4.1600 -0.05 (-1.19%)
After hours: 7:07PM EST
|Bid||4.1600 x 2900|
|Ask||4.2000 x 39400|
|Day's range||4.0300 - 4.2700|
|52-week range||1.1900 - 10.6400|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Earnings date||29 Dec 2019|
|Forward dividend & yield||N/A (N/A)|
|1y target est||3.72|
Planes and cars are the main topics today and EVs are a big deal no matter what Erique thinks. Airbus takes advantage of a limping Boeing and we get into the Battleground.
(Bloomberg) -- Guangzhou Automobile Group Co. confirmed it is in talks with NIO Inc. about an investment in the cash-strapped Chinese electric-vehicle maker.GAC, its units and external parties could invest as much as $150 million in NIO, the automaker said in a statement to the Shanghai stock exchange Thursday. Plans are preliminary and no agreement has been reached, it said, echoing a NIO statement that said the two have explored financial and strategic opportunities.NIO’s shares surged as much as 19% Wednesday following a Sina Finance report that said GAC was preparing to invest up to $1 billion in the maker of ES6 and ES8 plug-in sport utility vehicles. GAC denied the report, saying there was “great uncertainty on whether any agreement will be reached.”NIO has been hit by weakness in China’s overall auto market, cost overruns and recalls. The Shanghai-based company said late last year it was making significant progress toward raising more funds, but it also warned it didn’t have enough money to carry on operating for another 12 months.The automaker’s Chief Financial Officer Feng Wei said on Dec. 30 that a $200 million convertible-bond sale NIO announced in September was almost complete. It received $100 million from backer Tencent Holdings Ltd. and was processing a purchase by Chief Executive Officer William Li.GAC and NIO have an EV joint venture that was established in 2018.NIO’s shares pared their gain to 14% at the close in New York. GAC’s Hong Kong-listed shares fell 3.6% Thursday morning, while its Shanghai-listed stock slipped 1.1%.(Updates with Guangzhou Auto statement in first and second paragraphs, share-price moves in final paragraph.)\--With assistance from Esha Dey, Molly Schuetz and Kevin Miller.To contact Bloomberg News staff for this story: Craig Trudell in New York at email@example.com;Chunying Zhang in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Trudell at email@example.com, ;Young-Sam Cho at firstname.lastname@example.org, Will Davies, Ville HeiskanenFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The U.S.-listed electric car startup, which last month flagged an urgent need for more funding, said on Wednesday it was exploring financing and strategic opportunities with Guangzhou Automobile (GAC Group). Nio did not specify the size of the potential funding but earlier in the day Sina Finance and other media reported it was in talks for up to $1 billion, sending its shares up as much as 17% in heavy trade. GAC Group said in a statement that the potential financing of up to $150 million would include funds it would raise itself and not have a material impact on its own finances.
(Bloomberg) -- Shares of electric-vehicle makers including Tesla Inc. and Warren Buffett-backed BYD Co. jumped after the government signaled it won’t continue reducing subsidies for the industry at the same pace this year.Miao Wei, the minister for industry and information technology, told an audience in Beijing on Saturday EV-purchase subsidies won’t be cut July 1, like they were on that date last year. Tesla, which is just starting to deliver locally built cars to customers, saw its stock climb above $500 for the first time as optimism about China combined with a bullish analyst report.“Please rest assured: There won’t be a further cut on July 1 this year,” Miao said in a speech at an industry forum. The audience, which included representatives from major automakers, applauded his statement.Though the minister later clarified his comments, investors and the industry interpreted his remarks as good news for EV manufacturers that were hit by subsidy reductions last year. Sales of new-energy vehicles have dropped for six straight months in China since the government scaled back handouts in July.A few hours after his speech, the minister’s amended statement was aired on China National Radio and the forum’s organizers asked reporters to refer to those comments.“In order to stabilize market expectations, and ensure the industry’s sustained development, subsidies on new-energy vehicles will stay relatively stable this year, and they won’t be scaled back significantly,” the radio station quoted the minister as saying.Shares of BYD and competitor BAIC BluePark New Energy Technology Co. surged by their daily trading limit of 10% Shenzhen and Shanghai, respectively.Tesla rose as much as 5.3% to $503.49 shortly after the start of regular trading in New York. An analyst at Oppenheimer & Co. raised his price target to a street high $612.Chinese electric-SUV maker NIO Inc., which also trades in the U.S., surged as much as 6% to $3.72.The minister didn’t say whether the subsidies will be fully gone by 2021, which is what the government has stated before. Wan Gang, a vice chairman of China’s national advisory body for policy making and an EV pioneer, told the forum that regulators should refrain from making subsidy changes this year so that carmakers can prepare for next year when they will be completely phased out.China, which began subsidizing EV purchases in 2009 to promote the industry, has been gradually reducing handouts in the past few years to encourage automakers focus on innovating and competing on their own.(Updates with Tesla stock milestone in second paragraph)To contact Bloomberg News staff for this story: Tian Ying in Beijing at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Craig Trudell, Kevin MillerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
With Tesla (TSLA) riding on impressive vehicle models and aggressive expansion efforts, it appears that other auto firms are going to have to keep chasing this EV pioneer in the foreseeable future.
(Bloomberg) -- Elon Musk was apparently excited enough about Tesla Inc.’s prospects in China that he was moved to dance, sending the electric-car maker’s shares to new highs.The chief executive officer awkwardly waltzed across a stage at Tesla’s new factory outside of Shanghai on Tuesday during an event to hand over the first Model 3 sedans to public buyers. Musk, 48, also elaborated on previously announced plans to produce the upcoming Model Y crossover at the plant.“Ultimately, Model Y will have more demand than probably all of the other cars of Tesla combined,” Musk said, reiterating a prediction made during the company’s last earnings call. He said Tesla will reveal more in the future about advanced manufacturing technologies the company is applying to Model Y.Tesla shares rose 3.9% to close at a record $469.06 on Tuesday. The stock has surged 84% since Oct. 23, when the company reported a surprise profit and said the Model Y will launch this summer, months ahead of schedule. Its market capitalization is approaching General Motors Co. and Ford Motor Co.’s combined.The kickoff of Model 3 deliveries to local customers marks a major step in Musk’s global push for electric-vehicle domination and heralds what could be the dawn of real competition in the world’s largest EV market. Local production is allowing Tesla to drop prices of the car, narrowing the price premium relative to models from Chinese manufacturers NIO Inc. and Xpeng Motors, and undercutting global giants such as BMW AG and Daimler AG.Musk also said Tesla plans to open a design-and-engineering center in China so that it can eventually develop a new car there.The company named after famed inventor Nikola Tesla, who died 77 years ago today, will now need to avoid a repeat of the glitches it experienced in its original car factory in California. Tesla went through months of what Musk called “production hell” as it ramped up Model 3 production starting in 2017. After consistently falling well short of the CEO’s ambitious targets, the electric-car maker burned through billions of dollars and came within weeks of running out of money.The China plant is already assembling 1,000 cars a week and aims to double that rate over the next year, Song Gang, the manufacturing director at the facility, said on Dec. 30. The company has said it plans to ramp up production to 150,000 Model 3 vehicles a year, or about 3,000 a week, when the first phase of the factory is completed.Tesla plans to boost production capacity to 500,000 a year after the following phase, though it isn’t clear when exactly Tesla expects to achieve those goals.Charm OffensiveMusk’s charm offensive in China has paid off. Originally just a muddy plot about a 90-minute drive away from Shanghai’s city center, the China plant has quickly come online since it broke ground at the start of 2019. It took twice as long for Tesla’s Gigafactory near Reno, Nevada, to begin churning out batteries.Tesla has been winning various concessions from local authorities ranging from approvals to preferential loans — all the more notable given the trade war with the U.S.Various government officials including Mayor Ying Yong and Zhu Zhisong, deputy secretary general of the Shanghai municipal government, were among the dignitaries attending Tuesday’s event. Vice Mayor Wu Qing said at the event that no foreign company has invested in a bigger manufacturing facility in the country.The locally built Model 3 was included last month on a list of vehicles qualifying for an exemption from a 10% purchase tax in China. It also qualified for a government subsidy of 24,750 yuan ($3,560) per vehicle.Price CutsThe subsidies have helped Tesla cut prices, with the company announcing last week it would reduce the starting cost of the Model 3 by 9% to 323,800 yuan, or 299,050 yuan after incentives. Prices could go down further, as people familiar with the matter have said Tesla is considering further lowering the price of the sedans by using more local components and reduces costs.About 30% of the parts now used at the Shanghai facility are sourced locally, and Song, the manufacturing director, said on Dec. 30 that the company plans to increase that to 100% by the end of the year.Those prices put Tesla closer to some models from domestic EV makers, such as Xpeng Motor’s latest P7 sedan, which starts at 240,000 yuan. NIO’s SUVs start from 358,000 yuan, though that price doesn’t take into account subsidies.Volkswagen AG’s Audi plans to start selling nine new-energy vehicles in China during the next two years, with more than half of them being pure battery-electric models. The first electric model, the e-tron, debuted in November at a starting price of about 693,000 yuan.Daimler’s Mercedes-Benz made its EQC available in October starting at 580,000 yuan. BMW plans to start building the iX3 crossover in China next year and is working with a Chinese partner to electrify its Mini model.\--With assistance from Dana Hull.To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Craig Trudell, David WelchFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
While EV pioneer Tesla (TSLA) is set to start mass deliveries of China-manufactured Model 3 from the next week, NIO reports narrower year-over-year loss in Q3 amid high deliveries of the ES6 model.
(Bloomberg) -- Tesla Inc. cut the starting price of its China-built Model 3 sedans by 9%, as it steps up efforts to lure customers in the world’s biggest electric-vehicle market after opening a factory on the outskirts of Shanghai.The price was lowered to 323,800 yuan ($46,500) from 355,800 yuan. After subsidies from the Chinese government, prices start from 299,050 yuan, Tesla’s website showed. That puts the cars closer to some produced by domestic EV makers, such as Xpeng Motor’s latest P7 sedan, which starts at 240,000 yuan. NIO Inc.’s electrified SUVs start from as high as 358,000 yuan.California-based Tesla, which handed over the first of its Chinese-made cars to 15 employees on Dec. 30, will start delivering local models to the public on Jan. 7, it said on its official WeChat account. That’s just one year after breaking ground at the Shanghai plant, Tesla’s first factory outside the U.S.“This price cut shows Tesla’s confidence in cost control and determination in rapidly expanding its market share,” said Yale Zhang, managing director of Autoforesight, a Shanghai-based consultancy.Elon Musk’s company is also lowering the cost of optional extras, from body color to high-performance wheels, according to a statement. Home-charging services aren’t included, and cost an extra 8,000 yuan. Tesla is already assembling more than 1,000 cars a week at its China facility and plans to double that rate over the year, according to Song Gang, the manufacturing director of the plant.Musk has said weekly production of 3,000 cars in Shanghai is a target at some point.Tesla plans to increase local sourcing to 100% in Shanghai by the end of the year, from about 30% now, Song said. That should help lower costs as Tesla and other ambitious EV makers face a challenging market in China, where auto sales have been slowing.Last month, people familiar with the matter said localization would help Tesla cut prices by 20% or more in 2020. The company has been exempted from a 10% purchase tax for its locally built sedans, posing more of a threat to the likes of NIO, Xpeng and BYD Co.(Updates with details on Chinese carmaker models in second paragraph and adds chart)To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Will Davies, Angus WhitleyFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
NIO anticipates vehicle deliveries to be more than 8,000 units for the fourth quarter of 2019, suggesting rise of more than 66.7% from that reported in the third quarter of 2019.
(Bloomberg) -- NIO Inc. surged in U.S. trading after the Chinese electric-car maker paired better-than-expected quarterly results with a warning that it’s still running low on cash.NIO’s adjusted net loss was $342.9 million for the quarter ended in September, a smaller deficit than the prior three months and what analysts were estimating. While the Shanghai-based company doesn’t have enough money to continue operating another 12 months, Chief Financial Officer Feng Wei said during an earnings call that “significant positive progress” has been made arranging financing by selling equity or debt.American depositary receipts for the maker of ES6 and ES8 electric sport utility vehicles at one point more than doubled in intraday trading and closed up 54%, the biggest jump since the day after its September 2018 initial public offering. The stock is still down 42% this year.While NIO has cut thousands of jobs and started to scale back marketing expenditures, its finances remain strained. China’s electric-car market is slowing as the government reduces subsidies, and competition is getting tougher with Tesla Inc. starting deliveries of its China-assembled Model 3 sedans.“It’s not as though management definitively addressed the company’s solvency problem,” Alexander Potter, an analyst at Piper Jaffray Cos. with the equivalent of a hold rating on NIO, wrote in a report. “Although NIO made some encouraging comments on today’s call, we still lack conviction in our estimates. In particular, we don’t know how much capital the company will be able to raise -- and we don’t know when this cash infusion (if any) will materialize.”While NIO’s revenue rose about 25% to $257 million in the quarter, sales still aren’t improving enough to make up for expenses on product development, splashy marketing campaigns and lavish retail outlets. The company has accumulated a deficit of about $6 billion since its founding in 2014.A $200 million convertible-bond sale announced in September is almost complete, Feng said on the conference call. NIO received $100 million from shareholder Tencent Holdings Ltd., and the remainder of proceeds from the securities Chief Executive Officer William Li is purchasing are being processed.“Significant new financing remains needed if NIO is to remain a going concern,” Robin Zhu, an analyst at Sanford C. Bernstein, wrote to investors. “We doubt NIO can put off paying its suppliers indefinitely, and expect significant new financing (and dilution to ADR holders) to be required if NIO is to remain solvent.”Li expects NIO to sell more than 8,000 cars in the quarter ending this month, compared with 4,799 for the period completed in September. He said the company will have fewer than 7,500 employees at the end of this year, down from a peak of 9,900.While Morgan Stanley analyst Tim Hsiao praised NIO’s stricter management of cost, he said the company’s tight cash position “remains the overhang” for the stock he rates the equivalent of a hold.“We wouldn’t be surprised to see more 50%+ intraday moves,” Piper Jaffray’s Potter said. “In this context, it’s hard to recommend taking a position.”To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at email@example.comTo contact the editors responsible for this story: Craig Trudell at firstname.lastname@example.org, ;Young-Sam Cho at email@example.com, Cécile DauratFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Tesla delivered its first 15 cars assembled at its new factory in China. Investor Galileo Russell, the founder of HyperChange, expects the company to shift into high gear and become one of the few trillion dollar companies.
This comes at a time when electric car makers are battling an uncertain demand in China, the world's largest car market, as it rolls back subsidies on new energy vehicles amid criticism that some firms have become overly reliant on the funds. China's Nio had said subsidies for its pricier ES8 model, a seven-seater sport-utility electric vehicle that is widely seen as a rival to Tesla Inc's Model X, were slashed by nearly 83% starting June. Adding to its woes, Nio on Monday warned it did not have adequate cash for "continuous operation in the next 12 months" and was looking to obtain external financing.
(Bloomberg) -- Tesla Inc. is about to find out whether the second time is the charm for Elon Musk making bold predictions about how many cars the company can build and sell.The electric-car maker handed over the first 15 Model 3 sedans assembled at its new multibillion-dollar plant near Shanghai -- its first outside the U.S. -- to company employees at the facility on Monday. Tesla took the same approach when it started production of the sedan in California in July 2017, delivering its first Model 3s to staff.After reaching that milestone more than two years ago, Tesla went through months of what Musk called “production hell.” After consistently falling well short of its chief executive officer’s ambitious targets, the electric-car maker burned through billions of dollars and came within weeks of running out of money.Investors have been betting this time will be different, with Tesla shares on a tear since the company reported a surprise quarterly profit in late October. The carmaker is on much steadier footing, having worked out the kinks that limited initial production of the Model 3 and managing to far outpace sales of many other automakers’ electric vehicles. The China plant is already assembling more than 1,000 cars a week, and aims to double that rate over the next year, according to Song Gang, the manufacturing director at the facility.‘Over Exuberance’Despite all the progress made, Musk still has his doubters. Jeffrey Osborne, an analyst at Cowen & Co., predicted Monday that Tesla will fall short of the low end of its delivery forecast for this year. He predicts the company will hand over about 101,000 vehicles in the fourth quarter, coming roughly 4,000 units short of its annual target for at least 360,000.Tesla shares plunged as much as 4.9% on Monday and traded down 4% to $413.05 as of 11 a.m. in New York. The stock is still up about 62% since the company reported third-quarter earnings on Oct. 23.Osborne, who rates Tesla the equivalent of a sell, is skeptical that demand for the Model 3 will continue at current rates. He’s concerned consumers will be less interested in the car as subsidies drop in China and the Netherlands, and as a federal tax credit expires in the U.S.“The large amount of over exuberance related to the demand for Tesla’s products in the mid to long term has increased over the past few months, and we believe much more successful penetration is baked into the stock than is likely to play out,” Osborne wrote in a report. “While Tesla has built a very dedicated fanbase that has been willing to excuse poor build quality, customer service, and service infrastructure, we continue to be skeptical around broader adoption.”Marriage ProposalThe dip in Tesla shares stands in stark contrast to the jubilant mood at the company’s ceremony to mark the first deliveries of Model 3s assembled near Shanghai. A crowd of about 200 people, including media and employees, gathered inside the plant to clap and cheer as Tom Zhu, Tesla’s head of greater China, handed over the first cars. One employee receiving a car presented it to his girlfriend along with flowers and proposed to her. She accepted with a nod and they kissed.More workers will receive vehicles over the next couple of days, and deliveries to customers will start in January, company officials said at the event.The Chinese plant represents a cornerstone of Musk’s plans to make Tesla a truly global carmaker. The company last month announced plans to build a factory in Germany to cater to burgeoning European demand for electric vehicles.The China plant could also help Musk build on recent momentum for the company in the world’s largest market both for EVs and autos in general. The Model 3 will compete with electric offering from local manufacturers including NIO Inc. and Xpeng Motors, as well as global companies such as BMW AG and Daimler AG.Demand for the locally built Model 3 is “very good,” and Tesla is confident it will sell all vehicles manufactured at the site, Allan Wang, general manager of Tesla China, said at the plant. “Our aim is to kill all internal-combustion engine cars.”Volume GoalWhile deliveries to customers haven’t started, Monday’s milestone caps several months of wins for Musk. The latest came Friday, when the locally built car was included on a list of vehicles qualifying for an exemption from a 10% purchase tax in China.Tesla said in October the locally built Model 3 will be priced from about $50,000. On top of the tax exemption announced Friday, the China-built model this month qualified for a government subsidy of as much as about 25,000 yuan ($3,600) per vehicle.Tesla’s original and for long its only car factory in Fremont, California, spent months trying to hit a 1,000 weekly rate. Musk has said a weekly production rate of 3,000 at the China plant is a target at some point.The China factory broke ground at the start of this year. Originally just a muddy plot about a 90-minute drive away from Shanghai’s city center, it is now a crucial test of Musk’s bid to prove Tesla can be consistently profitable.As part of its China expansion, Tesla plans to add dozens of locations in the country over the next year for showcasing its vehicles and providing charging and other services, Xue Juncheng, director of China aftersales, said at the ceremony.The company may lower the price of the locally assembled sedans by 20% or more next year as it starts using more local components and reduces costs, people familiar with the matter have said.About 30% of the parts now used by the Shanghai facility are sourced locally, and the company plans to increase that to 100% by the end of 2020, said Song, the manufacturing director.To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Young-Sam Cho at email@example.com, ;Craig Trudell at firstname.lastname@example.org, Ville Heiskanen, Kevin MillerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- The head of NIO Inc. pledged an improvement in the struggling Chinese electric-car maker’s finances as demand picks up and the company’s cost-cutting efforts start to bear fruit.NIO’s sport utility vehicles will be competitive not just against other electric models, but all premium cars in the same price range, said William Li, NIO’s co-founder and chief executive officer. Meanwhile expense reductions will help NIO’s gross margin to widen in 2020, Li said.“I am very confident of our products’ competitiveness,” Li said in an interview in Shenzhen, China, on Sunday. “There are many concerns in the market, but our sales are real.”NIO has accumulated a deficit of almost $6 billion since its founding in 2014, spending extensively on marketing and product development for a foothold in the burgeoning market. Third-quarter earnings, which are due to be released Monday, are expected to show there’s still a long way to profitability.While NIO has cut jobs and started to scale back marketing expenditures, its finances remain critically strained. China’s electric-car market is slowing as the government reduces subsidies, and competition is getting tougher with Tesla Inc. preparing to start deliveries of its China-built Model 3 sedans.“NIO’s balance sheet implies serious liquidity risk,” said Robin Zhu, an analyst at Sanford C. Bernstein in Hong Kong with an underperform rating on the stock. “The key will be whether they are able to announce major new financing.”Shares of NIO have plunged 61% since the company had its initial public offering in New York last year. That’s left it with a market value of $2.5 billion, compared with Tesla’s market capitalization of about $78 billion.New CrossoverOn Saturday, NIO officially unveiled the EC6 SUV, the third major product in its lineup. Pricing for the model, which has a large glass roof, will be announced in July, and deliveries are set to start after that.To further fuel demand, the company has launched promotional incentives including 0% interest for three years and guaranteed subsidies for cars registered before the end of February 2020. NIO’s sales will probably rise 44% next year to 29,973 vehicles, research firm LMC Automotive predicts.Yet losses will probably continue to mount: for 2020, the average loss estimate is $1.2 billion on revenue of $1.7 billion, according to analysts’ predictions compiled by Bloomberg. The loss for the third quarter ended last September probably was $381 million, the average estimate shows.“Our cost-cutting effort is still underway,” Li said. “But we can see a further reduction in expenses in the first quarter of 2020.”To curb spending, the company has shifted from adding NIO Houses -- fancy showrooms with users’ lounges -- to setting up much smaller stores called NIO Spaces. By the end of the third quarter, NIO had cut its staff to 7,800 from 9,900 in January.“NIO Houses have been very useful to our brand-building and user experience -- they differentiate us,” said Li. “But it would be too costly to keep investing heavily in them.”With just about $500 million in cash, equivalents and short-term investments as of June 30, NIO has had to take steps to fill up its coffers. It said in September that Li and shareholder Tencent Holdings Ltd. had each agreed to subscribe to $100 million in convertible notes. Li said NIO will give an update on that funding project on Monday.“NIO has indeed been short on cash recently,” co-founder Qin Lihong told reporters in Shenzhen on Sunday. “We are still trying to get more funds, but I wouldn’t expect any really big news soon. Please pay attention to our third-quarter report.”To contact Bloomberg News staff for this story: Chunying Zhang in Shenzhen at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Ville Heiskanen, Shamim AdamFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Tesla Inc. will start delivering China-built cars on Monday, a major milestone for Elon Musk’s company as it expands in the world’s largest electric-vehicle market.The first 15 units of Model 3 sedans assembled at Tesla’s new multi-billion-dollar Shanghai plant -- its first outside the U.S. -- will be delivered to company employees on Dec. 30, capping several months of wins for Musk. The latest came Friday, when the locally built car was included on a list of vehicles qualifying for an exemption from a 10% purchase tax in China.The shares closed little changed at $430.38 on Friday. The stock has surged since the carmaker reported a surprise profit on Oct. 23, and is now more than double its year low of $178.93 in June.Chief Executive Officer Musk is counting on the China plant to help build on recent momentum for the company in the world’s largest market both for EVs and autos in general. The Model 3 will compete with electric cars from local contenders such as NIO Inc. and Xpeng Motors, as well as global manufacturers including BMW AG and Daimler AG.The Shanghai Gigafactory broke ground at the start of this year. Originally just a muddy plot about a 90-minute drive away from Shanghai’s city center, it is now a crucial test of Musk’s bid to keep his carmaker profitable as he bets big on Chinese appetite for electric cars.With Tesla’s volatile stock price and strained finances, investors will be watching closely how the ramp-up unfolds. The multibillion-dollar investment will be a deciding factor to determine whether Tesla will be able to take on local competitors and fend off challenges by the likes of Mercedes-Benz, BMW and Audi.Junheng Li, an analyst at JL Warren in New York, noted that the made-in-China Model 3s are not fully manufactured there yet. Tesla is importing parts and assembling them at the facility near Shanghai, with production localization expected later in 2020.“Localization of suppliers has been very slow,” said Li in an email Friday. Tesla didn’t immediately respond to an inquiry seeking comment.Although Musk has said he’s never seen a factory built so quickly, the first delivery will come only a day before the end of 2019. Back in April, the CEO predicted Tesla would make at least 1,000 cars a week in Shanghai by the end of the year — a volume the company’s original factory in California spent months trying to hit. He’s also said a weekly rate of 3,000 is a target at some point.Tesla said in October the locally built Model 3 will be priced from about $50,000. On top of the tax exemption announced Friday, the China-built model this month qualified for a government subsidy of as much as about 25,000 yuan ($3,600) per vehicle.The company may lower the price of the locally assembled sedans by 20% or more next year as it starts using more local components and reduces costs, people familiar with the matter have said.The launch will also provide clues about Tesla’s ability to truly go global. The company is planning to follow up with a production facility in Europe.\--With assistance from Dana Hull.To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Cécile Daurat, Chester DawsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Dec.31 -- NIO Inc. surged in U.S. trading after the Chinese electric-car maker paired better-than-expected quarterly results with a warning that it’s still running low on cash. China’s electric-car market is slowing as the government reduces subsidies, and competition is getting tougher with Tesla Inc. starting deliveries of its China-assembled Model 3 sedans. Bloomberg China correspondent and anchor Selina Wang has the story.
Dec.29 -- The head of NIO Inc. pledged an improvement in the struggling Chinese electric-car maker’s finances as demand picks up and the company’s cost-cutting efforts start to bear fruit. Meanwhile, its rival Tesla Inc. will start delivering China-built cars on Monday, a major milestone for Elon Musk’s company as it expands in the world’s largest electric-vehicle market. Selina Wang reports on "Bloomberg Daybreak: Asia."