Electric Vehicles

Truce brakes Evergrande’s bad bet on Tesla wannabe

2 Jan 2019

The Hong Kong-listed conglomerate has ended a legal spat with electric-vehicle developer Faraday Future over a soured $2 bln investment. It seems unlikely that Evergrande's stake in the troubled Chinese carmaker will ever pay off, but this deal at least limits the downside.

Larry Ellison is anything but a check on Elon Musk

28 Dec 2018

The Oracle founder calls himself a “very close friend” of the Tesla CEO and owns nearly $1 bln of the automaker’s stock. He also shares an imperious style and penchant for outsized pay. Musk’s SEC deal mandated an independent director, but Ellison is unlikely to rein him in.

Scooters will soon find city-friendly sweet spot

19 Dec 2018

They're tech toys that clog up streets and sidewalks. Yet they are also a clean, low-cost bridge between cars or mass transit and walking. The Bird CEO talks about sharing the cost of infrastructure. That could be a way forward, as long as the business model can stand it.

Uber might scoot its way toward profit

3 Dec 2018

The ride-hailing giant may want to buy into an e-scooter mover like Bird or Lime. Two-wheelers may become a big part of the tech-driven shift in mobility habits. And without pesky drivers, there’s a bit more scope to make money one day. That could help address a big Uber problem.

GM top-tier reshuffle may both boost and backfire

29 Nov 2018

The $52 bln carmaker’s second-in-command Dan Ammann is taking the wheel at Cruise, the unit that makes self-driving vehicles. The ex-Wall Streeter is the right person to whip it into shape and prepare for a possible IPO. But GM boss Mary Barra is losing her chief problem solver.

GM’s Mary Barra has only one leg to stand on

27 Nov 2018

Pulling subsidies as revenge for the $51 bln carmaker cutting U.S. staff and plants – as President Trump has threatened - would be unfair. It might not even be possible. Trouble is GM remains a poster child for government bailouts. It’s a fight its boss can’t easily win.

Short-seller tries tricky electric-car U-turn

22 Nov 2018

Citron Research, known for negative reports on stocks, is now backing Chinese manufacturer Nio as well as Tesla. Conceding the dominance of Elon Musk’s creation and then betting on a Tesla rival seems inconsistent. It’s a reminder that winners are as hard to pick as losers.

GM’s share price doesn’t add up

31 Oct 2018

The carmaker won a near-$15 bln valuation for its autonomous-vehicles unit by ringfencing it and selling chunks to SoftBank and Honda. If that price is right, though, it means the rest of GM is valued as if it's ready for the scrap heap. Decent earnings suggest that’s unfair.

Hadas: Six economic reasons to hate Uber

25 Oct 2018

Economists are wrong to drool over the car service provider as an exemplar of free markets. This financial zombie has destructive effects on transit, a dysfunctional strategy and an antisocial approach to regulation. Also, it hurts its workers and makes investors look foolish.

Musk charges Tesla at least one-quarter full

24 Oct 2018

The delayed Model 3 ramp-up revved up the electric-car maker’s latest sales and drove it into the black. The gains may not be sustainable, and the CEO’s behavior and potential capital needs remain worries. But after a riotously unstable quarter, any hint of normalcy is welcome.

Tesla can find a better chair than James Murdoch

11 Oct 2018

The media executive is in line to lead the board, the FT says. He’d be a better pick than any of the $45 bln electric-car maker’s other directors. But Elon Musk’s tweet denying the story is a reminder that Tesla and its investors need a strong outsider to oversee the CEO.

BMW writes China JV owner manual for its rivals

11 Oct 2018

The luxury carmaker will take control of its venture with Brilliance Auto for $4.2 bln, making it the first to take advantage of new rules. Share weakness has helped it drive a bargain, even if the deal doesn’t close until 2022. Others like Daimler may follow in the slipstream.

Toyota and SoftBank press accelerate on AV jargon

4 Oct 2018

The duo are pairing up to build "Autono-MaaS" vehicles. The $200 bln carmaker gets introduced to Masayoshi Son’s stable of ride-hailing apps and his telco gets a big potential data customer. As wild bets proliferate, for now, this one helps Toyota catch up on the buzz.

Tesla investors get unsubtle hint from SEC

30 Sep 2018

The watchdog is using its settlement with CEO Elon Musk to impose some much needed adult supervision. The $45 bln electric-car maker must install an independent chair and find two new unbiased directors. It's up to shareholders to push for a broader governance overhaul.

Musk suit could uncover Tesla’s true value

27 Sep 2018

The U.S. securities regulator wants Elon Musk removed as CEO and director, saying he lied about a plan to take the $53 bln electric-car maker private. His exit would leave Tesla much depleted, but also more rationally valued – if it can motor past a looming liquidity crunch.

Nio zooms from carmaker to tech star

14 Sep 2018

China’s answer to Tesla reversed out of a dismal NYSE debut as its shares jumped 76 pct in their second day of trading. That imputes a $13 bln market cap that values Nio less like a manufacturer and more like an internet darling. Production figures make it hard to justify.

Musk takes a couple of toes off the pedal

10 Sep 2018

The $45 bln electric-car maker's CEO has promoted an insider to run the autos unit, among other changes, after "in-depth" talks with directors. An experienced outsider would have been better. Musk remains free to overpromise and underdeliver.

Volvo’s IPO problems go beyond brewing trade war

10 Sep 2018

The carmaker’s Chinese owner has paused a float worth up to $30 bln. Even without America’s tariff antics, that price tag would have been far too high. Investors are unconvinced old-school auto groups will get a return for their spending on electric and autonomous cars.

Tesla risk is Musk blowing smoke, not inhaling

7 Sep 2018

Model 3 sales may be speeding up. But Tesla’s stock and bonds slumped after another lawsuit, the exit of its top accountant and HR boss, and the CEO’s pot-smoking podcast appearance. It all makes Musk’s goals less convincing, and needed capital more costly to raise.

Foreign carmakers are caught in a China drive-by

7 Sep 2018

Beijing wants to slash excess auto production at a time when Nissan, Toyota and others hope to expand. Draft rules could cut as much as a third of capacity in the world’s largest car market. Official feuding over the issue too could prove a speed bump, even for global giants.