TSLA Jan 2021 390.000 call

OPR - OPR Delayed Price. Currency in USD
52.60
+0.50 (+0.96%)
As of 12:51PM EST. Market open.
Stock chart is not supported by your current browser
Previous Close52.10
Open52.60
Bid52.00
Ask54.10
Strike390.00
Expire Date2021-01-15
Day's Range52.60 - 52.60
Contract RangeN/A
Volume1
Open InterestN/A
  • Benzinga

    Barron's Picks And Pans: Medtronic, Tesla, Walmart And More

    This weekend's Barron's cover story explains how to generate income in retirement. Other featured articles discuss big tech's take on banking and retailers that have been left behind. Also, the prospects ...

  • Tesla’s best-selling sedans get reliability nod from Consumer Reports
    MarketWatch

    Tesla’s best-selling sedans get reliability nod from Consumer Reports

    Fewer Tesla Model 3 and Model S owners report problems with their all-electric sedans, Consumer Reports says. s

  • Barrons.com

    The Time to Trade Tesla Is Now

    Aggressive investors with an appetite for risk could sell a put and buy a call in anticipation that Tesla shares will make a sharp move after the company unveils its pickup truck offering on Nov. 21.

  • Watch for Sparks as Jet Engines Hit Their Limits
    Bloomberg

    Watch for Sparks as Jet Engines Hit Their Limits

    (Bloomberg Opinion) -- Earlier this week, my Bloomberg Opinion colleague Chris Bryant examined the ongoing troubles for advanced jet engines used on today’s commercial airliners. These engines now seem to be reaching their technical limits, and as Bryant says, we may be asking too much of the technology.That’s not great news for the companies making those turbines, or for those flying the aircraft. It’s also not the best news for the climate, given the trajectory of emissions from air travel and air freight. Carbon dioxide emissions from commercial aviation made up 2.4% of global emissions in 2018 and, according to the International Council on Clean Transportation, have grown 32% in just five years.The geography of those emissions is highly concentrated. Three markets — the U.S., the European Union and China — account for more than half of all emissions; the top 10 emitters contribute more than 70% of the global total.There’s something hopeful, actually, in that geographical distribution. High concentration means that tackling emissions in just three markets can have an outsized impact, and standards set in those large markets are easy for others to follow. There’s another aspect to the distribution of aviation emissions that’s worth examining: emissions by type of aircraft. Bryant writes of problems with engines on both widebody and narrowbody aircraft: the Rolls-Royce Holdings Plc Trent 1000 engines used on the widebody Boeing Co. 787, and United Technologies Corp. subsidiary Pratt & Whitney’s geared turbofan used on the narrowbody Airbus SE A320neo. While widebody aircraft make up one-third of global emissions, narrowbody and regional passenger plans are almost half. If the turbines used to propel the largest and longest-range of aircraft are approaching technical limits but almost half of emissions are from shorter-range and smaller aircraft, then there’s space to innovate, for emissions’ sake, at the short and small end. And that space looks electric and hybrid. Next month, Vancouver-based Harbour Air will fly its first electric seaplane, a De Havilland DHC-2 Beaver prototype retrofitted with a propulsion system from Seattle-based electric aviation company MagniX. It’s a first look at what electric commercial flight could be, and as it draws upon a sophisticated, global and continually improving network of battery makers while the cost of batteries continues to decrease, it has room to grow. “Because of airborne mobility development, this technology is unstoppable, and it’s getting more practical as every day goes by,” says Greg McDougall, Harbour Air’s CEO. “The brainpower and money involved is snowballing, and there’s no doubt we can roll out what we’re doing to other small airlines.” It’s an infectious enthusiasm, but it just might take to the air elsewhere, too. Weekend readingThe Qantas Group plans to reach net zero carbon emissions by 2050. Meanwhile, Formula 1 plans to reach that milestone by 2030. Ferrari says its new Roma coupe is inspired by the postwar Eternal City. It’s a bit of a step up from the Vespas and Topolinos of the film “Roman Holiday.” The European Investment Bank will not consider new financing of unabated fossil fuels, including natural gas, after 2021. Sweden’s Riksbank is selling bonds issued by the Canadian province of Alberta and the Australian states of Queensland and Western Australia due to those areas’ large climate impacts. How Australia’s big businesses saw the climate turning point coming. The world’s biggest gun has helped solve a long-standing space mystery: the risk that orbiting microdebris poses to satellites. Weather-tech startup Understory is selling Hail Safe, an insurance product that protects auto dealers from hailstorm damages. Think tank Macro Polo’s deep dive into the organic light-emitting diode (OLED) supply chain in East Asia. Adidas has abandoned its robot factory experiment. Open-source code will survive the apocalypse in an Arctic cave. Silicon Valley’s Singularity University is cutting staff, and its CEO is stepping down.  Elon Musk’s keep-it-in-the-family deal for SolarCity has become the top threat to Tesla Inc.’s future. The new dot-com bubble is here: It’s called online advertising. Designer Iris van Herpen’s work is inspired by the Large Hadron Collider. A fascinating look at how American brands became indelibly Japanese.  In data journalism, technology still matters less than people. The coming age of generative biology. 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.

  • Why Artificial Intelligence Is a Secret Weapon for Tesla Stock
    InvestorPlace

    Why Artificial Intelligence Is a Secret Weapon for Tesla Stock

    It's usually a mistake to bet against Elon Musk. The recent performance of Tesla (NASDAQ:TSLA) stock is a good example.Source: Sheila Fitzgerald / Shutterstock.com True, Elon Musk may say some wacky things and make some big mistakes. But in the end, he always seems to find ways to achieve his lofty goals.Earlier in the year, TSLA appeared to be in a bleak situation, and there was many questions about its outlook. How would it become profitable? Was its production system stable? And what about the departure of its high-level executives?InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside But Elon Musk relishes challenges. And since Tesla's third-quarter earnings report, TSLA stock has been a rocket, going from $254 to $350, putting its market cap at $63 billion.In Q3, TSLA posted a profit, which was a huge surprise. Musk noted that the company would have more profitable quarters soon.Elon Musk has been focused on bringing down costs and finding ways to increase the company's profitability through growth. In the meantime, demand for the Model 3 has been rising.According to InvestorPlace columnist Luke Lango: "Central to the long-term bull thesis on TSLA stock is that Tesla has been selling, still is selling, and will continue to sell more and more of its signature electric vehicles." The AI AdvantageThe competition is certainly getting more intense, as car makers like GM (NYSE:GM), Ford (NYSE:F), BMW, Volkswagen and Mercedes-Benz ramp up their own electric-car efforts. What's more, Tesla's foray into the Chinese market will meet with lots of resistance as well, since there are over 480 EV companies in the country!Granted, Tesla has some major competitive advantages. TSLA has a premium brand, a deeply loyal customer base, talented engineers and a strong Intellectual Property foundation.But Tesla's expertise in AI could be its biggest advantage. From its early days, the company built its cars with systems that collect enormous amounts of data,using sensors and over-the-air updates. As a result, it's been able to use much more powerful AI systems.A big part of Tesla's AI efforts, of course, occurred in conjunction with the creation of Autopilot. That system enables cars to automatically drive to designated locations. It also enables cars to park themselves. Finally, cars with Autopilots can be summoned with smartphones.To pull this off, Tesla has installed on-board computers with 40 times the power of prior systems and sophisticated AI.It's true that real autonomous driving is still not imminent. But Tesla is definitely aggressively trying to reach that goal. For example, the company recently acquired DeepScale, which is a cutting-edge developer of neural network systems.For the most part, DeepScale's focus is on solving the extremely tough problem of energy consumption with AI chips The Bottom Line on TSLA StockThe irony is that Elon Musk has said that AI is more dangerous than nuclear war! But then again, he has a tendency to exaggerate a great deal.But it's good to see a CEO who is freewheeling and creative. More importantly, AI will likely be a difference maker when it comes to the next-generation cars launched by TSLA. For now, Tesla's competitors are mostly playing catch-up.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 * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside * 7 Earnings Reports to Watch Next Week * 5 Online Retail Stocks to Buy on the Dip The post Why Artificial Intelligence Is a Secret Weapon for Tesla Stock appeared first on InvestorPlace.

  • The Zacks Analyst Blog Highlights: Toyota Motor, Honda Motor, Nissan Motor, Tesla and Advance Auto Parts
    Zacks

    The Zacks Analyst Blog Highlights: Toyota Motor, Honda Motor, Nissan Motor, Tesla and Advance Auto Parts

    The Zacks Analyst Blog Highlights: Toyota Motor, Honda Motor, Nissan Motor, Tesla and Advance Auto Parts

  • 3 Pros, 3 Cons to Buying Plug Power Stock as World Pivots from Fossil Fuels
    InvestorPlace

    3 Pros, 3 Cons to Buying Plug Power Stock as World Pivots from Fossil Fuels

    In recent years, the investment community has focused significant attention on alternative energy companies for obvious reasons. From both a geopolitical standpoint as well as an environmental one, clean energy solutions simply find wide appeal. However, not every player in this sector is equal, as Plug Power (NASDAQ:PLUG) and PLUG stock demonstrates.Source: Shutterstock In many ways, Plug Power stock is an enigma. It has tremendous potential because the world seeks a pivot away from fossil-fuel energy sources. Moreover, the company has inked some impressive deals with big league organizations. Yet PLUG stock is nothing short of speculative. For a brief moment, shares were once trading in four-digit territory.Now, the tables have clearly turned. Plug Power stock barely avoided sinking deeper into ignominy when it produced its third quarter 2019 earnings report. But again, the results were frustratingly mixed, just like the equity: the hydrogen fuel specialist met analysts' for per-share profitability (a loss of 8 cents) but failed to deliver on the top line (revenue of $56.4 million against an expected $59.2 million).InvestorPlace - Stock Market News, Stock Advice & Trading TipsInterestingly, Tesla (NASDAQ:TSLA) CEO Elon Musk has labeled hydrogen fuel cell vehicles - Plug Power's bread and butter - "mind-bogglingly stupid." And from a traditional angle, I can understand why he said that. If you look at the financial picture for PLUG stock, it's not pretty. Plus, the ugliness leaves shares vulnerable to equity dilution if the company meets unforeseen challenges. * 7 Stocks to Sell Before They Roll Over Yet we all know that Plug Power stocks is super risky. The question is, how viable is the longer-term growth picture? Here are three pros and cons for PLUG that should help you decide: Pro 1: Unlimited Fuel for PLUG StockOne of the major headwinds clouding big oil firms like Exxon Mobil (NYSE:XOM) or Chevron (NYSE:CVX) is that they're levered to finite resources. Hence, over the past several years, we've read stories about peak oil. Even if some of the most macabre doom-and-gloom forecasts don't pan out, the fact is, we have limited oil resources.You absolutely cannot say the same thing about hydrogen: it's the most abundant element not just on earth but in the universe. When we start colonizing Mars and other planets, you'd imagine that we'll use hydrogen-based vehicles.Of course, I'm talking about stuff well into the future. For the here and now, because hydrogen is so abundant, we won't have to deal with OPEC or other unfavorable characters. That's a huge plus for PLUG stock. Pro 2: Hydrogen Refueling is Almost Like Pulling up to the PumpWithout question, the underlying technologies behind electric vehicle companies like Tesla or Nio (NYSE:NIO) are remarkably compelling. But a huge drawback of EVs is that they take too damn long to refuel or more accurately, recharge.Right now, the quickest charging station can charge your EV from empty in about 30 minutes. And we're not talking a full recharge either. Rather, this quickest draw of the electric West will get you to approximately 80% capacity. * 7 Large-Cap Stocks to Give a Wide Berth We live in an on-demand economy where virtually everything operates at break-neck speeds. So how, pray tell, are we going to expect Americans to wait half-an-hour to recharge their EVs?On the other hand, hydrogen vehicles will get you in and out at the refueling station in roughly five minutes. That's almost on par with refueling a big, fossil-fueled SUV, thus not requiring a mass-scale societal shift.Of course, this is a huge boost for Plug Power stock. Pro 3: Big SupportersHydrogen has a lot of detractors -- remember the Hindenburg? Despite valid concerns about hydrogen fuel cells, some huge names in the auto industry have backed this element.Specifically, both Toyota (NYSE:TM) and Honda (NYSE:HMC) have pegged hydrogen as the energy source of the future. And they're not paying mere lip service. Toyota is the largest hydrogen fuel cell car producer for the U.S. market, while Honda isn't too far behind.Plus, both companies have teamed up with a Royal Dutch Shell (NYSE:RDS.A, NYSE:RDS.B) subsidiary to develop hydrogen fueling stations in California. Considering that Plug Power has inked deals with major partners, this massive support is a tailwind for PLUG stock. Con 1: Isn't It Ironic?With hydrogen being the most-abundant element ever, you'd expect that hydrogen fuel provides economic relief for converted drivers. After all, Economics 101 dictates that excess supply should lead to lower demand (prices).But that's not what's happening in this market. Instead, hydrogen refueling costs are expensive, even pricier than gasoline prices on an apples-to-apples comparison. According to CNBC contributor Joe D'Allegro:"The average price for hydrogen fuel in California is about $16/kg -- gasoline is sold by the gallon (volume) and hydrogen by the kilogram (weight). To put that in perspective, 1 gal of gasoline has about the same amount of energy as 1 kg of hydrogen. Most fuel cell electric cars carry about 5 kg to 6 kg of hydrogen but go twice the distance of a modern internal combustion engine car with equivalent gas in the tank, which works out to a gasoline-per-gallon equivalent between $5 and $6."This is where EVs clearly win out. And it's also where standard gasoline-powered vehicles emerge victorious, which is negative for PLUG stock. Con 2: Infrastructure Limits Plug Power StockCalifornia, where you'd expect the alternative fuel to be popular, has only 39 hydrogen refueling stations, with another 25 due to soon appear on the map. That's not nearly enough to satisfy driving demand, especially if hydrogen-powered cars proliferate.But thanks to California green initiatives, the state has a plan to develop 200 hydrogen stations by 2025. While that would be a 413% lift from current numbers, it still wouldn't be nearly enough. * 7 Great High-Yield Stocks With Payouts Over 5% There are over 12,000 gasoline stations in California and that number could easily grow considering the state's population growth. Therefore, 200 hydrogen fueling stations would only cover less than 2% of existing gasoline infrastructure.With such limited coverage, it's hard to imagine hydrogen cars being anything more than niche vehicles for the rich. Con 3: Hydrogen-Powered Cars are ExpensiveIt's not just the refueling costs that are expensive; the cars themselves are available only to the rich. As D'Allegro wrote:The biggest problem: The cars remain expensive. Nexo, for instance, is the most expensive Hyundai on sale in the U.S., with a starting price of $59,345 (starting prices for the brand's comparably-sized Santa Fe start at $24,250). The Toyota Mirai and Honda Clarity fuel cell models have a similar MSRP in the $59,000 range. These car purchases are eligible for government rebates -- in California there is a $5,000 tax rebate available.Among other factors, most folks will likely pay for a high-end, gas-powered luxury car than an essentially experimental hydrogen car. Further, cost accessibility is an issue that could impact the vulnerable PLUG stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio * 5 Streaming Stocks to Buy for Huge Upside Over the Next Decade The post 3 Pros, 3 Cons to Buying Plug Power Stock as World Pivots from Fossil Fuels appeared first on InvestorPlace.

  • Financial Times

    Volkswagen increases investment in electric vehicles

    The company committed to producing 4m additional battery-powered vehicles in the next decade and said it would spend €33bn on electric mobility in the next four years. A further €27bn will be spent on hybrid technology and digitisation in the same period. VW, which had already planned to produce 22m e-vehicles by 2028, pledged to introduce 75 electric models and 60 hybrid vehicles over the next decade.

  • Will Ford's Mustang Mach-E Gallop Past Tesla's Model 3?
    Investor's Business Daily

    Will Ford's Mustang Mach-E Gallop Past Tesla's Model 3?

    Tesla will face a key competitive test when Ford Motor unveils its Mustang-inspired Mach E all-electric vehicle on Sunday. The new vehicle is expected be priced between $40,000 to $50,000.

  • Elon Musk roundup: SpaceX Crew Dragon test fire goes off without a hitch this time
    American City Business Journals

    Elon Musk roundup: SpaceX Crew Dragon test fire goes off without a hitch this time

    The event is significant since it was during a similar test in April that an explosion destroyed another Crew Dragon In-Flight Abort test vehicle.

  • Oilprice.com

    Tesla Faces Environmental Challenge In European Expansion

    Elon Musk’s commitment to donate $1 million to the planning of trees in forests around the world appears to clash with the fact that Tesla will need to cut down trees to build its new gigafactory

  • Playing Offense when Volatilities are Low
    Zacks

    Playing Offense when Volatilities are Low

    Playing Offense when Volatilities are Low

  • Tesla sedans regain recommended status in Consumer Reports survey
    Reuters

    Tesla sedans regain recommended status in Consumer Reports survey

    Tesla Inc's Model 3 and S sedans both regained "recommended" status in Consumer Reports magazine's annual reliability survey, allowing the electric carmaker's overall standing to rise slightly. Tesla's ranking improved four spots to No. 23 out of 30 brands in the U.S. market as it worked to resolve production problems with the Model 3, said Jake Fisher, senior director of auto testing at Consumer Reports. "People really like their cars," he said of Tesla owners.

  • Tesla Regains Consumer Reports Endorsements as GM Brands Stumble
    Bloomberg

    Tesla Regains Consumer Reports Endorsements as GM Brands Stumble

    (Bloomberg) -- Tesla Inc.’s Model 3 and S sedans reclaimed recommendations from Consumer Reports, though the electric-car maker still ranks toward the bottom of the group’s annual reliability survey along with other U.S. automakers’ brands.The two Tesla models earned an average rating in Consumer Reports’ reliability survey, leading the organization to restore endorsements it revoked from the Model 3 in February and the Model S a year ago. Five of General Motors Co. and Fiat Chrysler Automobiles NV’s brands placed among the 10 worst in the survey, which was again dominated by Japanese and Korean carmakers.Consumer Reports’ fluctuating views of Tesla’s sedans reflect the company’s frequent design changes and rush to ramp up production, according to Jake Fisher, senior director of auto testing. The Model X still scores among the least reliable in the survey, leaving the electric-car maker’s brand ranking 23rd out of 30.“We recommend the Model 3 with a caveat,” Fisher said in an interview. “I don’t know what will happen in the next six or 12 months because the car keeps changing, so results may vary.”GM’s WoesReliability issues for established automakers including GM and Volkswagen AG frequently relate to their new vehicles offering technologically advanced features for the first time, such as touchscreen infotainment and driver-assistance systems.“GM really has consistently had problems with new model launches as they add new technology, and it was across the board for their vehicles,” Fisher said. Three of its four brands finished in the bottom 10, with Cadillac finishing dead last, thanks in part to a troublesome infotainment system. VW’s namesake fell nine spots to 27th, and its luxury brand Audi slipped seven places to 14th.Buick, the only GM brand to finish around the middle of the pack, fell five spots to 18th. Chevrolet ranked 25th, with some of its highest-volume models -- the Chevy Colorado mid-size pickup and Silverado full-size truck -- scoring poorly.Chevy’s Silverado rated 20 on a 100-point scale, matching Ford’s F-150 and narrowly beating the Ram pickup’s 18. The overall Ford brand ranking was unchanged from a year ago, at 16th.GM’s is having trouble with the drive system and in-vehicle electronics on the new Chevy Silverado and GMC Sierra pickups. That’s problematic especially since the new trucks underwent modest changes and have disappointed Consumer Reports’ test drivers. GM probably took a conservative approach to engineering the new trucks because the previous-generation Silverado and Sierra had reliability issues, Fisher said.For GM, improvement is a must. The Silverado and Sierra are among its most profitable vehicles, and the automaker has been fending off a challenge from Fiat Chrysler’s Ram, which has gained market share at Chevy’s expense. There’s also more competition on the way: Tesla plans to show off an electric truck on Nov. 21. The pickup, which Chief Executive Officer Elon Musk has said is inspired by the sci-fi film “Blade Runner,” will try to crack Detroit’s profit center along with another electric upstart, Amazon.com Inc.-backed Rivian Automotive Inc.Asian DominationAsian brands fared best in the study. Toyota Motor Corp.’s Lexus luxury line again took top honors, its namesake brand finished third, and Japanese partner Mazda was sandwiched in between. The best vehicle in the study was the Lexus IS sedan, with a score of 99.The Genesis luxury brand from South Korea’s Hyundai Motor Co. placed fifth, and the company’s namesake line finished in sixth. Among European brands, only Porsche and Mini were in the top 10.Tesla’s Model 3 was initially recommended by Consumer Reports in 2018 because the early models fared well in terms of customer satisfaction and reliability was initially good enough. Tesla made a lot of changes to the car that year, including adding more comfortable seating and improving the suspension to soften the ride. But some tweaks brought about glitches that cost the car the group’s blessing.In the past year, Tesla has fixed many of those problems, and its two sedans have risen in the rankings. Fisher spoke with Musk after the Model 3 lost its recommendation last year and said the CEO was eager to hear what owners were complaining about.“He wanted the feedback,” Fisher said. “He wants to build the best cars in the world.”To contact the reporter on this story: David Welch in Southfield at dwelch12@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Kevin Miller, Keith NaughtonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • The Zacks Analyst Blog Highlights: Microsoft, Novartis, Novo Nordisk, Tesla and General Dynamics
    Zacks

    The Zacks Analyst Blog Highlights: Microsoft, Novartis, Novo Nordisk, Tesla and General Dynamics

    The Zacks Analyst Blog Highlights: Microsoft, Novartis, Novo Nordisk, Tesla and General Dynamics

  • Auto Stock Roundup: TM & HMC Post Q2 Results, TSLA to Open Gigafactory in Berlin
    Zacks

    Auto Stock Roundup: TM & HMC Post Q2 Results, TSLA to Open Gigafactory in Berlin

    While Japan's 1 carmaker Toyota (TM) misses fiscal second-quarter 2020 earnings estimates, its top peer Honda (HMC) surpasses the same.

  • TheStreet.com

    Tesla Models 3 and S Get Boost After Regaining Consumer Reports Recommendation

    The vehicles last February lost their recommendation from the influential consumer-reviews publication.

  • Almost Time to Sell Tesla Stock
    Investopedia

    Almost Time to Sell Tesla Stock

    Tesla stock's three-month rally has entered a zone of heavy resistance, raising the odds for a multi-week reversal.

  • Tesla (TSLA) to Open First European Gigafactory in Berlin
    Zacks

    Tesla (TSLA) to Open First European Gigafactory in Berlin

    Car production in Tesla's (TSLA) Berlin Gigafactory is likely to begin in late 2021.

  • Multinationals Are Still Pouring Cash Into China
    Bloomberg

    Multinationals Are Still Pouring Cash Into China

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Foreign companies continue to invest more in China even after President Donald Trump called on U.S. firms to look elsewhere, as the rising spending power of 1.4 billion people proves too hard to resist.Companies from Tesla Inc. to Walmart Inc. are expanding operations in the world’s second-biggest economy, joined by counterparts from Korea, Japan and Europe. That’s helping offset the departure of goods manufacturers that have had to rethink supply chains after U.S. tariffs made their products more expensive.Foreign direct investment into China rose nearly 3% in the first nine months of 2019 from a year earlier, according to the Ministry of Commerce, the same pace as 2018’s increase. While the U.S. outstripped that increase last year, investment has dropped off since Trump became president.“Multinational firms are now more likely to invest in China since serving the market from abroad will be risky given the mutual trade barriers that have been erected and the fact that any truce in the trade war is likely to be only temporary,” said David Dollar, a senior fellow at the Brookings Institution in Washington.Almost 75% of China’s inbound investment is now into services, utilities and other sectors aimed at the domestic market, said Dollar, a former U.S. Treasury attache in Beijing. If anything, the trade war is encouraging companies to ensure they have a China base, he said.That’s the opposite of what President Trump has pushed for: in August the president tweeted that U.S. companies should “immediately start looking for an alternative to China.”“If you go to major U.S. companies and say, ‘well the politics in D.C. says we have to decouple so you are going to leave the China market,’ they would say ‘no we can’t because the prize is too big’,” Arthur Kroeber, head of research at Gavekal said in a presentation in Hong Kong this month.One complication in analyzing the trend is the difficulty in determining how much of the spending represents real investment, and how much is Chinese companies moving money offshore and then bringing it back to the mainland. Some three quarters of China’s FDI in 2018 came from Hong Kong, the British Virgin Islands or the Cayman Islands, which a recent International Monetary Fund report called sources of “phantom FDI.”EV BoomYet there’s also plenty of news demonstrating the big bet on China’s consumer. Tesla is eyeing mass production out of its first factory outside the U.S. in a plant near Shanghai for which the automaker has received as much as $521 million in loans from Chinese banks. Such spending generates a hive of activity right along the supply chain.LG Chem Ltd., the world’s second-biggest manufacturer of lithium-ion battery cells and said to be one of Tesla’s initial suppliers for its made-in-China Model 3 cars, said in October it plans to invest about $430 million in its Chinese business. In June, it teamed up with Geely Automobile Holdings Ltd. on a joint venture to produce electronic vehicle batteries.“China is a focal point for our battery investment,” spokesman Yoo Won Jae said in an interview this month.Economic BoostSuch inflows could help put a floor under an overall slowdown in investment, helping China hit its jobs targets even as the economy grows at its slowest rate in decades.Among other recent announcements:General Electric Co.’s GE Renewable Energy announced in July investments for undisclosed amounts in a new offshore wind factory and operation and development centerBASF SE in January signed a framework agreement with the government of Guangdong Province for a $10 billion manufacturing complex. In a first for a foreign chemical maker, BASF received permission to own 100% of the project rather than work with a local partnersWalmart in July said it will spend 8 billion yuan ($1.1 billion) on distribution centers in ChinaTrade war or not, the lure of 1.4 billion people can’t be ignored, AstraZeneca Plc Chief Executive Officer Pascal Soriot said in an interview at the second annual China International Import Expo in Shanghai. “We have to invest more in China.”Chinese investors have received a frosty reception in the U.S. By contrast, American companies are still being welcomed in China, according to Ker Gibbs, president of the American Chamber of Commerce in Shanghai.“At the provincial and municipal level, we sense an even heightened degree of enthusiasm for foreign investments,” he said. “They are very much courting us.”\--With assistance from Heesu Lee, Dong Lyu and James Mayger.To contact the reporters on this story: Bruce Einhorn in Hong Kong at beinhorn1@bloomberg.net;Enda Curran in Hong Kong at ecurran8@bloomberg.netTo contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, ;Emma O'Brien at eobrien6@bloomberg.net, Bruce Einhorn, James MaygerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters

    RPT-German automation talent powers Musk's battery move to Europe

    To unclog bottlenecks last year at his Tesla Inc plant in California, Elon Musk flew in six planeloads of new robots and equipment from Germany to speed up battery production for its Model 3. Now the Tesla CEO is trying to tap that German automation ecosystem directly with Tuesday's announcement that the electric carmaker will build a European car and battery factory near Berlin. The new German factory is designed to help change all that.

  • Financial Times

    Tesla/ Germany: 'glorious success' or Schnapsidee?

    German politicians are very excited right now about Elon Musk’s announcement that he will open one of Tesla’s Gigafactories close to Berlin. AP quoted economy minister Peter Altmaier as saying the mooted opening, announced Tuesday evening local time, was a "glorious success" for Germany's attractiveness as an auto industry location. It’s easy to see why the likes of Altmaier are so thrilled by a Tesla decision -- its pay-off for their recently unveiled environmental strategy.