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A German court on Sunday ordered Tesla Inc to stop clearing forest land near the capital Berlin to build its first European car and battery factory, a victory for local environmental activists. The U.S. electric carmaker announced plans last November to build a Gigafactory in Gruenheide in the eastern state of Brandenburg. The court ruling, by the higher administrative court of the states of Berlin and Brandenburg, comes after the state environmental office gave a green light to clear 92 hectares of forest for the plant.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Elon Musk’s plan to build an electric car plant in Germany has run into legal trouble after a court said clearing a forest near Berlin for a new Tesla Inc. factory must stop immediately while it considers a challenge by environmentalists.The Berlin-Brandenburg higher administrative court issued an injunction against further construction after overturning a lower court ruling against environmental group Gruene Liga Brandenburg. The group is seeking to prevent Tesla from clearing more of the surrounding forest and the court said it will make a final decision on the complaint in the coming days.Tesla and the local government have already filed their response to the complaint and are now “relying on the prompt decision” of the court, Joerg Steinbach, spokesman for the regional government said on Twitter.The injunction threatens Tesla’s ambitious timetable of having the plant up and running from mid-2021. If it does clear Germany’s red tape, the site could churn out as many as 500,000 cars a year, employ 12,000 people and pose a serious challenge to Volkswagen AG, Daimler AG and BMW AG. Musk recently tried to ease local concerns about water usage for the plant, which would border a nature reserve.Workers have already scoured the equivalent of about 150 soccer fields of forest and removed most of the World War II ammunition found there.The project’s environmental stipulations include scaring off or relocating wolves, hibernating bats, snakes and lizards until construction is over. Under German environmental regulations, the project in the small town of Gruenheide must also consider the breeding period for local wildlife in spring.(Updates with government spokesman in third paragraph)To contact the reporters on this story: Richard Weiss in Frankfurt at email@example.com;Stefan Nicola in Berlin at firstname.lastname@example.org;Karin Matussek in Berlin at email@example.comTo contact the editors responsible for this story: Daniel Schaefer at firstname.lastname@example.org, Andrew DavisFor 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.
Billionaire Ray Dalio's Bridgewater Associates, Viking Global Investors, and Granite Point Capital were among prominent hedge funds placing new bets on electric carmaker Tesla Inc in the fourth quarter, positioning them to gain from its nearly 100% rally over the first six weeks of the year. The positions were revealed in 13F filings with the U.S. Securities and Exchange Commission released on Thursday and Friday, which are one of the few public ways of tracking what hedge fund managers are selling and buying. If each hedge fund had held on to its stake, Bridgewater's purchase of nearly 45,000 shares would be worth approximately $36 million (£27 million), while Viking's purchase of nearly 52,000 shares would be would be worth slightly more than $42 million.
Yahoo Finance is maintaining a working list companies that have been affected by the outbreak, and are expected to feel the effects through the first half of the year.
China’s electric vehicle manufacturers posted significant losses last month, as steep cuts in government subsidies continued to weigh on the sector. But a top executive at the country’s largest EV maker BYD says, Chinese carmakers need to “build more competitive cars” to reduce their reliance on government policies.
(Bloomberg) -- Elon Musk dreams big dreams. Tesla Inc. taps Wall Street for funds to turn them into reality. Banks pocket millions in fees. And rather than punish the company for diluting its shareholders, the market applauds.The virtuous circle has enabled Tesla to raise about $14 billion over the last decade, supporting the electric-car maker through countless ups and downs. News of the latest offering -- which priced at $767 a share, according to a regulatory filing -- boosted Tesla’s market capitalization to almost $146 billion, behind only Toyota Motor Corp. among the world’s most valuable auto manufacturers.While Tesla watchers have seen this movie before, the latest script was full of twists and turns. Musk, 48, said during an earnings call two weeks ago that it didn’t make sense for the company to raise capital again. The maker of the Model 3 sedan has been spending money sensibly, he said, without holding back expenditures that would inhibit progress.But the ascent Tesla’s stock has been on in recent months evidently changed the chief executive officer’s mind. Tesla will use the $2 billion proceeds from the offering to shore up its balance sheet and help fund Musk’s seemingly endless aspirations.After Musk and Chief Financial Officer Zach Kirkhorn demurred weeks ago when asked how much spending Tesla had planned for this year, the company disclosed Thursday that its budget will be as much as $3.5 billion, more than double last year’s.Chinese banks are footing much of the bill for the factory Musk just opened near Shanghai, but he’s also already planning to build his next one near Berlin and teasing the possibility of another one going up in Texas.Tesla is no longer a tiny niche player that makes cool-but-expensive cars only in high-cost California, but getting to this point required taking on about $12.5 billion of debt, double the amount of cash and equivalents it had at year end.“Musk had previously assured investors that he did not plan to raise additional capital,” Gene Munster, managing partner of Loup Ventures, said in a report. “However, while Elon backpedaling on his promises is a common criticism of Tesla, the company’s balance sheet is a much more common (and valid) criticism.”Tesla shares rose as much as 0.7% to $809.50 as of 10 a.m. Friday in New York. The stock rose 4.8% Thursday after the offering was announced, running counter to the usual beating companies take when they issue new shares.The stock has more than tripled since the company released the first of two positive quarterly earnings reports. Musk has accelerated the production schedule for the Model Y, the crossover SUV that he sees becoming the company’s new top seller.But the Model Y isn’t expected to contribute significantly to deliveries in the first few months of the year, and Kirkhorn has cautioned that first-quarter sales probably will slow down because of seasonality. Production in China also was temporarily halted due to the coronavirus, and ramping up output of Model 3s there and Model Ys in California is expected to pinch profit margins.Tesla managed to time its latest offering before any of those risks weighed on the stock ahead of its next earnings report.With all that Musk has planned -- eventually rolling out the Semi, Roadster and Cybertruck models and recommitting to a foundering rooftop-solar business -- some investors and analysts think the company should try to raise enough money so that it’s really done needing to seek more from now on.While the amount the company has taken in during the last decade is significant, it’s not unprecedented. Netflix Inc. raised about $15 billion in the same span, almost entirely from debt offerings, according to data compiled by Bloomberg.“We have long wanted Tesla to raise a large amount of cash via stock issuance due to its lofty valuation and then perhaps never need to raise capital again,” David Whiston, a Morningstar Inc. analyst, said in a note. “We’d like to see more consistency between the company’s actions and the words of CEO Elon Musk.”\--With assistance from Brandon Kochkodin and Drew Singer.To contact the reporters on this story: Dana Hull in San Francisco at email@example.com;Gabrielle Coppola in Detroit at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Trudell at email@example.com, Melinda GrenierFor 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.
(Bloomberg) -- Tesla Inc. investors who got in on Thursday’s share sale received the steepest discount the electric-car maker has offered in its 10-year history as a public company.Tesla’s $2 billion secondary offering priced at $767 per share, 4.60% below Thursday’s closing price. That discount is over 10 times larger than Tesla’s last secondary offering in May, and quintuples the average discount given across its seven prior share sales.Read more: Tesla Money Raise Keeps $14 Billion Virtuous Circle RollingAn 83% run-up this year before the offering launched might have contributed to the more buyer-friendly pricing terms, not to mention fresh regulatory scrutiny. But Elon Musk probably isn’t losing any sleep over the matter, as the price per share was still more than double any of the company’s prior equity raises.Six of Tesla’s previous secondary offerings -- conducted between 2011 and 2019 -- priced at discounts below 1.0%. The bullish bidding helped Tesla fuel a decade of unparalleled price appreciation.Shares fell 3% in pre-market trading to about $780, above Thursday’s offering price.To contact the reporter on this story: Drew Singer in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Courtney DentchFor 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.
(Bloomberg) -- Tesla Inc. needs to hire about 360 more workers at its massive solar factory in Western New York if the company is going to meet a state employment quota and avoid paying a penalty.There are more than 1,100 workers at the plant in Buffalo, according to the city’s mayor and a member of the state Assembly who recently toured the state-subsidized complex. The company’s deal with New York includes an April deadline to hire 1,460 workers or pay a $41.2 million penalty.It’s a goal that Buffalo Mayor Byron Brown still thinks is attainable. “From the tour I took, it certainly looked like Tesla was in a position to honor its commitment,” he said in a phone interview Thursday.The success of the plant, called Gigafactory New York, is crucial to the future of Tesla’s solar business. The sleek photovoltaic shingles it produces to form solar rooftops were a key piece of Chief Executive Officer Elon Musk’s push to acquire debt-ridden SolarCity Corp. in 2016. But the factory has been slow to ramp up since output began in late 2017, with just a single production line running a year later.In early 2019, Musk announced the plant was moving toward mass production, saying that it would be the “year of the solar roof.” But the glass tiles have yet to capture a significant piece of the market.New York bet heavily on Tesla’s factory, committing $750 million to build the 1.2-million-square-foot plant. When Assemblyman Sean Ryan, whose district includes Buffalo, toured it about 15 months ago, there was so much vacant space that “you could’ve played tennis,” he said.Now that’s changing.“It’s an amazingly different visual now,” said Ryan, referring to the ramp-up in manufacturing that has occurred inside the plant. In addition to solar roof tiles, the factory produces energy-storage and supercharger components.Tesla didn’t respond to a request for comment. In a filing Thursday, the company said it is anticipating “meeting the remaining obligations through our operations at this facility and other operations within the State of New York.”(Adds details about factory output in penultimate paragraph)\--With assistance from Dana Hull.To contact the reporter on this story: Brian Eckhouse in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Joe Ryan at email@example.com, Reg GaleFor 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.
(Bloomberg Opinion) -- On one side of the Atlantic, Tesla Inc. is capitalizing on its soaring share price by selling $2 billion in stock so it can build more electric vehicles. On the other, French manufacturer Renault SA has been forced to cut its dividend by 70% and announce a big reduction in fixed costs so it can afford to do the same.Dwindling profits and Renault’s drastic remedies were mirrored this week by its Japanese alliance partner Nissan Motor Co., as well at Daimler AG. (Renault has an engineering partnership with Daimler and owns a small stake in the German car and truck maker.) Their problems aren’t identical but all three had expanded their workforces in anticipation of demand that hasn’t materialized and now they have to tighten their belts to pay for expensive electric vehicles, for which demand remains uncertain. Renault’s shares are near their lowest level in eight years, which means the company is capitalized at barely 10 billion euros ($11 billion), a sum that includes the 43% stake Renault owns in Nissan. Needless to say, that’s a sliver of what Tesla is worth, even though the U.S. company’s annual output is still almost a rounding error for the Renault-Nissan alliance. This juxtaposition sends a crystal clear message: Carmakers that grew fat and happy producing combustion engine vehicles won’t get any help from the stock market now that they’ve decided to embrace an electric future. Instead the gasoline gang are going to fund these changes themselves and it’s going to be painful, for both employees and shareholders.Long-established automakers have decided that their salvation is to be found in alliances and partnerships, which spread the cost of developing expensive technology over a greater number of car sales. It’s why Renault tried to merge with Fiat Chrysler Automobiles NV, before Peugeot-owner PSA Group beat them to it. But in Renault’s case its links to other manufactures are amplifying its problems right now, not solving them. Relations with Nissan fell apart when former alliance boss Carlos Ghosn was arrested and remain fragile now that he’s free to settle scores. Both sides have since hired new CEOs but their shareholders aren’t yet ready to buy the story that harmony has been restored.With its own profits slumping, Nissan can’t afford to pay big dividends to Renault and the French are also earning less from the Daimler partnership. The upshot is that Renault is a bit squeezed for cash — net cash at the automotive unit dwindled to just 1.7 billion euros at the end of December (though gross liquidity, including available credit lines, was a more respectable 16 billion euros). One way Renault could free up some money would be to sell part of its Nissan stake, which might have the added benefit of helping to re-balance the alliance in Nissan’s favor, something the Japanese have long sought. The trouble is Nissan’s shares have halved in value over the last two years so selling now wouldn’t provide Renault with nearly as much as it once would. Interim CEO Clotilde Delbos all but ruled out such a move on Friday.So it’s no wonder that Renault has opted to drastically scale back its own dividend and will try to cut costs by 2 billion euros in the next three years. Delbos, who’s also the chief financial officer, didn’t go into much detail about how those savings will be delivered but the company plans to review its “industrial footprint,” which suggests plant closures are a possibility. (Alliance partner Nissan has already announced 12,500 job cuts, while Daimler is targeting at least 10,000.)Lowering costs won’t be straight forward. New Renault CEO Luca de Meo, a former Volkswagen AG executive, doesn’t start until July and French unions aren’t known for championing efforts to slash jobs. In the near term, restructuring costs will also put further pressure on Renault’s cash flow and the coronavirus could yet create unexpected problems. But unlike at Tesla, Renault doesn’t have a queue of wealthy supporters clamoring to help fund this epochal clean-vehicle transition. One way or other, employees and existing shareholders will end up paying.To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: Melissa Pozsgay at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Tesla Inc will recall 3,183 Model X vehicles in China, because of a potential issue that could make steering harder and increase the risk of a crash, according to the country's market regulator. Tesla will recall the sport-utility vehicles made in 2016 from June, according to a statement from the State Administration for Market Regulation on Friday.
(Bloomberg) -- The secondary offering in Tesla Inc. has priced at $767 a share, a person familiar with the matter said.The price represents a 4.6% discount to Thursday’s close. Tesla earlier announced plans to raise about $2 billion following an 83% run-up in the stock since Jan. 1.Shares fell 0.5% in post-market trading.Read more: Tesla Plans $2 Billion Sale Weeks After Musk Said No NeedTo contact the reporter on this story: Drew Singer in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Michael HythaFor 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 announced Thursday that it plans to sell $2 billion worth of new stock. The news came just a few weeks after CEO Elon Musk told investors that a capital raise wasn't necessary... And TSLA stock still climbed.
Technology shares led all three major U.S. stock averages lower, with the blue-chip Dow suffering the largest percentage loss. Hopes that the coronavirus epidemic could be on the wane were soured by a spike in fatalities, with an additional 242 bringing China's coronavirus death toll to 1,367. "On a day like today investors just have to take it in stride," said Charlie Ripley, senior market strategist for Allianz Investment Management in Minneapolis.
(Bloomberg) -- Tesla Inc. may be selling more stock to help fund its global expansion, but its billionaire chief executive officer is taking a different approach for his personal cash needs: he’s borrowing it.Elon Musk has $548 million in personal loans from Morgan Stanley, Goldman Sachs Group Inc. and Bank of America Corp., according to a regulatory filing Thursday, an increase of about 8% since Tesla’s previous disclosure in May.Tesla will sell about $2 billion of common stock to help fund capital expenditures, the electric-vehicle maker said in the filing. Musk, 48, and fellow billionaire Larry Ellison, a member of the company’s board, have vowed to personally purchase $10 million and $1 million of shares, respectively.Read more: Tesla plans $2 billion sale weeks after Musk said no needThe recent rise in Tesla shares has helped boost Musk’s net worth by about 50% this year to $40.5 billion, according to the Bloomberg Billionaires Index. Still, he told a judge as recently as December that he’s short on cash. His holdings in Tesla and Space Exploration Technologies Corp. comprise most of his wealth, and he hasn’t sold any of his Tesla stock for years.Instead, he has tapped banks for loans, using his stake as collateral. Pledging shares is a way to monetize equity without actually selling it. Most publicly traded companies prohibit the practice out of concern that it can affect an executive’s decision-making.Tesla provides “flexibility in financial planning without having to rely on large cash compensation or the sale of company shares,” the board said in its proxy filing last year.Musk has a long-term incentive award that could net him more than $50 billion if all performance targets are met. He receives no salary or bonuses.Meanwhile, the stock surge continues. Tesla shares advanced 4.5% to $801.59 at 3:04 p.m. in New York.\--With assistance from Dana Hull.To contact the reporter on this story: Anders Melin in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Pierre Paulden at email@example.com, Peter EichenbaumFor 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 S&P 500 reversed its losses on Thursday as investors weighed mixed news on the coronavirus and a spate of corporate earnings. While a drop in Cisco Systems Inc shares helped keep the blue-chip Dow in the red, the S&P 500 and the Nasdaq rebounded and were both on track to eke out their fourth consecutive record closing highs.
Coronavirus updates send stocks down. Big Tesla news. Earnings results from the likes of Alibaba. What to expect from Nvidia. And why Perion Network Ltd (PERI) is a Zacks Rank 1 (Strong Buy) stock right now...