TSLA Jan 2020 340.000 call

OPR - OPR Delayed Price. Currency in USD
2.5800
+0.7200 (+38.71%)
As of 12:05PM EDT. Market open.
Stock chart is not supported by your current browser
Previous Close1.9200
Open2.4300
Bid2.5800
Ask2.6400
Strike340.00
Expire Date2020-01-17
Day's Range2.4300 - 2.5800
Contract RangeN/A
Volume60
Open Interest2.36k
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  • Tesla drivers on the hook for 'app' parking accidents
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    It's one of the perks of Tesla's cutting-edge driverless technology... using your phone to summon your car from a parking spot. But who's on the hook if there's a crash, if no one is behind the wheel? Your car. Your crash. You're liable. At least that's what lawyers are saying after a number of videos have popped up showing cars running Smart Summon, Tesla's new software, in a number of near misses. But if the accidents pile up - insurance industry experts expect Tesla to be dragged into legal fights. Right now repairs for any dings or scratches should go through a driver's traditional insurance policy, according to one lawyer who represents automotive suppliers in disputes about safety and autonomous car technology. But an argument could be made that if it was Tesla's software at fault, not the car owner.. then this lawyer sees the day when drivers could potentially ban together for a class action lawsuit seeking damages from Tesla. The videos highlight the shifting landscape in the world of auto insurance and accident blame as more automakers look to automate functions like parallel parking, steering, and accident avoidance - which used to be solely the responsibility of the driver. Now legal experts say the insurance industry and the law have to catch up. As for those videos of Tesla near-misses that people may find comical, the National Highway Traffic Safety Administration isn't laughing. It has started looking into the incidents.

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    Two very different verdicts Friday on the future of mobility. In Japan, Toyota is doubling down on vehicles powered by hydrogen fuel cells. It unveiled a new version of its Mirai car on Friday. The automaker has been working on fuel cells for two decades. Such cars emit nothing more than water vapour. And Toyota says they beat electric vehicles on range. The new Mirai can drive about 560 miles on a full tank. But the cars are costly to make and buy - over 46,000 dollars in Japan, after subsidies. And hydrogen filling stations are few and far between. As a result, Toyota has sold fewer than 10,000 Mirais over five years. By contrast, Tesla aims to deliver up to 400,000 electric vehicles this year alone. Meanwhile, James Dyson is calling it quits. The British entrepreneur is scrapping plans to develop an electric car. Dyson says he has a great design, but can't see a way to make it commercially viable. Attempts to find a buyer for the project have been abandoned. As Tesla's persistent losses demonstrate, building a profitable car company from scratch is no easy task.

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  • Bloomberg

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    (Bloomberg Opinion) -- However frothy valuations currently seem to be, optimists can always argue they’re justified by strong earnings. In the past four years, S&P 500 operating earnings per share have grown by nearly 40%.Those numbers, however, may be as airy as the asset prices they support. The U.S. government’s national income and product accounts -- which cover a broader number of businesses than the S&P, use tax returns and adjust for certain accounting practices -- suggest that corporate profits actually peaked in 2014 and have been stagnant since. The national accounts also show significant downward revisions to corporate profit margins over the previous five years. While one would expect some discrepancies between that data and S&P numbers, which are based on Generally Accepted Accounting Principles (GAAP), the gulf is too wide to be ignored.What’s going on? In many cases, accounting choices appear to be distorting results. In early 2019, General Electric Co. reported GAAP losses of $2.43 per share; under adjusted figures it earned $0.65 per share. Tesla Inc. reported full-year GAAP losses of $5.72 per share but “non-GAAP” losses were only $1.33 per share. Over 95% of S&P 500 companies regularly use at least one non-GAAP measure, up about 50% over the last 20 years.One question is how companies choose to recognize income. In the case of long-term, multi-year contracts, such as construction projects, reported revenue can be based on a formula: a portion of the total contract amount, calculated as costs incurred in the relevant period as a percentage of total forecast costs. Understating estimated final costs allows margins to be increased and greater revenue to be recognized up front. Following the collapse of Carillion PLC, the firm was found to be aggressive in recording income which was sensitive to small changes in assumptions. Given the trend to converting sales of products (such as software) into long-term service contracts, these risks are only going to grow. Companies can understate expenses. Many tech companies use non-GAAP accounting to strip out the cost of employee stock options, for instance, thereby showing higher earnings. WeWork sought to redefine traditional earnings before interest, tax, depreciation and amortization as something called “community-based EBITDA.” The new measure conveniently excluded normal operating expenses such as marketing, general and administrative expenses, development and design costs.Spending may be treated as an asset, to be written off in the future rather than when expended. A recent JPMorgan Chase and Co. research report found software intangible assets (the amount spent but not yet expensed) averaged up to 15% of adjusted costs for a sample of European banks. The idea is to better match expenses to the period over which they are expected to benefit the business. But the practice may overstate current earnings.Related-party transactions can distort a company’s true financial position. Saudi Arabia slashed the tax rate on large oil companies to 50% from 85%, even though the government depends on the profits of Saudi Arabian Oil Co. for 80% of its revenues. Aramco will still pay most of its profits to the state, but as dividends rather than tax. That means reported profits will be higher, potentially increasing the company’s valuation ahead of a highly anticipated initial public offering. Complex structures can mask liabilities. Tesla, for instance, faces potential payments related to its SolarCity business. Before being bought by Tesla in 2016, SolarCity regularly sold future cash flows to outside investors in exchange for upfront cash. Tesla assumed these obligations and has continued the practice. The obligations now reportedly total over $1.3 billion.To reduce unfunded pension liabilities, some companies have borrowed at low available interest rates to inject money into the funds. That’s fine as long as fund returns -- generally assumed to be around 6% to 8% -- are higher than the cost of borrowing. If returns come in lower, however, the companies in question will have to raise their contributions, affecting future earnings.New business models often disregard potential costs. If Lyft Inc. and Uber Technologies Inc. drivers are reclassified as employees as proposed in California, then hidden employment costs would need to be recognized, perhaps retrospectively. Newly listed fitness company Peloton Interactive Inc. faces a $300 million lawsuit from music publishers who claim the company used their songs in workouts without paying licensing fees.Finally, stated asset values can be misleading. Goodwill, the difference between acquisition price and the fair value of actual assets acquired, now averages above 50% of acquisition price. Goodwill values are notoriously uncertain. In 2018, GE unexpectedly wrote off $23.2 billion of goodwill arising from its acquisition of Alstom SA.The problem is compounded by private markets, where funding rounds can establish questionable valuations. Recent investments into WeWork valued the company at over $40 billion, more than three times the projected pricing of its abandoned IPO. A recent proposal to get Saudi businesses to make anchor investments in Aramco ahead of its IPO could also inflate its valuation.“Fake” financials, as some would call them, undermine markets. With a correction looking increasingly likely, investors need to start working with regulators and standard setters now to close accounting loopholes, while scrutinizing underlying data more closely. Otherwise, the more creatively companies are allowed to manage their financial position for short-term gain, the bigger the bill is going to be.(Corrects definition of goodwill in twelfth paragraph.)To contact the author of this story: Satyajit Das at sdassydney@gmail.comTo contact the editor responsible for this story: Nisid Hajari at nhajari@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Satyajit Das is a former banker and the author, most recently, of "A Banquet of Consequences."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • 'One app to rule them all is dead': How Uber and Lyft can get disrupted
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  • 10 Groundbreaking Technologies Created by Universities
    InvestorPlace

    10 Groundbreaking Technologies Created by Universities

    Much of the technology we use daily was initially developed on college campuses. For a prime example of this, look no further than the internet. Many of today's tech giants including Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) simply would not exist if it weren't for the internet. While we take the internet for granted, it wasn't always here. It actually had its roots in a network called ARPANET, developed in the 1960s and 1970s to facilitate communication for the U.S. military and university-based researchers. From that backbone, the world wide web (which is now 25 years old) evolved. Even today, the World Wide Web Consortium -- tasked with maintaining open web standards -- is headed up by World Wide Web "founder" Sir Tim Berners-Lee at MIT. * 10 Super Boring Stocks to Buy With Super Safe Returns The internet is one of the biggest and farest-reaching examples, but there are plenty of other groundbreaking technologies that have been created by universities.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Better Lithium Ion BatteriesLithium Ion batteries may have a bad rap thanks to incidents like Samsung's, exploding Galaxy Note 7, but their high power density is critical to mobile devices like smartphones and wireless headphones. Lithium Ion batteries also make Tesla's (NASDAQ:TSLA) electric cars possible.MIT professor Yet-Ming Chiang is credited with making Lithium Ion batteries safer, much more powerful, and faster-charging than early versions thanks to his research in the university's materials sciences labs. In 2002, he co-founded A123 Systems to commercialize the new lithium Ion technology, which was soon used in batteries powering power tools, electric cars, and other devices. Hoana LifeBedSource: Shutterstock The Hoana LifeBed is compared to "Doctor McCoy's sick bay bed in Star Trek." It uses non-contact sensors embedded in the cover of a hospital bed mattress to non-invasively provide critical patient monitoring data including heart rate and respiratory rates. * 10 Cloud Stocks to Invest in the Future The real-time vital signs data provided by the LifeBed helps medical professionals to asses a patient's health and emotional state without the use of cuffs or electrodes. Commercializing technology developed at the University of Hawaii that was originally funded by U.S. military grants, Hoana was spun off as a private venture in 2001. Google SearchSource: Castleski / Shutterstock.com We've already established that Google wouldn't exist if it weren't for the internet, but it's also true that Google itself probably wouldn't exist if it weren't for Stanford University.Google co-founders Sergey Brin and Larry Page created their search engine, which used page rankings to improve results while PhD students at Stanford. With the success of the search engine - which was originally available on Stanford's website -- the pair dropped out to launch Google as a commercial venture. LCD ScreenSource: Apple LCD panels replaced CRTs to revolutionize televisions and made the laptop computer possible. Liquid crystals were discovered in 1888 and first used to create an LCD display in 1968. But it was in 1969 that a researcher at Kent State University created a "twisted nematic" LCD display that was durable and power-efficient enough to be practical. * 10 Biotech Stocks With Game-Changing Dates in Q3 This led to commercialization of LCD technology, starting with the first LCD watch display in the early 1970s. Kent State still operates the Glenn H. Brown Liquid Crystal Institute to further research into liquid crystal technology. E Ink displaysSource: Amazon E-readers like Amazon's Kindle and the Kobo Forma are built around E Ink displays. It's the E Ink display that make these devices popular, despite the competition from tablets.E Ink displays used by e-readers are high resolution, with ultra-long battery life (weeks instead of hours) and they can be read in bright light and sunlight. In addition, e-readers are much lighter than tablets and many are now waterproof as well. E Ink technology was developed at MIT by associate professor Joseph Jacobson. FacebookSource: Wachiwit / Shutterstock.com Facebook (NASDAQ:FB) isn't really a technology, but the company broke new ground, created a tech giant, and launched the era of social media -- and all the complexities that have come with it.Started by Mark Zuckerberg and several classmates while at Harvard University as a social directory for Harvard students, Facebook exploded beyond campus to become what is now a $512 billion company with over 1 billion users. In an interview, Harvard's Jonathan L. Zittrain (Computer Science professor at the School of Engineering and Applied Sciences in addition to being a Law professor at Harvard Law School and the Harvard Kennedy School) commented about what made the university an ideal launching ground for the nascent social network: * Best Stocks for 2019: Q3 Was a Roller Coaster "The college environment made for the ideal petri dish: lots of comparatively tech-savvy people eager to get to know one another, and not as guarded about privacy, especially since the early Facebook was indeed limited to those who could show a university email address." Artificial IntelligenceSource: Shutterstock Artificial intelligence -- or AI -- has the potential to be the next game-changer in technology. AI is already making search better, making personal assistants like Siri and Alexa smarter, and helping automakers move toward autonomous driving.AI is being developed by many tech companies, but the field is also being constantly advanced by pioneering research at universities. Notable hotbeds for AI research include Carnegie Mellon, MIT, Stanford, and the University of Toronto. Researchers from these programs have also increasingly left the campus to lead the AI divisions of tech giants -- in 2015, Uber (NYSE:UBER) "gutted" Carnegie Mellon's AI and Robotics center, hiring away 50 of its staff. GPSSource: BigTunaOnline / Shutterstock.com Like the internet, GPS is one of those technologies we take for granted. It's used by everything from the military to our smartphones, and companies like Garmin (NASDAQ:GRMN) have built successful businesses around GPS and GPS-related products like automobile and hand-held navigation systems. * 10 High-Yield Monthly Dividend Stocks to Buy MIT's Ivan Getting leveraged his experience at MIT's Radiation Laboratory to eventually become a key figure in the development of the Global Positioning System -- GPS. Robotics Source: Shutterstock Technology doesn't get much more groundbreaking than robotics, especially the quadruped robots from Boston Dynamics. YouTube videos showing these uncanny, four-legged robots in action look like science fiction, but the company has commercialized them to carry payloads up stairs, though industrial sites and over rough terrain. Its intimidating Big Dog robot was funded by DARPA for U.S military use.Boston Dynamics got its start as a spin-off from MIT before being acquired by Google X, and then SoftBank. EntrepreneurshipSource: Shutterstock Universities can't be credited with creating entrepreneurship, but college campuses definitely drive technological innovation, foster entrepreneurs and attract investment.According to Carnegie Mellon University President Farnam Jahanian at that institution alone, faculty and students started 173 new companies between 2011 and 2016. Across the U.S., between 1996 and 2015, the economic transfer of technology from university research to the private sector contributed $1.3 trillion to U.S. gross industrial output and helped to support 4.3 million jobs. As of 2017, there were more that 200 universities and colleges with dedicated innovation or entrepreneurship centers, helping to ensure that the groundbreaking technology keeps coming.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post 10 Groundbreaking Technologies Created by Universities appeared first on InvestorPlace.

  • Chinese VC money, once red-hot, is fleeing the US
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    Bloomberg

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    (Bloomberg Opinion) -- This week, the Nobel Prize in chemistry was awarded to John Goodenough, Stanley Whittingham and Akira Yoshino for their work developing the lithium-ion battery. The Royal Swedish Academy of Sciences, in announcing the award, said the three men “created a rechargeable world.” The ubiquitous battery is now found in items as varied as hearing aids and power grids. It is a testament not just to technological revolutions, but also to the power of advancements in performance and decreases in cost. Whittingham began working on the lithium-ion battery in an Exxon Mobil Corp. laboratory in the 1970s, when it was being considered for automotive applications. The lithium-ion battery wasn’t a fit for cars then, but research and development continued and the technology improved, to the point that it became a viable power source in search of an application. But it was Sony Corp., not Exxon Mobil, that would introduce the first lithium-ion battery for consumers. That new device in need of a suitable power source? The handheld 8 mm camcorder. In 1995, camcorders created the biggest source of demand for lithium-ion batteries. By 2000, laptops had become the biggest driver of demand; by 2005, it was feature phones. By 2010, the smartphone was the biggest source of demand for lithium-ion batteries. As this rather dramatic chart shows, passenger electric vehicles have vaulted past consumer electronics to become the single biggest source of demand for lithium-ion batteries, less than 15 years after Martin Eberhard built the first Tesla Roadster battery pack from 6,831 of the lithium-ion cells used in laptop computers.The lithium-ion battery has come a very long way in other ways, too. Battery costs have come down by more than 80% in nine years.And battery manufacturing capacity has increased more than 200-fold in 15 years. There is far more expansion planned. Next year will see more new capacity added than the global manufacturing capacity’s total in 2016. By 2023, total capacity will have more than doubled.The combination of cost, capacity and capability has in itself created a new market for the lithium-ion battery: energy storage within power grids. We need look no further than northern Indiana, where power utility Nipsco plans to replace coal-fired power with wind, solar and solar-plus-storage projects. The Royal Swedish Academy of Sciences concluded its announcement of this year’s chemistry prize rather poetically: “Lithium-ion batteries have revolutionized our lives since they first entered the market in 1991,” the academy said. “They have laid the foundation of a wireless, fossil fuel-free society, and are of the greatest benefit to humankind.” Sometimes being good enough is revolutionary, too.Weekend readingSome of 2019’s wackiest investment predictions are coming true. “Firms that align their business models to a net zero world will be rewarded handsomely,” Bank of England Governor Mark Carney said in a speech in Tokyo this week. “Those that fail to adapt will cease to exist.” Carbon Tracker estimates that Japan’s coal-fired power generation fleet could end up as $71 billion of stranded assets. Singapore’s Temasek Holdings Pte has decided against investing in Saudi Aramco’s initial public offering, in part over environmental concerns. Unilever says that it will reduce its use of virgin plastic by 50% by 2025, and reduce its absolute use of plastic packaging by 100,000 metric tons. A new Organization for Economic Cooperation and Development study finds that obesity-related diseases will claim more than 90 million lives in the next 30 years, lower life expectancy by three years, and reduce gross domestic product by 3.3% in OECD countries. Three out of 10 low-income Americans do not have access to broadband of any kind. In the latest “Stephanomics” podcast, Bloomberg Economics’ Stephanie Flanders explores why birthrates are so low, and what those low birthrates mean for the global economy. Arkansas’s Ouachita Electric Cooperative Corp. is seeking a 4.5% decrease in its electricity rates, thanks to its solar power assets. Northrop Grumman Corp. has launched the Mission Extension Vehicle-1, the first satellite designed to service and extend the life of other satellites. Dyson Group Plc has pulled the plug on its electric vehicle plans, saying “we simply cannot make it commercially viable.” The most detailed map of U.S. automobile emissions. Get Sparklines delivered to your inbox. Sign up here. And subscribe to Bloomberg All Access and get much, much more. You’ll receive our unmatched global news coverage and two in-depth daily newsletters, the Bloomberg Open and the Bloomberg Close.To contact the author of this story: Nathaniel Bullard at nbullard@bloomberg.netTo contact the editor responsible for this story: Brooke Sample at bsample1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nathaniel Bullard is a BloombergNEF energy analyst, covering technology and business model innovation and system-wide resource transitions.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • How Elon Musk Became Elon Musk: Elon Musk's Early Years
    Investopedia

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  • These Are the 20 Richest People in Cars
    Bloomberg

    These Are the 20 Richest People in Cars

    (Bloomberg) -- Siblings Susanne Klatten and Stefan Quandt own almost half of Bayerische Motoren Werke AG.The billionaires are descendants of Guenther Quandt, who built a German industrial empire by, among other things, supplying weapons to the Nazis during World War II. In the years since, the family has established stakes in both Daimler-Benz AG and BMW.Today, Klatten is Germany’s second-richest person, worth $18.6 billion, with interests in chemicals and carbon production, according to the Bloomberg Billionaires Index. Quandt, who owns part of a logistics company and a homeopathic medicine company, has a net worth of $15.5 billion. Both are members of BMW’s supervisory board, making them the richest related pair deriving wealth from the automotive industry. All told, the 25 richest families in the world now control almost $1.4 trillion in wealth, up 24% from last year. Our list of the 20 wealthiest people who have made fortunes in the automotive sector includes some household names: Tesla’s Elon Musk is worth $23.1 billion; Larry Ellison, with $58.5 billion in total wealth, owns a stake in Tesla that’s worth more than $730 million.Others are less prominent but no less successful: Pallonji Mistry, chairman of Shapoorji Pallonji Group, owns much of Tata Sons and is worth $20.3 billion; Li Shu Fu, the chairman of Volvo and Geely, is worth $10.6 billion.The Method The methodology behind wealth analysis can be challenging. In fortunes backed by decades of accumulated assets and dividends, the true extent of an individual’s or family’s holdings is often obscured. Most in this tax bracket are not thrilled to have their names, assets, shares, and interests published by a global news organization. Automotive wealth also tends to be a family affair. While individual members of these dynasties may not make the list, a clan’s overall wealth may be vast. (See: the Ford,  Porsche, and Pieech families.)  So we followed the same criteria applied to Bloomberg’s Billionaire Index.  In order to keep it (relatively) simple, we have omitted those whose wealth comes from oil. Take the House of Saud, for instance. The family is worth an estimated $100 billion, a figure based on the cumulative payouts the country’s royals have received over the past five decades from the executive office of the king. That number doesn’t even include the planned initial public offering of its crown jewel, oil giant Saudi Aramco. It will be offered with an anticipated valuation of $2 trillion.Maybe we’ll come up with a special list for members of the House of Saud. In the meantime, here are the year’s richest people in cars.* *Stake value and percent of net worth figures are as of July 19, 2019. Total wealth figures are as of Oct. 9, 2019. 1. Bill Gates Company: AutoNation Inc.Stake Value: $914,554,258Percent of Total Net Worth: .9%Total Wealth: $105 billionLocation: Fort Lauderdale, Fla.Segment: Car dealersGates may not be the first person you would expect to see on a list of automotive wealth, but his share of car dealer AutoNation contributes to his overall fortune, most of which comes from Microsoft Corp. and Cascade Investment (which controls stakes in dozens of publicly traded companies, including Canadian National Railway, Deere, and Ecolab). 2. Larry Ellison Company: Tesla Inc.Stake Value: $730,773,000 to $1 billionPercent of Total Net Worth: 1.3%Total Wealth: $58.5 billionLocation: Palo Alto, Calif.Segment: Passenger vehiclesAlthough he is the company’s second-largest shareholder, Ellison’s recently announced stake in Tesla is not the primary source of his wealth. He is the founder and main shareholder of the database company Oracle. The 75-year-old also owns the Indian Wells tennis event and real estate, including the island of Lanai, Hawaii.    3. Elon Musk  Company: Tesla Inc.Stake Value: $8,307,076,693Percent of Total Net Worth: 36.9%Total Wealth: $22.9 billionLocation: Palo Alto, Calif.Segment: Passenger vehiclesLikely the most famous person invested in the segment—certainly the most colorful—the South African divides his time between Tesla, the maker of luxury electric vehicles, and SpaceX, a rocket manufacturer. Musk has always been a polarizing figure, garnering  acclaim for his visionary leadership and criticism for failing to meet deadlines and engaging in public disputes.  4. Pallonji MistryCompany: Tata Motors Ltd.Stake Value: $302,722,710Percent of Total Net Worth: 1.5%Total Wealth: $19.7 billionLocation: MumbaiSegment: Passenger vehiclesMistry, 90, and his family are shareholders in Tata Sons, the holding company behind more than 100 affiliates with $100 billion in annual revenue, according to the Bloomberg Billionaires Index. The group employs 700,000 people in more than 100 countries. 5. Susanne Klatten Company: BMW AG Stake Value: $8,763,327,399Percent of Total Net Worth: 47.8%Total Wealth: $18 billionLocation: MunichSegment: Passenger vehiclesKlatten, 57, is the second-richest person in Germany. She inherited her wealth from her father, German industrialist Herbert Quandt, who turned BMW from a struggling carmaker into one of the world’s largest manufacturers of luxury vehicles. Klatten recently said that dealing with the responsibility of inherited wealth is a misunderstood burden. “Many believe that we are permanently sitting around on a yacht in the Mediterranean,” she said. “The role as a guardian of wealth also has personal sides that aren’t so nice.” 6. Stefan Quandt Company: BMW AGStake Value: $10,817,887,438Percent of Total Net Worth: 72.2%Total Wealth: $14.8 billionLocation: MunichSegment: Passenger vehiclesQuandt, 53, holds substantial stakes outside the family business, including homeopathic medicine company Biologische Heilmittel Heel; credit-card maker Entrust Datacard; and logistics company Logwin. His wealth derives from family matriarch Johanna Quandt, who died in 2015.  7. Li Shu Fu Company No. 1: Geely Automobile Holdings Ltd.Stake Value: $38,988,918Percent of Total Net Worth: .4%Location: Hangzhou, ChinaSegment: Passenger VehiclesCompany No. 2: Zhejiang Geely Holding GroupStake Value: $10,520,321,446Percent of Total Net Worth: 99.9%Total Wealth: $10.6 billionLocation: Hangzhou, ChinaSegment: Auto manufacturingLi, 56, is the founder of Zhejiang Geely Holding Group, a maker of cars and related components, though he started his career manufacturing refrigerators. Geely’s $1.5 billion purchase of Volvo in 2010 was the largest ever overseas acquisition by a Chinese automaker.  8. Georg Schaeffler Company No. 1: Continental AGStake Value: $9,494,765,020Percent of Total Net Worth: 110.4%*Location: Hanover, GermanySegment: Auto partsCompany No. 2: Schaeffler AGStake Value: $3,116,322,400Percent of Total Net Worth: 36.2%Total Wealth: $7.99 billionLocation: Herzogenaurach, GermanySegment: Auto partsShaeffler, 54, is chairman and majority owner of Schaeffler AG, which makes ball bearings and other automotive supplies. He owns 80% of the company, while his mother, Maria-Elisabeth Schaeffler-Thumann, owns the rest, according to company filings. The two collectively hold 46% of auto supplier Continental as well, according to the company’s website as of June 2019.*Due to debt.  9. Blair Parry-Okeden   Company: Cox AutomotiveStake Value: $1,738,541,209Percent of Total Net Worth: 21.6%Total Wealth: $7.84 billionLocation: AtlantaSegment: Automotive services  Parry-Okeden, 69, is the granddaughter of James Cox, who founded Cox Enterprises in 1898. She owns almost 25% of the company, a $21 billion conglomerate that encompasses Kelley Blue Book and other automotive brands. She resides in Australia. 10. James Kennedy Company: Cox AutomotiveStake Value: $1,738,541,209Percent of Total Net Worth: 21.6%Total Wealth: $7.84 billionLocation: AtlantaSegment: Automotive servicesAn avid cyclist and hunter, Kennedy, 68, is the chairman of Cox Enterprises. 11. James Pattison  Company: James Pattison GroupStake Value: $48,327,817Percent of Total Net Worth: .8%Total Wealth: $6.35 billionLocation: VancouverSegment: Car dealersPattison’s company is the largest car dealer in western Canada. It also publishes the Guinness World Records standings. He began his automotive career while still in college, fixing and selling used cars to fellow students before dropping out to manage a General Motors dealership. Today, Pattison, 90, and his wife, Mary, live in Vancouver. 12. Ernie Garcia    Company No. 1: Carvana Co.Stake Value: $4,060,262,827Percent of Total Net Worth: 67.4%Location: Tempe, Ariz.Segment: Used car dealersCompany No. 2: DriveTimeStake Value: $1,005,999,251Percent of Total Net Worth: 16.7%Total Wealth: $4.93 billionLocation: Tempe, Ariz.Segment: Used car dealers and financingGarcia, 62, is the largest shareholder of Carvana, but his son, Ernie III, runs the business. The elder Garcia started developing DriveTime in the 1990s, when he bought rental-car company Ugly Duckling out of bankruptcy. He then merged it with a financing company to make it a vehicle for selling used cars to subprime borrowers. In 1990, Garcia was convicted of fraud for playing a small role in the Charles Keating savings-and-loan scandal. 13. Hiroshi MikitaniCompany: Trust Co Ltd.Stake Value: $234,488Percent of Total Net Worth: NegligibleTotal Wealth: $5.87 billionLocation: Nagoya, JapanSegment: Automotive retailMikitani, 54, amassed the bulk of his wealth after he founded Rakuten, Japan’s largest cybermall, which boasts more than 1.2 billion users worldwide. He qualifies for this list by virtue of his share of Trust Co Ltd., an exporter of used vehicles. Mikitani is a music lover and chairman of the Tokyo Philharmonic Orchestra. 14. Margaretta Taylor Company: Cox AutomotiveStake Value: $1,150,111,876Percent of Total Net Worth: 21.6%Total Wealth: $5.18 billionLocation: AtlantaSegment: Automotive services  Taylor, 77, is the granddaughter of James Cox and the cousin of James Kennedy, who runs Cox Enterprises. She owns roughly 16% of the family business, which owns  Kelley Blue Book and Autotrader.com, among other brands. 15. James Cox Chambers Company: Cox AutomotiveStake Value: $1,150,111,876Percent of Total Net Worth: 21.6%Total Wealth: $5.18 billionLocation: AtlantaSegment: Automotive servicesChambers, 62, is the cousin of James Kennedy, who runs Cox Enterprises. He owns 16% of the company. He’s also an organic farmer in Columbia County, N.Y.16. Katharine Rayner  Company: Cox AutomotiveStake Value: $1,150,111,876Percent of Total Net Worth: 21.6%Total Wealth: $5.18 billionLocation: AtlantaSegment: Automotive servicesRayner, 74, is the granddaughter of company founder James Cox. She has largely stayed out of the public eye. 17. Quek Leng Chan Company No. 1: Hong Leong Asia Ltd.Stake Value: $5,103,369Percent of Total Net Worth: .1%Location: Kuala LumpurSegment: Auto partsCompany No. 2: Hong Leong Industries Bhd.Stake Value: $291,110,648Percent of Total Net Worth: 5.5%Total Wealth: $5.27 billionLocation: Kuala LumpurSegment: Motorbikes and partsQuek, 76, has interests in almost a dozen public companies, including property manager Guoco Group, insurer Hong Leong Financial, and manufacturer Hong Leong Industries. He’s a cigar aficionado.  18. Rahul Bajaj Company No. 1: Bajaj Finance Ltd.Stake Value: $586,320,006Percent of Total Net Worth: 12.4%Location: Pune, IndiaSegment: Auto financingCompany No. 2: Bajaj Auto Ltd.Stake Value: $1,208,532,867Percent of Total Net Worth: 25.5%Total Wealth: $5.2 billionLocation: Pune, IndiaSegment: Motorbikes and partsBajaj, 81, is the chairman of the world’s largest maker of three-wheeled motorcycles. He attended Harvard Business School and also owns stakes in an investment company and an insurance firm. His grandfather, Jamnalal Bajaj, an Indian independence fighter and Mahatma Gandhi confidant, founded the group in 1926. 19. Chung Mong-Koo Company No. 1: Hyundai Motor Co.Stake Value: $1,269,429,178Percent of Total Net Worth: 27.9%Location: SeoulSegment: Passenger vehiclesCompany No. 2: Hyundai Mobis Co.Stake Value: $1,408,455,597Percent of Total Net Worth: 30.9%Total Wealth: $4.5 billionLocation: SeoulSegment: Automotive technologyChung, 81, is the chairman of Hyundai Motor Group.  He was convicted in 2007 of embezzling $110.5 million from Hyundai, Kia, and other affiliates and using the funds as a political slush fund. He was pardoned in 2008 by then-South Korean President Lee Myung Bak. 20. Wang Chuan-Fu Company: BYD Co.Stake Value: $3,522,094,647Percent of Total Net Worth: 82.4%Location: Shenzhen, ChinaSegment: Passenger vehiclesCompany: BYD Co Ltd.Stake Value: $4,993,622Percent of Total Net Worth: .1%Total Wealth: $4.11 billionLocation: Shenzhen, ChinaSegment: Passenger vehiclesWang, 53, is the founder and largest shareholder of BYD. The company makes cars, buses, and other goods, including cell phone batteries.To contact the author of this story: Hannah Elliott in New York at helliott8@bloomberg.netTo contact the editor responsible for this story: Joshua Petri at jpetri4@bloomberg.net, David RovellaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Dyson Becomes Latest Sign That Electric-Car Bubble Is Bursting
    Bloomberg

    Dyson Becomes Latest Sign That Electric-Car Bubble Is Bursting

    (Bloomberg) -- Dyson Ltd.’s sudden decision to scrap its $2.5 billion electric-vehicle ambitions is the latest reality check creeping into the once soaring EV industry.The famed maker of vacuum cleaners and hair dryers couldn’t find a way of making the project commercially viable, billionaire James Dyson said in a letter to staff Thursday. The announcement came about two years after the company first disclosed its plans to jump into car manufacturing.Dyson represents one of the most high-profile players to pull out of a sector that’s attracted hundreds of start-ups in recent years seeking to become the next Tesla Inc. But there are mounting signs that the bubble is bursting as China scales back handouts in the sector and competition heats up. Sanford C. Bernstein estimates that global EV sales fell for the first time ever in July and dropped by a record 23% in August.“Tesla’s future remains uncertain. Almost all the EV start-ups trying to follow look challenged,” Bernstein analysts, including Max Warburton and Robin Zhu, said in a report that cited the Dyson decision as a worrisome development in the industry. “Most of these start-ups will likely fold. The truth is barriers to entry in autos remain high. Making cars is hard. The move to EVs will be expensive.”Take the case of China’s NIO Inc., one of the most prominent electric-car makers in a country that makes about half of the world’s EVs. Last month it reported a wider-than-expected quarterly loss, leading the stock to tumble to a record low and prompting analysts to openly question the company’s viability. The shares jumped on Tuesday after NIO reported third-quarter deliveries exceeded the company’s forecast, but the stock has since erased all those gains.Elsewhere in China, Lifan Industry Group Co. and Zotye Automobile Co. have had to issue statements denying speculation that they’re planning to file for bankruptcy, though the former conceded it’s under liquidity pressure.The competition is also getting tougher. Besides Tesla, traditional automakers such as General Motors Co. and Volkswagen AG are throwing massive resources into electrification. VW has vowed a $33 billion push to bring battery-powered autos to the masses. Apple Inc. has had an automotive project since about 2016, although it is said to have scaled back its ambitions.There are growing concerns that the ample supply of cheap funding for new-age carmakers is about to dry up, according to Bernstein.As to Dyson, the company said it plans to continue its 2.5 billion-pound ($3.1 billion) investment program into new technology, and will concentrate on manufacturing solid-state batteries and other technologies including machine learning and robotics.“Singapore will play an important role in Dyson’s growth plans,” Tan Kong Hwee, assistant managing director at Singapore’s Economic Development Board, said in an emailed statement Friday. Despite Dyson’s decision, Singapore “remains interested in advanced manufacturing activities, including for EVs,” he said.Experts had questioned the company’s costly plans to build an electric car plant in Singapore, where average salaries are among the highest in the world. Ford Motor Co. closed its factory in the city-state about 40 years ago, effectively ending car production on the island.“If everybody else is building a plant in China at a fraction of the cost in terms of labor, it didn’t make a lot of sense for anybody to build that size of a manufacturing facility over there,” said Steve Man, an analyst at Bloomberg Intelligence in Hong Kong. “I hope Singapore wasn’t expecting much from this.”Still, Singapore has much riding on Dyson in its efforts to attract start-ups and advanced technology companies. Dyson became one of the biggest global industry names to ever relocate there.There’s another sector Dyson is looking to invest in Singapore. The family office of James Dyson has incorporated in the city state and is in the process of hiring IT and finance-service staff, according to job advertisements posted on Dyson’s website. The family office was established in 2013 and employs around 55 people globally.“It would have been nice to have but the reality is OK, it’s not going to work let’s look at something else,” said Song Seng Wun, an economist at CIMB Private Banking in Singapore. “It’s still about making money.”\--With assistance from Craig Trudell.To contact the reporters on this story: Kyunghee Park in Singapore at kpark3@bloomberg.net;Molly Schuetz in New York at mschuetz9@bloomberg.net;Yoolim Lee in Singapore at yoolim@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, ;Jillian Ward at jward56@bloomberg.net, Will DaviesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Auto Stocks: Pre-Q3 Valuations and Dividend Yields
    Market Realist

    Auto Stocks: Pre-Q3 Valuations and Dividend Yields

    Auto stocks have been slumping in October. Ford (F) and General Motors (GM) have fallen by 6.6% and 8.9%, respectively, month-to-date.