Category: High Finance

By on August 1, 2016

Tesla Model X

To bastardize an old Dodge slogan, if you’re willing to devote your life to sustainable driving and ditch your electricity provider, you could be Tesla material.

The electric automaker announced a deal with solar company SolarCity today — an all-stock agreement worth $2.6 billion. Acquiring the nation’s largest rooftop solar provider gives Tesla CEO Elon Musk the top-to-bottom green company he always wanted, but it opens the company up to new risks. Read More >

By on July 28, 2016

ford logo

Ford Motor Company says its profits dropped 9 percent in the second quarter, and warns that leaner times are coming.

Net income, global market share, and earnings per share all fell, but the automaker’s financial news wasn’t all bad. Still, Ford plans to do some cost cutting as the red-hot new vehicle market cools off in North America. Read More >

By on July 21, 2016

General Motors #AMERICA

General Motors is busy phoning friends and posting on its Facebook wall after it made record net revenue in the second quarter of 2016 and boosted its net profit by 157 percent.

A net revenue of $42.4 billion is a high point for the company, even though the automaker’s global sales were flat compared to this time last year, with 2.4 million vehicles sold. Is it any wonder GM isn’t concerned about its falling market share? Read More >

By on July 18, 2016

BYD

There’s money in them there cars, Samsung Electronics Company must have thought.

The Korean technology giant is in talks to buy a stake in Chinese automaker BYD, Reuters reports, and it isn’t the first time the company sought new cash streams from automotive world. Read More >

By on June 27, 2016

FCA

After Britain referendumed themselves right out of the European Union last week, there was plenty of talk about how the country’s automakers would fare in the wake of the Brexit.

But what about an Italian-American automaker? Today, investment bank Goldman Sachs removed Fiat Chrysler Automobiles from their “conviction” buy list, citing uncertainty over the fate of the EU, Bloomberg reports. Read More >

By on June 23, 2016

tesla-model-s-logo

It was a little terrifying watching the question-and-answer session near the end of Tesla’s livestreamed annual shareholder’s meeting, and it wasn’t just the lady asking about goji berries.

All of the speakers — well, the majority of them — seemed to possess a stratospheric level of admiration for Tesla CEO Elon Musk. Like religious (or political) disciples, the trust they placed in the man’s brilliance and decision-making abilities seemed limitless.

Well, after this week’s announcement that Tesla is offering to buy SolarCity — a solar energy provider co-founded and chaired by Musk — cracks are forming in his circle of supporters, especially in the financial realm. Read More >

By on June 22, 2016

battle

Let’s hope the cutlery was plastic and the sandwiches didn’t come with toothpicks.

Amid an investigation into the emissions scandal that recently ensnared the company’s ex-CEO and current brand chief, Volkswagen shareholders big and small gathered today to calmly discuss the company’s actions and finances.

By all accounts, the calm didn’t last. Read More >

By on June 22, 2016

Elon Musk + Tesla Model S Circa 2011

Founded with the intent of finding energy solutions (and profit) in the power of the sun, SolarCity’s photovoltaic energy business has grown in leaps and bounds since 2006. Now, as the company poises itself for bigger profits, a very familiar man wants to acquire the operation.

Tesla Motors published a note on its website yesterday stating its intention to acquire SolarCity. The offer, made by Tesla, would see the electric automaker trade shares with the San Mateo, California-based company, bringing the business into its fold.

Tesla founder and CEO Elon Musk is no stranger to SolarCity’s operation — he co-founded it with cousins Lyndon and Peter Rive (CEO and CTO of Solar City), and serves as the company’s chairman. Read More >

By on June 14, 2016

2008 chrysler sebring

Famous for being a failed savior, a financial hound of Hades has come to the aid of Gawker Media and its many online publications.

Cerberus Capital Management L.P., the infamous private equity firm that produced headline gold — and not much else — after its ill-fated 2007 purchase of Chrysler, is now offering cash to another bankrupt company. The firm announced it will hand Gawker $22 million to keep the lights on while the media giant completes its bankruptcy proceedings and sell-off. Read More >

By on May 31, 2016

2016 Volkswagen Passat (6 of 14)

First-quarter earnings just released by Volkswagen Group show a massive hit to the company’s namesake brand, all thanks to fallout from the diesel emissions scandal.

Profit at Volkswagen passenger cars fell 86 percent to 73 million euros ($81 million), down from 514 million euros last year. That plunge leaves the brand with a nano particle-thin operating margin of 0.3 percent.

Still, the scandal isn’t a killing blow for the company. Why? Investment advisers aren’t lying when they say diversity is key to weathering shocks. Read More >

By on May 26, 2016

Takata Agua Prieta Mexico Facility

The company behind one of the largest safety recalls in automotive history might have a lifeline thrown its way.

Takata, the manufacturer at the heart of the exploding airbag scandal, is being courted by private equity firms, Bloomberg reports, with at least one high-profile company already in close talks. Read More >

By on May 19, 2016

Tesla Model 3

It’s billed as the affordable electric car of the future, but 12,200 reservations have dropped off the Tesla order list since the company’s Model 3 came on the scene.

The new tally was revealed when Tesla announced plans to raise $1.4 billion through a share offering to boost its financial standing, Bloomberg reports.

Since orders opened, 4,200 duplicate reservations have been erased by the company, and 8,000 customers have backed out of their purchase. That leaves 373,000 reservations on the books, each backed by a $1,000 check. Read More >

By on May 12, 2016

Carlos Ghosn speaks -01. Picture courtesy Bertel Schmitt

Yesterday’s vague Japanese media reports proved right this morning, as Nissan Motor Co. announced it will purchase a 34 percent controlling stake in scandal-plagued Mitsubishi Motors.

Taking advantage of Mitsubishi’s reduced market value following the company’s admission of cheating on Japanese fuel economy tests, Nissan’s 237 billion yen ($2.2 billion) bulk buy of shares makes it the automaker’s largest shareholder.

It’s a big win for Nissan, which can take credit for exposing the gas mileage scandal less than a month ago. Read More >

By on May 11, 2016

2014 Volkswagen Passat TDI-011

Investigators are still probing Volkswagen’s actions in the diesel emissions scandal, but the board that oversees the actions of the company’s top brass isn’t too concerned.

The supervisory board, made up of investor and labor interests, just cleared Volkswagen’s management of any breaches of duty in 2015 in preparation for their annual shareholders meeting, Bloomberg reports.

To say 2015 was an eventful year for Volkswagen is akin to saying Neil Armstrong had fun in the late ’60s. It was so eventful, its CEO took a permanent vacation. Many medicine cabinets in Wolfsburg were likely renovated to handle an influx of new prescriptions. Read More >

By on April 28, 2016

Bentley Bentayga

Rival automakers salivating at the thought of snapping up a castoff from Volkswagen’s brand portfolio will have to sit and wait.

Amid grim fourth-quarter financial data and ongoing expenses linked to the diesel emissions scandal, the company is standing by its assets, but admits they might have to jettison some if unexpected expenses crop up. Read More >

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