QOTD: Does The Market Not Trust EVs?

One of my VerticalScope colleagues pointed out to me that Polestar's stock has taken a dive. This is a bit odd if you believe that Polestar is one of the EV companies that is having some success as EVs move more and more into the mainstream, as some believe.

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Ford Continues Selling Rivian Stake

Ford Motor Co. has decided to continue offloading Rivian stock, with the burgeoning electric vehicle manufacturer at roughly $24 per share. After divesting itself of 8 million shares earlier this month, Blue Oval sold another 7 million ahead of the weekend — leaving itself holding about 9.7 percent of the company.

With 86.9 million shares leftover from the sale, Ford remains a relevant stakeholder. However, investors are growing worried that the legacy manufacturer will continue dumping Rivian as a way of salvaging future losses. Ford, which previously owned some 102 million shares in Rivian, endured a massive $3.1-billion loss in its first quarter as the value of its investment in the company slumped. Worse still, investors are souring on tech and EV stocks in general.

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A Lesson in Stonks: Rivian Nosedives as Ford Unloads Shares

The fortunes of many are won and lost on America’s stock markets – or even on reports of share sales. Markets reacted this morning to a news report alleging Ford Motor Company is divesting itself of 8 million shares in Rivian, the latter being an EV startup with designs on producing the R1T pickup truck and R1S SUV.

In premarket trading, Rivian’s stock fell over 10 percent to just $25 per share, well off its 52-week high of nearly 180 bucks. Yeesh.

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Securities and Exchange Commission Checking in on Lucid Motors

Lucid Group Inc. has been subpoenaed by the U.S. Securities and Exchange Commission (SEC) which is on the prowl for any documentation relating to its merging with a special purpose acquisition company (SPAC). Known colloquially as “blank-check firms,” these organizations literally exist to be combined with existing companies as a way to pump the stock and spur investments.

But they’ve gotten a lot of negative attention following a glut of EV startups garnering impressively high valuations based on little more than a business proposal. Those seeking an example need look no further than Nikola Corp, which was outed as having grossly overpromised on its technological capabilities and production acumen after raking it in on the stock market. As a result, financial regulators have become increasingly skeptical of SPACs and want to make sure everything going on with Lucid is above board.

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Rivian Sets IPO at $78, Stonks to the Moon

While no one around this neck of the woods would call themselves experts in finer points of the stock market, we do know how to add. Talking heads at the Wall Street Journal are reporting Rivian has set an initial share price of $78 for its IPO, a heady sum to be sure. What drives this story to another dimension is they’ve allegedly sold 153 million shares at this price.

For those keeping track, that means they raised nearly $12 billion – making RIVN the biggest listing so far in 2021.

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Prepare Yourself for Another Huge Electric Vehicle IPO

Chinese electric vehicle manufacturer Xpeng announced Thursday a decision to increase the size of its U.S initial public offering (IPO) by more than a third after realizing Wall Street can swallow anything so long as it promises a greener tomorrow.

Co-founded in 2014 by two former executives from China’s GAC Group, the EV startup has already managed to produce around 20,000 vehicles for the Asian market. It also became engaged in an intellectual property dispute with Tesla (which claimed Xpeng stole its Autopilot source code) in 2019 and ran afoul with California’s Department of Motor Vehicles after failing to submit disengagement reports on its self-driving test vehicles in 2018.

Such hurdles don’t seem to have slowed the company’s rise to prominence, however. Xpeng is adept at fundraising, amassing well over a billion dollars through strategic partnerships in just the last two years. Meanwhile, the adjusted IPO filed on the New York Stock Exchange this August now targets a cool $1.5 billion USD.

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Uber Lowballs IPO, Eager to Avoid Lyft's Fate

Ride-hailing company Uber approached its Thursday initial public offering with an abundance of caution, setting a lower-than-expected share price in a bid to avoid rival Lyft’s stock plunge.

When markets open Friday, Uber’s stock will be priced at $45, near the bottom of a previously stated range that topped out at $50. That puts Uber’s initial valuation at just over $82 billion. Amid controversy surrounding its business practices and growing uncertainty about the viability of huge ride-hailing firms, Uber hopes to raise $8.1 billion from its IPO.

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Money Matters: Moody's Downgrades Ford to Near Junk

Ford’s been wringing its corporate hands over stock prices for ages. While the market itself is generally rising, the Blue Oval seems to perpetually find itself in Wall Street’s basement. It is arguable that lackluster performance on this front cost Mark Fields his job earlier this year.

Things are not looking up in that department. Yesterday, FoMoCo’s credit rating was cut to Baa3 by Moody’s Investors Service, just a single notch above junk status.

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Hedge Fund Manager Convinced Tesla Shares Will Collapse

American investment manager and short-seller extraordinaire Jim Chanos claims Tesla is “headed for a brick wall.” Having deemed the automaker as structurally unprofitable, Chanos said, “Three years ago, this company was supposed to be making money [today]. And now, it’s supposed to be making money by 2020. I’m guessing by 2019, we’ll hear about 2025.”

However, while Tesla has taken on massive amounts of debt to ensure its evolution as company, investors haven’t seemed to mind. Its stock price has climbed from $33 a share in 2013 to almost $380 in September of 2017. As a short-seller, Chanos says he’s lost money on the company in the past since the stock price never seems to go down, and that’s what he finds the most alarming.

“Nobody is buying Tesla stock based upon the current business,” he said. “It’s all based on the future and the hope for half-a-million to a million Model 3s per year.”

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Ford to Wall Street: Drop Dead

At a Detroit Economic Club event held last night in the Motor City, Blue Oval Chairman Bill Ford opined that Ford Motor Co. may have been too forthcoming with Wall Street in past years.

“In the past, maybe we said too much,” Ford said Tuesday.

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Marchionne Confirms Ferrari SUV, Denies Jeep Sale

Despite months of denial, Sergio Marchionne confirmed that Ferrari will put a sport utility vehicle into production on Monday. “We’re dead serious about this,” Marchionne said at the New York Stock Exchange earlier this week. “We need to learn how to master this whole new relationship between exclusivity and scarcity of product, then we’re going to balance this desire to grow with a widening of the product portfolio.”

The working title for Ferrari’s SUV is “FUV” and its confirmation undoes months of Marchionne’s claims that it would “never be built.” In February of 2016, the CEO even said he would have to be shot and killed before Ferrari made an SUV. For his sake, we hope that is no longer a provisional aspect of the build.

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Is Aston Martin Finally Ready for Public Trading?

Rumors that Aston Martin is destined for an initial public offering, either eventually or imminently, have persisted ever since former parent Ford offloaded the British luxury marque in 2007.

The brand has come a long way since Ford dropped it off at the orphanage by expanding into new segments, spawning a sub-brand, and entering the non-automotive realms of merchandise and luxury speedboats. As its trajectory increasingly mirrors that of recently spun-off Ferrari, sources claim an IPO is right around the corner.

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Tesla's Market Value Beats GM's, Making It Number One Among Domestics

Workers are likely spinning in office chairs and there’s probably a second frozen yogurt machine on its way to Fremont as you read this.

After hitting a springboard on Monday morning, Tesla’s stock market value has now surpassed that of the former top-ranked U.S. automaker General Motors. This comes just a day after the electric automaker’s surging shares pushed past Ford, placing it in the number two spot.

There’s nowhere to go except down. What, too cynical?

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We're Number Two! Tesla Tramples Ford in Investor Value, Targets GM

For a car company that sells a tiny fraction of the volume put out by the likes of Ford, General Motors and Fiat Chrysler Automobiles, Tesla’s investors have given the electric automaker clear bragging rights.

Despite generous debt, tight timelines and razor-thin profitability, Tesla’s stock market value sprinted past Ford today, placing it in the number two spot among domestic automakers. The company, which has yet to offer a vehicle most normal Americans can afford, holds a market cap of $47.81 billion at last count.

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Volvo Passes Around the Hat Ahead of Possible IPO

Volvo denies that it wants to return to publicly listed status, but a new round of fundraising has many believing the Swedish automaker is about to end its 20-year absence from the stock market.

According to the Financial Times, the Geely-owned company hopes to raise about $500 million from a new batch of preference shares. Unlike the last time it held out its hat, this time Volvo wants Chinese buy-in.

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  • 3SpeedAutomatic "...to make room for reality TV reruns..."What an insult!! Shows how far broadcast TV will stoop for a few extra bucks.I much appreciate Jay for keeping the "motor head" world alive in a Zoom society. However, maybe it's time for him to retire or semi-retire. There's enough material for him to do YouTube with most auto related companies willing to underwrite....but the number of shows would be at his own pace.I wish him well!!
  • Gregtwelve I had an '88 Turbo Coupe with 5 spd bought used and really liked it. I loved the looks, it had decent power for the time and a nice interior. Unfortunately the head gasket went at around 60K miles. I repaired it myself and sold it.
  • Mattwc1 I bought a Maverick specifically because I wanted utility and great fuel economy. My wife has a RAV4 hybrid that we really like. I think Toyota would print money with a smaller RAV4 based truck.
  • Varezhka Dunno. Looking at Maverick and Santa Cruz, having the engine in the front of the driver and a crew cab layout will mean the rear bed will be about the same size as kei trucks. And it will still be more than 16ft long. I'd rather get a Tacoma and/or a Hilux at that point.If we actually want a small truck with usable bed, it will have to be cab over layout with standard cab like Toyota TownAce Truck. We already know how popular that would be, even without getting into federal safety requirements.
  • SCE to AUX "Its militaristic, drab fortress presence, is some sort of reflection of the times."Very insightful comment in your excellent summary. The Cybertruck vs Hummer EV comparison tests will be enjoyable, sure to enflame their fans.