Electric Vehicles

Tesla sends wrong message to right stakeholders

23 Jul 2018

Elon Musk asked some suppliers to cut prices. He’d be nuts not to. It’s a way for the $53 bln electric-car maker to control costs while dangling the prospect of more business for parts makers if Tesla succeeds. But pitching it as a do-or-die moment undermines Musk’s credibility.

Sergio Marchionne leaves a giant sweater to fill

21 Jul 2018

Ill health has forced FCA’s CEO to leave early. Successor Mike Manley runs Jeep, its most profitable brand and core to Fiat Chrysler’s five-year plan. That provides continuity. But without jumper-wearing Marchionne, Fiat’s independent future may be harder to guarantee.

Viewsroom: Europe puts Google in a bind

19 Jul 2018

The search firm can easily cover the EU’s $5 bln fine for using its Android phone system to stymie rivals. But the order to stop forcing handset makers to pre-install its software could clip innovation. Plus: Goldman Sachs and Tesla put lackluster corporate governance on show.

CATL’s overseas charge has lasting power

10 Jul 2018

The Chinese battery champion will build its first factory abroad in Germany after scoring a $5 bln supply deal with BMW. It establishes a base in a promising market for electric vehicles. The newly listed company is cementing its lead over compatriot Warren Buffett-backed BYD.

Tesla can beat Ford out of China trade pits

9 Jul 2018

Absorbing new tariffs on U.S. cars would probably have killed any chance of CEO Elon Musk hitting his goal of a profitable second half. Ford can soak them up. Strategically, the balance is different: Ford needs new ideas, while Tesla just has to get on with building a factory.

Tesla upshift puts focus on bigger battles

2 Jul 2018

Elon Musk had to pull out all the stops to hit his oft-postponed Model 3 production target. It will cheer his faithful followers and make it easier to raise capital. But for the electric-car maker to really cruise, he must prove he can sustainably increase output and make money.

BP’s electric car foray is imperfect oil hedge

28 Jun 2018

The British giant is spending 1 pct of its $16 bln capex budget on battery-powered vehicle chargers. That’s unlikely to protect against a drop in crude demand. But after writing down most of its last $8 bln push into new energies, investors doubt BP can reinvent itself.

China’s $2 bln electric car rescue is an odd turn

26 Jun 2018

A subsidiary of property giant Evergrande has agreed to bail out a troubled U.S.-based Tesla challenger. Faraday Future’s Chinese founder Jia Yueting gets breathing space, but why Chinese or U.S. regulators would clear this deal is a puzzle. Investors may be celebrating too soon.

Elon Musk’s paranoia may be justified

19 Jun 2018

Tesla’s boss says an employee tried to “sabotage” the firm and thinks rivals, energy firms and short-sellers are out to get the $60 bln electric-car maker. He’s partly right, but it comes with the territory for someone who wants to overturn the industry with his radical vision.

Tesla job cull is more signal than maneuver

12 Jun 2018

Cutting 9 pct of workers won’t tip the $60 bln electric-car maker into profit. Even if it halved its sales and admin budget it would probably still lose money this year. There’s a message in the economizing, though: boss Elon Musk is eyeing small things, not just the big picture.

China’s giant battery-maker can outrun IPO hype

11 Jun 2018

CATL shares rose by the maximum 44 pct in its market debut. While such ardour is common in China’s frothy markets, the $12 bln local champion could live up to high expectations. Its success will also rev up demand for the next listings that ride the global electric vehicle boom.

Fiat Chrysler revs up for new hair-raising ride

31 May 2018

CEO Sergio Marchionne is about to unveil the $32 bln carmaker's next five-year plan after hitting most previous targets. He has to show how the company can fix its stalling Europe unit while catching up on electric and self-driving vehicles, all without him at the wheel.

SoftBank-GM self-driving deal is more than a hedge

31 May 2018

The Japanese firm’s Vision Fund will invest over $2 bln in the U.S. carmaker’s AV unit. It’s betting self-driving cars become so huge that investing in future winners and losers alike will still pay off. The risk may not be spreading its bets too widely, but being too early.

Musk and Buffett make a natural pair trade

7 May 2018

A tiff about moats and candy has reignited the friction between the two billionaires. Think like a Warren Buffett investor, and Elon Musk’s Tesla is the epitome of a terrible investment. But the two do have common ground. And betting against either of them requires guts.

Elon Musk charm autopilot suffers alarming glitch

3 May 2018

Tesla’s boss cut off Wall Street analysts for asking “boring, bonehead questions.” But that’s the nature of earnings calls. Musk’s history of missing targets, burning cash and raising capital makes “dry” financial queries entirely apt. Brushing them off won’t help Musk’s cause.

Tesla in pole position to win U.S.-China trade war

17 Apr 2018

Beijing has set deadlines to lift JV rules for foreign automakers. Ford and Daimler will be pleased, but Elon Musk's embattled $50 bln electric-car maker should benefit most. Freed to enter the biggest market without having to share technology, Tesla's risky strategy may pay off.

Beijing electric car leader runs on policy power

6 Mar 2018

A $4.5 billion backdoor listing offers the first pure play on China’s new energy auto market. Beijing Electric Vehicles leans heavily on subsidies and patronage - a precarious position as the central government reworks support for the sector. Its alliance with Daimler might help.

Geely wheels Mercedes into its chop shop

26 Feb 2018

The Chinese carmaker's founder has bought a 10 pct stake in Daimler, parking it next to Volvo, Lotus, London cabs and Swedish trucks. It's another strange turn in Geely's route to global growth. This new $9 bln part will be hard to fuse onto what has otherwise been a sweet ride.

French state is handbrake on Renault’s valuation

16 Feb 2018

Despite revenue rising 15 pct last year and a cost-saving alliance with Japan’s Nissan, the carmaker trades at a discount to rivals. Selling more cars and boosting margins will help, but the French government’s 15 pct stake is the main obstacle to CEO Carlos Ghosn boosting value.

Nissan’s partners can help it shift to higher gear

8 Feb 2018

The $42 bln Japanese automaker's operating profit tanked, as it discounted cars in America and a domestic inspection scandal took its toll. That will keep its laggard valuation stuck in neutral. Nissan's challenge is to make the most of its alliances with Renault and Mitsubishi.