There is a bonafide and undeniable bubble in electric vehicles led by Tesla. Tesla is now almost 50% larger than Toyota. Tesla will likely produce less than 1 million cars this year. As of pre-market, they will be the 11th largest market cap company in the U.S. The EV dreamers seem to expect the electric vehicle market to become a winner-take-all situation. That's an odd conclusion given that many global auto companies are national champions offering good jobs and will likely get support from their governments if Tesla begins to dominate. EVs are also likely to become extremely … [Read more...]
Is This Where Some Managers are Going Wrong on Tesla?
In the last five days, Tesla's market cap has increased as much as the entire Detroit-three auto manufacturers' combined. Here's the most likely theory of where the fund managers who are chasing retail investors into Tesla shares are going wrong. Esha Dey reports for Bloomberg: Still, a lot of big institutional investors now also want a piece of Tesla and the electric vehicle market, he said. “In a Covid-19 pandemic and a dark macro environment, the company just put up a 90,000 delivery number, especially when other automakers are seeing herculean challenges.” Tesla said July 2 it … [Read more...]
Tesla Now the World’s Largest Automaker
Tesla is now the world’s largest automaker as measured by market value. Investors value the company at $205 billion. Tesla is projected to produce about 500,000 cars this year. Toyota Motor, now the second-largest automaker, produces close to 9 million cars annually. In other words, Toyota produces 18X more vehicles than Tesla, but the two companies have the same market value. Why is Tesla worth so much when it produces so little? Despite a global pandemic and a stock market crash in March, we are back to a "fairytales and fantasies" stock market. Tesla isn’t an auto company, it’s a … [Read more...]
The Electric Vehicle Bubble
If you needed any confirmation that the speculative fervor ignited by trillions of dollars of money printing and government handouts has gone to extremes not seen since the height of the dotcom bubble, look no further than Nikola. Nikola is an electric truck startup with no revenue that now has a market value greater than Ford Motor company. The WSJ has the story. The market value of Nikola Corp., NKLA -8.03% a little-known electric-truck startup that went public last week, has surged past that of Ford F -4.14% Motor Co. and other car companies in recent days, as investors continue to bet on … [Read more...]
The Auto Industry’s Growing Used Car Problem
Al Root reports at Barron's on the steep drop in used-car prices is doing to the auto industry. He writes: As if things weren’t bad enough for the auto industry , now used-car prices are cratering. That creates more pressure in several areas of the automotive value chain . The Manheim Used Vehicle Value Index—a key benchmark for industry pricing—has declined about 11% compared with March and is down roughly 10% year over year. The last time the Index dropped a similar magnitude was, unsurprisingly, during the 2008-09 financial crisis. The problems falling used-car prices create are … [Read more...]
UK Plans Forced “Market Transformation” Banning Sale of Polluting Cars
The UK government has unveiled a new plan to ban the sale of cars using petrol or diesel by 2035. Peter Campbell of the Financial Times reports: The UK government’s new target to ban the sale of petrol, diesel and hybrid cars by 2035 has been slammed as unworkable by the auto industry, which warned it would lead consumers to hold on to polluting cars for longer. Ministers had previously set a target to phase out “traditional” petrol and diesel sales by 2040, which excluded some hybrid cars that use both engines and batteries. But the move to bring forward the ban by five years — part of … [Read more...]
Should You Buy an Electric Car?
The Wall Street Journal followed eight reporters in four countries to see if the world is ready to make the switch to electric cars. … [Read more...]
BMW Breaks Records in Right to Work South Carolina
When BMW came to America looking for a place to build its award-winning SUVs, it landed in South Carolina. One of the driving factors pushing BMW, and other foreign automakers like Volvo and Mercedes-Benz to South Carolina, rather than Michigan, the traditional home of American automaking, was that South Carolina is a right to work state with low taxes. If you haven't already heard about South Carolina's business-friendly atmosphere, read here: Right to Work South Carolina is Flooded in Jobs Where to Live to Make a Living? Try this Southern Gem Southern States on Tax Cuts: Bring it … [Read more...]
Tesla “Just as Risky to Own as to Bet Against”
At The Wall Street Journal, Charley Grant warns investors that Tesla is just as risky to own as it is to bet against. He writes: After a recent pullback, its market capitalization now merely hovers around $90 billion, about the combined value of Ford and General Motors. Projections of Tesla’s future market dominance in China have eclipsed the 8% decline in total revenue that it reported for the third quarter. Analysts expect a second consecutive quarterly profit when Tesla unveils full-year results and another stock surge is certainly possible if that proves correct. But such exuberance … [Read more...]
Number of Underwater Car Loans Rising
An increasing number of American car-buyers are borrowing more than the value of a vehicle they are purchasing in order to pay off loans attached to their previous vehicles. These "underwater" buyers are reminiscent of many homeowners during the collapse of the housing market who were paying on mortgages for more than their homes were worth. AnnaMaria Andriotis and Ben Eisen report in The Wall Street Journal: Some 33% of people who traded in cars to buy new ones in the first nine months of 2019 had negative equity, compared with 28% five years ago and 19% a decade ago, according to … [Read more...]
- « Previous Page
- 1
- …
- 9
- 10
- 11
- 12
- 13
- …
- 18
- Next Page »