Electric Vehicles

Renault’s Nissan silence undermines grand revamp

8 Nov 2022

The 9 bln euro carmaker will spin off its electric vehicle unit and partner with China’s Geely on combustion engines. But, while unveiling his strategy in Paris, Luca de Meo remained mum on his Japanese partner. Governance uncertainty makes the complex plans even trickier.

Tesla success is less fleeting than AV upcharge

7 Nov 2022

Boss Elon Musk charges $15,000 a car for self-driving tech that doesn’t yet work. Ford wants to do that too, even as it ditches plans for robotaxis. Like power steering, fees for hands-free driving may disappear. Good chance Musk’s technology innovates before competitors.

Capital Calls: Japan baulks at U.S. car credits

7 Nov 2022

Concise views on global finance: Tokyo warns America’s Inflation Reduction Act could discourage Japanese investment into the world’s biggest economy.

Elon Musk’s $44 bln Twitter challenge begins

3 Nov 2022

The Tesla boss is now the proud owner of the social media platform. In this Viewsroom podcast, Breakingviews columnists discuss the billionaire’s plans to boost revenue, the implications for the electric carmaker’s shareholders, and what the saga tells us about mega-deals.

Capital Calls: Ocado in South Korea

1 Nov 2022

Concise views on global finance: The $6 bln online grocer’s shares surged almost 40% after it announced a partnership with Lotte Shopping, showing that its strategy of building warehouses for global supermarkets may have legs.

Tesla’s China price cut plays offence and defence

27 Oct 2022

Elon Musk’s $700 bln carmaker says lower production expenses prompted it to lop up to 9% off the cost of vehicles in the country. But it also smacks of a price war in the world’s largest auto market where BYD is gaining ground. Either way, the move sends strong signals to rivals.

Capital Calls: Netflix struts

18 Oct 2022

Concise views on global finance: The $109 bln streaming service reversed its subscriber losing streak and reminded rivals of its first-mover advantage.

Renault, Nissan messy breakup is least-bad option

10 Oct 2022

Signs that the $9 bln carmaker might cut a 43% stake in its Japanese partner hiked its share price. Renault CEO Luca de Meo’s gambit could mean more EV investment, but the French state would have to OK any reduction in its influence. Still, Renault has few good alternatives.

Capital Calls: Peloton races tough economic cycle

6 Oct 2022

Concise views on global finance: The $2.9 bln fitness company is laying off staff for the fourth time this year in a turnaround bid for survival.

Porsche IPO leaves VW stock in Skoda territory

29 Sep 2022

The German carmaker listed its luxury unit at 75 bln euros, nearly matching its own market capitalisation. That makes the rest of VW look cheap. Unfortunately for shareholders, a complex spinoff and muddied governance mean that discount is there for a reason.

Capital Calls: EasyJet, Nexi

27 Sep 2022

Concise views on global finance: The budget airline scraps its offset plan and focuses efforts on cleaner technology; the 12 bln euro payment company’s valuation gap with peer Worldline looks increasingly hard to justify.

Porsche IPO has two investor roadblocks to clear

16 Sep 2022

Volkswagen is listing the sports-car maker. To get the best outcome, it will need to persuade potential buyers to value it more like Ferrari than an ordinary auto group, and shrug off its complex governance. A 70 to 80 bln euro price range would adequately reflect this balance.

Biden graces Detroit but Musk steals the show

15 Sep 2022

The U.S. president’s visit to the Motor City auto show coincides with vast subsidies to aid carmakers in going electric. But Elon Musk’s Tesla, which eschews the event, is why they need help in the first place. Government support is less picking winners than consoling runners-up.

China’s battery maker has an IPO charging problem

15 Sep 2022

China Aviation Lithium is low on power ahead of its $1.5 bln Hong Kong float. The CATL wannabe is growing fast but its profit leans on government subsidies. Throw in high dependence on a single automaker and ties to a sanctioned entity, and it looks like a difficult ride.

Capital Calls: SPACs’ long shadows

12 Sep 2022

Concise views on global finance: While electric-vehicle startup Nikola is moving beyond its founder, both it and its SPAC-partner peers are mired in supply chain challenges, slipping deadlines and tumbling share price performance.

Capital Calls: Porsche’s bold IPO

6 Sep 2022

Concise views on global finance: German carmaker Volkswagen is pushing ahead with its plan to list the luxury brand, despite torrid markets.

China’s BYD can navigate a Buffett selldown

31 Aug 2022

The Shenzhen electric-car maker’s shares fell more than 10% after the billionaire offloaded a sliver of his $7.5 bln stake. Fears of further sales are weighing on the company’s stock. But BYD is enjoying a stellar run as vertical integration and a daring move upmarket pay off.

Do hybrid vehicles help or hurt the environment?

25 Aug 2022

Automakers like Toyota still favour cars that run on both batteries and fossil fuels. In this Viewsroom podcast, Breakingviews columnists debate whether this is smart given shoddy power grids and rising cell costs, or a dangerous distraction in the battle against climate change.

Geely’s export success warns global rivals

19 Aug 2022

The $21 bln Chinese carmaker is growing overseas, despite political headwinds and consumer skepticism. Electric vehicles are targeted to make up half its sales by 2023. Boss Li Shufu is best known for acquiring Volvo, but now his own brands can compete in Europe and beyond.

Anti-Beijing bandwagon sideswipes Biden’s EV push

16 Aug 2022

Only cars with a good chunk of U.S. battery parts and critical minerals qualify for a $7,500 tax credit passed by Congress. A global supply chain that relies on China means few vehicles will qualify. The race against climate change takes a back seat to the America First drive.