Electric Vehicles

Wanted: Italian-American carmaker seeks new driver

29 Dec 2017

CEO Sergio Marchionne will soon head for FCA’s off ramp. A blizzard of well-timed deals helped spark stellar returns, but the group has low margins and big gaps. Marchionne also wears too many hats. Breakingviews imagines a consultant advising the board on picking his successor.

Geely could be useful back-seat driver at Volvo

27 Dec 2017

Seven years after buying Volvo Cars, the Chinese group is acquiring Cevian’s 8.2 pct stake in the Swedish truckmaker. The activist gets a decent exit after 11 years, while Volvo gets help with electric vehicles and China. The risk is Geely is getting in at the top of the cycle.

Booming metal markets test mettle of memories

2 Nov 2017

The frenzy over electric cars is helping push copper, nickel and cobalt prices to their highest in years. An expected supply squeeze is also a factor. After frolicking in London this week, global miners get a shot to prove they've learned from cycles past and can use cash wisely.

Tesla could hit second gear with Shanghai factory

22 Oct 2017

Elon Musk may soon be able to build his electric cars in China. That's essential for catching up or keeping pace with rivals in the fast-growing market. It'll also take pressure off production trouble in the United States. A troubling tariff problem, however, is apt to remain.

Electric vehicles lack killer spark – for now

27 Sep 2017

BHP reckons battery-powered cars are reaching a tipping point. Even vacuum maker Dyson is building one. And driverless vehicles could make EVs a huge money-spinner. High costs and concerns over raw-material supplies, though, will keep the combustion engine purring for years.

Foreign automakers will pay for Chinese EV drive

19 Sep 2017

China’s pledge to scrap gas guzzlers looks serious. A new quota system will force motor-makers to sell electric vehicles. Those who miss targets must buy credits from battery-powered rivals. Home-grown brands are likely to reap the benefits, at the expense of global giants.

Water woes may leave green-car hopes high and dry

28 Aug 2017

Ford is the latest to ramp up electric-vehicle production with a deal in China. But the industry relies heavily on the Democratic Republic of Congo for a crucial battery material. Drought, abysmal infrastructure and conflict could put ever-increasing supply needs at risk.

Toyota tunes up with Mazda deal

4 Aug 2017

The Japanese giant and its peer are taking small stakes in each other, and will build a $1.6 bln U.S. plant together. Toyota is racing to keep up with shifts in technology and consumer tastes. Drawing closer to Mazda and other Japanese automakers helps.

Chinese green car boom fuels lithium rush

17 Jul 2017

Beijing's policy push toward electric vehicles is driving investor interest in lithium and lithium miners. The price of lithium carbonate has almost trebled since 2015, and acquisitions are underway. Demand for the suddenly strategic commodity could trigger a tussle over supply.

Doublethink threatens Chinese green leadership

14 Jun 2017

Donald Trump has gifted China the chance to lead the charge against climate change. But the country must conquer a contradiction. Beijing bureaucrats may love cleantech investment, but as economic growth slows, they fear the costs of regulation and restructuring.

China’s green push will drive out weaker carmakers

10 May 2017

Beijing wants to quadruple annual sales of "new energy" cars to 2 mln by 2020, but is scaling back subsidies. Manufacturers will thus have to boost sales and slash costs. Big companies like BYD, backed by Warren Buffett, can ride out the crunch. Smaller outfits may be less lucky.

Tesla demonstrates valuation staying power

3 May 2017

Boss Elon Musk vows that annual Model 3 production alone can meet the company's target of 500,000 vehicles by the end of 2018. That should be enough for the electric-car maker's faithful to overlook past missed goals and growing competition, and keep the stock unjustifiably high.

Delphi goes where carmakers only dream of driving

3 May 2017

The $23 bln parts maker is spinning off its powertrain unit to focus on connected and autonomous tech. These fast-growing, higher-margin businesses will sport a top-tier multiple even if car sales slow. The likes of Ford and GM don’t have the luxury of following Delphi’s lead.

Tencent drifts off course with Tesla

29 Mar 2017

The Chinese tech giant can easily afford a near-$2 bln stake in Tesla. But Elon Musk's electric cars are not a great fit with its cash-cow businesses, social media and mobile games. Making a huge, venture capital-style bet like this is a worrying sign of indiscipline.

Tesla’s surprise surge lights up China policy risk

15 Mar 2017

The electric carmaker unexpectedly tripled sales in the People's Republic last year to $1 bln. Favourable licence plate policies adopted recently in key cities are a likely factor. For Tesla, China's fast-moving green car rules can be as much an opportunity as they are a problem.

Hong Kong is stage for Tesla’s next power surge

22 Dec 2016

Though it's congested and boasts limited green credentials, the city's residents snap up thousands of Elon Musk's slick electric cars. The tax breaks that make them affordable are up for review. But 2017's cheaper Tesla could show the world how to switch on subsidy-free success.

China’s car scam shows best and worst of subsidies

15 Sep 2016

Lavish grants for electric vehicles nurtured new technology and a massive market. The largesse came at a price, though, with many millions of dollars lost to scammers faking sales to claim cash. There may yet be a happy ending for home-grown heroes like BYD.

China’s Netflix-to-Tesla is spread painfully thin

16 Aug 2016

Jia Yueting's LeEco is pushing into TVs, mobile handsets, electric vehicles and video-streaming. That poses huge financial and strategic challenges for his mostly private group. These are fast-moving, capital-intensive industries with very well-resourced competitors.