Tag: stocks

By on May 5, 2021

On Tuesday, Nissan Motor Co. announced that it would be selling its shares of Daimler AG. The Japanese firm owns about 1.5 percent of Germany’s oldest automaker and the move is something many were predicting after Renault did the same in March.

Nissan’s offloading will mimic its partners and likewise use an accelerated bookbuild offer that basically means dumping shares as quickly as possible with help from an underwriter. Investors were to expect shares to be priced around 69.85 euros apiece, netting the automaker at least $1.2 billion if everything goes smoothly.  (Read More…)

By on March 12, 2021

Hindenburg Research, the firm that outed Nikola for overselling its technology in last year’s scathing report, has selected a new target. The company in its crosshairs this time around is Lordstown Motors. While the investment research firm stopped short of saying the Ohio-based manufacturer committed fraud, it came extremely close. On Friday, Hindenburg alleged that Lordstown is stringing investors along, will be unable to adhere to its existing production targets, and fabricated sales to make the business appear more appetizing.

“Lordstown is an electric vehicle [special purpose acquisition company] with no revenue and no sellable product, which we believe has misled investors on both its demand and production capabilities,” reads the report. “The company has consistently pointed to its book of 100,000 pre-orders as proof of deep demand for its proposed EV truck. Our conversations with former employees, business partners and an extensive document review show that the company’s orders are largely fictitious and used as a prop to raise capital and confer legitimacy.”

(Read More…)

By on February 10, 2021

Rivian Automotive is seeking to go public in the fall and targeting a valuation of at least $50 billion, according to the latest reports. The all-electric startup company, supported by Amazon and the Ford Motor Company, has already amassed around $8 million from investors and was valued at $27.6 billion less than a month ago.

While we couldn’t possibly say what it’s actually worth, burgeoning EV manufacturers have performed incredibly well on the stock market lately. Rivian would almost assuredly see its valuation balloon to the targeted sum through an initial public offering. It already has a product line, 3,600 employees spread between the Midwest and California, some serious marketing under its belt, and a relatively strong relationship with a few of the world’s largest companies. We’ve seen more done with far less on Wall Street.  (Read More…)

By on October 19, 2020

When they’re not preparing to sell an ultra luxury super car brand or creating a new line of electric vehicles, they’re planning a big time merger for a larger piece of the heavy-duty truck market.

It’s only gonna cost them a few billion dollars.

(Read More…)

By on October 1, 2020

Nikola Corp. has decided to reschedule the Nikola World conference that would have offered the public a look at its all-electric Badger pickup and an opportunity to see what else the company was cooking up. Under normal circumstances, we would all just fault COVID-19 and move on with our frustrating little lives. But the firm was recently accused of having misled investors on the true progress of its technology.

Those allegations were rebuffed by chairman and founder Trevor Milton… before he abruptly left the company and Nikola’s ludicrously high stock valuation pivoted in the wrong direction.

Interestingly, most of the blame seems to be staying with Milton. Nikola shares pitched up on Wednesday, despite the only major change being one more vacant office on the top floor. Meanwhile, CEO Mark Russell has been trying to get everyone stoked about Nikola World and all the amazing stuff that’s supposed to be there in December 2020. That included a view of the Badger pickup, which GM was supposed to build and the company has been taking preorders for since June.

(Read More…)

By on September 14, 2020

Following a scathing report from Hindenburg Research that called Nikola a fraudulent company largely dependent upon the blind excitement surrounding electric vehicles, the accused has finally issued a response. On Monday, Nikola released a bulleted letter suggesting the report was the act of an opportunistic short seller that was attempting to take advantage of the period immediately proceeding the announced partnership with General Motors. While Hindenburg didn’t exactly hide that aspect of itself in its own report, it frames the business as only profiting off companies that weren’t above board to begin with. It also received support from Citron Research, which said it likewise thought Nikola needed to be scoped out by the Securities and Exchange Commission (SEC) and promised to help pay for half of any legal fees incurred as a result of Hindenburg’s reporting.

Meanwhile, Nikola was crafting its rebuttal after founder Trevor Milton explained he had to wait on a comprehensive response because he was already in contact with the SEC. As his constant Twitter updates started to become counterproductive, this was likely a wise decision. The response dropped on Monday, clearing a handful of items up while making a bunch of other aspects seem even more suspect. (Read More…)

By on September 11, 2020

While we’ve suspected that electric vehicle startups and green tech, in general, is probably a little overvalued, we’ve never accused anyone of outright fraud. Burgeoning automakers have a tendency to over promise and under deliver. Throughout history, this has occasionally gotten them into serious trouble. But it’s also how the game is played, especially when you’re new to the scene and need to distinguish yourself from giant entities who would just as soon crush you in lieu of risking the eventual competition. Nikola is a perfect example of this and built a hype train so swift that legacy brands could only hope to buy it out or invest and share in the fruits of its labor before it sped away.

But what if it wasn’t ever growing any industrial fruit?

That’s the claim being made by Hindenburg Research — which specializes in short selling, pointing to firms on the cusp of financial disaster (hence the name), and attempting to bust businesses the Securities and Exchange Commission (SEC) might be interested in. The financial research firm has suggested that Nikola founder Trevor Milton had misrepresented what the company was actually capable of in terms of product, with the intent to mislead investors into thinking the company should be incredibly valuable. It reads like a hit piece and was accused by Milton of being just that. However, there are issues brought up in the report that are still worth examining.

(Read More…)

By on July 9, 2020

Fisker Inc. is reportedly in talks to go public after seeing how well other electric vehicle manufacturers (prospective or otherwise) have performed on Wall Street this year. In case you missed it, Tesla became the most valuable automaker on the planet this summer, while startup Nikola saw its shares explode through the ceiling ⁠— despite having never manufactured a single product for purchase.

It seems like complete madness, so it aligns perfectly with just about everything else that’s happened in 2020.  (Read More…)

By on July 2, 2020

With the automotive industry seeing losses across the board, most investors could do nothing but watch in horror as sales reports showed the post-lockdown recovery had not yet begun. But there was a faction that ignored the carnage taking place around them and continued to pump money into their preferred auto brand until it became the most valuable automaker in the world.

While it’s a sin for you not to know, we are obviously discussing Tesla Motors — the infallible, gleaming beacon of modern-day motoring.

The firm officially surpassed mega-giant Toyota on Wednesday, with shares trading as high as $1,228 before tapering off in the evening with a market cap of around $220 billion.  (Read More…)

By on June 22, 2020

Nikola, the electric vehicle startup with no functional or sellable product to back up its insane valuation, just got a reality check from JPMorgan. The Wall Street firm has warned investors of a pullback of the company’s sky-high share price — an action that pretty much guarantees that exact outcome.

After catapulting into the stratosphere two weeks ago, Nikola’s stock stands to sink by nearly a third, the bank warns. That result would no doubt be gratifying for those annoyed by overvalued companies who promise investors the sun, moon, and stars.

(Read More…)

By on June 16, 2020

On Tuesday, Audi announced Volkswagen Group is prepared to buy out minority shareholders. VW announced the plan earlier in the year, setting aside funds to procure the 0.36 percent of Audi it didn’t already own.

“Volkswagen AG announced and specified that it has set the cash settlement to be paid to the minority shareholders in return for the transfer of their shares at 1,551.53 euros per Audi AG share,” the Ingolstadt-based manufacture said in a statement.  (Read More…)

By on June 9, 2020

Nikola, the Phoenix-based EV startup that hopped on the Nasdaq last week, finds itself awash in capital despite not having much to show for itself it terms of sellable product.

No matter, as it doesn’t take a sound business model or originality to thrive on Wall Street. Nikola hasn’t even seen fit to come up with a unique moniker for itself and instead uses the scraps left by Tesla Motors’ not using the full name of the inventor that serves as its inspiration. However, Nikola is designing battery/hydrogen-driven semi trailers and pickup trucks — which are the freshest fad in the industry at present. Investors took notice and pushed Nikola’s market cap past $26 billion on Monday. It just kept climbing, too, with only the eventual promise of product and profitability to spur them on.  (Read More…)

By on February 4, 2020

Despite it only being a little over a month into 2020, Tesla’s stock has already doubled since New Year’s. Share prices surged to over $900 before Tuesday’s trading, leaving many scratching their heads as to how one of the smallest global manufacturers manages to clean up so well on Wall Street.

Seeking answers, Bloomberg looked to industry analysts and executives from rival car manufacturers to better understand Tesla’s mojo — and determine whether all the stock heat is warranted. The gist appears to be that Elon Musk and company are simply running away with battery technology, something that’s difficult to refute. However, some claims that Tesla has surpassed what constitutes an automaker feel overblown and not entirely consistent with reality.  (Read More…)

By on October 1, 2019

The strike by UAW-affiliated General Motors workers, now in its third week, is piling up costs for the automaker. It’s also hiking financial pressure on the UAW, which just started paying out $250 a week to roughly 48,000 picketing workers in the United States.

As bargaining teams negotiate behind closed doors to reach a tentative contract agreement, the growing financial consequences of the labor action is hitting GM in another way: it’s now impacting GM’s stock price. (Read More…)

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…)

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