By on August 10, 2020

Maybe established automakers can impress investors with electric promises, after all. Following Hyundai’s announcement that it will turn the Ioniq nameplate into an electric vehicle brand encompassing several models, the company’s stock lit the afterburners, achieving its best share price showing since 2017.

Lofty electric ambitions aren’t a sure-fire way to juice a stock, as Ford has shown year after painful year, but they can achieve results. (Read More…)

By on February 5, 2020

 

Ren Cen. GM

General Motors CEO Mary Barra went to New York on Wednesday to hold an investor conference. The day’s theme was: convincing everyone that GM deserves a higher valuation because, like Tesla, it’s supposed to be more than a car company.

While it seems slightly presumptuous for GM to expect the same overblown share price when Tesla probably doesn’t deserve it, either, the Good Book is supposed to say something about getting what you ask for. Still, having not read it in a while, I sincerely doubt it was referencing giant corporations or huge amounts of money.

Barra and company are attempting to show that GM hasn’t sat back on electrification and the same kind of advanced automotive technologies that wooed Tesla investors. Nobody said the rival automaker’s name during their speech, of course. Of course, they wouldn’t really need to, either.  (Read More…)

By on March 15, 2018

There’s something about EV manufacturers that elevates the turnover rate of high-ranking employees. It seemed like we reported on Faraday Future losing executives almost daily for two consecutive years, but Tesla now appears to have its own difficulty retaining talent. The automaker lost two of its senior financial executives this month as it prepares to report on the Model 3 sedan’s progress (or lack thereof).

Is this the beginning of the end for the EV manufacturer? Probably not. It’s easy to obsess about Tesla’s status and speculate endlessly on the health of the brand, but the company’s all-important stock price has yet to crash and Elon Musk has promised to remain at its helm for the foreseeable future. However, the firm may need to do some housekeeping to ensure it doesn’t lose the trust of its investors.  (Read More…)

By on January 23, 2018

Elon Musk

Tesla Motors has announced that its CEO, Elon Musk, won’t be paid unless its already high stock valuation blasts into the stratosphere. The executive’s compensation is now tied to a dozen operational milestones. The first of these requires bringing the company’s current market cap to $100 billion, followed by 11 more set at $50 billion increments.

Agreeing to the program, Musk now has to stay with Tesla until 2028 as both its executive chair and product officer. While this does allow him to bring in another CEO sometime in the future, the company is likely hoping to dispel any speculation that he would abandon the position. It’s good to see Musk putting some serious skin into the game but, as a multi-billionaire, his not being paid unless Tesla’s stock valuation climbs isn’t the biggest threat to his financial security.  (Read More…)

By on December 14, 2017

tesla model x, Image: Tesla Motors

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.” (Read More…)

By on October 8, 2017

renaissance center Detroit

Promoting a future for wide electrification appears to be the Achilles’ heel for bearish investors. Despite some bad publicity last week, Tesla Motors’ already sky-high share price resumed its relentless upward trend after a brief September slump. However, Tesla isn’t the only domestic company benefiting from electrification. Both General Motors and Ford have also seen marked improvements on Wall Street following tech-forward corporate announcements.

For General Motors, that meant the promise of widespread electrification. CEO Mary Barra pressed the issue by reaffirming GM’s three-tiered policy of, “Zero Crashes. Zero Emissions. Zero Congestion.” On a LinkedIn posting, Barra elaborated on the company’s vision where technology minimizes accidents via driver’s aids and autonomous hardware, nullifies emissions through alternative powertrains, and reduces congestion using inter-vehicle connectivity.

In addition to GM’s proposal to launch 20 new electric or fuel cell vehicles by 2023, the company has seen its share price jump twice in the same week. But Ford saw similar, although more modest, improvements in value following it’s own announcement of a tech-driven future.  (Read More…)

By on March 23, 2017

Hyundai Logo. Picture courtesy of autoblog.com

Hyundai Motor Group has received added attention from investors this week over expectations that the family-run business could undergo a major reorganization into a public holding, with the same separate, multifaceted structure as Hyundai Heavy Industries.

News spread that Hyundai Motor could be preparing a restructuring campaign after it issued a disclosure statement last Friday that explained it would be charging Hyundai Steel and Hyundai Glovis Co. 13.9 billion won ($12.4 million) for the use of the Hyundai brand name. This is the first time the company has ever collected from either over the use of its corporate trademark.  (Read More…)

By on March 27, 2014

2007 Chevrolet HHR 2LT Special Edition

The latest development in the GM ignition recall fiasc

(Read More…)

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