Posts belonging to Category automobile



Elon Musk, Sued For Fraud By SEC, Calls Lawsuit ‘Unjustified’

Tesla stock plunged

Tesla chief executive Elon Musk has responded to news that the U.S. Securities and Exchange Commission (SEC) is suing him for fraud. Tesla stock plunged on Thursday after the SEC press conference, in which the Commission noted Musk had made “false and misleading” statements about taking Tesla private. In August, Musk tweeted about taking his electric car manufacturer private. The SEC alleges that Musk’s statements violate the 1934 Securities Exchange Act, and that Musk “knew or was reckless in not knowing” that his tweets were not accurate and true. Musk skipped his tendency to tweet in response to news of the lawsuit—arguably, his erratic, uncensored behavior on Twitter is the reason both Musk and Tesla are in hot water—and Tesla responded with a statement on behalf of the CEO on Thursday.

http://www.fortune.com

Saudi Arabia invests $1 billion in electric carmaker Lucid Motors

A serious rival to Tesla

Saudi Arabia’s Public Investment Fund (PIF) has agreed to invest more than $1 billion in Lucid Motors, adding to the emerging competition facing U.S. electric vehicle maker Tesla Inc. The funding will enable Silicon Valley-based Lucid to achieve the commercial launch of its Lucid Air electric vehicle in 2020, PIF said in an announcement on Monday. Lucid joins Daimler-owned  Mercedes, BMW and Volkswagen’s  Audi and Porsche divisions in the battle for dominance in the market for premium battery cars.

In August, Tesla founder Elon Musk said the Saudi sovereign wealth fund could help him to take his company private. The Lucid investment, which PIF said is more than $1 billion but did not give an exact figure, is also part of Saudi Arabia’s plan to build an environmentally friendly economy, to diversify the kingdom away from reliance on crude oil.

Flurry of electrifying announcements from the auto industry

Mercedes challenges Tesla with an all-electric SUV

Mercedes-Benz unveiled its first fully electric SUV today in Stockholm, the first in a long line of electric vehicles the automotive juggernaut will roll out over the coming years as part of its new EQ sub-brand. The EQC will run to 60 mph in under five seconds, go 200 miles between charges, and when it enters production in 2020, it will find itself in a world of increasingly fierce competition.

The EQC unveil comes amid a flurry of electrifying announcements from the auto industry. Later this month, Audi will debut its own electric SUV, the e-Tron. BMW just began taking orders for its upcoming iX3 electric SUV. Tesla is showing the production version of its gobsmacking, revived Roadster at the Grand Basel motor show in Switzerland this week. Jaguar is gearing up to start US deliveries of its much-lauded electric i-Pace later this year.

http://www.wired.com

Tesla will remain a publicly traded company

Shareholders:  “Please don’t do this”

Tesla will remain a publicly traded company, CEO Elon Musk said late Friday, just weeks after he floated the idea of going private in order to ward off short-sellers and volatility in the company’s stock.

In early August, Musk touched off a firestorm by saying on Twitter that he was considering taking Tesla private at $420 per share, adding that funding was “secured.” In the wake of that announcement, the billionaire and his company have been buffeted by skepticism, in addition to the threat of a regulatory probe.

However, in a post on Tesla’s website, Musk cited resistance from shareholders, in addition to other logistical hurdles, as rendering the proposition unattractive.

http://www.cnbc.com

Tesla stock could be worth $4,000

CEO of  ARK Invest: Tesla share could be valued 10 times in 5 years

Elon Musk thinks he could take Tesla private at $420 a share. But one Tesla investor thinks that’s a bad idea — because the stock could be worth nearly ten times that amount in the most optimistic of scenarios. Cathie Wood, CEO of money management firm ARK Invest, wrote an open letter to Musk earlier this week saying that Tesla could be valued somewhere between $700 and $4,000 per share in five years.

Wood tweeted out a link for the letter to Elon Musk Wednesday night. Musk responded in less than an hour, telling Wood “thank you for the thoughtful letter.” In an interview with CNNMoney Thursday, Wood said that Tesla’s investor relations responded quickly to her letter as well and passed it on to the board, but the board has not gotten back to her as of yet.

Tesla (TSLA) shares surged after Musk’s now infamous“funding secured” tweet earlier this month, hitting a peak of $387.46 in the process.
https://www.cnn.com

Saudi Arabia bought 5% stake in Tesla

The Saudi Public Investment Fund bought the shares in secondary markets

Saudi Arabia’s sovereign wealth fund has acquired a significant position in Tesla shares, according to the Financial Times. The media outlet said the Saudi’s Public Investment Fund bought a 3 percent to 5 percent stake in the electric car maker, according to people with direct knowledge of the matter.

The stake is worth $1.9 billion to $3.2 billion at the company’s current share price. The Saudi fund approached CEO Elon Musk about buying newly issued shares, the report said, but Tesla declined. Instead the Public Investment Fund bought the shares in secondary markets.

Reuters later confirmed the Saudi fund bought a stake “at just below 5 percent” of the company, according to a source familiar with the matter.

https://www.cnbc.com/

Wage floor for Uber’s ride-hail drivers

The goal is to pay drivers $17.22 an hour, or $15 an hour after expenses like gas.

The New York City council passed first-of-its-kind legislation this afternoon setting a wage floor for ride-hail drivers and capping the number of ride-hail vehicles in the city. Below, our story from before the historic vote.

Uber drivers make about as much money as minimum wage workers.

In some cases they can even make less. That’s because Uber drivers are considered independent contractors, rather than employees, and aren’t protected under federal, state, and local minimum wage laws.

Uber drivers aren’t being recognized as employees (that legal battle is ongoing). But in New York City, the city council is poised to pass a package of bills that, for the first time ever, would set a wage floor for Uber drivers and their peers in the ride-hail industry.

https://qz.com/

Tesla to go private

Stocks soar

Elon Musk has become one of the world’s most prominent chief executives, and a billionaire several times over, by boldly making big bets on ideas that few others thought possible.

He started a private rocket company that sends materials into space, andplans to send astronauts soon. He is creating machines to bore giant tunnels through the earth. And Tesla Inc., where he serves as chief executive, has succeeded in creating an Apple-like brand of electric cars.

Through it all, he has shown a maverick — some would say arrogant — management style. On Tuesday, he may have outdone himself.

In a terse and cryptic Twitter post, he declared that he was ready to take Tesla private. The stock market that made his company worth over $60 billion wasn’t worth the hassle.

http/www.nytimes.com

Tesla could make it through 2018 without running out of money

Tesla Q2 earnings

Tesla reported second-quarter earnings on Wednesday after the close of market. The company lost more than expected but also brought in more revenue: more than $4 billion. Importantly, although Tesla yet again spent a lot of money in the quarter, it retained $2.2 billion in cash on its balance sheet and slowed its cash burn — remarkable, given the problems it encountered with its Model 3 roll-out.

That’s about $1 billion less that it had at the end of 2017 — but just $500 million less than what it had at the end of the first quarter. The company now expects to hold total capital expenditure under $2.5 billion for the full year while adding to its overall cash position.

http://www.businessinsider.com

Strong U.S. retail sales

Tightening labor market

U.S. retail sales rose solidly in June as households boosted purchases of automobiles and a range of other goods, cementing expectations for robust economic growth in the second quarter. Signs of a strengthening economy, together with a tightening labor market and firming inflation, likely will keep the Federal Reserve on track to continue raising interest rates this year.

Fed Chairman Jerome Powell offered an upbeat assessment of the economy last Friday, telling lawmakers that “over the first half of this year, overall economic activity appears to have expanded at a solid pace.” The U.S. central bank raised interest rates in June for the second time this year and has forecast two more rate hikes by the end of 2018.

Morgan Stanley hikes oil price forecast to $85

Trump targets Iranian barrels

Oil prices will rise more than previously expected in the second half of 2018, as the Trump administration aims to wipe out Iranian crude exports by November, Morgan Stanley forecasts.

The tougher-than-anticipated U.S. policy means Iran’s production could fall by 1.1 million barrels per day (bpd) at a time of high oil demand. The bank also sees output declining more than it previously forecast in Libya and Angola, leaving the oil market undersupplied by about 600,000 bpd in the second half.

As a result, Morgan Stanley said it now believes international benchmark Brent crude will average $85 a barrel over the next six months. That’s $7.50 higher than its previous estimate.

https://www.cnbc.com/

EU warns Trump’s car tariffs threaten $300 billion of US exports

20% of US exports at risk

Nearly $300 billion of US exports could be hit by retaliatory tariffs if the Trump administration decides to penalize automobile imports from around the world, the European Union says.

The Commission said global retaliation against US tariffs on auto imports would have a much bigger impact on the American economy than the backlash provoked by the Trump administration’s steel and aluminum tariffs this year. It estimated that $294 billion, or around 19% of total US exports last year, could be affected.

President Donald Trump has threatened to place a 20% tariff on all European cars coming to the United States if the European Union doesn’t remove its own trade barriers. In May, the US government launched an investigationinto imports of automobiles, including SUVs, light trucks and auto parts.

The type of investigation, known as Section 232, is meant to determine whether the imports are hurting US national security. It’s the same approach the Trump administration used before it slapped tariffs on steel and aluminum imports earlier this year.

https://www.cnn.com/

Theresa May’s hopes of a post-Brexit trade deal with Trump in doubt

Trump launches European trade war

Theresa May’s plans for a quick post-Brexit trade deal with the US have been thrown into doubt after Trump announced plans to launch a trade war with Europe.

The president is reportedly planning to impose up to 25% tariffs on imported steel and 10% on aluminium in an attempt to save US industry.

“We are on the losing side of almost all trade deals,” Trump tweeted on Monday.

“Our friends and enemies have taken advantage of the U.S. for many years. Our Steel and Aluminum industries are dead. Sorry, it’s time for a change! MAKE AMERICA GREAT AGAIN!” 

http://www.businessinsider.com…  March 06, 2018

Trump announces plans for heavy tariffs on steel and aluminum imports

Ugly trade war with China

President Trump unveiled plans Thursday to slap hefty tariffs on global imports of steel and aluminum, catching much of his administration by surprise, sending stocks plunging and sparking widespread fears that he was leading the United States into an ugly trade war with China as well as key American allies. Trump said he would sign an order next week to impose 25% tariffs on steel imports and 10% duties on aluminum, using his authority under an obscure trade law provision that permits the president to take sweeping measures in the name of national security.

Trump has long been a critic of U.S. trade policies, and he was elected partly on the promise to revamp the way Washington does business with the rest of the world. On Thursday, Trump assured U.S. manufacturers that they will “have protection for a long time .… You’ll have to regrow your industries. That’s all I’m asking.” For months, administration officials with less nationalistic views on trade, such as chief economic advisor Gary Cohn, have tried to dissuade Trump from imposing broad tariffs in response to America’s big trade deficit and what the president views as the world taking unfair advantage of the U.S. The shift was reflected in the recent rise in influence of more hawkish advisors who share Trump’s skepticism of trade, including Peter Navarro.

http://www.latimes.com…  March 02, 2018

America’s oil exports are booming

Prices are climbing

The resurgence of the oil industry can be traced back to what happened in Congress one day in December 2015. That’s when lawmakers ended the 40-year ban on U.S. oil exports. Crude pumped in Texas, Oklahoma and North Dakota could suddenly be shipped overseas.

At the time, a glut of supply was wreaking havoc on the energy industry. Crude eventually crashed to $26 a barrel. But that glut is disappearing, thanks in part to booming oil exports from the United States. Crude that was once trapped inside the country is now going to Europe, Latin America and even China.

The United States exported a record 1.7 million barrels of oil per day in October 2017, according to the most recent stats from the Energy Information Administration. That’s four times as much as in 2015, when federal law prohibited shipping oil to most places except Canada.

http://www.cnn.com…  January 29, 2018

United States, planet’s leading crude oil producer in 2018

The United States is poised to ramp up crude oil production by 10% in 2018

The United States will produce about 11 million barrels per day, according to research firm Rystad Energy. Surging shale oil output should allow the United States to dethrone Russia and Saudi Arabia as the planet’s leading crude oil producer, Rystad predicted in a recent report. The U.S. hasn’t been the global leader, nor ahead of both Russia and Saudi Arabia, since 1975.

“The market has completely changed due to the U.S. shale machine,” said Nadia Martin Wiggen, Rystad’s vice president of markets.

The prediction shows how the fracking revolution has turned America into an energy powerhouse — a transformation that President Trump has vowed to accelerate by cutting regulation. This long-term shift has allowed the U.S. to be less reliant on foreign oil, including from the turbulent Middle East.

http://money.cnn.com/… Thu., 04  January 2018