Tag: stocks

By on May 10, 2019

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. (Read More…)

By on April 26, 2019

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Automakers find themselves a bit of a pickle right now. The shift towards “mobility” has resulted in high development costs for electric and autonomous vehicles in the midst of stagnating sales growth. There’s also a trade war hurting global demand and impacting supply chains. Ultimately, this resulted in a lackluster Q1 for many manufacturers.

Ford’s situation was symbolic of the industry’s general plight, per its 34-percent decline in net revenue for the first quarter of 2019, but it wasn’t without a warm ray of hope. The company posted a 12-percent increase in earnings (before before interest and taxes) over the same period due to North America’s consistent desire to own SUVs, crossovers, and pickups. Ford’s share price also improved, hitting the $10 mark for the first time since August of 2018 on Friday.

With all that good news, many probably wonder what caused net revenue to climb into the toilet like an overly curious ferret. As it turns out, saving money can be pretty expensive.  (Read More…)

By on April 2, 2019

Despite playing host to what everyone presumed would be a very hot property, Lyft’s IPO hasn’t panned out as expected. While the company’s Friday stock debut was strong, April 1st was less promising, with Lyft’s share price slipping by nearly 12 percent in a single day. It’s now well beneath the target price, casting doubts about the financial sustainability of mobility firms.

It’s a complicated issue. Lyft was valued at more than $22 billion when it went public last week, but investors are concerned with the company’s inability to turn a profit. Last year, the ride-hailing giant posted a net loss of nearly $1 billion. With Uber likely to announce its own IPO soon (and likely face similar headwinds), many are concerned.  (Read More…)

By on January 25, 2019

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Ford’s chief executive, Jim Hackett, told employees Thursday evening that 2019 cannot be a repeat of last year.

“2018 was mediocre by any standard,” Hackett said in an email to employees. “Yes, we made $7 billion last year. But think of it this way: this represents a 4.4 percent operating margin, about half what we believe is an appropriate margin. So we are aiming for much closer to $14 billion.”

Despite being at the helm of The Blue Oval for nearly two years. Hackett’s Ford continues to endure a slipping share price and a market cap of 34.5 billion — substantially less than General Motors’.

“I become mad for a short time. Likely mad at myself, but also because I know we are better than that,” the CEO said of Ford’s current situation. “I know that our competition hasn’t been better than us by magic.”  (Read More…)

By on January 23, 2019

jim_hackett

Remember Mark Fields, the former Ford CEO who was forced to retire due to an inability to manifest his vision of the company’s future in a timely manner? Well, it’s starting to look like Wall Street needs another sacrificial lamb. Ford’s current chief executive, Jim Hackett, appears rather appetizing.

Despite promises from company chairman Bill Ford that the automaker would see swifter decision making under Hackett, it hasn’t felt all that differing from the company’s Fieldsian days. There’s still a strong emphasis placed on transforming Ford into a mobility company with no obvious path on how to get there. While it might be a little unfair of us to slam Fields or Hackett for their inability to accurately map out the future like some mythical sage, investors expect exactly that. As a result, Ford’s stock price has continued to tumble.  (Read More…)

By on December 14, 2018

China announced Friday its intent to reduce tariffs on imports of American-made cars as it tries to negotiate a trade deal with the United States. As you’ll recall, the People’s Republic imposed additional punitive tariffs on U.S. cars and auto parts earlier this year after promising it would lower the trade barriers on a global scale.

Things look to be different this time around. China has already taken steps to scale back the trade war and appears ready to continue down that path. Earlier this month, President Donald Trump and Chinese President Xi Jinping agreed to a truce in the trade war at their meeting in Argentina. This was followed by an announcement, via Trump’s Twitter account, claiming China had agreed to scale back auto tariffs against the United States(Read More…)

By on December 3, 2018

Trump

Last night President Donald Trump tweeted that China had agreed to reduce tariffs. While The People’s Republic already lowered tariffs over the summer, it chose to cut the United States out of that deal as trade relations worsened. In fact, America found itself subject to an increased, 40-percent fine on imported autos while the rest of the world saw their tariffs (partially) eased. But the president seems optimistic.

“My meeting in Argentina with President Xi of China was an extraordinary one,” Trump explained in a follow-up post. “Relations with China have taken a BIG leap forward! Very good things will happen. We are dealing from great strength, but China likewise has much to gain if and when a deal is completed. Level the field!”

Meanwhile, China remains silent on the matter.  (Read More…)

By on September 10, 2018

After hiring financial advisors earlier this year, a move many believed was a precursor to an initial public offering (IPO), Volvo parent company Geely now claims the waters are too choppy to float any shares in the resurgent Swedish automaker.

First reported by the Financial Times this past weekend, the Chinese holding company says there’s too many uncertainties and headwinds in the industry right now. Thus, no Volvo stock for you. The biggest uncertainty is the one that’s keeping automakers on edge the world over. (Read More…)

By on August 30, 2018

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.

(Read More…)

By on August 13, 2018

Last week, Tesla CEO Elon Musk announced his intention to take the automaker private. But speculation quickly arose that the claim was just a clever ploy to drive up the company’s share price and burn short sellers, a group Musk seems to have a particular disdain for. This resulted in a shareholder complaint, filed Friday as a securities-fraud class action in federal court in San Francisco, alleging he lied to manipulate shareholder prices.

However, the Securities and Exchange Commission was already investigating the matter at the time of the lawsuit’s filing. While the bulk of the initial investigation involved asking Musk if he was lying, it’s presumably advanced in scope and complexity since then. The lynchpin to the whole issue is whether Tesla actually secured the billions in funding necessary to go private. Even though the CEO said the money is real, he did not specify who would provide it.

That changed on Monday morning, when Musk pointed to oil-rich Saudi Arabia. But it’s not as simple as it sounds.  (Read More…)

By on April 27, 2018

Elon Musk

Earlier this year, Elon Musk agreed to stay on as Tesla’s CEO for another 10 years. But he may not remain as the chairman of its board. This week, the automaker announced some of the proposals to be voted upon at this year’s annual stockholder’s meeting. Among them was a bid to have Musk replaced by an independent director.

After previous complaints that board members were too closely tied to Elon, the company took on Johnson Publishing Company CEO Linda Johnson Rice and 21st Century Fox CEO James Murdoch. However, at least one shareholder is claiming that isn’t sufficient and drafted a proposal to have Musk replaced as chairman — saying that his involvement with SolarCity and SpaceX conflict with his commitment to Tesla Motors.  (Read More…)

By on March 30, 2018

tesla model 3

Tesla’s once sky-high share price has taken a serious hit in recent days, so news of the electric automaker’s recall of 123,000 Model S vehicles couldn’t have come at a worse time.

Describing the recall as voluntary, Tesla sent emails to owners of all Model S electric cars built before April 2016 to warn of an issue affecting the car’s power steering system. The issue involves corrosion impacting the bolts holding the power steering motor to the rack, which can then shear off — leading to a loss of power steering.  (Read More…)

By on February 23, 2018

By Siyuwj Geely_assembly_line

Is a seemingly unstoppable Chinese automaker slowly amassing a significant ownership stake in Germany’s Daimler AG? That’s what sources tell Bloomberg.

According to the news outlet, sources claim Geely Auto Group, which owns the Volvo, Lotus, and the mysterious Lynk & Co. car brands, is steadily acquiring a $9.2 billion stake in the German giant. That would give the Chinese a near 10-percent stake in the maker of Mercedes-Benz vehicles.

Are we witnessing the birth of a new alliance? (Read More…)

By on November 1, 2017

All-New 2018 Ford F-150 - Image: Ford

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.

(Read More…)

By on October 7, 2017

tesla model 3

It’s been of week of bad PR and reports that should have Tesla investors tugging their collars and thinking twice, though in Teslaland these well-publicised issues only propel the automaker’s stock even higher.

The company’s electric big rig (aka the Tesla Semi), rumored to have a range of 200 to 300 miles, won’t see the light of day until November 16th, CEO Elon Musk claims. That’s two months after the initial reveal date, which was subsequently pushed back until late October.

The larger problem facing the company is the slow ramp-up of Model 3 production, which kicked off in July, but only resulted in only 220 deliveries by the end of September. The company forecasted 1,500 Model 3s in the month of September, with an expected production rate of 5,000 vehicles per week by the end of the year. Blame the slow trickle of cars on a “manufacturing bottleneck issue,” the company said in a statement.

As Musk attempts to soothe fears, a new report claims the automaker was hand-building parts away from the assembly line even as the high-tech facility was supposed to be cranking out Model 3s at a steady clip. Tesla is not happy about this report. (Read More…)

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