ReportWire

Tag: Autos

  • Warren Buffett-backed BYD announces new shock absorption tech for premium EVs

    Warren Buffett-backed BYD announces new shock absorption tech for premium EVs

    BYD’s Han electric car, pictured here at the 2021 Shanghai auto show, is one of the most popular new energy vehicles in China.

    Evelyn Cheng | CNBC

    SHENZHEN, China — Electric vehicle giant BYD is banking on new driver-assist technology to smooth out car rides.

    BYD, backed by Warren Buffett’s Berkshire Hathaway, announced Monday a new technological system for stabilizing car rides through rugged terrain, sharp turns and even shallow water. The shock absorption tech is set to be a feature of the company’s recently launched premium brand Yangwang.

    “Traditionally, luxury cars were determined by brand and history. For luxury new energy vehicles, it’s a matter of what tech and products,” BYD founder Wang Chuanfu said in Mandarin at a launch event Monday, according to a CNBC translation.

    He claimed the tech represented a “breakthrough” that “leads and surpasses foreign technological level.”

    The update comes ahead of the Shanghai Auto Show, set to kick off next week, where many Chinese car companies are set to make product and model announcements.

    Part of the tech system uses the same “lidar” sensors used in assisted driving, according to BYD. Lidar, short for “light detection and ranging,” uses lasers to create detailed maps of the surrounding area.

    The automaker said in a release its new “DiSus” system “provides a foundation for the future development of Advanced Driver Assistance Systems (ADAS).”

    The company has taken a relatively cautious approach to self-driving tech.

    When asked about “smart driving” during a call with investors in late March, BYD management said autonomous driving still faces the challenge of determining liability in the event of an accident. Still, management said, advanced assisted driving tech has the potential to improve overall safety. That’s according to a filing of last month’s call accessed through the Wind Information database.

    The industry as a whole has been working to balance ambitious driver-assist options with measured safety protocols. EV leader Tesla in February recalled more than 360,000 cars over assisted-driving software for city streets that it said may cause crashes.

    That urban assisted driving software is not available for Tesla drivers in China.

    Stock Chart IconStock chart icon

    hide content

    BYD

    It was not immediately clear how Tesla’s shock absorption capabilities compared with BYD’s, but other car companies in China are looking into similar technology.

    In September, Nio’s investment fund Nio Capital led a $39 million financing round into Boston-based ClearMotion, which develops software for active suspension.

    Many details still unknown

    BYD’s Wang didn’t address what the company’s new DiSus system would cost to use, or when it would become widely available.

    Two of the compatible car models — Yangwang’s forthcoming U8 SUV and the Denza N7 SUV — are not yet available for deliveries. Auto giant Daimler has a small stake in BYD’s Denza brand.

    BYD said some of its existing Han, Tang and Denza models are set to receive the new tech through an over-the-air upgrade.

    The new system comes in three versions — “damping,” “air,” and “hydraulic” — which are set for individual integration with certain BYD models.

    Read more about electric vehicles from CNBC Pro

    In the first quarter, BYD said it sold 264,647 all-electric passenger cars, up more than 80% from a year ago. Hybrid passenger vehicle sales doubled from a year ago to 283,270 in the first quarter.

    Tesla, for its part, said it delivered more than 422,000 cars worldwide in the first quarter, without sharing a regional breakdown. China typically accounts for well over 20% of Tesla’s revenue.

    Why this company is called China's Tesla

    Source link

  • Coinbase, Newmont, Tilray, Hexo, Virgin Orbit, and More Stock Market Movers

    Coinbase, Newmont, Tilray, Hexo, Virgin Orbit, and More Stock Market Movers


    • Order Reprints

    • Print Article


    Source link

  • Tesla Cuts EV Prices Again

    Tesla Cuts EV Prices Again



    Tesla


    is at it again.

    The electric-vehicle maker lowered prices for its EVs in the U.S. again. This change hints at what might be happening to Tesla (ticker: TSLA) vehicles’ eligibility for purchase tax credits under stricter rules about to be applied by the IRS.

    Source link

  • Toyota to launch 10 new battery EV models by 2026, executive says

    Toyota to launch 10 new battery EV models by 2026, executive says

    A Toyota RAV4 Prime electric car is recharged October 3, 2022 at a charging station at the town hall in Charlotte, Vermont.

    Robert Nickelsberg | Getty Images

    Toyota Motor Corp aims to introduce 10 new battery electric vehicle models by 2026, a senior executive said on Friday, as the Japanese automaker looks to catch up in electric vehicles.

    Toyota will also set up a new, specialised unit to focus on battery EVs and is targeting annual production of 1.5 million battery-powered cars by 2026, Hiroki Nakajima, the company’s chief technology officer, said at a briefing.

    The increase would mark a sharp upturn from Toyota’s current levels of electric vehicles.

    The automaker, the world’s largest by sales, has pushed back against criticism it has been too slow to embrace battery-powered vehicles. Toyota argues that a mix of options – including gasoline-electric hybrids, makes more sense for its global customer base.

    Source link

  • The EV industry is gaining momentum. But public charging is a long way from being accessible to all

    The EV industry is gaining momentum. But public charging is a long way from being accessible to all

    Electric vehicles will play a critical role in slashing transport-related emissions in the years ahead.

    Momentum behind the industry is building, with a number of big economies gearing up for the mass rollout of EVs and sales of electric cars hitting 6.6 million in 2021, a record, according to the International Energy Agency.

    Not all countries will move at the same pace in the planned transition to low and zero-emission mobility, and the shift away from cars powered by fossil fuels won’t always be smooth.

    There are concerns, for example, that the lower noise levels of EVs may pose a challenge to people with sight problems, while talk of a skills gap is sparking discussions about cost and safety.

    Charging infrastructure is another area to watch, with the construction of vast networks set to be crucial in allaying fears about range anxiety. Equally important is making sure these EV chargers are accessible to all.

    Read more about electric vehicles from CNBC Pro

    According to the charity Motability, it’s estimated the U.K. will have 2.7 million disabled drivers by 2035.

    As many as 1.35 million of this group, it says, “will be at least wholly or partially reliant on public charging infrastructure.”

    The year 2035 is seen as being particularly important because that’s when the U.K. government wants all new cars and vans to have zero tailpipe emissions.

    A disabled person who wants to use an EV charger today faces “inaccessibility at lots of different points throughout the process,” Catherine Marris, Motability’s head of innovation, told CNBC.

    Such challenges begin when one leaves the house to use a public charger, she added.

    “If they want to go on an app, for example, to see where there’s chargers, there isn’t usually information available about which chargers might be more accessible,” Marris said.

    “Then, when they get to a charging site, there might not be clear signage and information about where charging points are located.”

    The built environment around the charging bay could create difficulties too. “There might not be enough space around the charging bay to exit your vehicle,” Marris said.

    “If you’re using a mobility aid, there might be a really high, raised curb that … someone would have to mount to get on the pavement.”

    “The charge point itself might be surrounded with bollards that aren’t adequately spaced, so … if you’re using a mobility aid or wheelchair, you wouldn’t be able to actually get up to the charge point itself.”

    Marris told CNBC that a charging point may also be “too high for a seated user, it might be too low for someone who might have difficulties reaching down.”

    Ensuring EV chargers are accessible to all is a big task, and organizations like Motability are pushing hard to create conditions for change.

    In collaboration with the U.K. government’s Office for Zero Emission Vehicles, it commissioned the British Standards Institution to develop a “national accessible charging standard for EV chargepoints.”

    PAS 1899:2022, as it’s known, was published in October 2022, and covers everything from curb height and location of charging kits, to the spacing of bollards and height of charge points. 

    “There was a yearlong process where industry … accessibility experts and disabled people came together, and they developed the standard through consensus as a group,” Marris said.

    She went on to describe the end product as “a really powerful document that sets out exactly what accessible charging is and how it can be achieved.”

    Read more about energy from CNBC Pro

    Another charity, Designability, was included in a steering group to help inform PAS 1899:2022. Separately, it received funding from Motability to develop design guidance for those involved in the charging industry.

    The guidance covers three main areas: signage and information; the built environment; and the process of charging a vehicle.

    “We did a deep dive into the areas that were really difficult,” Matt Ford, director of design and innovation at Designability, told CNBC.

    “It’s out there, it’s free, it’s there for anybody to use that’s involved in providing vehicle recharging,” he said.

    Having design guidance and a standard like PAS 1899 is one thing. Getting charging stations that actually incorporate accessible features is another.

    ‘Change is required across the industry’

    In February 2023, Tanni Grey-Thompson, a wheelchair user who won multiple gold medals at the Paralympic Games, highlighted the issue when she tweeted a picture of EV chargers from the firm InstaVolt with the caption: “This is why I can’t change to an electric car.”

    Expanding on her point, Grey-Thompson — who sits in the U.K.’s House of Lords — tweeted about a lack of space on either side and how she couldn’t “get close enough to reach.”

    In a statement sent to CNBC, InstaVolt CEO Adrian Keen said it’s “committed to cooperating with the requirements outlined in the PAS1899 consultation, while also taking on board direct feedback from charge point users, to improve accessibility at InstaVolt sites.”

    “We are in contact with Tanni Grey-Thompson to discuss the work we’re doing in the space, challenges that users face, and how this can influence our site designs in future,” he added.

    “We recognise that change is required across the industry as a whole and we are taking steps to ensure we’re providing accessible sites where we can.”  

    “In addition, we have fully redesigned our chargers based on PAS1899 guidance, and these will be installed at new sites from the spring,” Keen said.

    This unit has now incorporated a number of features, such as longer cables, lower screens and payment terminals, as well as what Keen called “an enhanced cable management system, to allow for improved charger accessibility.”

    Creating a standard

    InstaVolt’s plans represent a step in the right direction, but there’s still a lot of work ahead.

    Designability’s Ford explained that a PAS, or publicly available specification, is “not an official standard — it’s not been adopted into legislation. It’s not … regulation.”

    “But by creating a standard, by doing it through a robust process with the British Standards Institute, by having a steering group of stakeholders from across industry and the disabled community … what you have is a standard that is a really good blueprint for making chargepoints accessible.”

    Such a standard became “really powerful” when local authorities started to incorporate it in procurement forms for companies bidding to install charging installations, Ford said.

    “It’s being adopted, from what we can see, really quite quickly, not just by councils [but] … hotel chains, large companies [as well].”

    A global challenge

    U.K.-based organizations like Motability and Designability aren’t alone in looking to develop ideas and designs focused on accessibility.  

    In July 2022, the U.S. Access Board, an independent federal agency, issued design recommendations for accessible charging stations.

    And in December 2022, the Royal Automobile Association of South Australia announced it was launching a trial focused on creating “access standards for people with disabilities seeking to use electric vehicle charging infrastructure.”

    Stock picks and investing trends from CNBC Pro:

    The IEA, seen by many as an authoritative voice on the energy transition, describes EVs as being “the key technology to decarbonise road transport.”

    To achieve this mass decarbonization, a huge network of public chargers will be required in the years ahead.

    For charities like Designability, that represents a huge chance to put accessibility at the heart of charging networks. “It is a once in a generation opportunity … once an infrastructure goes in, it’s very hard to affect it,” Ford said.

    For her part, Motability’s Marris said she firmly believes that “100% of charge points should be accessible.”

    “Not only because we want disabled people to charge at any charge point they come across — not just only a select few — but also, accessibility is great for everyone.”

    “Whether you’re a disabled person, whether you’re an older person, whether you’re a parent pushing a pram and you need some more space, accessibility really does result in a better consumer experience.”

    Source link

  • Tesla shares drop after deliveries report raises investor concern that more price cuts are coming

    Tesla shares drop after deliveries report raises investor concern that more price cuts are coming

    Employees of the Tesla Gigafactory Berlin Brandenburg work on the final inspection of the finished Model Y electric vehicles. The Tesla plant was opened and put into operation on March 22, 2022.

    Patrick Pleuil | Picture Alliance | Getty Images

    Tesla shares fell more than 7% on Monday after the company’s quarterly deliveries report led some investors to worry that more price cuts will be needed to drive sales, eating into margins.

    Over the weekend, Tesla reported first-quarter deliveries of 422,875 electric vehicles and production of 440,808 cars. The record numbers for Tesla represented 4% growth in deliveries from the prior period and followed repeated price cuts in the U.S., China and Europe.

    Some of the price reductions in the U.S. were implemented in part to enable Tesla and its customers to take advantage of tax credits available under the Inflation Reduction Act. But one ongoing concern is that increased competition will force the company to keep lowering prices if it wants to attract buyers as new EVs continue to hit the market.

    “Many investors believe that Tesla’s recent price cuts reflect a structural cost advantage that will enable it to pressure rivals and capture outsize volume and dominate the EV market,” wrote Toni Sacconaghi, an analyst at Bernstein, in a note following the deliveries report. “We maintain that price cuts have and will undermine industry profitability (including Tesla’s), but that incumbents are deep pocketed and not likely to back down.”

    Bernstein has a $150 price target on the stock, well below the current price of just over $193. Sacconaghi said, “The key question for investors is what might margins be, amid significant price cuts but improving commodity costs?”

    Tesla’s first-quarter deliveries fell shy of Wall Street expectations, judging by a consensus compiled by FactSet. However, the numbers were inline with numbers compiled by Tesla and sent by the company to some shareholders before the report was published.

    According to FactSet, analyst were expecting Tesla to report deliveries of around 432,000 vehicles for the quarter. Estimates ranged from 410,000 to 451,000. An independent researcher widely followed by Tesla fans and bulls, who uses the handle @TroyTeslike on Twitter, had been expecting deliveries of around 427,000.

    Tesla said in its email to shareholders that analysts were expecting deliveries of around 421,500 vehicles, based on a consensus of 25 analysts tracked by the company.

    For 2023, Tesla previously said it expects to produce 1.8 million cars and implied it intends deliveries around that amount. Company executives said they’re aiming for 50% annual growth on average in production volume and sales over a multi-year horizon.

    Achieving that level of growth will likely require further price cuts, some analysts said.

    According to Dan Levy of Barclays, who has a neutral rating on the stock and $275 price target, the buildup of vehicle inventory is a continuing trend over the last three quarters. He wrote that “incremental price cuts likely needed,” especially as the company ramps up production at new factories in Austin, Texas, and outside of Berlin.

    — CNBC’s Michael Bloom contributed to this report

    WATCH: CNBCs full interview with Bernstein’s Toni Sacconaghi

    Source link

  • Chinese EV brand Li Auto sees first-quarter deliveries surge by 66%

    Chinese EV brand Li Auto sees first-quarter deliveries surge by 66%

    Chinese electric car startup Li Auto saw deliveries surge by nearly 66% in the first quarter from a year ago.

    Zhang Peng | Lightrocket | Getty Images

    BEIJING — Chinese electric car brand Li Auto delivered more cars in March than Xpeng did in the first quarter, according to company releases.

    Li Auto delivered 20,823 vehicles in March — for a total of 52,584 deliveries in the first three months of the year. That’s up by nearly 66% from the first quarter of 2022.

    In contrast, Xpeng only delivered 18,230 cars in the first quarter — down by about 47% from the same period a year ago.

    Xpeng delivered 7,002 vehicles in March, above the monthly average for the first quarter. Nearly half of the deliveries last month were of the company’s new P7i sports sedan that launched in March.

    Nio reported first-quarter deliveries of 31,041, up 20.5% from a year ago. The company delivered 10,378 vehicles in March.

    Li Auto’s vehicles — all SUVs — each come with a fuel tank to charge the battery and extend driving range.

    The company claimed in a release it now has nearly 20% of the market for SUVs in the 300,000 yuan ($43,674) to 500,000 yuan price range in China.

    For comparison, Tesla’s mid-size SUV, the Model Y, sells in a price range of 261,900 yuan to 361,900 yuan.

    Xpeng’s G9 SUV starts at 309,900 yuan. The company’s new P7i sedan starts at 249,900 yuan — and costs 269,900 yuan if drivers want to use Xpeng’s assisted driving tech for cities. Tesla’s version of the tech, called Full Self Driving, isn’t available in China.

    However, so far Xpeng’s assisted driving tech for cities is only available in Shenzhen, Guangzhou and Shanghai — where rollout began Friday.

    Read more about electric vehicles from CNBC Pro

    The Chinese electric car startups’ delivery figures pale in comparison with BYD, whose numerous models sell at a range of prices.

    BYD said it sold 264,647 purely battery-powered passenger cars in the first three months of the year, up more than 80% from a year ago. Hybrid passenger vehicle sales doubled from a year ago to 283,270 in the first quarter.

    Tesla said Sunday it delivered more than 422,000 cars worldwide in the first quarter. The company did not break out figures for China, which typically accounts for well over 20% of Tesla’s revenue.

    Stock Chart IconStock chart icon

    hide content

    Tesla shares year-to-date.

    Source link

  • Tesla reports 422,875 deliveries for first quarter of 2023

    Tesla reports 422,875 deliveries for first quarter of 2023

    Tesla Superchargers are seen at a charging station on March 17, 2023 in Beijing, China.

    Vcg | Visual China Group | Getty Images

    Tesla on Sunday posted its first-quarter vehicle production and delivery report for 2023.

    Here are the key numbers from the electric vehicle maker:

    Total deliveries Q1 2023: 422,875

    Total production Q1 2023: 440,808

    Deliveries are the closest approximation of sales disclosed by Tesla and are not broken out by individual model or region.

    The first quarter numbers represent a 36% increase in deliveries compared to the 310,048 reported during the same period a year earlier, and 4% growth in deliveries sequentially compared to the 405,278 they company reported in the last quarter of 2022.

    The company reported deliveries of 10,695 of its higher-priced Model S and X vehicles, about 2% of deliveries in the quarter.

    Tesla reported deliveries of 412,180 of its lower priced Model 3 sedan and Model Y crossover during the quarter.

    The company did not include production and delivery numbers for its heavy-duty Semi trucks. 

    Tesla said it produced 19,437 Model S and X vehicles, and 421,371 of its Model 3 and Y vehicles for the period ending March 31, 2023.

    “We continued to transition towards a more even regional mix of vehicle builds,” the company wrote in a statement Sunday.

    Tesla now sells four models which are produced at two vehicle assembly plants in the US, one in Shanghai and another outside of Berlin. In March, CEO Elon Musk announced the company plans to build a new factory in Monterrey, Mexico, a day’s drive from its factory in Austin, Texas.

    The company also produces a heavy-duty truck, the Semi, at its battery plant in Sparks, Nevada. The company began deliveries of the Semi in December 2022.

    According to a mean of estimates, compiled by FactSet as of Friday, Wall Street was expecting Tesla to report deliveries around 432,000 vehicles for the quarter. Estimates included in the FactSet analysis ranged from 410,000 to 451,000 deliveries expected.

    The independent researcher who publishes under the handle TroyTeslike was expecting deliveries of 427,000 and production totaling 445,920 vehicles.

    The first quarter of 2023 was marked by repeated price cuts by Tesla including in the U.S., Europe and China.

    Tesla’s moves sparked a so-called “price war” in EVs, and posed a challenge to competitors including Ford and General Motors who are trying to gain marketshare in the fully electric vehicle segment domestically.

    Tesla shares rose more than 60% in the first quarter to close at $207.46 on Friday ahead of the production and deliveries report. (They closed at $123.18 on December 30th, the last day of trading in 2022.)

    Source link

  • Tesla Deliveries Are Coming. The Stakes Are High After the Stock Had a Monster Quarter.

    Tesla Deliveries Are Coming. The Stakes Are High After the Stock Had a Monster Quarter.

    After the start to the year


    Tesla


    shares have had, first-quarter deliveries better beat Wall Street expectations.

    Shares of Tesla (ticker: TSLA) finished the first quarter up more than 68%—the best first-quarter performance ever. In second place: 2012’s first quarter, when shares gained 30.4%. This year’s first quarter is the sixth best quarter for shares ever. The stock has been trading for 51 quarters.

    Source link

  • California to require half of all heavy trucks sales to be electric by 2035

    California to require half of all heavy trucks sales to be electric by 2035

    A driver operates a Daimler Freightliner eCascadia all-electric semitruck during a Meijer delivery in Bath, Michigan, US, on Tuesday, Feb. 14, 2023. 

    Emily Elconin | Bloomberg | Getty Images

    The Environmental Protection Agency on Friday said it’s granting California the legal authority to require that half of all heavy-duty truck sales in the state be fully electric by 2035, an ambitious standard that will go beyond federal requirements.

    The Biden administration’s approval of California’s Advanced Clean Trucks (ACT) Regulation comes after the state last year banned the sale of new gasoline-powered cars starting in the same target year of 2035.

    The two decisions make California, the country’s most populous state and center of U.S. car culture, a leader in mitigating greenhouse gas emissions from the transportation sector, which generates most of the country’s greenhouse gases.

    The California Air Resources Board had sought waivers from the Clean Air Act to set stricter standards for heavy-duty vehicles such as garbage trucks, delivery vans and tractor-trailers. The approval of the new rule will likely have greater impacts beyond California and pave the way for other states to follow suit.

    California, which has committed to achieving 100% renewable energy by 2045, has considerable authority over the country’s auto industry. For instance, a federal waiver under the Clean Air Act gives the state authority to adopt stronger fuel economy standards than those of the federal government, which has set the precedent for the rest of the U.S. on how to address vehicle emissions.

    The heavy-duty truck rule has already been adopted by six other states — New York, New Jersey, Washington, Oregon, Massachusetts and Vermont — all of which were waiting for permission from the Biden administration to enact it.

    A Tesla Semi electric truck parked outside the Frito-Lay manufacturing facility in Modesto, California, US, on Wednesday, Jan. 18, 2023.

    Benjamin Fanjoy | Bloomberg | Getty Images

    “Under the Clean Air Act, California has longstanding authority to address pollution from cars and trucks,” EPA Administrator Michael Regan said in a statement. “Today’s announcement allows the state to take additional steps in reducing their transportation emissions through these new regulatory actions.”

    The state’s rule requires manufacturers to produce zero-emission trucks beginning in 2024 — three years ahead of the Biden administration’s most recent regulations — and raises production targets through 2035. The rule aims to put 300,000 zero-emission trucks on the road by 2035.

    The requirement will curb climate pollution by nearly three million metric tons each year by 2040, according to estimates from the California Air Resources Board. Heavy-duty trucks represent nearly one third of the state’s nitrogen oxide and more than one quarter of its fine particle pollution from diesel fuel.

    “California has been hard at work passing landmark regulations to clean our air and protect our climate with zero emissions vehicles, so we’re heartened to see EPA stand with California today and grant this waiver,” Paul Cort, director of Earthjustice’s Right to Zero campaign, said in a statement.

    However, some of the country’s major truck manufacturers and their lobbying groups have argued that the requirements to sell a certain percentage of electric heavy-duty trucks are costly and difficult to implement.

    The Truck and Engine Manufacturers Association, an industry group that represents truck and bus manufacturers, has said that the standards would increase the cost of trucks and result in truck buyers delaying decisions to purchase new vehicles.

    Source link

  • Jay Powell was a bit more hawkish than I expected, Cramer says

    Jay Powell was a bit more hawkish than I expected, Cramer says

    Share

    Mad Money host Jim Cramer says Fed Chair Jay Powell was a bit more hawkish than he expected at this week’s Fed press conference. He didn’t give any indication he’s done tightening, says Cramer.

    Source link

  • Cramer wonders, what do we do with a stock like Ford in this environment?

    Cramer wonders, what do we do with a stock like Ford in this environment?

    Share

    Mad Money host Jim Cramer wonders what investors should do about Ford stock, which hit a 20-year high of just under $26 early last year, and which he says has become a total dog.

    Source link

  • U.S. industrial output was flat in February

    U.S. industrial output was flat in February

    The numbers: U.S. industrial production was flat in February, the Federal Reserve reported Friday.

    The unchanged reading was in line with economists expectations, according to a survey by The Wall Street Journal.

    Output rose a revised 0.3% in January, revised up from the initial estimate of a flat reading, but there were deep declines in November and December.

    Key details: Manufacturing output downshifted to a slim 0.1% rise in February after a strong 1% gain in the prior month. 

    Motor vehicles and parts output fell 0.3% after a 0.6% jump in January. Excluding autos, total industrial output was unchanged.

    Utilities output rose 0.5% in February. Mining output, which includes oil and natural gas, fell 0.6% after a 2% gain in the prior month.

    Big picture: The softness in manufacturing is expected to continue as interest rates have moved higher. Credit conditions are expected to tighten in the wake of the worries surrounding regional banks.

    Market reaction: Stocks
    DJIA,
    -0.95%

    SPX,
    -0.63%

    were set to open lower on Friday. The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    3.449%

    fell to 3.47%.

    Source link

  • FedEx, First Republic, U.S. Steel, XPeng, and More Stock Market Movers

    FedEx, First Republic, U.S. Steel, XPeng, and More Stock Market Movers


    • Order Reprints

    • Print Article

    Stock futures rose Friday as the biggest banks in the U.S. moved to rescue beleaguered First Republic Bank.

    These stocks were poised to make moves Friday: 


    Source link

  • BMW expects higher margin and deliveries in 2023 amid electric rollout

    BMW expects higher margin and deliveries in 2023 amid electric rollout

    Spencer Platt | Getty Images News | Getty Images

    German automaker BMW on Wednesday set out targets to slightly increase margins for its automotive segment and raise deliveries this year, as it pushes ahead with the rollout of its electric fleet.

    The company said it expects an EBIT (earnings before interest and taxes) margin of between 8-10% for its automotive range in 2023, with deliveries set to rise slightly from 2022 and “selling prices remaining at a stable level.” It forecasts the used car market will normalize this year “due to the increased availability of new cars.”

    Shares of BMW rose by 1.07% at 8:20 a.m. London time, following the announcement.

    “A high level of flexibility, combined with our operational performance, proved to be an effective combination for ensuring the success of the BMW Group, even in the face of headwinds and taking advantage of opportunities for profitable growth,” Oliver Zipse, chairman of the board of management of BMW AG, said in a press statement.

    Like rivals, BMW has been contending with global semiconductor shortages and supply chain disruptions, challenging it to fulfil its book order.

    The company confirmed the full-year 2022 results reported last week, including an EBIT of 10.6 billion euros ($11.4 billion) for its automotive segment, which had an. 8.6% margin last year. The company posted its automative cash flow near 11.1 billion euros.

    As a result, it proposed a dividend of 8.50 euros per common stake share, compared with a 5.80 euro payout for the same stock in the previous year.

    “We don’t look at one drive trend or one segment, or one region in the world, and I think, for us, this plays very nicely in what we said a couple of years before,” Zipse told CNBC. “And now we’re executing this plan. And it looks like the plan we are executing here is quite successful on the revenue side, but also on the market share side.”

    He stressed that the BMW strategy will continue to prioritize profitability, downplaying the effect of soaring inflation rates on consumer demand,

    “Whether inflation really has an input is a matter of are you able to have pricing power in the market,” he noted. “With that global approach we have here, I would be cautiously optimistic about the year, and we will have a slight increase in volume overall.”

    The company announced the appointment of a new chief financial officer on March 9, with Walter Mertl due to assume the role in May following the retirement of Nicolas Peter at the time.

    BMW results follow a spate of optimistic announcements from automakers earlier in the week, with Porsche issuing an ambitious growth outlook after record 2022 earnings and Volkswagen laying out a five-year $193 billion investment plan.

    Green push

    Source link

  • Rivian Stock Really Costs 19 Cents. Investors Shouldn’t Forget Cash.

    Rivian Stock Really Costs 19 Cents. Investors Shouldn’t Forget Cash.

    Rivian Automotive shares are basically free, the latest evidence, if any was needed, that the stock market is hard to figure out.

    Shares of the electric- truck start-up (ticker: RIVN) fell for a fourth consecutive day on Tuesday. First there was the banking crisis, which hit most stocks last week. Then the market learned Monday that Rivian might end its exclusivity pact with


    Amazon.com


    (AMZN), freeing up the auto maker to sell electric vans to other customers.

    Source link

  • Rivian Stock Falls on Amazon News. It Might Be an Overreaction.

    Rivian Stock Falls on Amazon News. It Might Be an Overreaction.

    Shares of


    Rivian Automotive


    fell after a report said the electric truck start-up is in talks to end an exclusivity pact with Amazon.com. That might have been an overreaction, judging by Amazon’s response to the news.

    The Wall Street Journal reported Monday that Rivian (ticker: RIVN) is seeking to remove an exclusivity term in its agreement with Amazon (AMZN) after the e-commerce retailer ordered about 10,000 electric delivery vans for this year, which was on the lower end of Amazon’s range.

    Source link

  • Tesla, Apple, Ciena, and More Stock Market Movers

    Tesla, Apple, Ciena, and More Stock Market Movers


    • Order Reprints

    • Print Article

    Stock futures traded mostly flat Monday as Wall Street kicked off a week that includes testimony before Congress from Federal Reserve Chairman Jerome Powell and the U.S. jobs report for February.

    These stocks were poised to make moves Monday:


    Source link

  • Tesla recalls 3,470 Model Y vehicles over loose bolts

    Tesla recalls 3,470 Model Y vehicles over loose bolts

    A vehicle charges a Tesla Supercharging station in Corte Madera, California, US, on Thursday, March 2, 2023. 

    David Paul Morris | Bloomberg | Getty Images

    Tesla said it is recalling 3,470 2022 through 2023 Model Y vehicles in the United States because bolts securing the second-row seatback frames may not have been securely tightened, according to a filing made public Saturday.

    The National Highway Traffic Safety Administration (NHTSA) said a loose seat frame bolt may reduce seat belt system performance, increasing injury risks during a crash.

    Tesla told NHTSA it has identified five warranty claims since December that may be related to these conditions. Tesla said it was not aware of any injuries or deaths that may be related to the recall issue.

    Tesla will inspect bolts securing second-row driver-side and passenger-side seat back frames to the lower seat frames and if needed tighten them to specifications.

    In December, a Tesla supplier implemented improved process controls along with improved training and supervision to ensure bolts are torqued to specifications, the automaker said.

    Source link

  • Tesla’s investor day featured 17 execs, taking Elon Musk out of the limelight

    Tesla’s investor day featured 17 execs, taking Elon Musk out of the limelight

    Elon Musk speaking at Tesla Investor Day.

    Courtesy: Tesla

    When Tesla CEO Elon Musk promoted a 2023 Investor Day event to be held on March 1, he promised to reveal his “Master Plan 3,” a long-term vision for the company’s next stage of growth.

    Last year, Musk said his new plan would include details on: “scaling to extreme size, which is needed to shift humanity away from fossil fuels, and AI.” He also promised the plan would include “sections about SpaceX, Tesla and The Boring Company.”

    The hours-long Tesla Investor Day on Wednesday evening left many shareholders and fans wanting more, however, and sent Tesla’s stock price lower on Thursday, though analysts were positive on balance.

    Deutsche Bank analysts wrote in a Friday morning autos update, “Walking away from Tesla’s investor day, we were admittedly disappointed with the overall lack of details on its next-gen platform, including launch timing, vehicle segments and price points, and financial implications. At the same time, the company showcased impressive traction and presented high-level plans for deep technological and manufacturing improvements which in our view, leave its long-term volume and margin upside trajectory intact.”

    At the event, there was no discussion of the very affordable electric car the company first teased at a 2020 Battery Day event, no update on start of deliveries for the Cybertruck, no details about the long-delayed revamped Roadster, and no update on the company’s progress in heavy duty trucking with its new Semi.

    Musk did not discuss ways in which Tesla plans to work with his other ventures. And a “Master Plan 3” document was still not posted to the company’s Investor Relations page as of Friday morning.

    What worked and what didn’t work at the presentation?

    Pivotal Media founder Marisa Thomas, who has trained executives in tech, finance and elected officials to hone their presentation skills for more than a decade, shared her analysis.

    Team showing

    One thing the Investor Day accomplished well was to turn shareholders’ attention to the broader organization under Tesla’s celebrity CEO.

    During the event, Tesla trotted out 17 different company leaders who spoke about what the company has achieved so far, and where it hopes to go next.

    “I guess it’s no longer the Elon show,” Thomas said. “At a time when so many people are concerned about how fragmented his focus is as a leader, it makes sense to try to make people comfortable with the team– that the team is more than Elon.”

    Since Musk led a $44 billion acquisition of Twitter and appointed himself CEO there in October last year, Tesla shareholders have voiced frustration over his split focus, his use of Tesla personnel to help him at Twitter, and the controversy he has courted with his own tweets and by making massive changes to the platform.

    His moves at Twitter and increasingly political provocations on Twitter appear to have dampened interest in the Tesla brand, particularly among left-leaning potential customers and shareholders, according to data from YouGov shared with CNBC.

    While the investor day highlighted Tesla’s bench, diversity was not a strong point: Only two of the leaders who presented were women. Thomas said that in 2023, two women on stage of 17 presenters amounted to a “a very poor showing,” and did not give a “feeling of optimism” about diversity and equity at the company.

    The presentation could have been more polished as well. While some presenters spoke more confidently, others read nervously from teleprompters.

    “It’s public speaking, not public reading. It’s hard to have confidence in someone who is supposed to be the expert, but who is looking down and reading off scripts. Too often, engineers think they get a pass on public speaking — but this skill has to be in the tool kit of any executive,” Thomas advised.

    More focus

    Investor Day may have succeeded in showing off the Tesla team, but the content left some fans and analysts disappointed.

    For one, Thomas said, the event started late and ran on far too long — about three hours, followed by a question-and-answer session. “People have trouble sitting through a two-hour action movie these days!  A three-hour investor presentation totally lacks focus,” said Thomas.

    Tesla also failed to deliver clear takeaways at Investor Day. “Every good presentation should have a few key takeaways — are they obvious to investors, and why do they matter for Tesla’s future? This event didn’t accomplish that,” she added.

    Tesla’s long time head of investor relations, Martin Viecha, seemed to acknowledge the meeting was too long and that key points may not be clear to all. He posted a 9-point recap on Twitter, “for those who don’t have 3 hours.”

    The Mexico factory

    Executives also waited to confirm the company’s biggest news of the week until several hours into the event. At the start of a question-and-answer session, Elon Musk confirmed that Tesla will be opening its next major factory outside of Monterrey, Mexico.

    He didn’t offer any new details.

    On Thursday, Mexican officials filled in some of those blanks in media interviews, revealing that Tesla is expected to spend $5 billion on the vehicle assembly plant near-term and $10 billion over the long run, employing between 5,000 and 10,000 workers.

    The factory will be Tesla’s largest in the world, with a land purchase of about 4,200 acres in an industrial zone and the capacity to build up to 1 million cars per year. By contrast, Tesla’s factory in Austin, Texas sits on about 2,500 acres.

    At Investor Day, Musk said he thought some officials from Mexico were in attendance. He didn’t say their names, and wasn’t sure of their titles. Thomas said that if the new factory is going to be important to Mexico’s economic future, and to Tesla’s business, it was not smart for the CEO to treat these officials in an offhand, lackluster manner. He could have welcomed the guests by name, and more respectfully acknowledged their partnership.

    Source link