Electric Vehicles

Ferrari’s green journey takes surprise turn

30 Mar 2023

Europe’s plan to support carbon-neutral fuels is good news for the $50 bln luxury carmaker, CEO Benedetto Vigna says on the Exchange podcast. It will allow the group to flog the roaring engines that made its fortune. Electric cars remain a goal, but self-driving Ferraris are not.

Europe throws ignition cars a thin lifeline

28 Mar 2023

A last-minute EU deal will exempt autos running on carbon-neutral propellants from a 2035 combustion engine ban. That may help sports carmakers like Ferrari. Such fuels are costly and energy-intensive. Brands betting big on electric rides, like VW, will struggle to change tack.

Ford’s path to electric glory requires rocket fuel

23 Mar 2023

The US carmaker revealed $3 bln of losses in its electric-vehicle unit, with $3 bln more coming this year. Its targets suggest $8 bln of operating profit by 2027. That gives investors a roadmap for Ford’s race against Tesla, and a clearer vision of how ambitious that is.

Capital Calls: Gas station M&A

16 Mar 2023

Concise views on global finance: Canada’s $44 bln Alimentation Couche-Tard pays 3.1 bln euros for TotalEnergies’ European gas station cast-offs.

EU and US green arms race misses bigger picture

16 Mar 2023

The European Union’s response to Joe Biden’s Inflation Reduction Act gives member states leeway to push back with their own green subsidies. Yet plans for production targets are misguided. To decarbonise while managing China risks, it’s better to seek common ground with the US.

Stellantis has well-padded airbag for car crunch

22 Feb 2023

The Jeep maker’s operating income hit record levels in 2022, but it faces weaker demand from punters and rising competition. Still, CEO Carlos Tavares’s cost cutting and low exposure to China give cause for positivity. Those pluses aren’t reflected in the Stellantis share price.

Capital Calls: Ford and CATL

15 Feb 2023

Concise views on global finance: A new battery plant shows U.S. electric-car makers may struggle to cut China out of supply chains.

America isn’t quitting gas guzzlers yet

3 Feb 2023

Despite tit-for-tat discounts in the electric market, GM and Ford wrung $6 bln of operating profit by increasing prices overall this quarter – and they don’t expect to give it up. It’s an indicator that, even after a banner year for EVs, the U.S. may be slow to give up trucks.

Europe’s autos have weak defences against China

1 Feb 2023

Carmakers like Stellantis and Volkswagen are facing greater competition on their home turf from Chinese rivals. Higher tariffs or government subsidies might soothe the pain, but could also prompt a backlash in the Middle Kingdom. And Europe may even welcome the competition.

Capital Calls: Data falsehoods

26 Jan 2023

Concise views on global finance: Better-than-expected U.S. GDP and durable goods data suggest the country might be spared from a recession. But exclude Boeing sales and corporate stockpiling, and the economic outlook is less rosy.

Tesla’s price war can only go so far

25 Jan 2023

The electric automaker is leading its industry in cutting prices, and high margins mean boss Elon Musk can be aggressive. While he might outpace electric rivals, even zeroing out profit would only lower prices to around $39,000. As a downturn looms, that might not be enough.

Capital Calls: British jolt

17 Jan 2023

Concise views on global finance: The collapse of UK battery group Britishvolt leaves a gaping hole in the country’s auto manufacturing sector.

China’s $2 bln upstart-EV deal is very racy

13 Jan 2023

After failing to pull off an IPO, mass market-focused WM Motor is reversing into smaller Hong Kong-listed Apollo Future Mobility, which makes supercars but earns most of its revenue from jewellery. The odd couple’s close shareholder ties at least rev up the financial logic.

Carmakers will reverse out of public markets

28 Dec 2022

Shares of companies like Stellantis and BMW are depressed on fears of a recession, and the threat of Chinese rivals. Yet the groups are profitable and throwing off cash. One way to make the most of low prices is to buy back shares. The logical next step is to go private.

Tesla has lost its fantasy premium

14 Dec 2022

The electric-vehicle leader’s valuation has halved this year. That’s still compatible with Tesla growing to rival Toyota in size. But it ascribes no value for boss Elon Musk’s futuristic ideas, such as humanoid robots and self-driving taxis. At $500 bln, Tesla is just a carmaker.

Vietnam’s Tesla faces daunting Nasdaq road test

7 Dec 2022

Electric-car maker VinFast has filed for a U.S. IPO. It is unprofitable, has only just gone all-in on battery power, and its dependency on parent Vingroup may be a turnoff, too. The young marque could make a case for a $5 bln valuation, but investors will kick the tires hard.

Nickel IPO puts Jakarta at centre of China EV boom

23 Nov 2022

China’s Lygend Resources, a trader-turned-producer of critical battery ingredients, is eyeing a $600 mln Hong Kong listing. A huge presence in Indonesia gives it an edge over rivals at home, where supply is scarce. That should help the company navigate a bumpy stock market.

Baby EVs’ existential crises bad news for giants

22 Nov 2022

Electric-car maker Faraday warned it may go out of business. A shrinking order book is the latest sign of flagging demand. Established rivals like Tesla or GM can better weather a downturn. But fewer smaller rivals doesn’t help, and dwindling interest is a bad sign for everyone.

Capital Calls: ABB, Italian budget

21 Nov 2022

Concise views on global finance: The $57 bln Swiss engineering group is selling a minority stake in its car charging unit, as a fallback to volatile IPO markets; premier Giorgia Meloni’s hard-right government targets a budget deficit of 4.5% of GDP in 2023.

Capital Calls: Twitter ads, Supervoting stock

11 Nov 2022

Concise views on global finance: Elon Musk is giving big brands an easy out – and a drain on advertising is harder for Twitter to overcome than Facebook; a dual-class share structure enabled the ousted CEO of TuSimple to team up with his co-founder and sack the board.