TSLA Jan 2020 630.000 call

OPR - OPR Delayed Price. Currency in USD
0.0700
0.0000 (0.00%)
As of 9:46AM EDT. Market open.
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Previous Close0.0700
Open0.0700
Bid0.0000
Ask0.0500
Strike630.00
Expire Date2020-01-17
Day's Range0.0700 - 0.0700
Contract RangeN/A
Volume1
Open InterestN/A
  • Bloomberg

    Beware of Funny Financials

    (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
    Yahoo Finance

    'One app to rule them all is dead': How Uber and Lyft can get disrupted

    In Berlin, companies like Uber don't have a dominant hold on transportation. Instead, many companies compete for a slice of the market.

  • Tesla's (TSLA) Rally Could Be An Opportunity
    Zacks

    Tesla's (TSLA) Rally Could Be An Opportunity

    The market for electric vehicles is proven, and Tesla not only is the market leader, but it produces the highest-quality vehicles.

  • Oilprice.com

    Unprecedented Blackouts And $6 Gasoline: California’s Energy Crisis

    Millions of Californians may have just suffered an unprecedented, induced blackout by the state's largest (and bankrupt) utility, and on top of that gasoline prices are soaring too

  • The Zacks Analyst Blog Highlights: General Motors, LKQ, Tesla, Volkswagen and AutoZone
    Zacks

    The Zacks Analyst Blog Highlights: General Motors, LKQ, Tesla, Volkswagen and AutoZone

    The Zacks Analyst Blog Highlights: General Motors, LKQ, Tesla, Volkswagen and AutoZone

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

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

    The White House may be considering ways to limit Chinese investment, but those who used to come to Silicon Valley have already retreated.

  • Can Tesla Break Even in the Third Quarter?
    Market Realist

    Can Tesla Break Even in the Third Quarter?

    Popular US electric vehicle maker Tesla has scheduled its third-quarter earnings release for October 23. It reported record deliveries in the quarter.

  • How a Battery Can Lead a Quiet Revolution
    Bloomberg

    How a Battery Can Lead a Quiet Revolution

    (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

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

    Visionary entrepreneur Elon Musk is the co-founder of PayPal (PYPL), Tesla Motors (TSLA), and SolarCity (SCTY), and is the founder of SpaceX. Amid an often difficult childhood, Musk developed a relentless work ethic (he is known to work as many as 80 to 100 hours per week) and a tenacious single-minded vision. On September 7, 2018 Musk appeared to be smoking marijuana while interviewing for a podcast.

  • Tesla (TSLA) Witnesses Record Model 3 Delivery in the UK
    Zacks

    Tesla (TSLA) Witnesses Record Model 3 Delivery in the UK

    Rising delivery of Tesla's (TSLA) Model 3 vehicles is aiding top-line growth.

  • Will Trade War and Controversies Thwart Tesla's Growth?
    Zacks

    Will Trade War and Controversies Thwart Tesla's Growth?

    Tesla is dominating the electronic vehicle market for long but the trade war and frequent controversies have distracted it from its sky-high goals.

  • Ford Stock Breaks Out: More Pain Ahead?
    Market Realist

    Ford Stock Breaks Out: More Pain Ahead?

    Ford stock has been falling since its second-quarter earnings. The stock has fallen 16.6% since July 24. The decline impacted Ford's 50 DMA.

  • 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.

  • Tesla (TSLA) Gains But Lags Market: What You Should Know
    Zacks

    Tesla (TSLA) Gains But Lags Market: What You Should Know

    In the latest trading session, Tesla (TSLA) closed at $244.74, marking a +0.09% move from the previous day.

  • Toyota unveils revamped hydrogen sedan to take on Tesla
    Reuters

    Toyota unveils revamped hydrogen sedan to take on Tesla

    Toyota Motor Corp unveiled a completely redesigned hydrogen-powered fuel cell sedan on Friday in its latest attempt to revive demand for the niche technology that it hopes will become mainstream. Japan's biggest automaker has been developing fuel-cell vehicles for more than two decades, but the technology has been eclipsed by the rapid rise of rival battery-powered electric vehicles promoted by the likes of Tesla Inc . Ahead of the Tokyo Motor Show starting on Oct. 24, Toyota unveiled a prototype of the new hydrogen sedan built on the same platform as its luxury Lexus brand's LS coupe.

  • Hedge Funds Bought Tesla Inc. (TSLA) Just Before Strong Gains in Share Price
    Insider Monkey

    Hedge Funds Bought Tesla Inc. (TSLA) Just Before Strong Gains in Share Price

    As we already know from media reports and hedge fund investor letters, hedge funds delivered their best returns in a decade. Most investors who decided to stick with hedge funds after a rough 2018 recouped their losses by the end of the second quarter. We get to see hedge funds' thoughts towards the market and […]

  • Don’t Buy General Motors Stock — Even on UAW Strike Discount
    InvestorPlace

    Don’t Buy General Motors Stock — Even on UAW Strike Discount

    General Motors (NYSE:GM) stock opened for trade Oct. 10 at $34.45 -- just 75 cents above its 2019 low of $33.70 per share. Since the United Automobile Workers strike began Sept. 15, shares are down almost 11%. Half that loss came after Oct. 1, when the company began laying off workers at its Mexican factories over a shortage of parts. More were laid off Oct. 9.Source: Joseph Sohm / Shutterstock.com After talks to end the walkout turned negative, the strike transformed from a hiccup into an existential threat. This threat poses risks both to GM and the United Auto Workers union. The UAW has yet to organize the nation's foreign-owned plants -- even Volkswagen (OTCMKTS:VLKAY), where workers have voted twice on the matter in five years.The question for investors is whether to grab GM and the strike discount or stand off the sidelines.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Why Buy GM?GM has been dirt cheap ever since it began trading again in 2010. It opened that November at $35 per share.GM, Ford Motor (NYSE:F) and Fiat Chrysler (NYSE:FCAU) have been so cheap so long you can't call them undervalued. This is their value. GM currently sells at a trailing price-to-earnings ratio of 5.5. Its 38 cent per share dividend represents a yield of 4.5%. The other two U.S. automakers sport even higher yields. It's clear that investors don't believe in the car business. * 10 Super Boring Stocks to Buy With Super Safe Returns Or, they just don't believe in today's car business. Tesla (NASDAQ:TSLA), which offers no dividend, is worth $43.7 billion. That's just $6 billion less than GM stock.What investors know is that electric cars and autonomous vehicles are the future. What investors know is that Detroit's lineup of SUVs and pick-up trucks has a limited shelf life. U.S. auto sales peaked in 2015 at an annual rate of 18.2 million. The most recent report, for September, shows sales almost 500,000 below that figure. Detroit vs. Silicon ValleyFor the last several years Detroit has been in a tug of war with Silicon Valley over which side will direct the autonomous revolution. GM has joined the Autonomous Vehicle Computing Consortium, hoping to set standards for self-driving cars. It has its own self-driving unit, Cruise, and is working with other car companies.Meanwhile, Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Waymo unit is telling its Phoenix ride-hailing customers to soon expect Waymo cars without drivers. It is putting a fleet of self-driving cars into Los Angeles to gather real-time location data.Morgan Stanley recently cut Waymo's valuation 40%, to $105 billion. That's still more than twice GM's valuation. Cars Aren't Going to Be CarsGas-powered cars are complicated. They have engines and transmissions with many parts that can break. Electric vehicles have always been simpler, more reliable and less expensive to operate. This has been true since the 1890s. Gas-powered cars came to dominate the market because gasoline's supply infrastructure made the fuel cheap while electricity was still just barely keeping the lights on.Now that the electrical system is mature and seeking new markets as efficiency presses down on demand, the equation is shifting. GM knows it. Tesla has taken a big bite of the luxury market. Standards like Volkswagen's MEB, already being accepted by Ford, promise to make electrics cheaper as well. The Bottom Line on GM StockRegardless of the merits of this strike, GM and its union are fighting over scraps.Electric vehicles are the future. Self-driving cars are the future. The industry's entire business model is going to change utterly over the next decade. That's why GM, and the other U.S. automakers, are so cheap.This isn't just an existential crisis. This is the future telling the past what time it is. Both sides are going to lose here. Don't join them with your money.Dana Blankenhorn is a financial and technology journalist. He is the author of the historical mystery romance The Reluctant Detective Travels in Time, available now at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this story. 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 Dona€™t Buy General Motors Stock -- Even on UAW Strike Discount appeared first on InvestorPlace.

  • James Dyson Shows It's Too Easy to Make Electric Cars
    Bloomberg

    James Dyson Shows It's Too Easy to Make Electric Cars

    (Bloomberg Opinion) -- The reason it was even conceivable for Dyson Ltd. to make an electric car may also have been why its project was doomed to fail: They’re simply too easy to make. The British company, best known for its expensive vacuum cleaners, has now abandoned its 2 billion-pound ($2.5 billion) plan to branch out and take on the likes of Tesla Inc. and Volkswagen AG. Whereas cars with a combustion engine need about 30,000 components, an electric vehicle needs just 11,000 parts, according to research from Goldman Sachs Group Inc. That reduction in complexity has lowered the barriers to entry for the automotive market, and caused a surge in the number of new carmakers.Dozens of startups have entered the fray over the past few years, from Tesla and Lucid Motors Inc. in the U.S., to Byton Ltd. and NIO Inc. in China. Since 2011, electric vehicle startups have raised $18 billion in funding, and announced 43 models and the capacity to make 3.9 million vehicles a year, according to Bloomberg New Energy Finance. That’s a lot of competition.While Dyson’s 1.1 billion pounds of Ebitda in 2018 gave the relatively small British manufacturer some money to play with, standing out from the electric vehicle crowd would have been quite the challenge.And those earnings are a drop in the ocean compared to the wealth of the automotive giants who are waking up to the epochal shift away from dirty combustion engines. Volkswagen alone has announced plans to invest $52 billion in electrification as it targets production of at least 2 million electric vehicles a year by 2025. Its existing network of dealerships in 153 countries will make it considerably easier to sell those cars.Dyson would also have needed a faster return on its investment than the established carmakers to keep the project going. The small size and embryonic nature of this market would have made that difficult. Just 575,000 electric vehicles were sold globally in the three months through June. That’s 3.7% of the overall automotive market.The ambitions of the British company, controlled by the billionaire inventor James Dyson, won’t be the last to fall by the wayside. Others are struggling. Shares in NIO, a Shanghai-based firm backed by Tencent Holdings Ltd. and Baidu Inc., have fallen 86% from a post-IPO peak last year as its losses have deepened. Faraday Future, a Chinese-backed, U.S.-based rival, teetered on the brink of insolvency before clawing itself back from the edge.Given the brutal environment, Dyson’s retreat looks wise. Such projects often have a detrimental effect on the rest of the business, which in Dyson’s case includes hand- and hairdryers. After Apple Inc. started its own project to build a car back in 2015, it had to carefully control how many software engineers moved from its iOS team (which makes the all-important operating system for iPhones and iPads) to join the secretive project.For Dyson, the car risked becoming a similar distraction. In a letter to employees, he admitted he saw no way to make a car “commercially viable.” Better to concentrate resources on his core competencies. A failure at a later date would have been much more painful, and potentially ruinous. To contact the author of this story: Alex Webb at awebb25@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.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Reuters

    UPDATE 2-Britain's James Dyson scraps electric car project

    James Dyson, the inventor of the bagless vacuum cleaner, has cancelled his ambitious plan to build an electric car because the project was not commercially viable. Dyson said his engineers had built a "fantastic car" and that the project was not being closed due to any failures in research and development.

  • Factors driving growth in space sector
    Yahoo Finance Video

    Factors driving growth in space sector

    Elon Musk' says Space-X could launch astronauts to the International Space Station as early as next year. The news represents the next step in the commercialization of the space industry. Yahoo Finance's Adam Shapiro, Brian Cheung and Pras Subramanian discuss on On the Move.

  • Tesla drivers on the hook for 'app' parking accidents
    Reuters Videos

    Tesla drivers on the hook for 'app' parking accidents

    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.

  • Future cars: Toyota doubles down, Dyson gives up
    Reuters Videos

    Future cars: Toyota doubles down, Dyson gives up

    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.