|Bid||242.91 x 3100|
|Ask||243.03 x 800|
|Day's Range||239.22 - 245.18|
|52 Week Range||176.99 - 379.49|
|Beta (3Y Monthly)||0.33|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 22, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||252.92|
Leading automakers like Ford (F), General Motors (GM), and Tesla (TSLA) face bleak business conditions. Ford stock has fallen the most among its peers.
A Delaware judge ruled that a lawsuit by a Tesla Inc (NASDAQ: TSLA) shareholder that alleges CEO Elon Musk’s compensation “unjustly enriches” the charismatic, but controversial company leader, can go forward. Delaware Court of Chancery Judge Joseph Slights on Friday declined to dismiss the suit by shareholder Richard Tornetta, meaning the company’s board of directors will have to defend Musk’s compensation package. Slights found that it is “reasonably conceivable” that the pay plan — which includes no salary and no cash bonuses for Musk, but rewards him based on Tesla’s market value — may be unfair.
A lawsuit by shareholder Richard Tornetta alleges that the board breached its fiduciary duty in approving the package, that the package amounts to unjust enrichment for Musk, and is waste of company resources.
(Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.It took Tesla Inc. about 15 years to rack up $5 billion in losses. The company some regarded as China’s Tesla did it in four.And the bleeding continues. Shanghai-based NIO Inc. is poised to report Tuesday that it lost another 2.6 billion yuan ($369 million) — around $4 million a day — during the second quarter, according to the average of two analysts’ estimates. That would bring accumulated losses at the company, which is backed by technology giant Tencent Holdings Ltd., to about $5.7 billion since William Li founded the carmaker in 2014.Cost overruns, weak sales, and major recalls have led NIO to plunge about 74% since its market value hit a record $11.9 billion about a year ago. More broadly, the company’s reversal of fortune illustrates why concerns are mounting that China created an electric-vehicle bubble that may be about to burst.“This year and the next, there’s going to be a lot of card-shuffling for these EV startups,” said Siyi Mi, an analyst at BloombergNEF. “Before, venture capital chased after them, but it’s not the case any more.”NIO’s U.S.-listed shares fell as much as 4.6% to $2.90 shortly after the open of regular trading Monday in New York.Total EV sales in China, where half of the world’s electric cars are sold, fell for the first time in July after the government scaled back subsidies. Deliveries dropped again in in August, raising doubts that one of the final respites of strength in China’s auto market — which has fallen 14 out of the past 15 months — is wavering.China has gradually scaled back subsidies for new-energy vehicles — all-electrics, fuel-cell autos and plug-in hybrids — since 2017 to help the industry stand on its own two feet and avoid a bubble. That’s undermined growth, prompting the likes of top Chinese electric-carmaker BYD Co. to warn recently that earnings will wane.At NIO, pressure is building for the company to raise more funds. The carmaker is seeking to reduce its workforce by 14% to 7,500 by the end of the month. Incidents involving batteries catching fire or spewing smoke forced NIO to recall about 4,800 vehicles — more than 20% of all the cars it’s ever sold. Second-quarter deliveries dropped from the preceding three-month period.The company also scrapped plans for a manufacturing plant in Shanghai after the government opted to provide financial support to Tesla. Instead, NIO farms out production of its ES6 and ES8 cars to Anhui Jianghuai Automobile Group Co.While Tencent and Li each plowed $100 million into NIO this month, the capital-intensive nature of the auto industry means that “this much money won’t last long,” said Bill Russo, founder and CEO at Automobility Ltd., a Shanghai-based auto advisory firm.Li has played down his company’s challenges, saying in an interview in June that NIO’s stock rout was “no big deal” and that investors needed to understand that making new cars costs money.But money is in short supply for the carmaker, which is now counting on receiving as much as 10 billion yuan in funding from an investment firm backed by the Beijing city government.Another looming challenge for NIO is Tesla, which plans to start production in China later this year, allowing the U.S. company to cut prices of its vehicles sold in the country.“NIO didn’t position itself in the right place,” said Yale Zhang, founder and CEO of the consultancy AutoForesight. “I’m not optimistic about its future in the long run.”(Updates with U.S. shares trading in fifth paragraph)To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, ;Craig Trudell at email@example.com, Will DaviesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
NIO (NIO), "China's Tesla," is scheduled to report its second-quarter results before markets open tomorrow. The stock has seen a massive sell-off since March.
(Bloomberg) -- Follow Bloomberg on LINE messenger for all the business news and analysis you need.In 2015, the shares of Indonesia’s largest cab company were soaring, while its revenue reached a record high. Then came Uber, followed by Grab and Gojek, Southeast Asia’s answer to the revolutionary ride-hailing app.Competition from the technology titans wiped out $1.7 billion, or almost 80%, of PT Blue Bird’s market value from a peak. Revenue plunged 23% in three years and the latest quarterly earnings fell to a record low. But rather than give up, the 54-year-old cab operator is now seeking to turn the tide. Leading the effort is Noni Purnomo, who succeeded her father in May as president.Four months into her new job at the Jakarta-based company, Purnomo is banking on technology to transform the flagging business her late grandmother started in 1965. Her plans include focusing on electric vehicles made by Tesla Inc. and BYD Co. to cut fleet ownership costs and improve efficiency using data.“We decided to take a huge leap,” Purnomo, 47, said at her office in Jakarta last week. “With this leap, we hope we can address our shortcomings” and catch up with rivals.While sustainability is her immediate priority, Purnomo’s goal eventually is to beat the ride-hailing giants that have upended what was once an industry renowned for its steady revenue and dominated by small owners and families like Purnomo’s. She’s up against Singapore-based Grab, the regional giant that bought Uber Technologies Inc.’s Southeast Asian operations last year.Purnomo’s toughest challenge yet may be convincing investors that her company is here to stay and thrive. Blue Bird’s shares traded at 2,580 rupiah (18 cents) in Jakarta on Monday. They reached an all-time high of 12,500 rupiah in January 2015, months after Blue Bird raised a modest $200 million from an initial public offering.Purnomo has already added about two dozen EVs to Blue Bird’s almost 30,000-strong fleet of cabs that operate in the cities of Java, Sumatra, Bali, Lombok and Batam. Eventually, the plan is to have 2,000 of the zero-emission taxis from Tesla and Chinese maker BYD, she said.EVs may give her company an edge as initial data have shown encouraging signs, she said. The vehicles cost 40% less to operate than fossil fuel-powered cars, and generate 30% more revenue, according to her.Besides, her rivals can’t replicate this model easily, Purnomo said. Their asset-light model would require drivers to bear the financing costs of an expensive EV, a risky proposition for most individuals, she said. A representative for Grab didn’t respond to request for comments.“We have a different business model and the company can take the risk instead of the individual,” she said.Charging StationsThe lack of charging infrastructure in the Southeast Asian country could pose a hurdle. Right now, Blue Bird has facilities at its main office in Jakarta, while there’s one available at the city’s airport. President Joko Widodo‘s government is trying to ramp up charging stations in malls and other public places to help boost sales of EVs.Read about Indonesia’s plan to form electric-car hub Blue Bird will also invest in the internet of things -- an emerging technology that links machines and gadgets and likely to get a boost with the roll out of 5G wireless networks. IoT will help Blue Bird collect data and improve operational efficiency and help implement dynamic pricing, a variable fare model popular with the likes of Uber, Lyft Inc. and Grab.Purnomo said the company now has the technical capability to fight back and the financial resources to challenge them, without elaborating on how she plans to raise capital. On the other hand, Grab has money to burn. Valued at $14 billion, it is planning to raise more than $4.5 billion in its latest funding round.“Gojek and Grab’s low fares have caused a major churn for these taxi companies,” said Kenny Liew, an analyst at Fitch Solutions. “The taxi companies need to look at new business models, even partnerships with ride-hailing players, to stay relevant.”Rival TiesBlue Bird already has an alliance with Gojek, operated by PT Aplikasi Karya Anak Bangsa, that allows its fleet to be available on the Gojek app. While it opens up the customer base, it also has the disadvantage of lower margins, Liew said. Gojek offers both motorcycle and cab rides.A representative for Gojek said the company has also started a pilot project for electric motorcycles and cars in Indonesia. If the vehicles can save costs, that will help drivers, she said in an email.Purnomo started working at Blue Bird in the mid-1990s. Groomed by her father for a key role in the family business, the engineering graduate held positions in maintenance, customer service and sales before taking a break to finish her master’s in business administration at the University of San Francisco.Competition brought about by ride-hailing companies in the traditional taxi business is “nearing equilibrium,” Purnomo said, adding some customers and even drivers who previously left Blue Bird to try rivals have returned.While investors have pummeled Blue Bird’s shares, analysts have been more optimistic. All six tracked by Bloomberg recommend buying it.“The worst appears to be behind them,” said Richard Suherman, an analyst at PT Sinarmas Sekuritas. “Their transformation, including their plan to build up a better technology platform and dynamic pricing, should help their competitiveness and profitability.”\--With assistance from Tassia Sipahutar.To contact the reporters on this story: Fathiya Dahrul in Jakarta at firstname.lastname@example.org;Harry Suhartono in Jakarta at email@example.comTo contact the editors responsible for this story: Sam Nagarajan at firstname.lastname@example.org, ;Young-Sam Cho at email@example.com, ;Thomas Kutty Abraham at firstname.lastname@example.org, Jodi SchneiderFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Tesla did not invent the first electric car, but it did invent was the first successful business model for bringing compelling electric cars to the market.
On September 19, at Delivering Alpha Conference, Jim Chanos said Grubhub (GRUB) is a very good short. He said that Guruhub is almost not making any money.
Jeff Bezos has just placed the largest ever electric vehicle purchase order with a statup called Rivian Automotive, a company looking to rival Tesla
A Delaware judge ruled on Friday that Tesla Inc's board of directors must defend at a trial Chief Executive Elon Musk's multibillion dollar pay package, which a shareholder lawsuit said unjustly enriched the head of the electric vehicle company. Tesla estimated the 2018 compensation package was worth $2.6 billion when it received stockholder approval in March 2018, although stock analysts at the time said it could be worth up to $70 billion if the company - which has yet to post an annual profit - grew quickly. The compensation award includes no salary or cash bonus for the Silicon Valley billionaire Musk, but sets rewards based on Tesla's market value rising to as much as $650 billion over the next decade.
Judge rules Elon Musk held sway over the company's compensation committee in designing package that could balloon to $70 billion.
As this week's Business Journal cover story about the explosion of Bay Area unicorns this year was being delivered to subscribers, several members of the herd made news. Here are the details about that and other venture news at the end of the week.
Some prominent market personalities, such as Leon Cooperman, chair and CEO of Omega Advisors, feel that the Fed's rate cut decision was unnecessary.
Amazon placed a bulk order for 100,000 electric delivery vans from Rivian. Amazon plans to phase out its current diesel vehicles in a systematic manner.
Yesterday, Morgan Stanley analyst Adam Jonas provided his thoughts on Tesla while maintaining his rating and target price on its stock.
Since Porsche launched the Taycan, Tesla has been trying to prove its supremacy in terms of various features. It recently revealed its upcoming Plaid Mode.
Earlier this year, the National Labor Relations Board required Tesla to post signs in its Fremont factory reminding workers that they could participate in union-related acts.
Sep.22 -- It took Tesla Inc. about 15 years to rack up $5 billion in losses. NIO Inc., the company known as China’s Tesla, did it in four. Emma O'Brien reports on "Bloomberg Daybreak: Asia."