Tuesday, 31 December 2019

Chinese electric-car maker NIO’s shares soar as loss shrinks, though cash concerns linger

While NIO has cut thousands of jobs and started to scale back marketing expenditures, its finances remain strained. File photo: SCMP / Roy Issa

NIO surged in US trading after the Chinese electric-car maker paired better-than-expected quarterly results with a warning that it is still running low on cash.
NIO’s adjusted net loss was US$342.9 million for the quarter ended in September, a smaller deficit than the prior three months and what analysts were estimating. While the Shanghai-based company does not have enough money to continue operating another 12 months, Chief Financial Officer Feng Wei said during an earnings call that “significant positive progress” has been made arranging financing by selling equity or debt.
American depositary receipts for the maker of ES6 and ES8 electric sport utility vehicles at one point more than doubled in intraday trading and closed up 54 per cent, the biggest jump since the day after its September 2018 initial public offering. The stock is still down 42 per cent this year.
While NIO has cut thousands of jobs and started to scale back marketing expenditures, its finances remain strained. China’s electric-car market is slowing as the government reduces subsidies, and competition is getting tougher with Tesla starting deliveries of its China-assembled Model 3 sedans.
“It’s not as though management definitively addressed the company’s solvency problem,” Alexander Potter, an analyst at Piper Jaffray with the equivalent of a hold rating on NIO, wrote in a report. “Although NIO made some encouraging comments on today’s call, we still lack conviction in our estimates. In particular, we don’t know how much capital the company will be able to raise – and we don’t know when this cash infusion (if any) will materialise.”
While NIO’s revenue rose about 25 per cent to US$257 million in the quarter, sales still are not improving enough to make up for expenses on product development, splashy marketing campaigns and lavish retail outlets. The company has accumulated a deficit of about US$6 billion since its founding in 2014.
A US$200 million convertible-bond sale announced in September is almost complete, Feng said on the conference call. NIO received US$100 million from shareholder Tencent Holdings, and the remainder of proceeds from the securities Chief Executive Officer William Li is purchasing are being processed.\
“Significant new financing remains needed if NIO is to remain a going concern,” Robin Zhu, an analyst at Sanford Bernstein, wrote to investors. “We doubt NIO can put off paying its suppliers indefinitely, and expect significant new financing (and dilution to ADR holders) to be required if NIO is to remain solvent.”
Li expects NIO to sell more than 8,000 cars in the quarter ending this month, compared with 4,799 for the period completed in September. He said the company will have fewer than 7,500 employees at the end of this year, down from a peak of 9,900.

Monday, 30 December 2019

Tesla delivers first China-made cars from $5bn Shanghai factory

Tesla has delivered the first vehicles it has made in China, marking a major milestone in the electric carmaker’s global expansion efforts.
The first 15 Model 3 cars to roll off the line at the US carmaker’s Shanghai factory went to customers who were Tesla employees and were handed over in a ceremony at the plant on Monday.
Tesla will ramp up production during January, marking the start of a full-on assault on the world’s largest car market. It has taken less than a year from the start of construction of the $5bn (£3.8bn) Shanghai factory in January to the delivery of the first vehicles.
The factory, announced in July 2018, is Tesla’s first facility outside the US and will have an annual capacity of 150,000 Model 3 cars per year, compared with 350,000 in its main factory in Fremont, California.
Tesla is aiming for China to become the largest market for its Model 3, outstripping the US. China is already the largest market for mid-sized premium sedans that rival the Model 3, according to IHS Markit data cited by the carmaker.
“From now onwards, China-made Model 3 vehicles will start running on China’s large streets and small lanes,” Tesla’s vice-president, Tao Lin, said.
The carmaker will enter a crowded field, with some reports suggesting there are hundreds of companies aiming to mass-produce electric cars. However, industry insiders expect many of these to fail and a recent slump in Chinese car sales has caused severe difficulties for some of the more established names. For electric carmakers the general slump has been exacerbated by cuts to government subsidies.
The subsidy cuts prompted the Warren Buffett-backed electric carmaker BYD to slash its profit forecasts in October. Nio, a premium carmaker pitched as a direct rival to Tesla, was forced to raise $200m in September from its chief executive and major shareholder, Tencent, in response to deepening losses.
Nio on Monday announced revenues rose by 22% to 1.7bn yuan (£190m) in the third quarter of 2019. That was higher than expected by analysts, but Nio said that its continued operation over the next year still depended on raising new finance.
Tesla has bet billions of dollars on China, with its Shanghai factory opening well ahead of another planned “gigafactory” in Berlin, its first in Europe.
Tesla claims its Model 3 pricing will put it on a similar level to fossil fuel-powered mid-sized sedans, even before gas savings and other benefits.
Shanghai will also produce Tesla’s Model Y crossover SUV, which is built using the same platform as the Model 3. Model Y deliveries are scheduled for the summer of 2020.

Saturday, 28 December 2019

NIO Dazzling Showrooms in Peril as Tesla Nears China Launch

Tesla Set to Deliver First China-Built Car in Milestone for Musk

(Bloomberg) -- China’s most high-profile challenger to Tesla Inc. has had a tough year, and 2020 isn’t looking any easier.
Electric-car maker NIO Inc. has accumulated a deficit of almost $6 billion since its founding in 2014, spending extensively on marketing and product development for a foothold in the burgeoning market. Third-quarter earnings, which are due to be released as soon as Monday, are expected to show there’s still a long way to profitability.
While NIO has slashed jobs and started to scale back marketing expenditures, its finances remain critically strained. China’s electric-car market is slowing as the government reduces subsidies, and competition is getting tougher with Tesla preparing to start sales of its China-built Model 3 sedans.
“NIO’s balance sheet implies serious liquidity risk,” said Robin Zhu, an analyst at Sanford C. Bernstein in Hong Kong with an underperform rating on the stock. “The key will be whether they are able to announce major new financing.”
Shares of NIO have plunged 60% since the company had its initial public offering in New York last year. That’s left it with a market value of $2.6 billion, compared with Tesla’s market capitalization of $78 billion.
The stock rose 0.8% in pre-market trading in New York, as of 8:19 a.m local time.
Owners’ Clubs
At the root of NIO’s high cost level is a marketing strategy that includes everything from advertising campaigns to so-called NIO Houses, showrooms where customers can gather to spend time, work and eat. That’s left the company burning cash faster than much bigger Tesla.
The first NIO House, which opened in Beijing in 2017, occupies more than 32,000 square feet on two levels in one of the city’s most expensive districts. NIO has since set up about 20 more, each featuring a showroom and some equipped with a users’ lounge, theater, meeting rooms, work spaces, library, open kitchen, and camp activities for customers’ children.
“There are many activities for kids every week,” said Yuan Ye, an owner of a NIO vehicle and mother of a four-year-old, and a frequent visitor to a NIO House in Beijing. “It has saved me a lot from pre-school tuition.”
NIO had $207 million in selling, general and administrative costs, including marketing and promotional events and rent, in the second quarter. NIO Houses and related promotions probably accounted for $72 million of that, estimates Robert Cowell, an analyst at 86Research, a Shanghai-based equity research firm. The carmaker also spent $189 million in research and development.
Yet revenue in the second quarter was just $221 million. Though demand has been picking up -- NIO delivered 4,799 cars in the third quarter through September, a 47% increase from a year earlier -- the company is far from break-even. It probably lost $381 million in the third quarter, according to the average of four analysts’ estimates compiled by Bloomberg. For 2020, the average loss estimate is $1.2 billion on sales of $1.7 billion.
Cutting Back
To rein in costs, NIO has shifted from adding NIO Houses to setting up much smaller stores called NIO Spaces of about 1,000 to 2,000 square feet. NIO Houses remain important and contribute to building a premium brand, NIO said in an emailed response to questions.
To fuel demand, NIO has launched promotional incentives including 0% interest for three years and guaranteed subsidies for cars registered before the end of February 2020. The company is also bringing out a streamlinedsport utility vehicle, the third SUV in its lineup.
With just about $500 million in cash, equivalents and short-term investments as of June 30, NIO has had to take steps to fill up its coffers. It said in September that co-founder William Li and shareholder Tencent Holdings Ltd. had each subscribed to $100 million in convertible notes. NIO said the bond sale and its financing projects are proceeding as planned, without elaborating.
“NIO is still at risk of running out of cash, even counting in the $200 million convertible notes,” said Jason Chen, an analyst at Blue Lotus Capital Advisors. “It needs to secure more funds, ramp up sales much more quickly, and significantly cut costs to sustain its business.”

Friday, 27 December 2019

Tesla To Start Delivering China-built Model 3 Cars

Tesla will begin delivery of its first China-built Model 3 cars on Monday, according to reports citing a company representative.
The development marks a major milestone for the luxury electric car maker as it seeks to expand its presence in China, the world's biggest market for electric vehicles as well as automobiles.
Tesla will deliver the first fifteen units of the Model 3 sedans assembled at its Shanghai plant to Tesla's employees on December 30. Tesla has reportedly said it wants to start deliveries of the China-built cars before the Chinese new year beginning on January 25.
The multi-billion dollar Gigafactory in Shanghai is Tesla's first outside the United States. Construction of the plant began in January this year and production commenced in October.
In early 2019, Tesla had said it opened its online Model 3 configurator for the Chinese market, enabling potential buyers to plan specific configuration options for their vehicles.
The China-built Model 3 sedans will compete with electric cars from local rivals such as Nio Inc. and Alibaba-backed Xpeng, as well as foreign competitors such as Daimler and BWM.
The China-made cars are priced from 355,800 yuan, or $50,000 before subsidies, slightly cheaper than imported versions.
China's Ministry of Industry and Information Technology has added Tesla's China-made Model 3 to a list of vehicles qualifying from an exemption from a 10 percent purchase tax in the country. The move is expected to further help Tesla in boosting its sales in China.
Meanwhile, Tesla disclosed in a regulatory filing that it reached agreements with lenders in China for a secured term loan facility of up to 9 billion yuan, or $1.29 billion, for its Gigafactory in the country.
The company also signed agreements for an unsecured revolving loan facility of up to 2.25 billion yuan.

Volkswagen raises forecast for electric car production

Volkswagen raises forecast for electric car production
FRANKFURT, Germany (AP) — Automaker Volkswagen is accelerating its move into battery-powered cars, saying it will reach its goal of 1 million electric cars per year two years earlier than planned. Friday's announcement came as European automakers are under pressure to meet lower emissions limits aimed at fighting global warming.
The Wolfsburg-based automaker said its core Volkswagen brand would turn out a million battery-only cars by the end of 2023 instead of 2025, and would reach 1.5 million by the end of 2025.
Those numbers are a stark contrast to this year's production of more than 70,000 e-autos and last year's 50,000. Volkswagen is planning to raise its production and sales numbers by introducing the ID.3, a battery model the company says will have the low price and longer range needed to transform such cars from a niche product to one with mass acceptance. The ID.3 base model will cost under 30,000 euros ($33,500) and travel 330 to 550 kilometers (205 to 340 miles) on a single charge.
European carmakers must meet tougher limits on fleet average emissions of carbon dioxide from 2021 or face heavy fines. Analysts and carmakers say the only way they can do that is by significantly increasing their sales of electrics. Carbon dioxide is the primary greenhouse gas blamed by scientists for global warming.

Thursday, 26 December 2019

Alaska electric utility pairs with Tesla for battery system

Alaska electric utility pairs with Tesla for battery system

An Alaska utility is working with electric car maker Tesla to install an industrial battery system to quickly release stored power into grids, an official said.
Homer Electric Association announced the contract with California-based Tesla for the utility’s power plant in Soldotna, The Anchorage Daily News reported Wednesday.
The electric cooperative wants to replace natural gas-fired power for short periods and cut greenhouse gas emissions.
The Tesla components are expected to be installed in a battery energy storage system that should begin operating in fall 2021.

Tesla did not immediately return an email seeking comment.
Homer Electric’s service area covers the western Kenai Peninsula and includes 34,000 electric meters and 24,000 member-owners.
The battery system’s power can be delivered to its grid at a rate of 46.5 megawatts an hour and operate at that rate for two hours before it must be recharged, Homer Electric General Manager Brad Janorschke said.
The battery system is expected to increase the utility’s ability to provide power without disruptions, he said.
The system will be a backup source of energy that is available year-round and can feed power to the grid more quickly and efficiently than a gas-fired turbine.
“It will save significant dollars in fuel every year,” Janorschke said. “As gas prices escalate those savings will keep going up.”
The utility did not disclose the battery system's cost, but Janorschke said it plans to pay for the system using financial reserves and debt financing.

Youngstown, Ohio, hopes to plug into electric car manufacturing

The day Youngstown's steel mills began shuttering 40 years ago still remains fresh in the minds of many of those who live in the blue-collar corner of Ohio. Community leaders don't want the recent closing of General Motors' massive Lordstown assembly plant to leave that same lingering gloom.
The region is embarking on an ambitious plan to become a research and production hub for electric vehicles and carve out a new economy for itself by mixing its industrial past with emerging technology.
GM announced in December it will form a joint venture and hire more than 1,100 people at a new plant that it says will be among the largest electric vehicle battery cell factories in the world. And the Lordstown assembly plant that GM shut down in March has been sold to a newly formed company that hopes to make electric trucks by late 2020.
But the Youngstown region, which for decades has been a symbol of the American Midwest's declining industrial might, faces plenty of competition from places like Detroit, Silicon Valley and China — all of which also are positioning to be centers for electric and autonomous vehicles.
While the electric transformation within the auto industry is just beginning to take shape, it's clear that fewer workers and factories will be needed to make cars that require fewer parts. Where those next clusters of electric vehicle manufacturing will sprout is yet to be determined.
U.S. Rep. Tim Ryan, a Democrat who represents the Youngstown area, thinks electric vehicles are the best chance his hometown has to restore what has been lost.
"For a long time in our community, we were chasing smokestacks, chasing things that were on the decline," Ryan said. "We're starting to move in a good direction."
The Youngstown area already has an electric battery testing lab and business incubators focused on energy and manufacturing through 3-D printing, economic development leaders said. Officials at Youngstown State University have an advanced manufacturing technology center and want to train students to work in the electric vehicle industry.
"We want to take charge of our future," said Mike Hripko, the university's associate vice president for economic development and government relations. "An opportunity like this really plays to our regional strengths." 

It will take more than a battery cell plant for the Youngstown region to become a hub for electric vehicles, said Brett Smith, director of research at the Center for Automotive Research, an industry think tank in Michigan. Auto-oriented technology and research will be centered largely in South Korea, China, Detroit and California, he predicted. 
A big question is whether a place like Ohio that has had a big role in producing traditional engines and transmissions can stake a claim to a new way of making vehicles.
Both GM and Ford Motor Co. announced this year they are investing heavily in Detroit-area factories, where they plan to build electric and autonomous vehicles. Volkswagen, meanwhile, will make Tennessee its North American base for electric vehicle production.
Where the manufacturing is centered will be determined by a number of factors, Smith said, including logistics, labor contracts, political influences, workforce training and how quickly car buyers embrace electric vehicles. Fully electric vehicles currently make up only 1.5% of U.S. new vehicle sales, and LMC Automotive forecasts the share will rise to only 7.5% by the end of the next decade.

Wednesday, 25 December 2019

Tesla's Elon Musk steps up his Twitter attacks on SEC regulators

Shares of electric-car maker Tesla closed above $420 on Tuesday — more than a year after tweeting about that mythical, magical number got CEO Elon Musk in trouble with securities regulators.
Tesla closed at $425.25 a share at 1 p.m. Eastern Time, after breaching the $420 mark in intraday trading on Monday. The new high brings the company's total stock market value to $76.6 billion.
In a tweet Monday, Musk crowed about the brief intraday breach: "Whoa ... the stock is so high lol," the chief executive wrote, with a wink to "420," a classic reference to marijuana. 
The symbolism of the $420-a-share figure for Tesla goes back 16 months. In August 2018, Musk tweeted, "Am considering taking Tesla private at $420. Funding secured," sending the company's stock soaring. It turned out, though, that he did not have funding secured, and that he chose the $420 figure in a back-of-the-envelope calculation, and also because he "thought his girlfriend 'would find it funny.'"
The Securities and Exchange Commission sued Musk for stock manipulation, which resulted in his ouster as Tesla's chairman, an agreement not to tweet unsupervised and a $20 million fine for Tesla. The stock's wild fluctuations during the SEC's investigation took billions off the company's stock market value, although that didn't do much to discourage Musk from tweeting.

Tuesday, 24 December 2019

Tesla News: Electric Vehicle Car Company To Borrow $1.4 Billion From Chinese Banks For Shanghai Gigafactory

Tesla News: Electric Vehicle Car Company To Borrow $1.4 Billion From Chinese Banks For Shanghai Gigafactory
Electric vehicle company Tesla (TSLA) is to take the equivalent of $1.4 billion in loans from Chinese banks to financially support its factory in Shanghai, sources told Reuters. 
The banks willing to give financial help to Tesla include China Construction Bank, Agricultural Bank of China, Industrial and Commercial Bank of China, and  Shanghai Pudong Development Bank. The loan agreement will be a five-year facility and will be partially used to pay over an existing loan the automaker has already taken out. Tesla took out a loan of up to 3.5 billion yuan ($449 million) from Chinese banks this year which is set to be repaid in March. 
The rest of the new loans will be used on Tesla’s Gigafactory, which is still under construction. The factory did, however, begin trial production in October, with Tesla believing China could be the biggest market for its Model 3 sedan. 
"China is by far the largest market for mid-sized premium sedans. With the Model 3 priced on a par with gasoline powered mid-sized sedans, we believe China could become the biggest market for the Model 3," Tesla said in October. Tesla hopes that the factory will build at least 1,000 cars a week before the end of 2019. 
The factory was partially built in order to avoid tariffs that have come from the U.S.-China trade war. By building Tesla vehicles on Chinese soil, Tesla hopes to avoid 40% import tariffs imposed by Beijing. 
The factory is the first for the company outside of the U.S.

New Rivian Investment Shows How Many Billions It Costs To Start A Car Company

Photo: Rivian
Photo: Rivian
There isn’t exactly a firm roadmap to starting a new car company, but thanks to the industry’s current electric revolution, we’re getting new opportunities to see just how much it all costs. After its newest $1.3 billion investment, Rivian has now raised over $3.5 billion with zero vehicles sold.
Rivian, the electric pickup and crossover startup based in Plymouth, Michigan, has seemingly gone from nothing to quite something in 2019 alone. Today, the company announced a new investment from T. Rowe Price, Amazon, Ford, BlackRock Inc., and others worth $1.3 billion.
According to Automotive News, this is Rivian’s fourth investment round this year alone, including two earlier this year bringing in $500 million from Ford and $700 million from Amazon, prior to this latest round of funding. Ford already has plans to use Rivian’s “skateboard” battery and motor platform for an upcoming Lincoln model, and Amazon already sealed a deal for electric delivery vans.
If you take the $2.2 billion invested this year before today and lump it together with the fresh $1.3 billion, that totals $3.5 billion so far. Keep in mind Rivian has only shown two concept cars—the R1T pickup truck and the R1S crossover—which Rivian plans to begin production of in late 2020.
The R1T was promised to start around $69,000 to buy before incentives, but it’s unclear if that’s for one of the 135 kWh and 180 kWh battery pack models planned for production next year, or if that would be the upcoming standard model, which will go into production later.
Who has $4 billion and wants to start a car company? Email our tips line, we have ideas.

Monday, 23 December 2019

Tesla Shares Cross $420 Mark Over a Year After Musk Buyout Tweet

(REUTERS) - TESLA INC shares traded above $420 on Monday, more than a year after Elon Musk tweeted he had "funding secured" to take the electric car maker private at that price, only to later give up under investor pressure and regulatory concerns.
In recent months, Tesla's shares have had a run of good fortune on the back of a rare quarterly profit reported in October, news of production ramp-up in its China factory and upbeat early deposits for its recently launched electric pickup truck.
Orders for the company's Cybertruck have reached close to the record set by its Model 3 sedans in 2016.
"Whoa … the stock is so high lol," Musk tweeted on Monday, after Tesla shares crossed the $420 mark. (http://bit.ly/2MD07Rt)
The number 420 is closely associated with marijuana as a slang for the consumption of cannabis. It also refers to cannabis-related celebrations that take place annually on April 20.
The take-private tweet in August last year, at a time when Tesla was trading in the mid-$330s, had taken shares as high as $387. Later in the month, shares were closer to $320 amid intense regulatory scrutiny.
The U.S. Securities and Exchange commission fined Musk and Tesla $20 million each for the $420 tweet. Musk was also forced to step down as chairman and must submit any public statements about Tesla's finances and other topics to be vetted by a legal counsel.
Reuters reported earlier on Monday the company and a group of Chinese banks have agreed to a new 10 billion yuan ($1.4 billion), five-year loan facility for the automaker's Shanghai car plant.
Tesla shares rose over 3.6% in Monday's session and are up nearly 65% since the quarterly report in October.

Sunday, 22 December 2019

IBM Unveils an Eco-Friendly Battery That Could Charge Your Car to 80% in 5 Minutes

As automakers across the globe embrace electrification, the need for efficient batteries has reached unprecedented levels. Unfortunately, while lithium-ion batteries may have less of an impact on the earth than fossil fuels, the materials used to make them still pose significant risks to the environment. Now, IBM is developing a new battery concept that it says will offer an even cleaner, more efficient alternative.
Most batteries today, including the lithium-ion editions that power most electric cars, are built with heavy metals, such as cobalt, manganese and nickel. The mining of these metals—in particular, cobalt—has come under increased scrutiny in recent years. The process required to extract the metals from the earth can have devastating effects on the environment, including polluting water supplies, ruining crops and degrading soil. To make matters worse, exploitative work practices, like child labor, are frequently used to mine the metals, as well.

That’s why IBM is trying to do away with this part of the battery making process entirely. Instead of relying on heavy metals, its new battery concept is built on ingredients extracted from seawater. The battery uses a new cathode that does not require cobalt or nickel and a liquid electrolyte to move ions from one end of the battery to the other. According to the company, the three seawater-derived materials (which the company has not yet identified) and the electrolyte will limit short circuits making the battery safer to use as well as make.
The battery might also be more efficient than lithium-ion batteries. In addition to having a higher power and energy density than today’s electric batteries, IBM’s battery, the company says, can be charged up to 80 percent capacity in just five minutes. These results are just estimates now, but if true, this battery could be a game-changer for electric vehicles of all types.
While IBM’s battery is still in the testing phase, the company clearly has a lot of faith in its development. It is now teaming up with Mercedes-Benz ’s research and development arm in North America, along with other research entities, to further explore the possibilities of the battery going forward. Watch this space for updates.

Saturday, 21 December 2019



Cybertruck is designed to have the utility of a truck and the performance of a sports car. The vehicle is built to be durable, versatile and capable, with exceptional performance both on-road and off-road. Cybertruck will come in three variants: Single Motor Rear-Wheel Drive, Dual Motor All-Wheel Drive, and Tri Motor All-Wheel Drive.

Vehicle Specs:

Dimensions & Weight
  • Range: 500+ miles
  • 0-60 mph acceleration: <2.9 seconds
  • Towing capacity: More than 14,000 lbs
  • Payload: Up to 3,500 lbs
  • Vault length: 6.5 feet
  • Storage capacity: 100 cubic feet of exterior, lockable storage including the vault, frunk, and sail pillars.
  • Suspension: 4” in either direction
  • Touchscreen size: 17”
  • Body: Ultra-Hard 30X Cold-Rolled stainless steel. If there was something better, we’d use it.
  • Seating capacity: Up to six adults
  • Charging: Can be charged at home, at Destination Charging locations, and with our network of more than 14,000 Superchargers, including on our newest V3 technology, which is helpful for long hauls and towing.
Visit our Design Studio to see available options and current delivery estimates.

Chevy Silverado Driver Ticketed for Towing 53-Foot-Long Trailer

  • image

  • A driver in Canada was ticketed for towing a 53-foot-long trailer with a 
  • heavy-duty pickup.
  • The trailer was hitched to the truck via a pin system, which somehow worked.
  • As dangerous as this was, we couldn't help but be impressed by the Chevy Silverado's apparent capability to do it in the first place.
    Just because you can do a thing, that doesn't mean you should. That's especially true when it comes to towing a 53-foot-long trailer using a standard-issue three-quarter-ton pickup.
    A driver in Ontario, Canada, hooked up a 53-foot trailer—yes, like the ones that semitrucks tow—to a mid-2000s Chevrolet Silverado. We can only guess as to why, or speculate whether the driver had tried this before, but nonetheless, the adventure ended with the Ontario Provincial Police pulling the rig over and ticketing the driver, because as one might assume, this is not exactly the safest practice on a public road.
    As shown in the photos the Ontario police posted to Facebook, the driver had attached the trailer via a pin to the hitch, leading one Facebook commenter to lament, "As danger as that is. [sic] I'm partially impressed with the fact that pin was able to handle the stress of accelerating and braking."

    Friday, 20 December 2019

    Tesla Bucks China Car Slump As Registrations Soar In November

    Tesla Bucks China Car Slump As Registrations Soar In November
    Tesla (TSLA) bucked a downturn in the world's biggest electric-vehicle market as new-car registrations soared 14-fold last month in China, giving the Model 3 maker some momentum as it prepares to begin deliveries from its multibillion-dollar Shanghai factory.

    Registrations of Tesla cars climbed to a five-month high of 5,597 vehicles in November, compared with 393 a year earlier, according to state-backed China Automotive Information Net, which gathers and reports car-industry data.
    Fears that China, the world's biggest auto market, would raise tariffs on U.S.-made cars in December probably helped bolster sales, according to Bloomberg Intelligence auto analyst Steve Man. But that threat subsided last week after the U.S. and China agreed to the first phase of a broader trade agreement.
    The figures could fuel the recent optimism that helped Tesla's stock rally to a record high on Friday. They also stand out because the Chinese electric-car market has been shrinking for five months straight. Still, billionaire Elon Musk's success in the country will largely hinge on how soon he can get Tesla's new Shanghai plant, its first outside America, up and running so the company can lower prices and spur demand for its cars.