|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||5.80 - 6.21|
|52 Week Range||4.62 - 7.45|
|Beta (5Y Monthly)||1.15|
|PE Ratio (TTM)||43.60|
|Forward Dividend & Yield||0.03 (0.49%)|
|Ex-Dividend Date||Jun 09, 2019|
|1y Target Est||N/A|
The so-called Tesla of China reportedly is near a new funding deal after warning of inadequate cash for operational needs in 2020.
(Bloomberg) -- Shares of electric-vehicle makers including Tesla Inc. and Warren Buffett-backed BYD Co. jumped after the government signaled it won’t continue reducing subsidies for the industry at the same pace this year.Miao Wei, the minister for industry and information technology, told an audience in Beijing on Saturday EV-purchase subsidies won’t be cut July 1, like they were on that date last year. Tesla, which is just starting to deliver locally built cars to customers, saw its stock climb above $500 for the first time as optimism about China combined with a bullish analyst report.“Please rest assured: There won’t be a further cut on July 1 this year,” Miao said in a speech at an industry forum. The audience, which included representatives from major automakers, applauded his statement.Though the minister later clarified his comments, investors and the industry interpreted his remarks as good news for EV manufacturers that were hit by subsidy reductions last year. Sales of new-energy vehicles have dropped for six straight months in China since the government scaled back handouts in July.A few hours after his speech, the minister’s amended statement was aired on China National Radio and the forum’s organizers asked reporters to refer to those comments.“In order to stabilize market expectations, and ensure the industry’s sustained development, subsidies on new-energy vehicles will stay relatively stable this year, and they won’t be scaled back significantly,” the radio station quoted the minister as saying.Shares of BYD and competitor BAIC BluePark New Energy Technology Co. surged by their daily trading limit of 10% Shenzhen and Shanghai, respectively.Tesla rose as much as 5.3% to $503.49 shortly after the start of regular trading in New York. An analyst at Oppenheimer & Co. raised his price target to a street high $612.Chinese electric-SUV maker NIO Inc., which also trades in the U.S., surged as much as 6% to $3.72.The minister didn’t say whether the subsidies will be fully gone by 2021, which is what the government has stated before. Wan Gang, a vice chairman of China’s national advisory body for policy making and an EV pioneer, told the forum that regulators should refrain from making subsidy changes this year so that carmakers can prepare for next year when they will be completely phased out.China, which began subsidizing EV purchases in 2009 to promote the industry, has been gradually reducing handouts in the past few years to encourage automakers focus on innovating and competing on their own.(Updates with Tesla stock milestone in second paragraph)To contact Bloomberg News staff for this story: Tian Ying in Beijing at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Craig Trudell, Kevin MillerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the...
(Bloomberg) -- Tesla Inc. cut the starting price of its China-built Model 3 sedans by 9%, as it steps up efforts to lure customers in the world’s biggest electric-vehicle market after opening a factory on the outskirts of Shanghai.The price was lowered to 323,800 yuan ($46,500) from 355,800 yuan. After subsidies from the Chinese government, prices start from 299,050 yuan, Tesla’s website showed. That puts the cars closer to some produced by domestic EV makers, such as Xpeng Motor’s latest P7 sedan, which starts at 240,000 yuan. NIO Inc.’s electrified SUVs start from as high as 358,000 yuan.California-based Tesla, which handed over the first of its Chinese-made cars to 15 employees on Dec. 30, will start delivering local models to the public on Jan. 7, it said on its official WeChat account. That’s just one year after breaking ground at the Shanghai plant, Tesla’s first factory outside the U.S.“This price cut shows Tesla’s confidence in cost control and determination in rapidly expanding its market share,” said Yale Zhang, managing director of Autoforesight, a Shanghai-based consultancy.Elon Musk’s company is also lowering the cost of optional extras, from body color to high-performance wheels, according to a statement. Home-charging services aren’t included, and cost an extra 8,000 yuan. Tesla is already assembling more than 1,000 cars a week at its China facility and plans to double that rate over the year, according to Song Gang, the manufacturing director of the plant.Musk has said weekly production of 3,000 cars in Shanghai is a target at some point.Tesla plans to increase local sourcing to 100% in Shanghai by the end of the year, from about 30% now, Song said. That should help lower costs as Tesla and other ambitious EV makers face a challenging market in China, where auto sales have been slowing.Last month, people familiar with the matter said localization would help Tesla cut prices by 20% or more in 2020. The company has been exempted from a 10% purchase tax for its locally built sedans, posing more of a threat to the likes of NIO, Xpeng and BYD Co.(Updates with details on Chinese carmaker models in second paragraph and adds chart)To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Will Davies, Angus WhitleyFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
BEIJING/SHANGHAI, Dec 10 (Reuters) - Auto sales in China fell for a 17th consecutive month in November, with the number of new energy vehicles (NEVs) sold contracting for a fifth month in a row, data from its biggest auto industry association showed on Tuesday. Total auto sales in the world's biggest auto market fell 3.6% from the same month a year earlier, the China Association of Automobile Manufacturers (CAAM) said. Car sales in the country contracted last year for the first time since the 1990s against a backdrop of slowing economic growth and a crippling Sino-U.S. trade war.
(Bloomberg) -- Some of China’s wealthiest tycoons steered billions of dollars into electric-car companies in order to fuel the country’s dreams of becoming a leader in the field. Now a reckoning may be looming as car sales slow and the government reduces subsidies for the nascent industry.That leaves the flagship companies of Jack Ma, Pony Ma, Hui Ka Yan and Robin Li facing an increasingly steep path to profitability on their bets that electric vehicles can be smartphones-on-wheels connecting passengers to other businesses. Their capital, along with dozens of startups raising $18 billion, helped inflate an electric bubble that now looks to be in danger of popping.China’s car market is experiencing a prolonged sales slump, prompting EV makers to slash earnings outlooks. With China considering further cuts to the subsidies for consumer purchases in order to force automakers to compete on their own, a shakeout is looming that not even the tycoons’ support may be able to prevent, said Rachel Miu, an analyst with DBS Group Holdings Ltd. in Hong Kong. “For the new kids on the block in the EV space, it’s a steep uphill climb,” she said.Here’s what China’s richest people have to show for their companies’ EV investments:Alibaba: Xpeng Coupe, AccusationsJack Ma stepped down as chairman of Alibaba Group Holding Ltd. in September after amassing a $40 billion-plus fortune, but China’s richest man retains his board seat -- and influence -- at the e-commerce emporium he created. Alibaba has participated in several funding rounds for Guangzhou Xiaopeng Motors Technology Co., or Xpeng Motors, including one in 2018 that raised 2.2 billion yuan ($313 million) for the carmaker co-founded by former Alibaba executive He Xiaopeng.Xpeng launched its first vehicle, the five-seat G3 SUV, last year and has sold 11,940 vehicles so far this year, according to data compiled by Bloomberg.The company, founded in 2014, also is teaming up with more-established automakers. A factory built with Haima Automobile Co. can produce 150,000 EVs annually. Another should soon begin assembling the P7 coupe, scheduled to begin deliveries next year.The journey hasn’t been without controversy, though, as some engineers bound for Xpeng stand accused of stealing from their ex-employers in the U.S. In March, Tesla Inc. sued a former engineer, alleging he uploaded files, directories and copies of source code to his personal cloud storage account before resigning. Also, a former Apple Inc. engineer was indicted last year for allegedly pilfering self-driving car secrets on his way to an Xpeng job. His trial is upcoming.Xpeng wasn’t accused of wrongdoing.“We are very adamant that we pursue our own R&D,” President Brian Gu said. “Copyright is very important to us.”Hangzhou-based Alibaba, the second-largest shareholder in Xpeng, didn’t answer specific questions about the automaker.Xiaomi Corp., the consumer-electronics company, participated in another $400 million fundraising round, the automaker said Nov. 13.Tencent: NIO Lists, Then CutsPony Ma’s Tencent Holdings Ltd., whose WeChat messaging app helped make him China’s second-richest person, led a $1 billion investment round in NIO Inc. in 2017. With more than 26,000 vehicles sold, NIO’s one of the few Chinese startups making multiple models, and it beat rivals with an initial public offering in New York last year.But losses piled up with the overall sales slump and as the company, which has been described as “China’s Tesla,” plowed money into marketing and real estate. It sponsored a Bruno Mars concert and opened luxury clubs for NIO owners that feature showrooms, coffee bars and performance spaces. By August the company had opened 19 NIO Houses over 22 months, and combined rental expenses were equivalent to 6.3% of revenue during the 12 months ended March, according to Bloomberg Intelligence.“NIO chooses the direct sales mode and pays great attention to user experience,” the company said. It doesn’t plan to close its existing clubs -- or open new ones.NIO lost $2.8 billion in the 12 months ended June on revenue of $1.2 billion, and its shares have plunged this year. The Shanghai-based company cut about 20% of its workforce through September. Separately, NIO has said that Tencent and Chief Executive Officer William Li planned to inject $100 million each into the company, though the carmaker hasn’t clarified whether the investment has been completed.“Our sales have been under pressure since the subsidies went down,” Li said. “It has come to a new era that one can only win customers with quality products and services.”Shenzhen-based Tencent expressed support for EVs but didn’t answer specific questions about NIO.Evergrande: High HopesOne of the more startling entrants in the EV industry is property developer China Evergrande Group, which declared it wanted to be the world’s biggest manufacturer within three to five years. That means surpassing Tesla, which just opened a factory in Shanghai. Between September 2018 and June 2019, Evergrande invested more than $3.8 billion in EV-related companies, according to Bloomberg Intelligence, and will start producing its Hengchi brand next year.Evergrande, which wants to open 10 production bases, plans to spend 45 billion yuan on new-energy vehicles between 2019 and 2021. On Nov. 10, a unit announced it would spend almost $3 billion to boost its stake in National Electric Vehicle Sweden AB to 82% from 68%.Billionaire chairman and founder Hui Ka Yan, who’s diversifying into businesses such as soccer and health care, acknowledged there isn’t much overlap between Evergrande’s real-estate business and its EV ambitions.“We don’t have any talent, technology, experience, or production base in manufacturing cars,” Hui said. “How can we compete with the century-old automakers in the world?”His answer: by opening Evergrande’s wallet.“Whatever core technology and company we can buy, we will buy,” he said.Yet Hui’s whatever-it-takes strategy may take a toll on Evergrande because of the cash-burning nature of NEV investments. The company’s forecast of spending 45 billion yuan is probably an underestimate, and that may exacerbate its cash crunch, according to BI.“This could crimp its home-sales margin given an urgency to sustain price cuts to boost cash collection from sales,” analyst Kristy Hung said in a Nov. 22 report.Baidu: WM Factories, LawsuitRobin Li, the CEO of China’s dominant internet search-engine company, made WM Motor Technology Co. part of Baidu Inc.’s move into autonomous driving. Baidu led a fundraising round this year that generated 3 billion yuan for the Shanghai-based automaker. Baidu owns a 13% stake.WM rolled out an electric SUV last year and has delivered more than 19,000 vehicles, Chief Strategy Officer Rupert Mitchell said. So far this year, WM sold 14,273 of its battery-powered SUVs, according to data compiled by Bloomberg. That puts WM behind market leader BYD Co. -- backed by Warren Buffett -- and NIO, but ahead of Xpeng. WM launched a second SUV model on Nov. 22.WM has an advantage over rivals started by employees from internet companies, Mitchell said. Founder Freeman Shen used to run Volvo Car Group in China.“We are not moonlighters from the technology industry that are having a crack at mass-market automotive,” he said.Volvo parent Zhejiang Geely Holding Group has sued WM, seeking 2.1 billion yuan compensation for alleged copyright infringement, Chinese state media reported in September. WM has denied wrongdoing.WM is producing vehicles at fully owned factories, which helps maintain quality control, Mitchell said. The company, which is opening a second factory next year that can make 150,000 vehicles annually, wants to raise another $1 billion, Mitchell said.Baidu declined to comment.(Updates 16th paragraph to clarify status of NIO investment)\--With assistance from Emma Dong, Tian Ying and Gao Yuan.To contact Bloomberg News staff for this story: Bruce Einhorn in Hong Kong at email@example.com;Chunying Zhang in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Young-Sam Cho at email@example.com, ;Emma O'Brien at firstname.lastname@example.org, Michael TigheFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
BEIJING/SHANGHAI, Nov 11 (Reuters) - China's auto industry executives met with government officials over the weekend to discuss ways to promote higher car sales in rural areas, sources familiar with the matter said. The country's car manufacturers are grappling with the pressures of falling sales in the world's largest car market and are seeking new policies. A senior official at the China Association of Automobile Manufacturers (CAAM), Zeng Guang, confirmed to Reuters that the meeting had been organised in Beijing by the association's magazine Auto Review.
TOKYO/SHANGHAI (Reuters) - Chinese electric car maker BYD Co Ltd and Japan's Toyota Motor Corp said on Thursday they planned to set up a joint venture to design and develop battery electric cars as they ramp up efforts to produce zero emissions vehicles. The two companies said in a statement that they would each invest 50% of the capital needed to establish the company, which will be set up next year and be based in China. Widely considered a late comer in embracing battery EVs, compared with rivals including Nissan , Toyota had flagged in June that it aimed to get half of its global sales from EVs, including gasoline hybrids, by 2025, five years ahead of schedule.
TOKYO/SHANGHAI, Nov 7 (Reuters) - Chinese electric car maker BYD Co Ltd and Japan's Toyota Motor Corp said on Thursday they planned to set up a joint venture to design and develop battery electric cars as they ramp up efforts to produce zero emissions vehicles. The two companies said in a statement that they would each invest 50% of the capital needed to establish the company, which will be set up next year and be based in China. Widely considered a late comer in embracing battery EVs, compared with rivals including Nissan, Toyota had flagged in June that it aimed to get half of its global sales from EVs, including gasoline hybrids, by 2025, five years ahead of schedule.
Chinese electric car maker BYD Co Ltd said on Tuesday it expected full-year net profit to fall by as much as 43%, as sales of new energy vehicles in the world's biggest auto market plunged following a cut in government subsidies. The Shenzhen-based company, which is backed by U.S. investor Warren Buffett and whose products include battery electric and plug-in hybrid vehicles, posted net profit of 119.72 million yuan ($16.95 million) in the third quarter, down 88.6% from 1.05 billion yuan a year earlier. It said 2019 profit would be between 1.58 billion yuan and 1.77 billion yuan, down from 2.78 billion yuan a year earlier.
Tesla and BYD are in a race to dominate the global EV market and, with Musk and Buffett backing their respective companies, this billionaire battle won’t slow down any time soon
A look at the shareholders of BYD Company Limited (HKG:1211) can tell us which group is most powerful. Insiders often...
(Bloomberg) -- Shares of Chinese electric-vehicle makers and suppliers fell after a worse-than-expected quarterly loss for NIO Inc., the country’s answer to Tesla Inc., exacerbated concerns that a bubble in the world’s largest EV market may be bursting.BAIC Motor Corp., which BloombergNEF says brought in more than $4 billion in EV revenue last year, dropped 1% in Hong Kong, while BYD Co. closed down 4.1%, its biggest loss in over a month. Wuxi Lead Intelligent Equipment Co. retreated 4.5% in Shenzhen. NIO plunged 20% to a record low of $2.17 in New York on Tuesday after announcing its results and thousands of job cuts.The dire situation has prompted NIO, which is backed by technology giant Tencent Holdings Ltd., to raise $200 million from founder William Li and a Tencent affiliate, and to plan the spin off some businesses. The company’s U.S.-listed shares are down more than 80% from their peak following last year’s IPO.“People are wondering whether the company can continue to survive,” said Jason Chen, an analyst from Blue Lotus Capital Advisors. Bernstein analyst Robin Zhu struck a similar tone with a report titled “Tick Tock, Tick Tock,” estimating that NIO has only a few weeks of liquidity left.The issues specific to Shanghai-based NIO include cost overruns and major recalls.The company said Wednesday it has rescheduled its earnings conference call to 8 a.m. New York time after canceling the original one planned for Tuesday.More broadly, the automaker’s struggles lend credence to mounting concerns that China’s state-sponsored support of the industry inflated a bubble that’s poised to pop. The nation’s sales of EVs and “new-energy” vehicles fell for a second straight month in August as the government scaled back subsidies. China accounts for half of the world’s EV sales.“The latest industry sales and pricing data have not shown improvement, prompting us to fear the anticipated recovery in industry demand in September and 4Q may prove more modest than expected,” JPMorgan analysts Ryan Brinkman and Rebecca Wen wrote in a note, where they also withdrew their price target on NIO.NIO’s second-quarter net losses increased 83% from a year earlier to 3.29 billion yuan ($462 million), according to a statement. The deficit was worse than the 2.6 billion yuan average estimate of two analysts surveyed by Bloomberg, and it was the company’s second-largest based on available data dating back to 2017.NIO has accumulated about $6 billion in losses since it was founded by Li, who is also the chief executive officer, in 2014. Fire risks led to a mass callback of nearly 5,000 vehicles in June, a significant portion of the 17,550 units NIO had sold as of the end of May.Li said in the statement that a target has been set to reduce global headcount to 7,800 by the end of the third quarter, from more than 9,900 in January. There will be additional restructuring and some non-core businesses will be spun off by the end of the year, he said, without elaborating.A Tencent affiliate and Li agreed to buy $200 million of convertible notes through a private placement that’s expected to close before the end of the month, NIO has said. The company canceled its earnings conference call without explanation, a move Chen called “very strange.”Though revenue surged more than 3,000% from a year earlier, that was a time when the company was just getting started to sell cars. It fell 7.5% from the first quarter.NIO delivered 11% fewer vehicles compared with the first quarter, but it forecast the number will rebound to between 4,200 and 4,400 units in the third quarter. Third-quarter revenue will rise as much as 10% from the previous three months, the company said.NIO previously scrapped plans for a manufacturing plant in Shanghai after the government decided to provide support to Tesla, which aims to start production in China this year -- another challenge for Li’s company. Annual capacity at the Tesla facility could eventually top 1 million vehicles, chief executive Elon Musk has said.(Updates share-price moves.)\--With assistance from Courtney Dentch.To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at email@example.comTo contact the editors responsible for this story: Craig Trudell at firstname.lastname@example.org, ;Young-Sam Cho at email@example.com, Will Davies, Kevin MillerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Chinese electric car maker BYD Co Ltd posted a 203.6% rise in first-half profit on Wednesday, as China's new energy vehicle market continues to surge. The Shenzhen-based company, which is backed by U.S. investor Warren Buffett and whose products include battery electric and plug-in hybrid vehicles, posted net profit of 1.45 billion yuan ($205.29 million), up from 479.10 million yuan a year earlier. BYD, whose models include the Song series and the Qin plug-in hybrid electric vehicle, aims to move to completely electric-powered vehicles.
Volatility is par for the course when it comes to newly-minted public companies. But with Nio (NYSE:NIO), the volatility has been even more extreme than is usual. Nio stock just can't seem to get moving, but there are reasons.Source: Shutterstock When the company came public in September 2018, the belief was that the company would somehow be the next Tesla (NASDAQ:TSLA). But unfortunately, Nio stock has been mostly in a grueling downward slide. Consider that since the offering the shares have lost about half of their value.So what's going on here? Why all the disappointment? Well, despite Nio's innovative car models, the deliveries have been subpar. Just look at July, which saw a 38% drop on a quarter-over-quarter basis to a mere 837. That's right. Less than 1,000!InvestorPlace - Stock Market News, Stock Advice & Trading TipsGranted, a big factor was a major recall of close to 5,000 ES8 SUVs. Note that there were incidents of fires erupting from faulty battery packs (there were short-circuits in some because of the wearing down of wires).Now it is encouraging that NIO was proactive and was able to solve the problem in about half the time expected. In fact, the company thinks the impact from the recall is mostly temporary. * 15 Growth Stocks to Buy for the Long Haul The expectation is that August delivers will come to anywhere from 2,000 to 2,500. A big help will likely be the new ES6, which is a five-passenger electron crossover SUV. During July, the delivers came to 673. A Closer Look at NioOK, then is this a bullish signal for Nio stock? Actually, I still think investors should be cautious. Keep in mind that the company still faces considerable challenges. Here's just a few:Competition: While the market in China is large for electric vehicles -- and growing -- there are also about 486 registered manufacturers in the country. Many are fairly small. But of course, there are some large ones like BYD (OTCMKTS:BYDDF) and Beijing Electric Vehicle Co. So it is tough for a company like Nio to rise above the crowd, especially when it has only about 2% market share. Something else: TSLA is gearing up to sell its Model 3 in China during the latter part of the year.Subsidies: The Chinese government has cut back on assistance for electronic vehicles. The main reason is to encourage more competition. But then again, there has also been a reduction in demand, such as for high-priced vehicles.Macroeconomy: While the Chinese economy continues to grow, the pace has decelerated. A big reason has been the U.S.-China trade war, but there are other issues like debt and imbalances, such as in the real estate markets.Business Model: Nio does not manufacture its own vehicles. Instead, the company outsources this to a state-owned operator (Nio did try to build its own plant but has since abandoned the effort). While this helps to lower the capital costs, it does mean that margins are generally lower. Bottom Line On Nio StockThe prospects for EVs are bright in China. But again, the competition is intense and the economic uncertainty will likely remain a big problem.In the meantime, NIO continues to post significant losses. Note that in the latest quarter they came to $366 million. And there is only about $1.12 billion in the bank and the debt is at $1.35 billion.So within the next year, it would be no surprise that the company will do another capital raise - which could be highly dilutive given the low stock price. That is, for now, it's probably best to hold off on NIO stock.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post Nio Stock Seems Only to Have Continued Disappointment on the Horizon appeared first on InvestorPlace.