Electric Vehicles

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.

Chinese EV makers will drive around EU tariffs

12 Jun 2024

The bloc is imposing levies ranging from 17% to 38% on electric cars imported from the People’s Republic. Some, like BYD, can swallow the cost, while others will find workarounds. Europe’s policymakers will have to go back to the drawing board if they want to have a real impact.

China’s cars fine-tune their driving skills

21 May 2024

Automakers in the country are touting autonomous driving, and Tesla is preparing to join the fray. On this week’s Exchange podcast, Maxwell Zhou, CEO of Alibaba-backed DeepRoute.ai, explains why progress is accelerating and how that is already changing consumers’ expectations.

New Caledonia to Macron: it’s the economy, stupid

20 May 2024

Deadly riots prompted the French president to impose a state of emergency in the Pacific Ocean territory, which holds 5% of world nickel reserves and gives Paris a strategic outpost in the region. To revive the island, a new economic deal would work better than an army crackdown.

Inflation saps Inflation Reduction Act mini-me

16 May 2024

Australia is following the US with long-term support for greening the economy. But it's peanuts by comparison with just $15 bln for industry and nothing to boost sales of EVs and heat pumps. Fear of price rises and rate hikes ahead of an election has deflated ambition.

Biden’s China policy is backed into a corner

14 May 2024

The president quadrupled tariffs on electric cars from the People’s Republic as homegrown efforts stumble. China leads on tech, and the US depends on the undependable Tesla. Muddled policy on everything from steel to batteries will only up the pressure for more rearguard actions.

China tests EU resolve on export trade fight

14 May 2024

France’s Emmanuel Macron got little to show from President Xi Jinping’s European tour this month. In this Exchange podcast, MERICS expert Grzegorz Stec explains the difficulty of managing ties with Beijing and why balancing risk and business opportunity is so tricky.

Geely’s $5 bln carve-out slows down to speed

13 May 2024

The automaker's electric-vehicle unit Zeekr rose 35% after pricing its IPO at less than half its 2023 valuation. That suggests group Chair Li Shufu has learned from his overpriced deals to take Lotus and Polestar public and found a way to coax investors wary of China risk.

EU’s China car tariffs face a very high bar

6 May 2024

Brussels would need levies as high as 50% on Chinese imports to slow sales by BYD and rivals, double recent precedents. It'd prompt a sharp response. President Xi Jinping can use his visit this week to remind Europe’s carmakers how much they stand to lose in such a scenario.

Musk’s China jaunt keeps underwhelming status quo

30 Apr 2024

Hope that Tesla can push self-driving in the country added $82 bln to its value. China’s cheap manufacturing, ample battery supply, and potential direct sales requires the EV-maker’s boss to maintain copacetic relations. But even the best outcome cannot justify excitement.

Detroit’s revenue engines finally start to fire

25 Apr 2024

Ford and GM haven’t grown US electric sales since 2022, despite investing billions of dollars. But under the hood, GM’s new models are gaining momentum, and Ford is focusing on its cash-generating trucks and vans. It helps that they are accelerating in different directions.

Tesla thumbs a ride on uncertain low-cost future

23 Apr 2024

Elon Musk’s automaker is accelerating a plan to make cheaper electric car models. Yet its recent performance disappointed, and rivals like GM are resurgent. Tesla wants investors to believe the future will be better than the present, and as good as the past. It’s a stretch.

Musk’s next big payday matters more than his last

17 Apr 2024

Tesla shareholders will soon vote on the CEO’s court-voided $40 bln pay package. It’s not a tough decision. Recent departures and strategy shifts make Tesla’s value highly dependent on keeping Elon Musk motivated. But a new pay plan is needed too, and the stakes are even higher.

Germany engineers sharper China-EU autos debate

17 Apr 2024

Chancellor Olaf Scholz echoed Janet Yellen in using his visit to the People's Republic to warn against industrial overcapacity. But he also has reservations about Brussels’ potential EV protectionism. That suggests the bloc may yet take a more nuanced look at BYD and peers.

Airbus obsessives have a shaky grasp of history

9 Apr 2024

The $140 bln pan-European group is flying high as rival Boeing stutters. Now carmakers and others are wondering if similar collaboration could help them face down overseas competitors. But Airbus’s idiosyncrasies and convoluted road to success make copycat plans pie-in-the-sky.