Electric Vehicles

Elon Musk cuts his way to easier path

23 Oct 2019

Tesla’s CEO brought in less money selling more electric cars last quarter, but he reduced expenses broadly enough to make a profit. Even the troubled SolarCity franchise picked up. A nearly 20% after-hours share-price pop suggests some bets that Musk is finally getting on track.

A VW-Tesla marriage looks heartbreakingly remote

22 Aug 2019

The German carmaker’s CEO Herbert Diess covets the $40 bln group’s tech, Manager Magazin reported. Tesla could use VW’s cash and manufacturing nous. But boss Elon Musk has shown no interest in cooperating with rivals. And Tesla’s crazy-high valuation makes a takeover unlikely.

Nio flashes warning for China’s luxury car market

16 Aug 2019

A co-founder of the $3 bln Tesla wannabe has quit, the latest in a string of departures. It comes after battery fires and other strategic missteps at the electric-vehicle maker. But its woes may also portend slowing premium demand: that should worry peers.

Driverless Argonauts are all on valuation quests

12 Jul 2019

Ford and VW value their new autonomous-car joint venture at more than $7 bln. SoftBank and others peg GM’s similar division at $19 bln. Yet estimates on revenue and timing are all over the map. And Google’s Waymo is leading on several metrics. Their real worth could be anywhere.

Tesla’s return to growth is only half the ride

2 Jul 2019

Elon Musk’s $40 bln automaker enjoyed record sales last quarter. That will relieve cash-burn fears for now. But demand for high-margin cars has slumped, cheaper Model 3 versions are now available, capex needs a boost and tax breaks are shrinking. Turning a profit remains tough.

Nio’s upscale brand singed by battery blazes

28 Jun 2019

The New York-listed group has recalled almost 5,000 ES8 cars, more than a quarter of those delivered, after fires. Samsung recovered from worse, but Nio is a startup betting on quality to stand out from electric-car rivals in China. Much-needed cost cuts may have to wait too.

Evergrande can ill-afford an electric-car fantasy

21 Jun 2019

The property giant has already put over $4 bln into green vehicle brands and dealers. Now it plans to plough ten times that into research and factories; for the same money boss Hui Ka Yan could buy Tesla. But he’s no Elon Musk, and this could derail a debt clean-up.

Toyota uses financial heft to hedge green bets

17 Jun 2019

The $176 bln behemoth is spreading clean energy investments across pure electric cars and hybrids as well as hydrogen, partnering with rivals like Subaru to reduce costs. The company’s sheer scale makes the strategy feasible, but Nissan’s more conventional solution is a threat.

Nio forces investors to test-drive new model

30 May 2019

When the $4 bln electric-car maker listed last year, it was branded as China’s Tesla. But the loss-making startup’s strategy has shifted sharply. Nio now plans cheaper models and may build a factory with state backing. Shareholders bought one company, and ended up with another.

Fiat-Renault deal leaves Peugeot in the M&A dust

28 May 2019

The $21 bln auto group looks strategically boxed in now its Italian-American suitor may pair with French rival Renault. CEO Carlos Tavares could try Indian-owned Jaguar Land Rover or General Motors. Yet both Plan Bs lack the $6.3 bln of cost savings he’s missed out on with Fiat.

Elon Musk rewrites fast-moving Tesla cash story

17 May 2019

The electric-car maker’s CEO is mandating “hardcore” cost controls, admitting Tesla could burn $2.4 bln of new capital in 10 months. That puts growth plans in question. It also seems to contradict earlier rosier statements. Investors and watchdogs should have a few questions.

Musk’s roundabout finance runs on short sellers

7 May 2019

The Tesla CEO reduced some pressure by raising $2.7 bln of capital. But he relied heavily on convertible bonds, a vehicle dominated by the very traders he despises. And ditching long-held financial goals for robo-taxis bolsters the bears’ case against his electric-car outfit.

Uber’s trucking is at best a very long haul

7 May 2019

The ride-hailing app’s freight unit, 3 pct of revenue in 2018, is a growth focus as it prepares its IPO. Connecting shippers to carriers has potential but there’s a driver shortage. Uber already offered incentives. As elsewhere at the firm, the costs of expansion could spiral.

Tesla’s $2 bln capital raise repeats sins of past

2 May 2019

The electric-car maker’s issue of shares and convertible bonds will barely cover planned capital expenditure, let alone losses like the one it just reported. CEO Elon Musk is betting vehicle sales will rebound quickly. That’s the kind of hubris that put Tesla in its current fix.

Ford zips out of the pits early

26 Apr 2019

The $37 bln automaker has raced past first-quarter estimates, thanks to pickup trucks and promised cost cuts. That suggests some of CEO Jim Hackett’s fixes are starting to gel. Now he needs demonstrable progress on electrification and autonomous driving too.

Tesla toils in first circle of ‘production hell’

24 Apr 2019

CEO Elon Musk’s 2017 lament about the Model 3 is taking wider hold. Demand has softened, the battery Gigafactory is underperforming, and capex and cash flow are falling. Yet Musk keeps promising new models and bumper sales, while changing tactics on the fly. The limbo can’t last.

Auto giants convert Chinese rivals into clients

23 Apr 2019

Volkswagen and Toyota share a new strategy in the world’s largest car market. In addition to designing own-brand electric vehicles, they are letting other automakers use their technology. It could be a clever way to leverage economies of scale, and hedge against competitive risk.

Elon Musk looks guilty of distracted driving

22 Apr 2019

Tesla’s CEO is talking up autonomous vehicles, days after offering investors more say and culling the board. But the $46 bln electric-car maker has more pressing concerns, including signs that demand and vehicle quality are falling – not to mention a dwindling pile of cash.

Fiat Chrysler-Tesla emissions deal is a band-aid

8 Apr 2019

The Italian-American group will include Elon Musk’s electric cars in its fleet, dodging possible European carbon-dioxide fines. Tesla will welcome the cash but is no nearer to its sales target. And Fiat Chrysler still needs a partner to meet its long-term electric challenge.

Elon Musk drives Tesla into the mire

4 Apr 2019

The electric-car maker’s CEO presided over big production and delivery drops last quarter, especially on its high-margin vehicles. Bigger losses for longer look likely. And the SEC now has more ammo over Musk’s tweets. His refusal to pump in more capital looks ever more dicey.