Tag: funding

By on December 26, 2019

An electric vehicle platform many can’t wait to get their hands on continues to make Rivian the upstart automaker to watch. The fledgling, Michigan-based automaker just closed a $1.3 billion investment round led by T. Rowe Price Associates, Inc. — pushing the company’s 2019 take to $2.8 billion.

With two utility vehicles on the way and a pledge to license its EV architecture to anyone willing to pay for it, Rivian’s big-buck backing from the likes of Ford, Amazon, and Cox Automotive was just the start. (Read More…)

By on December 17, 2019

ford

The $6 billion in funding promised in Ford Motor Company’s new four-year labor contract is starting to be seen and heard. Having secured a walletful of incentives from the state of Michigan, Ford is now promising about $1.45 billion and 3,000 new jobs for the Southeast Michigan area.

Ford’s cash dump, announced Tuesday, will flow into three facilities in the area, one of which doesn’t yet exist. (Read More…)

By on November 26, 2018

According to Tesla CEO Elon Musk, the automaker was teetering on the edge of disaster earlier this year. “Tesla faced a really severe threat of death due to the Model 3 production ramp,” Musk told Axios during a video interview on HBO. “Essentially the company was bleeding money like crazy and just if we didn’t solve these problems in a very short period of time, we would die. And it was extremely difficult to solve them.”

Musk said Tesla was within “single-digit weeks” of an unrecoverable catastrophe. While we appreciate his present candor, the assertion doesn’t mesh with comments made earlier.

In fact, Elon was down on the automotive firm needing more funds every since it posted its 2011 financial results. “Tesla does not need to ever raise another funding round,” he said in response to a question on the company’s cash position back in February of 2012. “We may want to do so, but we are in a strong cash position, and we don’t need to.”  (Read More…)

By on August 21, 2018

tesla model 3

Save for some uplifting production news, Tesla Motors is still fighting an uphill battle. CEO Elon Musk’s earlier claim that the company would go private has gotten him into trouble with the Securities Exchange Commission — since it looks as if the automaker hasn’t procured the necessary funding to make that happen.

However it doesn’t appear as if Norway’s sovereign wealth fund will be the outlet to pick up that tab. Trond Grande, deputy CEO of the Norwegian fund, declined to say whether Tesla had approached the fund about going private. “We don’t have a view on that,” he said before adding “We want to be invested in companies that make money.” (Read More…)

By on August 20, 2018

It’s not a done deal just yet, but a high-tech Tesla rival, headquartered just a few miles away from Elon Musk’s Palo Alto, California base of operations, might receive the Saudi funding the Tesla CEO so desperately craves.

According to sources who spoke to Reuters, PIF, Saudi Arabia’s sovereign wealth fund, is ready to pour $1 billion into Newark, California-based Lucid Motors. The two entities have reportedly drawn up a term sheet for the deal, which would see the the Saudis become a majority owner of the private automaker.

What does Lucid have to offer the Saudis in return for the investment? A large, technologically advanced automobile. (Read More…)

By on August 9, 2018

lotus evora gt430

Zhejiang Geely Holding Group, the massive Chinese conglomerate that owns Volvo Cars and a controlling stake in Lotus, wants to turn the British sports car maker into a big deal. Potentially, a deal big enough to give Porsche bouts of anxiety.

That’s what sources with knowledge of Geely’s plans tell Bloomberg. The parent company’s efforts will reportedly include new facilities and assembly plants, funded by a cash injection totalling nearly $2 billion. (Read More…)

By on November 16, 2015

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On Friday, Barclays Plc announced it estimates the near-term costs of Volkswagen’s seemingly ever expanding emissions scandal will be about $27 billion USD (25 billion Euros).

Volkswagen’s automotive group had $29.6 billion in net liquidity at the the end of the third fiscal quarter of this year. About $10.8 billion is allocated to protect the company’s credit ratings. That leaves about $19 billion in cash for the company to work with.

There are fines that will be paid in a number of countries, along with goodwill gestures to owners of affected VW vehicles and incentives needed to sell cars from a tainted brand. Then there will the cost of litigation and any judgments or settlements that come out of those lawsuits.

About the same time as Barclays’ announcement, Automotive News and Bloomberg reported Volkswagen AG will be meeting in Wolfsburg this week with representatives of about a dozen banks to secure as much as $21.5 billion in loans by the end of this year. Those meetings aim to shore up the company’s financing and show the credit markets that VW has enough liquid assets to cover emissions-related costs. (Read More…)

By on December 19, 2013

holden-emblem

In the wake of General Motors’ decision to cease all manufacturing operations through Australian subsidiary Holden by 2017, the Australian government has announced that they will create a $100 million AUD ($89 million USD) fund for affected employees.

(Read More…)

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