BMWYY - Bayerische Motoren Werke Aktiengesellschaft

Other OTC - Other OTC Delayed Price. Currency in USD
-0.51 (-2.01%)
At close: 3:59PM EST
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Previous Close25.35
Bid0.00 x 0
Ask0.00 x 0
Day's Range24.81 - 24.96
52 Week Range21.61 - 29.25
Avg. Volume48,375
Market Cap48.508B
Beta (5Y Monthly)1.32
PE Ratio (TTM)5.23
EPS (TTM)4.75
Earnings DateN/A
Forward Dividend & Yield1.30 (5.13%)
Ex-Dividend DateMay 16, 2019
1y Target EstN/A
  • Reuters

    Trump's 'massive' U.S.-UK trade deal faces big hurdles

    Britain is the United States' closest ally but their long friendship may be sorely tested as the two countries try to forge a new trade agreement after Britain's exit from the European Union. U.S. Treasury Secretary Steven Mnuchin said on Saturday in London that he was optimistic that a bilateral deal with Britain could be reached as soon as this year. Javid has insisted that Britain will proceed with a unilateral digital services tax, despite a U.S. threat to levy retaliatory tariffs on British-made autos.

  • Volvo Counting on Hybrid Cars to Avoid Paying Hefty CO2 Fines

    Volvo Counting on Hybrid Cars to Avoid Paying Hefty CO2 Fines

    (Bloomberg) -- Volvo Car AB is counting on tripling sales of plug-in hybrid models this year as a way to avoid paying what could amount to hundreds of millions of euros in European penalties for the sale of its more polluting yet popular combustion-engine SUVs.A fifth of all new Volvos sold in 2020 should be plug-ins or all-electric, compared with just 6.5% of the total last year, according to Chief Executive Officer Hakan Samuelsson. That would see hybrid sales rising to more than 150,000 based on the pace of growth in 2019. The company is only planning to start shipping its first fully-electric model -- the XC40 Recharge -- later this year.The stakes are high for Volvo’s electric strategy because conventional SUVs made up more than half of sales last year and are largely behind the carmaker’s success since the takeover by China’s Zhejiang Geely Holding Group Co. a decade ago. As Europe’s tough emissions rules kick in, the company could pay dearly. PA Consulting Group puts Volvo’s potential fines for this year at a quarter of annual operating profit.“Paying fines is something that just shouldn’t be in the equation,” Samuelsson said in an interview at the company’s headquarters in Gothenburg, Sweden. “That’s not part of our plans. We want to invest in product development, not in fines to Brussels.”The CEO pointed to Volvo’s goal for half of all cars sold in 2025 to be all-electric and the rest plug-in hybrids. It will relaunch its battery-powered range under the “Recharge” moniker, and while the volume of the electric XC40 will be modest this year, Volvo has the capacity to produce “tens of thousands” next year, he said.The question for Volvo and other conventional manufacturers selling cars in the EU is whether consumers will buy into the plans. Rival automakers including Daimler AG’s Mercedes-Benz, BMW AG and Volkswagen AG’s Audi are also rolling out battery-powered models. The threat of penalities for the companies, dubbed “the 2020 CO2 cliff” by Evercore IS auto analyst Arndt Ellinghorst, comes at a tricky time, when the region’s market is expected to shrink.Read more: Trump Hits EU Carmakers With Trade Threat as Outlook SoursPA Consulting Group earlier this month warned that the EU could inflict 14.5 billion euros ($16.1 billion) in fines on the region’s 13 largest carmakers for surpassing carbon-dioxide targets. The penalties will be calculated on the basis of the average emissions of new car registrations. For Volvo, they could reach 382 million euros by 2021, based on the assumption that only 14% of its sales will be all electric or plug-in hybrids, the consultancy said.Volvo’s bet on plug-ins comes despite criticism of the technology for being a half-measure that doesn’t go far enough in reducing emissions, especially as some users run them on fossil fuels without charging the battery. European sales dropped in the first nine months of last year, but according to a report by BloombergNEF are expected to rise quickly this year due to new models on the market and the emissions crackdown.Volvo’s own studies indicate its plug-ins run on battery 40% to 50% of the time. The company plans to promote recharging by paying owners’ electricity costs.“We don’t feel that there’s any reason to feel guilty about plug-in hybrids,” Samuelsson said. “Plug-ins are necessary for the transition, but it’s also a more long-term solution for those who may not have adequate access to charging.”To contact the reporter on this story: Niclas Rolander in Stockholm at nrolander@bloomberg.netTo contact the editors responsible for this story: Anthony Palazzo at, Tara Patel, Andrew NoëlFor 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 Few Thousand Teslas Won't Fix China's Problems

    A Few Thousand Teslas Won't Fix China's Problems

    (Bloomberg Opinion) -- Tianqi Lithium Corp. had everything going for it: generous subsidies, Beijing’s blessing on the electric-vehicle industry it supplies, and the hype of Tesla Inc. getting its sedans off the production line in China. The only thing interrupting this nice fairy tale is the reality of demand and making money.Over the past few years, China has supported its electric-car industry by doling out large subsidies; giving preferential treatment to domestic companies; and providing large outlays for charging infrastructure. The sector has surged as a result. The kickoff of Tesla’s Model 3 in Shanghai last month sparked a fresh rally among producers of lithium – a key ingredient in batteries – and other suppliers.All this is excitement is bubbling away despite the cratering of the lithium market. After peaking more than a year and a half ago, prices have slumped over 50% and inventories have piled up. The glut, a problem China knows all too well, has weighed on producers.This reality is starting to settle in for Tianqi Lithum. Earlier this week, the company canceled its bondholder meeting as worries about repaying investors 318 million yuan ($46 million) in principal and interest loomed. Its bonds fell to just over 64 cents on the dollar from around 75 cents days earlier.While China reported its first monthly slump in electric-vehicle purchases in July, Tianqi Lithium was struggling before then. The world’s second-largest producer reported its first quarterly loss in almost six years years in September, following two quarters of declining net income.Like many fad-commodity producers before it, Tianqi Lithium is seeing the painful consequences of China’s supply and demand mismatch. The adoption of electric cars and progress on battery technology have both been slower than anticipated. Expectations were so far off the mark that despite lithium prices falling, analysts adjusted higher their estimates for the average selling price of batteries last year.Tianqi Lithium booked a 63% increase in government subsidies in the nine months to September as non-operating income from a year earlier. The government's supportive rhetoric also led the company to pile on debt as it sought stakes in Chile’s Sociedad Quimica y Minera de Chile SA and an Australian lithium mine. The company eventually financed its way to commanding a 16% share of global lithium production; but now its balance sheet looks bloated and questions about the company’s ability to refinance its debt – and at what cost – are becoming more pressing.For all the hopes pegged to its expansion and profitability, Tianqi Lithium didn’t have enough cash to cover the 3.1 billion yuan of short-term debt it owes as of September. The company has already tapped various channels of funding, from medium-term notes to an equity raising. When Moody’s Investors Service downgraded the company last month, it cited Tianqi Lithium’s inability to raise enough capital through its rights offering, saying it would have trouble deleveraging.Expectations for the electric-car industry are starting to recalibrate. With targeted subsidies shifting from cars to batteries and infrastructure, the bargaining power has moved from manufacturers of one to the other. The likes of Geely Automobile Holdings Ltd., BMW AG and Volkswagen AG are locking in long-term contracts and partnerships with battery makers, but these car giants are no longer calling the shots.Battery makers nevertheless face their share of challenges: They haven’t quite figured out how to advance technology safely, while bringing down prices and preserving margins. Any reduction in subsidies will pass through to suppliers as well. It may be time for a more realistic reassessment.Tianqi Lithium may be able to keep rolling over its debt, but that doesn’t change the fact that we’re still years away from widespread adoption of electric cars. A few thousand Teslas on the streets of China isn’t going to change that. EV suppliers may be better served keeping an eye on their balance sheets than Elon Musk’s production line.To contact the author of this story: Anjani Trivedi at atrivedi39@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Old Electric Car Batteries May Help Cut Costs of Storing Power

    Old Electric Car Batteries May Help Cut Costs of Storing Power

    (Bloomberg) -- As major players jostle for market share in large-scale power storage, American Electric Power and Nissan Motor Co. are testing new technology that re-uses old electric vehicle batteries to slash costs.The pilot study in Ohio will road test technology that could lower system costs by about a half and extend the life of lithium-ion batteries by about a third, according to its Australian developer.Costs of energy storage systems are falling globally on technology improvements, larger manufacturing volumes, increased competition between suppliers and as the sector adds more expertise, BloombergNEF said in an October report. That’s driving an expansion in investment in projects to store power, with as much as $5 billion worth of deals possible this year for systems paired with renewable energy, according to the forecaster.American Electric’s Ohio study is using expired Nissan Leaf car batteries and is intended to test the innovations at scale after laboratory work in Australia and Japan.Results so far appear promising, Ram Sastry, American Electric’s vice president, innovation and technology, said by phone. “It’s in a facility that we own, but connected to the real grid.” he said.The technology is developed by Melbourne-based Relectrify and uses old, or second-life, vehicle batteries and reduces the number of components needed, the company said Friday in a statement. That can reduce costs for key parts of typical industrial or grid storage systems to about $150 per kilowatt hour, it said.That compares with a current average price for similar technology using new batteries of $289 a kilowatt hour, according to the BloombergNEF 2019 Energy Storage System Costs Survey.Companies like BMW AG and Toyota Motor Corp. are already putting re-used cells to work in applications including renewable energy storage, electric vehicle charging, and to power street lights and homes. About three-quarters of vehicle batteries are eventually likely to be reused, according to London-based researcher Circular Energy Storage.Cheaper energy storage with batteries could provide an alternative to adding more capacity at electricity substations, or building more transformers. It could also be harnessed to provide backup power and bolster reliability for consumers, according to American Electric’s Sastry.“There are many use cases that we have for batteries that are predicated on the cost,” he said. “If the battery goes lower in cost, it can compete with the wires.”Yet even as the price of lithium-ion battery cells has fallen, it’s been difficult to reduce costs of components such inverters. “The inverter is the Achilles heel of energy storage,” said Bradley Smith, president of Covington, Louisiana-based Beauvoir Consulting Services and previously an executive developing second-life battery products at Nissan.Relectrify’s system reduces the need for separate electronics for both the inverter and battery management system, lowering costs, Smith said.The technology can also extend the lifespan of either reused or new batteries by offering more precise management of individual cells, according to Valentin Muenzel, CEO of Relectrify, a 14-person firm launched in 2015 that’s collaborated with companies including Volkswagen AG and International Business Machines Corp.Some potential end users remain wary of re-using lithium-ion batteries over concerns about their longevity and costs of re-purposing cells, according to BNEF’s head of clean power Logan Goldie-Scot.“Many customers are not yet comfortable with second-life batteries even at a steep discount,” he said. Tesla Inc. has in the past suggested it will favor recycling spent packs from vehicles to recover raw materials, rather than seek to re-use the cells first.Relectrify, which is holding talks with battery manufacturers and distributors, sees potential to eventually help improve performance of batteries for the auto sector, in addition to energy storage.“We see stationary storage as the low hanging fruit,” Muenzel said. “We’re already getting demand for use in some mobility applications and we expect that is an area that will continue to grow with time.”To contact the reporter on this story: David Stringer in Melbourne at dstringer3@bloomberg.netTo contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.netFor 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.

  • GlobeNewswire

    Bronstein, Gewirtz & Grossman, LLC Announces Investigation of Bayerische Motoren Werke AG (BMWYY) 

    NEW YORK, Jan. 23, 2020 -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Bayerische Motoren Werke.

  • Reuters

    DAVOS-Trump threatens big tariffs on car imports from EU

    U.S. President Donald Trump on Wednesday threatened to impose high tariffs on imports of cars from the European Union if the bloc doesn't agree to a trade deal. Trump has previously made threats to place duties on European automobile imports, with the intent of receiving better terms in the U.S.-Europe trade relationship. Trump has delayed imposing the tariffs a number of times.

  • Reuters

    Trump says middle class tax cut to be announced over next 90 days- Fox Business

    U.S. President Donald Trump said on Wednesday a tax cut for the middle class would be announced over the next 90 days. "We are going to be doing a middle class tax cut, a very big one," Trump told Fox Business in an interview Trump also threatened of imposing 25% tariffs on cars from the European Union, if a deal was not struck.

  • Trump tells Davos that U.S. economic revival is ‘spectacular’

    Trump tells Davos that U.S. economic revival is ‘spectacular’

    President Donald Trump sought Tuesday to sell the United States to the global business community, telling an economic conference in the Swiss Alps that America’s economic turnaround has been “nothing short of spectacular.”

  • Inside Tesla’s Attack on Germany’s Auto Establishment

    Inside Tesla’s Attack on Germany’s Auto Establishment

    (Bloomberg) -- German rangers stand guard to shoo away visitors from a nondescript stretch of forest near Berlin, where a sign nearby warns of “Lebensgefahr” (mortal danger).The precautions are part of the frantic activity underway to set up Tesla Inc.’s latest assembly plant, Elon Musk’s most daring attack on the German auto establishment. Workers wielding metal detectors have started combing through an area covering some 200 football fields to search for errant ammunition lurking beneath the sandy surface of tiny Gruenheide.It’s the first stage to prepare a site that 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. Once deemed free of World War II explosives, harvesters and trucks will roll in to clear thousands of trees in the first stage of development. The work needs to be done by the end of February to meet Tesla’s aggressive timetable. The project represents a second chance for the quiet town, nestled between two lakes on the edge of a nature reserve southeast of Berlin.Gruenheide lost out on a similar factory two decades ago, when BMW opted for Leipzig. That missed opportunity helped town officials to move quickly when Tesla expressed interest in building its first European factory in Germany, with a plot set aside for industrial use and offering easy access to the Autobahn and rail lines.Read More: Elon Musk’s German Factory Started With Love Letter From Berlin“The investment is a unique opportunity,” Mayor Arne Christiani said in his office, where a map of the Tesla project hangs on the wall. “It gives young people with a good education or a university degree the possibility to stay in our region—an option that didn’t exist in past years.”If it clears Germany’s red tape, the plant will make batteries, powertrains and vehicles, including the Model Y crossover, the Model 3 sedan and any future cars, according to company filings. The factory hall will include a pressing plant, paint shop and seat manufacturing in a building that will be 744 meters (2,440 feet) long—nearly triple the length of the Titanic. There’s space for four such facilities.Musk is taking his fight for the future of transport into the heartland of the combustion engine, where the established players long laughed off Tesla as an upstart on feeble financial footing that couldn’t compete with their rich engineering heritage. He casually dropped the news at an awards ceremony in Berlin in November, leaving the top brass of Germany’s car industry shell-shocked.“Elon Musk is going where his strongest competitors are, right into the heart of the global auto industry,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler. “No other foreign carmaker has done that in decades given Germany’s high wages, powerful unions and high taxes.”Building a factory in Europe’s largest car market is a major test of Musk’s global ambitions. Demand in the region is flat, and buyers are more loyal to local brands. Meanwhile, labor costs in Germany’s auto sector are 50% higher than in the U.S. and five times what they are in Poland, just an hour’s drive away from Gruenheide.Gruenheide TimelineEnd February: Finish tree logging before migrant birds nest March 5: Deadline for comments from nearby residents March 18: Public meeting to discuss the project Mid-2020: Construction expected to begin July 2021: Targeted start of productionOn the positive side, electric cars require less labor to build, and Germany has a deep reserve of auto experts. The location also offers the soft-power advantage of proximity to the country’s leaders.Under pressure for being slow to pick up on the electric-car shift, Chancellor Angela Merkel’s government extended a welcoming hand to Musk. Economy Minister Peter Altmaier offered to try to ease regulatory hurdles that may snag construction. “There’s a lot at stake” in Tesla’s plan, he said soon after the project was announced.Musk’s incursion comes at a strategically opportune time. Riding a wave of optimism after successfully starting deliveries of its China-built Model 3 sedans a year after breaking ground on a factory there, Tesla’s stock has doubled in the past three months.Meanwhile, German peers are struggling with the costly shift away from combustion engines. Volkswagen and Mercedes-Benz parent Daimler announced thousands of job cuts last year, when German car production fell to its lowest level in almost a quarter of a century. For Gruenheide, the planned investment has suddenly transformed the town of 8,700 people into a sought-after location. Local officials receive development proposals on a daily basis: anything from 22-story apartment towers to U.S.-style shopping malls, said Christiani, who hopes the plant will help unlock financing for public transport, schools and medical facilities.In the town hall, five thick binders are available for locals to peruse the project’s details, including 463 trucks expected to roll into the plant each day, a rail spur for train deliveries and an on-site fire brigade.Tesla still has to jump through a number of hoops. Residents have the chance to raise objections, and some have bemoaned that they’ve seen little from the company since its blockbuster announcement. Meanwhile, the local water utility warned it won’t be able to supply the site in time and raised concerns over its location in a zone meant to help protect drinking water supplies.And then the company has to carry out initiatives to protect wildlife—including scaring off any wolves in the area, relocating hibernating bats and removing lizards and snakes until construction is finished. The U.S. carmaker also has to replace felled trees.The mayor expects these hurdles to be cleared so that the first made-in-Gruenheide Teslas can roll out in July 2021.“The forest is classified as a harvest-ready, inferior pine forest,” Christiani said. “It was never supposed to be a rain forest.”—With assistance from Hayley Warren  (Adds criticism from water utility in 17th paragraph.)To contact the author of this story: Stefan Nicola in Berlin at snicola2@bloomberg.netTo contact the editor responsible for this story: Chris Reiter at, Craig TrudellChad ThomasFor 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.

  • Trump administration may compromise, raise fuel economy standards

    Trump administration may compromise, raise fuel economy standards

    The Trump administration is signaling that it could increase fuel economy standards, possibly compromising on its push to freeze them at 2020 levels.

  • Should Bayerische Motoren Werke Aktiengesellschaft (ETR:BMW) Be Part Of Your Dividend Portfolio?
    Simply Wall St.

    Should Bayerische Motoren Werke Aktiengesellschaft (ETR:BMW) Be Part Of Your Dividend Portfolio?

    Today we'll take a closer look at Bayerische Motoren Werke Aktiengesellschaft (ETR:BMW) from a dividend investor's...

  • Reuters

    BMW says it sold 2.52 million BMW, Mini and Rolls-Royce vehicles in 2019

    BMW said it sold 2.52 million BMW, Mini and Rolls-Royce vehicles in 2019, making it the best-selling premium car group, ahead of rival Daimler . Daimler said on Thursday it had sold 2.34 million Mercedes-Benz passenger cars in 2019 for a ninth consecutive year of record sales.. BMW said its BMW brand posted a sales record of 2.17 million vehicles in 2019.

  • Takata recalls 10 million air bag inflators — part of largest auto recalls in U.S. history

    Takata recalls 10 million air bag inflators — part of largest auto recalls in U.S. history

    Cars made by Audi, BMW, Honda, Daimler Vans, Fiat Chrysler, Ferrari, Ford, General Motors, Mazda, Mitsubishi, Nissan, Subaru, Toyota and Volkswagen could be affected.

  • Amazon, Intel and Ford Want to Harvest Your Data While You Drive

    Amazon, Intel and Ford Want to Harvest Your Data While You Drive

    (Bloomberg) -- CES has long been a showcase for automotive gadgetry and a chance for tech companies to pitch their gear to carmakers. This year, the consumer electronics show is embracing an increasingly valuable byproduct of all this activity: data.Modern cars roll out of factories packed with cellular connections, powerful processors and growing suite of sensors, including cameras, radar and microphones. That’s turning them into the next information goldmine, rivaling the data-creating capabilities of Inc., Intel Corp., Qualcomm Inc. and BlackBerry Ltd. are at the Las Vegas conference this week to pitch data-crunching services and partnerships to an auto industry searching for new revenue streams and business models.“CES will highlight the next big industry transformation that revolves around how this data can be monetized,” said Brian Rhodes, an automotive technology analyst at IHS Markit. “This market is no longer strictly focused on selling hard parts.”Automakers are trying to control the data generated by their vehicles and avoid being marginalized by technology giants. It’s a challenge because car companies lack deep software talent and are already battling the incursion of smartphones and related technology. Apple Inc.’s CarPlay and Google’s Android Auto software, installed on vehicle dashboard screens, funnel data to and from smartphones and largely bypass carmakers’ systems.The industry “passed a while ago a very important line in the sand,” said Henrik Fisker, chief executive officer of electric vehicle manufacturer Fisker Inc. “People suddenly felt that their smartphone was more important to their freedom than their car.”After years of setbacks and delays, Fisker will show off its Ocean electric SUV at CES for the first time. The company wants to generate the majority of its profit from software and services over the long term. Fisker has an app for ordering, lease payments and upgrades that it hopes will generate recurring revenue over the life of each vehicle.Intel will announce a new automotive tie-up for its Mobileye unit during CES, adding to existing relationships with Nissan Motor Co., BMW AG and Volkswagen AG. The carmakers use Mobileye’s driver-assistance technology and provide the Intel unit with some of the data that those cameras, chips and sensors collect as the vehicles drive around. Mobileye aggregates this anonymous information to create detailed maps that the carmakers use to enhance their vehicle navigation systems.At CES, Intel showed off a map of Las Vegas created in 24 hours with information from BMW cars that drove around the city over an undisclosed longer period. Intel says such fresh information is more valuable than traditional navigation systems, which use special survey vehicles that collect and send in images and data for updates that can take months. The newer approach has more chance of spotting and avoiding a broken traffic signal or road work. Intel thinks the data will be really useful for other things, too. A utility company could check on infrastructure without sending workers to every site, for example.Intel predicts the market for such data will be worth as much as $3.5 billion a year by 2030. McKinsey & Co. sees a much larger opportunity. A few years ago, the consulting firm said up to $750 billion of value would created from car-related data by 2030. That includes revenue from services like connected maps and targeted advertising, along with the sale and analysis of anonymous information via third parties to reduce costs.“The value pool includes avoided costs and incremental revenue” McKinsey partner Michele Bertoncello said. “If you monitor a car and you avoid a breakdown or you avoid warranty fraud, you don’t generate incremental revenue, but you avoid a cost.”On Monday at CES, cloud-computing giant Amazon Web Services teamed up with BlackBerry, owner of QNX, an operating system that’s widely used in cars. The two companies unveiled a new service that helps automakers update security and software features, monitor vehicle health, access data from car sensors, built new applications and apply artificial intelligence models to the information.Chipmaker Qualcomm announced its first chips and software for fully autonomous vehicles at the CES show. Its radio chips already support cellular links for most of the world’s connected cars. The new offering will be available in coming years and will reduce the cost and power needed to develop and run driverless cars, Qualcomm said. The company also rolled out a “Car-to-Cloud Platform,” a package of hardware and software that lets automakers securely update the software in their vehicles. The system offers a way to charge vehicle owners for updates and other services.Vehicle-generated data is crucial to Ford Motor Co.’s future, Chief Technical Officer Ken Washington said. The company’s commercial business is working with Digit, a robot designed by Agility Robotics that travels with delivery vehicles, unfolds itself, then carries packages from the curbside to the door. Digit will use data from Ford vehicle sensors to find its way.Advanced data capture and analysis is crucial for improving designs and bringing them to market more quickly, and for creating new businesses as carmakers try to become broader transportation companies, according to Washington.“We’re taking this very seriously,” he said. “I watched the internet happen and I watched what happened to businesses that embraced it and those that ignored it.”(Corrects in the ninth paragraph to say that Intel built the map with data collected over a longer period.)To contact the reporters on this story: Ian King in San Francisco at;Ed Ludlow in San Francisco at eludlow2@bloomberg.netTo contact the editors responsible for this story: Alistair Barr at, Andrew PollackFor 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 Opens Chinese Plant as Era of Real Competition Begins

    Tesla Opens Chinese Plant as Era of Real Competition Begins

    (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 czhang714@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at, 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.

  • BMW launches gaze detection so your car knows what you're looking at

    BMW launches gaze detection so your car knows what you're looking at

    At its CES press conference, BMW today unveiled its new gaze detection system, which can track what you're looking at outside of the car and then present relevant information about it. The German automaker is showing off this feature in its i Interaction EASE concept car, which made its debut last October. "The BMW i Interaction EASE demonstrates what mobility might feel like in the future once autonomous driving becomes commonplace: luxurious, human, and intuitive,” explains Adrian van Hooydonk, senior vice president BMW Group Design.

  • Aston Martin Isn't a Patch on Ferrari

    Aston Martin Isn't a Patch on Ferrari

    (Bloomberg Opinion) -- Barely a year has passed since Aston Martin Lagonda Global Holdings Plc listed shares in London and persuaded investors it deserved a premium valuation similar to that of Ferrari NV. The luxury carmaker’s preliminary yearly results, published on Tuesday, were a reminder that its management badly misjudged both the strength of the brand and the resilience of its balance sheet.In reality Aston Martin isn’t a patch on Ferrari and instead faces an uphill battle just to keep the lights on. A year ago the U.K. company told investors that its dealers would probably purchase about 7,200 vehicles in 2019. In fact, wholesale volumes fell 7% to a dismal 5,800 (or about 5,900 if special models are included).Instead of the 24% Ebitda margin promised in 2019, Aston Martin achieved only 13%. This means it almost certainly lost money for the second year running. The ratio of Aston Martin’s indebtedness to Ebitda — at more than 6 times — is alarmingly high. About 3 billion pounds ($3.9 billion) of equity value has gone up in smoke since the initial public offering.Aston Martin wants investors to look past all this and focus on promising orders for the DBX sports utility vehicle, on which the fate of the company depends. Access to a second $100 million tranche of debt financing was contingent on quickly gaining 1,400 orders for the DBX, which Aston Martin has achieved.While that’s a relief, that Aston Martin now plans to draw on this very expensive borrowing reveals how fragile its finances have become. And even this might not be enough to tide the company over until DBX sales start in the second quarter.Management is reviewing funding options, including the possibility that strategic investors make an equity investment. A capital injection would reassure Aston Martin’s bondholders — while the sterling bonds sold off on Tuesday, they remain well above the October lows. But existing shareholders, who’ve suffered plenty already, must fear getting diluted (unless they engineer a takeover).In view of its salience to cash flow, the focus on the DBX is understandable, yet it shouldn’t distract from the pretty lamentable performance of Aston Martin’s core business. On Tuesday luxury rival Rolls-Royce (owned by BMW AG) confirmed its sales increased by one-quarter last year. Ferrari is expected to report a 34% adjusted Ebitda margin for 2019, almost treble what Aston Martin achieved.The British carmaker has been guilty of pushing too many cars to dealers, which puts downward pressure on pricing. Rectifying this will be a slog. Residual values for luxury cars have softened, according to Goldman Sachs Group Inc. analysts, which might make customers reluctant to pay top dollar for a new car and can make leasing expensive. Aston Martin managed to cut an inventory overhang toward the end of the year only by stepping up financing support and marketing spend.Though difficult to quantify, negative headlines about Aston Martin’s finances probably aren’t helping dealers shift models. Plenty of its customers are banker types who’ll know better than most how precarious the situation has become.To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or 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©2020 Bloomberg L.P.

  • Heaven Is a Made-in-China Tesla, But Only for Some

    Heaven Is a Made-in-China Tesla, But Only for Some

    (Bloomberg Opinion) -- The made-in-China Tesla has arrived. That’s getting investors excited about everything that goes into the electric vehicles — from valves and auto glass to headrests and seats. The enthusiasm for Tesla’s Chinese suppliers may be premature, though.Beijing has given Elon Musk all that the U.S. couldn’t: cash, concessions and cheap development costs. Tesla Inc.’s revenue from China accounted for about 11% of its total for the quarter ended September, up from 6% a year ago. Last month, Tesla secured an additional $1.6 billion loan from Chinese banks. On Tuesday, the Tesla chief executive officer was in Shanghai for a ceremony to hand over the first China-made Model 3 sedans to customers.China has been production heaven for Musk. Tesla’s capital expenditure for the Shanghai factory declined 65% on a unit production capacity basis compared with its U.S. manufacturing hub in Fremont, California, according to analysts at China International Capital Corp. The Shanghai plant was built in less than a year and can already produce more than 3,000 cars per week. Compare that to the depths of what Musk called his “production hell” in 2018, when he was sleeping on a couch or under a desk as the company struggled to meet a weekly goal of 5,000 cars in Fremont.That progress is fueling a rally in shares of Chinese suppliers. Take Zhejiang Sanhua Intelligent Controls Co., one of the country’s largest providers of heating, ventilation and air-conditioning components. Sanhua shares have risen more than 70% in Shenzhen since the middle of last year, as made-in-China Teslas came closer to becoming a reality. Shanghai Baolong Automotive Corp., which provides tire-pressure monitoring systems, has seen a similar advance over the same period; Ningbo Huaxiang Electronic Co., a maker of rear-view mirrors, has climbed more than 60%.Tesla will have to sell a lot of cars in China to justify those gains. The auto sector accounts for only a small portion of Sanhua’s revenue. Its valves, which help heating and cooling efficiency, contribute about 250 to 400 yuan ($36 to $58) to the value of a Model S and X, and about 1,000 yuan per Model 3, according to CICC analysts. Prices of the Model 3 will start from 299,050 yuan in China, Tesla said last week.Granted, Tesla isn’t the Chinese company’s only auto customer. It recently signed a 600 million yuan contract with BMW AG, and has contracts with other carmakers. That’s all cause for optimism. However, much of the excitement pushing up the stock lately has been driven by Tesla’s prospects. While this points to confidence in Sanhua’s valves (and the components produced by other suppliers), it doesn’t mean there will suddenly be huge demand.Tianjin Motor Dies Co., another maker of parts for Tesla, attributed “irregular” movements in its stock price to the U.S. company in a filing to the Shenzhen exchange on Tuesday as its shares jumped by the 10% daily limit. Tesla is no different from other customers including Mercedes-Benz AG and BMW, and its business with the U.S. electric-car maker carries “market development risk,” Tianjin Motor Dies said. The company’s shares have surged 28% this year.Meanwhile, China is scaling back subsidies for electric vehicles and plowing money instead into the infrastructure that will support them. Sales have been falling since the government reined in its largesse and are running below Beijing’s annual target of 2 million cars. Demand is uneven and significant barriers to adoption remain.Even if Tesla operates the Shanghai plant at its full capacity of around 150,000 cars, that won’t translate into a bonanza for suppliers. In addition, the subsidies that have helped the U.S. electric-car maker lower its prices could mean component makers soon start feeling pressure to cut their own prices.China’s electric-car sales targets will require more than 100 billion yuan of subsidies, according to estimates by Goldman Sachs Group Inc. analysts. That looks expensive, compared with the cost of past stimulus packages. The government may balk. After all, it knows all too well how helping favored industries too much can lead to overcapacity.The bottom line is that Musk’s Chinese plans lean heavily on government support. If any part of that falters, the rosy projections that have buoyed suppliers’ shares may implode. Under its agreement with the government, the U.S. company is required to make 14.08 billion yuan of capital expenditures and generate more than 2.23 billion yuan of annual tax revenue starting at the end of 2023, according to Tesla filings. The company says it can hit both those targets even if car production is “far lower” than what it has forecast.Musk may have found his heaven in China. For Tesla’s suppliers, it’s still a world away.To contact the author of this story: Anjani Trivedi at atrivedi39@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at©2020 Bloomberg L.P.

  • GlobeNewswire

    BMWYY INVESTOR ALERT: ROSEN, A TOP LAW FIRM, Announces Investigation of Securities Claims Against Bayerische Motoren Werke AG– BMWYY

    NEW YORK, Jan. 03, 2020 -- Rosen Law Firm, a global investor rights law firm, announces it is investigating potential securities claims on behalf of shareholders of Bayerische.

  • Tesla Appears to Turn a Corner, Lifting Valuation to $80 Billion

    Tesla Appears to Turn a Corner, Lifting Valuation to $80 Billion

    (Bloomberg) -- Tesla Inc. is back on top -- this time, it seems, with some real staying power.The Model 3 maker delivered a record 112,000 vehicles in the fourth quarter and has begun production at a new factory near Shanghai. With the stock soaring to close Friday at an all-time high, Tesla’s market capitalization finished the week just short of $80 billion -- more than double Ford Motor Co.’s stock value. And the Model Y, its next crossover SUV, is slated to launch this summer.“Tesla is close to escape velocity,” said Gene Munster, managing partner of the venture capital firm Loup Ventures. “Demand for electric vehicles is real, and people are stretching to buy a Model 3. Everything is beginning to gel.”That’s saying a lot for a company famous for taking big steps forward, only to then slip steps back. Take 2019: after finishing strong the year before, Elon Musk decided to dismiss 7% of the workforce. First-quarter deliveries were dismal. Customers and employees alike were whipsawed by a shifting retail strategy, and the chief executive officer remained a magnet for controversy.But after years of drama, there’s a growing sense among investors that Tesla is finally hitting its stride. The company reported a surprise third-quarter profit in October and the shares have been on a tear ever since.Established automakers have taken their shots at Musk with so-called “Tesla Killers,” but no serious competition has materialized thus far. U.S. sales of General Motors Co.’s fully electric Chevrolet Bolt plummeted 47% in the fourth quarter and finished down down 9% for the year.During Tesla’s last earnings call, Musk said he thinks the upcoming Model Y will outsell the S, X and 3 combined, without giving a time frame. He announced plans in November to build a third auto factory, near Berlin -- the backyard of German automakers BMW AG, Daimler AG and Volkswagen AG, whose initial electric offerings haven’t drawn much demand.China, the world’s largest auto market, is the big wild card for this year. Tesla said Friday that battery production for its cars there began in late December.Local pack supply is the gating factor standing in the way of the plant boosting output. Tesla said it’s already managed to assemble almost 1,000 cars that are ready for sale. With more battery production, it will be capable of 3,000 a week, according to the company.“Shanghai deliveries should be the next catalyst to drive volume growth,” Ben Kallo, a Robert W. Baird analyst with the equivalent of a buy rating on Tesla, wrote in a report. “Importantly, the factory appears to be ramping faster than we expected.”In 2012, the year Tesla launched the Model S sedan, the company delivered just 2,650 cars. Seven years later, that was up to 367,500 -- 138 times as many.Loup Ventures’ Munster said Tesla should meet what he says are Wall Street’s expectations for 2020. Analysts on average are predicting 463,000 deliveries for this year -- another 28% annual jump.“If Tesla can successfully launch the Model Y,” he said, “they will have fully arrived.”To contact the reporter on this story: Dana Hull in San Francisco at dhull12@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at, Anne ReifenbergFor more articles like this, please visit us at©2020 Bloomberg L.P.

  • Tesla Just Delivered Its First China-Built Cars in Shanghai

    Tesla Just Delivered Its First China-Built Cars in Shanghai

    (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 czhang714@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at, ;Craig Trudell at, Ville Heiskanen, Kevin MillerFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Business Wire

    INVESTIGATION REMINDER: The Schall Law Firm Announces it is Investigating Claims Against Bayerische Motoren Werke AG and Encourages Investors with Losses to Contact the Firm

    INVESTIGATION REMINDER: The Schall Law Firm Announces it is Investigating Claims Against Bayerische Motoren Werke AG.

  • Rolls-Royce sets a new sales record in 2019
    Yahoo Finance Video

    Rolls-Royce sets a new sales record in 2019

    Rolls-Royce delivered a record number of sales in 2019 with over 5,000 vehicles sold in over 50 countries. Yahoo Finance’s On The Move panel is joined by Rolls Royce Motor Cars CEO Torsten Müller-Ötvös to discuss the company’s growth.