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U.S. antitrust officials have begun asking companies about communications with their biggest shareholders as part of merger investigations.
Seven U.S. bombs from World War Two have been found in the plot of land outside Berlin where electric car pioneer Tesla wants to build its first European factory, local authorities said on Thursday. The duds weigh about 50 kg each and explosives experts plan to defuse them in future, said a spokesman for the interior minister in the state of Brandenburg where the property is. Tesla has agreed to buy land in Gruenheide just outside Berlin where it wants to build a giant factory that would give its cars the "Made in Germany" branding.
While Ford's (F) Q4 results are likely to be hit by a pre-tax charge of $2.2 billion, Fiat Chrysler (FCAU) teams up with Foxconn to develop EVs in China.
(Bloomberg) -- Tesla Inc.’s legal victory to sell its electric vehicles in Michigan without dealers could clear a path for other carmakers to follow.As long as it complies with a few unrestrictive legal technicalities, the electric-car maker is free to deliver Model 3, S and X vehicles directly to customers and service them through a subsidiary, the state ruled Wednesday. While Michigan will consider other businesses’ approaches on a case-by-case basis, as long as a manufacturer doesn’t have an existing dealer network, it could follow in Tesla’s footsteps, according to Kelly Rossman-McKinney, a spokeswoman for the attorney general.That’s significant for electric-car upstarts including Rivian Automotive Inc., the truck and SUV maker that raised almost $3 billion last year from the likes of Amazon.com Inc. and Ford Motor Co. The Plymouth, Michigan-based company planning to start selling its R1T pickup and R1S sport utility vehicle late this year is waging the same costly legal battles state-by-state that Tesla faced in its early days.“Having settled on these terms with Tesla, it would seem legally very difficult for the state to deny a similar arrangement to any other company situated like Tesla,” Daniel Crane, a University of Michigan law professor who specializes in antitrust and regulatory issues, wrote in a blog post after the settlement was announced.Rivian declined to comment, as did the Michigan Automobile Dealers Association. Other new entrants planning to sell cars directly to consumers include Lucid Motors, which has said it aims to start production of its Air sedan late this year, and Byton Ltd., which is targeting 2021 for the launch of its M-Byte SUV.Federal FightTesla secured a victory in Michigan after filing a federal lawsuit against the state in 2016 challenging its ban on direct-to-consumer car sales. The attorney general’s office insists the accord doesn’t jeopardize existing state franchise laws, which prevent manufacturers from opening stores that would compete with dealers.Michigan ruled that sale contracts Tesla signs with Michigan consumers will have to indicate that the transaction took place elsewhere. But customers won’t actually have to leave the state to complete the contracts, so the stipulation amounts to a paperwork requirement.The decision isn’t a slam dunk for Tesla because Michigan’s ruling fell short of setting a national precedent, according to Patrick Anderson, principal of an eponymous consulting firm that has assisted dealers in other state battles over franchise laws.Easier ServiceExisting Tesla owners in the state, who until now have had to travel to Ohio and other states to have their cars repaired, are poised to benefit from the ruling.Robert Vogt, an automotive engineer living in Ann Arbor, said Tesla used to pick up his Model S and haul it more than 50 miles (80 kilometers) away to work on his car in Toledo and would drop off a loaner car for him. But that stopped last summer, when Model 3 deliveries surged and started taxing the company’s mobile-service support network.“I have a service light on mine that just popped up, and I’m trying to figure out how to get that dealt with, because I’m not going to Toledo,” Vogt said. “If they had a service place in Ann Arbor, that would be totally fine; I would be happy to take it there.”To contact the reporter on this story: Gabrielle Coppola in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Trudell at email@example.com, 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.
Tesla's stock has more than doubled in value in the last three months, with its market capitalization piercing $100 billion on Wednesday, a first for a listed U.S. automaker. During the rally, its value has leapfrogged more established global rivals: Honda <7267.T>, BMW , General Motors and Daimler . On Wednesday, it eclipsed VW's $99.4 billion value.
Tesla's stock has more than doubled in value in the last three months, with its market capitalisation piercing $100 billion (£76 billion) on Wednesday, a first for a listed U.S. automaker. During the rally, its value has leapfrogged more established global rivals: Honda , BMW , General Motors and Daimler . On Wednesday, it eclipsed VW's $99.4 billion value.
Toyota (TM) to recall 2.9 million U.S. vehicles, which includes Corolla 2011-2019, Matrix 2011-2013, Avalon 2012-2018 and Avalon Hybrid vehicles 2013-2018.
(Bloomberg) -- Even after more than doubling his Tesla Inc. price target, UBS Group AG analyst Patrick Hummel still recommends that investors sell the electric-car maker.With the shares worth more than twice as much as they were at the beginning of October, UBS’s increased target of $410 is still 28% below the last closing price of $569.56.While Tesla has the potential to become the most profitable original equipment manufacturer (OEM), the positives are “taken for granted” at the current price, according to Hummel, who sees the company’s volumes doubling by 2022.Having the biggest long-term opportunity in autonomous vehicles, Tesla justifies a market value “well above” most incumbent OEMs, Hummel wrote in a note to restart coverage of the stock. Still, risks in execution and U.S. demand following the phase-out of electric vehicle tax credits seem to get ignored, he said.The shares have surged of late amid a surprise third-quarter profit and strong deliveries for the fourth quarter, while the company’s market capitalization topped $100 billion on Wednesday.Just this week, Tesla’s biggest bull predicted that the stock could reach a level as high as $960 by early 2021. The stock has nine buy ratings, 11 holds and 17 sells, with an average price target of about $370, according to Bloomberg consensus estimates.The shares fell 1.2% in U.S. pre-market trading, also weighed down by a downgrade to neutral from outperform at Exane BNP Paribas. Tesla is due to report quarterly earnings next Wednesday.(Updates with more analyst comments in fourth paragraph)To contact the reporters on this story: Kit Rees in London at firstname.lastname@example.org;Beth Mellor in London at email@example.comTo contact the editors responsible for this story: Celeste Perri at firstname.lastname@example.org, Paul JarvisFor 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.
A daily overview of the top business, market, and economic stories to watch in the UK, Europe, and abroad.
The fallout continues from the diesel emissions scandal for the German car giant, which has also been leapfrogged by Tesla as the world's second most valuable carmaker.
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.
Technology shares led the S&P 500 marginally higher on Wednesday, as a healthy forecast from IBM helped mitigate worries over the developing coronavirus outbreak. The S&P 500 and the Nasdaq closed barely in the black after approaching, then backing down from record highs the day after virus fears prompted a sell-off. The Dow closed nominally lower.
Elon Musk on road to $50bn payout as Tesla's value passes $100bnUnder pay scheme, founder must build electric carmaker into $650bn company by 2028
Tech shares led all three major U.S. stock averages into the black, with the S&P 500 and the Nasdaq setting a course to notch new record closing highs, the day after virus fears prompted a sell-off. Streaming pioneer Neftlix Inc acknowledged stiffer competition in the United States, where quarterly growth fell short of analyst estimates.
Tesla (TSLA) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
(Bloomberg) -- Tesla Inc.’s market value has climbed above Volkswagen AG’s for the first time to more than $100 billion, a threshold that will trigger a huge payout for Elon Musk if he can sustain the feat for months.The electric-car maker’s shares soared as much as 8.6% on Wednesday to a new intraday high of $594.50. At that price, Tesla’s market capitalization was roughly $107.2 billion, exceeding Volkswagen’s $99.4 billion and trailing only Toyota Motor Corp.While Musk’s skeptics are dubious that Tesla should be worth more than a carmaker that sold almost 30 times as many vehicles last year, Volkswagen’s own Herbert Diess isn’t so dismissive. He’s been arguably the most vocal CEO among traditional carmakers to praise Tesla and point to its role in a radical shakeup of the more than century-old auto industry.After saying three months ago that Tesla was no niche manufacturer anymore, Diess told top Volkswagen executives at an internal meeting in Germany last week that connected vehicles will almost double the time consumers spend online, and that cars will “become the most important mobile device.”“If we see that, then we also understand why Tesla is so valuable from the view of analysts,” he said.Diess, 61, is rolling out the industry’s largest electric-car fleet and aims to boost the company’s value to a level rivaling Toyota, whose $232 billion market cap is still more than Tesla and VW’s combined.“Tesla has high innovative strength regarding battery-electric vehicles as well as connectivity, which can partly explain the high market capitalization,” Stefan Bratzel, a researcher at the Center of Automotive Management near Cologne, Germany, said in a report Wednesday. The relatively low valuation of traditional automakers is linked to uncertainty over whether they can navigate the looming industry shift, he said.The jump above $100 billion is about more than just bragging rights for Musk, Tesla’s billionaire chief executive officer. He’s eligible to receive the first tranche of an all-or-nothing pay award if the company’s market value stays above that threshold for a sustained period. On paper, the first chunk of the award would net him about $346 million.Tesla shares have more than doubled since the company reported a surprise third-quarter profit and told investors it was ahead of schedule bringing out its next product, the Model Y crossover, and opening its factory near Shanghai.The stock has room to run as Tesla grows in China, Wedbush analyst Dan Ives wrote in a report Wednesday. He boosted his target price to $550 from $370 while maintaining the equivalent of a hold rating.What Bloomberg Intelligence Says:“Tesla’s tepid 0.3% gain in 2019 domestic unit sales suggests a tapped-out U.S. Sales in China skew the U.S. demand picture, which should become clearer by year-end with the ramp-up in Shanghai output.”\- Kevin Tynan, senior autos analystClick here to read the researchGary Black, who was chief executive of Aegon Asset Management from mid 2016 through September and now holds Tesla as a private investor, said he expects Tesla to earn more than VW by 2025 and believes consensus estimates for vehicle deliveries this year are too low. He expects Musk to forecast at least 550,000 units for 2020 during next week’s earnings webcast and to tout the launch of the Model Y.While at least eight analysts have boosted their price targets by more than $100 since the year began, consensus is still well below where Tesla’s shares are trading. The average target is $363.92 with just 10 analysts rating the stock a buy, compared with 10 holds and 16 sells.(Updates with VW’s EV plans in sixth paragraph.)\--With assistance from Cécile Daurat, Tom Randall and Anders Melin.To contact the reporters on this story: Dana Hull in San Francisco at email@example.com;Christoph Rauwald in Frankfurt at firstname.lastname@example.org;Gregory Calderone in New York at email@example.comTo contact the editors responsible for this story: Craig Trudell at firstname.lastname@example.org, ;Anthony Palazzo at email@example.com, Cécile DauratFor 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.