Electric Vehicles

S&P 500 gatekeepers are the new active investors

10 Sep 2020

The recent decision not to include $341 billion automaker Tesla in the U.S. benchmark highlights subjective rules about factors like profitability. Inconsistency over voting rights keeps major players in tech and finance out, and others in. It's hardly passive investing.

Nikola deal electrifies GM’s dilemma

8 Sep 2020

Both expect more than $4 bln in benefits from the Detroit automaker taking an 11% stake in the electric-truck startup. But investors are more convinced by Nikola’s share. Dissatisfaction with traditional players is part of it. But so is GM’s decision to cannibalize itself.

Giants risk overloading China’s growth boards

2 Sep 2020

Carmaker Geely wants to raise $3 bln on Shanghai’s hot STAR exchange. Deep-pocketed Dongfeng Motor and Ant are also chasing stratospheric valuations on venues built for earlier-stage innovative firms. This dilutes Beijing’s goal of providing much-needed capital to startups.

Tesla shows rare modesty with $5 bln share sale

1 Sep 2020

Elon Musk’s $464 bln carmaker is set to raise more equity in one shot than it ever has. But it will only just tip the firm’s balance sheet into net cash, while the pandemic has made sales more erratic. With Tesla’s market value up almost sixfold this year, Musk could raise more.

China’s new electric-car IPO is well-timed

27 Aug 2020

Xpeng priced its U.S. IPO above a range, valuing it at nearly $11 bln. Tesla and local rivals deliver more units in China. But the Alibaba and Qatar-backed maker of affordable cars can speed production by bringing manufacturing in-house. It tees up a fast ride for EV enthusiasts.

Luminar chases self-driving without speed bumps

25 Aug 2020

The startup’s autonomous vehicle technology has been mocked by Tesla boss Elon Musk. But Volvo and others are fans of the company, which is going public via a blank-check firm. Luminar faces competition, but its product is cheap and needs little capital – unlike Musk’s outfit.

Charge into Chinese scooter’s VIE fine print

21 Aug 2020

Ninebot, the maker of two-wheelers which famously bought Segway, is set to be the first IPO on the mainland using an arcane variable interest entity structure. Beijing’s blessing does not clear up the legal fuzziness. Investors should be ready to scrutinise the specifics.

Elon Musk’s supply-chain dream might come true

29 Jul 2020

The Tesla boss says the company is willing to provide rivals with batteries, powertrains and self-driving software. That may appeal to startups and even some traditional automakers. As with other Musk projects, though, Tesla-as-a-parts-service will take time to become reality.

Nio’s Chinese rival offers family-friendlier ride

23 Jul 2020

A 200% surge in Tesla and Nio shares this year inspired China’s Li Auto to try its luck in New York. The electric SUV maker is unprofitable, but its designs are less dependent on government support, and its margin is higher than Nio’s. That makes it a safer, if less sporty, play.

Tesla’s wacky valuation has a link to reality

22 Jul 2020

At $295 bln, Elon Musk’s firm accounts for a third of the market worth of the world’s big carmakers. Its surge has helped upstarts like Rivian, Nikola and Fisker raise cash, too. Tesla is way overpriced. But as a proxy for overall electric-vehicle success, it’s not far off.

Seoul’s Green New Deal plants seeds for recovery

17 Jul 2020

Tackling climate change is at the centre of President Moon Jae-in's $133 bln stimulus plan. The country has a dismal environmental record, and previous green initiatives have disappointed. But the pandemic gives Moon a mandate to try again. Sceptics should give him a chance.

Viewsroom: Wirecard, Hong Kong and Tesla

2 Jul 2020

The German fintech scandal shines a light on its hapless regulator; China’s new security law stinks up the fragrant harbor and Elon Musk hasn’t just surpassed Toyota in market value, he’s becoming as rich as Croesus. Breakingviews columnists around the world weigh in.

Corona Capital: Tesla, OPEC

2 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Tesla speeds past its traditional rivals, and OPEC’s next meeting shapes up to be a bruising encounter.

Tesla market milestone puts Musk pay in overdrive

1 Jul 2020

The Silicon Valley upstart has overtaken Toyota to become the world’s largest carmaker by market worth. Its rapid ride to a $210 bln value also starts the clock on another huge payout for CEO Elon Musk. But production and income show investors have gotten ahead of themselves.

Segway bravely scoots onto Shanghai’s new IPO path

18 Jun 2020

The owner of the storied two-wheeler is set to blaze a trail for Chinese depositary receipts with a $300 mln deal. Xiaomi-backed Ninebot brings with it sticky corporate features that Beijing has previously shunned. A smooth debut would help set the tone for future sales.

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.

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.

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.

Tesla pits electric-power hope against experience

14 May 2020

A big battery upgrade could soon make Model 3s as cheap as gas guzzlers, Reuters reports. That’d be a big leap ahead for electric vehicles and could also shake up utilities. But the infrastructure needs work. And boss Elon Musk has a history of overpromising and underdelivering.