Electric Vehicles

Elon Musk’s bully pulpit is coming into focus

13 Aug 2024

The Tesla boss’ two-hour online chat with Republican candidate Donald Trump was a mess. Yet it shows how his web of infrastructure-like businesses, from rockets to energy storage, hold growing sway in the political arena. The result may be a less-than-virtuous cycle.

Volkswagen’s restart faces further roadblocks

1 Aug 2024

The bloated $56 bln German carmaker is cutting costs further, as it tries to hit bold profit targets. CEO Oliver Blume’s 6.3% operating margin is better than it looks. But Chinese competition and stringent carbon targets make for a tricky road ahead.

Carmakers strain to navigate the next swerves

1 Aug 2024

After responding to the unexpected success of $720 bln Tesla, older manufacturers now face rising China exports amid slower EV growth. In this Viewsroom podcast, Breakingviews columnists discuss how GM, VW and others – including governments – are handling the nascent trade war.

Ola down round will worry India’s IPO hopefuls

30 Jul 2024

The SoftBank-backed e-scooter maker wants to go public at a valuation up to $4 bln, a quarter lower than when it last raised money. It's a sign that investor patience towards unprofitable tech stars is running thin. Upstarts eyeing a debut, like Swiggy, will be paying attention.

Japan’s auto rally betrays global EV anxiety

29 Jul 2024

Shares of Mitsubishi, Nissan and Honda rose on a mooted three-way alliance despite a dearth of details. The trio’s success will depend on how well they can use that scale to cut costs as the race to develop smarter, cleaner cars jeopardises the industry's profitability.

Chinese EV IPO drives a precarious line in Asia

26 Jul 2024

Hozon may raise $1 bln in Hong Kong to finance a regional expansion. Countries like Thailand and Indonesia hold even more appeal for the Neta maker and rivals like BYD as the EU and US erect roadblocks. But pushing hard into small markets risks rapid saturation and a backlash.

Carmakers drive efficiency hopes into a ditch

25 Jul 2024

The shares of carmakers Nissan and Stellantis fell around 7% after weak results. The tough US market is hurting sales, erodes the European group’s high margins and hinders its Japanese peer’s turnaround. Unsold cars and cautious consumers mean any recovery will take time.

Donald Trump might be bad for EVs, good for Tesla

23 Jul 2024

The electric-car giant’s US sales are down and rivals are rising. Yet boss Elon Musk has thrown in with Trump, whose vow to end government support could crimp EV sales by 27%. Thing is, that hurts others more. For Tesla, maintaining dominance as it pushes beyond cars matters.

China’s EU-made EVs are in pole position – for now

19 Jul 2024

BYD and Chery are planning plants in the European Union; peers will follow. While factors like labour and energy add 25% to the cost of cars made in the bloc, tech and design mean the overall product is cheaper than Western rivals’. But Brussels could yet complicate matters.

Tariffs offer poor airbag for Europe’s carmageddon

15 Jul 2024

Volkswagen, Renault and others still have miserable valuations despite Brussels threatening China with penalties on electric-vehicle imports. The duties may not be big enough, and could even hurt Western players. Possible fixes, like rowing back on carbon targets, look tricky.

EU’s China trade weak spots hide in plain sight

9 Jul 2024

Beijing may retaliate after Brussels imposed tariffs on Chinese-made electric vehicles. Of the 5,000 product groups the People’s Republic imports from the EU, many are too crucial or too small to bother with. But luxury goods, petrol cars and some foods are plausible targets.

BYD’s overseas road trip offers EU new tariffs map

9 Jul 2024

The $94 bln EV maker has just opened a factory in Thailand and is spending $1 bln to build one in Turkey. Both countries agreed preferential terms for Chinese carmakers’ imports in exchange for local production. These deals might inspire Brussels to re-engineer its own policies.

VW and Rivian wheel out a more practical EV model

26 Jun 2024

The German carmaker is investing up to $5 bln in its smaller US rival and a new JV to develop software. Many such tie-ups have ended badly, but in this case it’s more than just funding a flashy but cash-burning newcomer. The big incumbent here gets access to proven technology.

China has an incentive to keep road to Europe open

26 Jun 2024

Beijing agreed to start talks with the EU on the bloc's planned tariffs on China-made EVs. Carmakers can survive but the issue represents a larger threat. It would hurt the $18 trln economy to add a full blown trade war with the EU to its escalating one with the United States.

Toyota’s chair is driving with ‘L’ plates back on

19 Jun 2024

The tally of votes against reelecting Akio Toyoda almost doubled this year to 27% following months of governance scandals. It’s a strong rebuke for any board leader but especially so in traditionally consensus-driven Japan. Toyoda now has to show he can learn from past mistakes.

Elon Musk’s mathiness strays further from reality

18 Jun 2024

His latest theorem is that Optimus robots can make Tesla worth $25 trln, or a quarter of today’s global GDP. At 76 times expected earnings, investors clearly allow some latitude with the CEO’s calculations. The ever-odder numbers, however, are now off by orders of magnitude.

China’s EV makers can ride the tariffs backlash

18 Jun 2024

The US and the EU have imposed hefty import duties on electric vehicles BYD, Tesla and others make in the People’s Republic. In this Exchange podcast, consultant and former Chrysler executive Bill Russo explains why Europe’s levies are more a speeding fine than a stop sign.

EU tariffs solidify China’s EV hierarchy

13 Jun 2024

Investors brushed off less-than-feared levies on Chinese electric cars, with BYD stock up 3% from two days ago and SAIC down just 2%. For the former, a vertically integrated model and lesser reliance on subsidies mean it can now pull ahead of compatriots at home and abroad.

China can divide-and-trade a less welcoming Europe

13 Jun 2024

EU tariffs on cars are a setback for Beijing. Yet President Xi Jinping will test the bloc’s ability to form a coherent policy against the world’s second largest economy. Hungary is benefiting from rising Chinese investments and trade and will become a key battleground.

Musk expects more from shareholders than himself

12 Jun 2024

A vote on the Tesla boss’s court-nixed $56 bln payday has become a hostage negotiation, the implicit threat Musk could walk justified by saying 'a deal is a deal.' That didn’t stop Musk trying to kill a deal for Twitter. After recent dismal displays, investors should do likewise.