulence; and a food crisis is exacerbating problems facing the most vulnerable in society.

LG Chem will get a charge from battery spinoff

6 Oct 2020

The $40 bln South Korean conglomerate’s separation plan failed to energise investors. Although it’ll take time for the structure to take shape, it’s fairly clear the Tesla-supplying division’s true value is lost inside a chemical maker. There’s an electric-car spark yet to come.

Evergrande can charge up its car fantasy, and more

30 Sep 2020

The property giant’s $22 bln electric-car unit plans to add a Shanghai listing. Acquisitive boss Hui Ke Yan is accelerating plans to build a vertically integrated auto group. It’s the quirkiest of China’s Tesla-wannabes. It’s daring for investors too, given the parent’s debt woes.

Founder’s exit shines headlights on Nikola backers

21 Sep 2020

Trevor Milton is stepping down at the "pre-revenue" zero-emissions vehicle maker. Investors have nixed almost half the company's worth since fraud claims surfaced. Proving Nikola is worth its remaining $9 bln value falls on partners like GM and CNH and on new Chair Steve Girsky.

Nikola is not built to drive in public markets

16 Sep 2020

U.S. law enforcers are looking under the $12 bln wannabe zero emissions-vehicle maker’s hood after a short seller accused founder Trevor Milton of fraud. Who's right or wrong is unclear, but the company's response has been ham-fisted. Nikola's SPAC-mediated listing was premature.