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☆ Goldman Sachs names the global automakers exposed to a China slowdown
▼ + stars: | 2022-11-29 | by ( Ganesh Rao | ) www.cnbc.com time to read: +4 min

Many global companies are heavily exposed to China, including some of the world's biggest automakers, which generate between 20% and 40% of their worldwide sales in the country, according to Goldman Sachs. Goldman Sachs has a $305 price target on Tesla, giving it potential upside of around 66% from its current share price of around $182. Mercedes-Benz Goldman Sachs estimates that Mercedes will sell 734,000 cars this year in China. Meanwhile, Volkswagen's joint-venture partner SAIC is sell-rated by Goldman Sachs, which gives it downside potential of 9%. General Motors Goldman Sachs estimates that nearly half of all cars GM sells worldwide will be in China between 2022 and 2024.

SEOUL, Nov 29 (Reuters) - South Korea will offer "tailored" incentives to encourage Tesla to set up an electric vehicle gigafactory in the country and will minimise any risks posed by militant unions, President Yoon Suk-yeol told Reuters. Yoon held a video call with Tesla Chief Executive Elon Musk last week and Yoon's office cited Musk as saying South Korea is among the top candidate locations for a new Tesla factory. Yoon said South Korea offers highly skilled workers and his government would ensure regulations align with international standards so that foreign firms do not face unexpected financial or regulatory hurdles. Yoon credited his government's tough response to labour union strikes this year for starting the process of establishing a rule of law in industrial relations for both management and labour. About 9,600 truckers have joined the strike organised by the truckers' union, demanding a permanent guarantee of a minimum freight rate to protect against rising and unpredictable fuel costs and overwork.

☆ Exclusive: Tesla readies revamped Model 3 with project 'Highland' -sources
▼ + stars: | 2022-11-28 | by ( ) www.reuters.com time to read: +6 min

[1/2] A Tesla Model 3 sedan, its first car aimed at the mass market, is displayed during its launch in Hawthorne, California, U.S. March 31, 2016. Tesla’s Shanghai Gigafactory will put the redesigned Model 3 into production in the third quarter of 2023, they said. CHANGE YOU CAN SEEThe redesign for the Model 3 builds on the revamp of the Model S -- Tesla’s premium EV sedan -- that was released last year. The Model 3, Tesla’s cheapest EV starting at just under $47,000 in the United States, had been the automaker’s best-seller but is being overtaken by the Model Y crossover. KEEP IT SIMPLEMusk has pushed a simplified approach to design and production at Tesla that the Highland project extends, said the people with knowledge of the development.

☆ Goldman Sachs says EV batteries are becoming 'critical' and names 2 stock picks
▼ + stars: | 2022-11-23 | by ( Weizhen Tan | ) www.cnbc.com time to read: +2 min

Electric vehicle batteries are gaining "critical importance" as part of the energy transition, according to Goldman Sachs, which named a number of stocks set to benefit as countries diversify their supply chains away from China. China currently accounts for around 60% of global EV battery demand, but this share is set to decline to 30% by 2030, Goldman said in a Nov. 14 report. Significant investment — to the tune of $160 billion for the U.S and EU — is required to develop a fully localized battery supply chain, without China's involvement, Goldman said. In Europe, Goldman likes Freyr Battery , which it says is a major beneficiary of the U.S. Inflation Reduction Act. "We view FREYR as well positioned to succeed in the future, due to their focus on [lithium iron phosphate] batteries that are designed for battery storage," Goldman said.

☆ Volkswagen's $2 bln Trinity electric vehicle plant in doubt
▼ + stars: | 2022-11-17 | by ( Jan Schwartz | ) www.reuters.com time to read: +2 min

Volkswagen, the world's second-biggest carmaker, had planned to officially start production of its flagship electric sedan at the new factory in 2026. Manager Magazine reported that Blume wanted to delay this until 2030. The SSP model platform planned for the whole group will probably no longer be launched with the Trinity plant as originally planned, the magazine reported. It was too early for concrete statements as Volkswagen wants to decide on its revised investment plans in February, the source told Reuters. Volkwagen's supervisory board in March approved 2 billion euros ($2.07 billion) for the new Trinity factory, with construction due to start in spring 2023.

☆ Construction workers who helped build Tesla's gigafactory in Austin file complaints claiming unpaid wages and fake workplace safety certifications
▼ + stars: | 2022-11-15 | by ( Aaron Mok | ) www.businessinsider.com time to read: +4 min

Construction workers who helped build Tesla's gigafactory in Austin filed multiple workplace complaints on Tuesday. Workers accused their subcontractors of withholding wages and failing to keep workers safe, documents say. The construction workers accused their subcontractors — those who employed and paid the workers — of withholding wages from some workers, according to a complaint sent by an attorney at the Workers Defense Project, the nonprofit that's representing the construction workers. Even so, this isn't the first time that Tesla has faced complaints about its working conditions. The construction workers are seeking to recover their lost wages, according to the complaints.

☆ Panasonic and Redwood Materials strike multibillion-dollar battery component deal for U.S. production
▼ + stars: | 2022-11-15 | by ( Phil Lebeau | ) www.cnbc.com time to read: +2 min

Panasonic Energy of North America , the largest supplier of battery cells for electric vehicles in the U.S., has struck a deal with Nevada-based battery recycling company Redwood Materials to buy a key material for the production of batteries. Right now, Panasonic imports almost all of the cathode material used in the production of battery cells at its plant in Sparks, Nevada. The new Panasonic facility will use high-nickel cathode supplied by Redwood materials when production starts in 2025. For Straubel, the agreement with Panasonic Energy is further validation of his vision for Redwood Materials. By 2030, the company expects to produce anode and cathode materials annually to power five million electric vehicles.

☆ Slovakia's InoBat eyes electric vehicle battery plant in Serbia
▼ + stars: | 2022-11-14 | by ( Nick Carey | ) www.reuters.com time to read: +2 min

The Serbian government has agreed to provide funding of up to 419 million euros ($431 million) including grants and tax incentives to support the project, InoBat said. InoBat has said it wants to build a gigafactory in western Europe and one in eastern Europe. Last month InoBat said it had signed a declaration of intent with Spain's government to build a gigafactory in Valladolid. The company aims to build battery production capacity in 4 GWh increments starting in 2025 - costing around 350 million euros each - as contracts are signed. Ideanomics is an investor in InoBat, as are mining group Rio Tinto (RIO.L) and Czech utility CEZ (CEZP.PR).

☆ Exclusive: Tesla has considered exporting EVs from Shanghai to U.S., Canada
▼ + stars: | 2022-11-12 | by ( ) www.reuters.com time to read: +5 min

Tesla's evaluation has included consideration of whether parts made by Tesla's China-based suppliers would be compliant with regulations in the United States and Canada, they said. Tesla would not be the first U.S. automaker to ship made-in-China vehicles to the United States. Tesla's Shanghai Gigafactory has the capacity to produce 1.1 million electric vehicles per year after an upgrade earlier this year, making it Tesla's most productive manufacturing hub. The Shanghai plant makes Model 3 sedans and Model Y crossovers to sell in China and for export to markets including Europe, Australia and Southeast Asia. That means Tesla vehicles could potentially be exported to North America at a competitive price.

☆ EXCLUSIVE Tesla mulls exporting China-made EVs to United States-sources
▼ + stars: | 2022-11-11 | by ( ) www.reuters.com time to read: +5 min

Tesla's Shanghai Gigafactory has the capacity to produce 1.1 million electric vehicles per year after an upgrade earlier this year, making it Tesla's most productive manufacturing hub. The California plant, Tesla's first, produces the Model S, the Model 3 sedans and the Model X and Model Y crossovers. At the same time, the price gap between Tesla cars sold in China and the United States has been widening, reflecting both higher U.S. prices and new discounts in China. Tesla sells the Model Y for the equivalent of $49,344 in China, compared to the U.S. price of $65,990. loadingTesla would not be the first U.S. automaker to ship made-in-China vehicles to the United States.

☆ Biden says Elon Musk's relationships with foreign countries are 'worthy of being looked at'
▼ + stars: | 2022-11-10 | by ( Matthew Loh | ) www.businessinsider.com time to read: +2 min

President Joe Biden said Elon Musk's ties with foreign countries are "worth being looked at." A Saudi prince and a Qatari sovereign fund's subsidiary are major investors in Musk's Twitter. "I think that Elon Musk's cooperation and, or, technical relationships with other countries is worthy of being looked at," he told reporters at a White House press conference. White House officials had earlier denied reports that it was planning a security review of Musk's dealings with Twitter. "The national security review, that is not true," said White House press secretary Karine-Jean Pierre on October 24.

☆ Elon Musk's righthand man at Tesla has reportedly joined SpaceX after the electric-car maker launched an investigation into the top lieutenant
▼ + stars: | 2022-11-10 | by ( Grace Kay | ) www.businessinsider.com time to read: +3 min

Elon Musk has brought in Omead Afshar to help lead Starship production, Bloomberg reported. In July, Tesla was reportedly investigating Musk's righthand man after he authorized the purchase of construction materials that the system flagged as items that could be for Elon Musk's personal use. At the time, Tesla had already terminated several employees as a result of the investigation and Bloomberg reported Afshar was likely to leave the company next. Though, David Searle — the legal chief that was reportedly investigating Afshar — left the company in August, Bloomberg reported. Do you work at Tesla, SpaceX, or have insight to share?

☆ Tesla Shanghai adds to inventory at highest rate ever in October - brokerage data
▼ + stars: | 2022-11-09 | by ( ) www.reuters.com time to read: +3 min

That was the biggest gap between production and sales since Tesla opened its Shanghai Gigfactory in late 2019, CMBI data showed. Reuters GraphicsWhile Tesla's inventory numbers remain low relative to established automakers, building inventory has been a down-cycle indicator for the industry, forcing markdowns in past recessions of the kind Tesla has not yet faced. Tesla Chief Executive Elon Musk said last month China, Tesla’s second largest market, was in a “recession of sorts". Tesla cut prices for its Model 3 and Model Y cars in China last month to boost sales. Unlike traditional automakers, Tesla distributes through its own stores, rather than dealers, and so is left to hold and finance any inventory that has not been delivered to buyers.

☆ From Teslas to BMWs, cars are piling up on land and at sea in German port of Bremerhaven
▼ + stars: | 2022-11-07 | by ( Lori Ann Larocco | ) www.cnbc.com time to read: +4 min

Krisztian Bocsi | Bloomberg | Getty ImagesThe Port of Bremerhaven, the main roll on/roll off port in Germany and one of the largest automobile hubs in the world, is experiencing gridlock. He said car imports into Bremerhaven from the U.S. and Mexico are operating on a timeline of months. Bremerhaven is Europe's fourth-largest containership port, with annual capacity over 5 million TEU [twenty-foot equivalent unit] containers. Another UK strike nearsAt the Port of Liverpool in the U.K., a fourth strike is set for November 14-21 if no deal with port management is reached. Braun told CNBC that since these strikes are well organized there is time in advance to plan and circumvent the port, diverting trade elsewhere.

☆ His COVID lockdowns made him one of the most unpopular politicians in China. Xi Jinping just made him the 2nd-most powerful man in the country. Meet Li Qiang.
▼ + stars: | 2022-11-05 | by ( Matthew Loh | ) www.businessinsider.com time to read: +7 min

They key to his success is his loyalty to President Xi Jinping, experts say. But on October 23, Chinese President Xi Jinping made it clear: It didn't matter. Xi Jinping, Li Qiang, and other members of China's new top leadership walk in order of their rank. But his real value to Xi comes in the form of his loyalty to Xi, Wu said. Xi Jinping doesn't look into other things.

It wants 3.8 billion pounds ($4.4 billion) to build a gigafactory in northern England but its plans are hanging by a thread as it struggles to lure enough investment. French battery startup Verkor, for example, announced on Wednesday that it had raised 250 million euros ($249 million) to fund a megafactory. The European Battery Alliance (EBA) acknowledges Asian firms, and Chinese companies in particular, are likely to increase their market share in the coming years, helped by their track record and offtake agreements. "Even if we have the production in Europe, it doesn't mean we have the know-how or the control," she said. The EU has approved 6.1 billion euros since 2019 in funding by member states for battery research and innovation while Britain has a 1 billion pound fund to support investments in EV supply chains.

☆ Verkor raises 250 mln euros to fund EV battery megafactory
▼ + stars: | 2022-11-02 | by ( Nick Carey | ) www.reuters.com time to read: +2 min

LONDON, Nov 2 (Reuters) - French battery startup Verkor has raised 250 million euros ($248 million) from investors to fund a battery "megafactory" on its way to building a much larger plant to produce batteries for its customer Renault (RENA.PA), the company said on Wednesday. Verkor, which is based in Grenoble, said investors in the funding round included French bank Societe Generale (SOGN.PA), German industrial company Siemens (SIEGn.DE) and the European Investment Bank, which put in 49 million euros. The funding round comes after the company raised 100 million euros from investors in 2021. Verkor said that so far the company has been making several batteries a day in its lab in Grenoble. As well as perfecting its battery chemistry, the megafactory will help Verkor master production at scale and train people to eventually run the Dunkirk gigafactory, Lemaignan said.

HONG KONG, Oct 27 (Reuters Breakingviews) - Tesla’s (TSLA.O) China price cut is a double-edged sword. China is increasingly important for Tesla and its investors, accounting for around a quarter of the electric-car maker’s top line in the first nine months of 2022. If sales reach nearly $120 billion next year as forecast by Refinitiv, a 9% cut would equate to around $2.5 billion in revenue. Chinese drivers, though, are starting to snub international badges in favour of home-grown alternatives, especially for electric and premium models. The company posted the price cuts on its China website on Oct. 24.

☆ Tesla faces U.S. criminal probe over self-driving claims, sources say
▼ + stars: | 2022-10-26 | by ( Mike Spector | Dan Levine | ) www.cnbc.com time to read: +6 min

Such warnings could complicate any case the Justice Department might wish to bring, the sources said. The Justice Department investigation potentially represents a more serious level of scrutiny because of the possibility of criminal charges against the company or individual executives, the people familiar with the inquiry said. As part of the latest probe, Justice Department prosecutors in Washington and San Francisco are examining whether Tesla misled consumers, investors and regulators by making unsupported claims about its driver assistance technology's capabilities, the sources said. The Justice Department's Autopilot probe is far from recommending any action partly because it is competing with two other DOJ investigations involving Tesla, one of the sources said. The Justice Department may also face challenges in building its case, said the sources, because of Tesla's warnings about overreliance on Autopilot.

☆ Exclusive: Automakers to double spending on EVs, batteries to $1.2 trillion by 2030
▼ + stars: | 2022-10-25 | by ( Paul Lienert | ) www.reuters.com time to read: +3 min

To put the figure in context, Alphabet (GOOGL.O), the parent company of Google and Waymo, has a market cap of $1.3 trillion. Automakers have forecast plans to build 54 million battery electric vehicles in 2030, representing more than 50% of total vehicle production, according to the analysis. To support that unprecedented level of EVs, carmakers and their battery partners are planning to install 5.8 terawatt-hours of battery production capacity by 2030, according to data from Benchmark Mineral Intelligence and the manufacturers. Japan's Toyota Motor Corp (7203.T) is investing $70 billion to electrify vehicles and produce more batteries, and expects to sell at least 3.5 million battery electric models (BEVs) in 2030. It plans at least 30 different BEVs and expects to transition the entire Lexus range to battery electric over that span.

☆ Tesla slashes China prices by up to 9% as analysts warn of 'price war'
▼ + stars: | 2022-10-24 | by ( Reuters Staff | ) www.reuters.com time to read: +4 min

FILE PHOTO: Visitors wearing face masks check a China-made Tesla Model Y sport utility vehicle (SUV) at the electric vehicle maker's showroom in Beijing, China January 5, 2021. China Merchants Bank International (CMBI) said Tesla’s price cuts underlined the growing competitive risk for EV makers in China, with industry-wide sales projected to slow into 2023. “The price cuts underscore the possible price war which we have been emphasising since August,” said Shi Ji, an analyst with CMBI. Analysts are warning of a growing car inventory glut for autos in China, where auto sales growth slowed in September while EV sales rose at their slowest pace in five months. But Tesla has also regularly adjusted prices of its cars in China, including reductions, reflecting government subsidies.

☆ Tesla cuts China prices by up to 9% as analysts warn of 'price war'
▼ + stars: | 2022-10-24 | by ( Reuters Staff | ) www.reuters.com time to read: +3 min

FILE PHOTO: Visitors wearing face masks check a China-made Tesla Model Y sport utility vehicle (SUV) at the electric vehicle maker's showroom in Beijing, China January 5, 2021. REUTERS/Tingshu Wang/File PhotoThe price cuts, posted in listings on the electric vehicle (EV) giant’s China website on Monday, are the first by Tesla in China in 2022, and come after Tesla began offering limited incentives to buyers who opted for its insurance last month. The price cuts also follows Tesla Chief Executive Elon Musk’s comment last week that “a recession of sorts” was under way in China and Europe, and Tesla said it would miss its vehicle delivery target this year. China Merchants Bank International (CMBI) said Tesla’s price cuts underlined the growing competitive risk for EV makers in China, with industry-wide sales projected to slow into 2023. “The price cuts underscore the possible price war which we have been emphasising since August,” said Shi Ji, an analyst with CMBI.

☆ Tesla cuts starter prices for Model 3, Model Y in China by up to 9%
▼ + stars: | 2022-10-24 | by ( ) www.reuters.com time to read: +1 min

SHANGHAI, Oct 24 (Reuters) - Electric vehicle giant Tesla (TSLA.O) has cut starter prices for its Model 3 and Model Y cars by as much as 9% in China, according to listings on the company's Chinese website on Monday. The starting price for the Model 3 sedan was reduced to 265,900 yuan ($36,727.03) from 279,900 yuan, while that for Model Y sport utility vehicle was cut to 288,900 yuan from 316,900 yuan, the product prices listed on its Chinese website showed. Tesla has been adjusting the prices in line with costs, the company told Reuters in a statement. Capacity utilisation at its Shanghai Gigafactory has improved, while the supply chain remains stable, leading to lower costs, it said. Tesla has upgraded its Shanghai factory to be able to produce 22,000 Model 3s and Model Ys per week in total, Reuters previously reported.

☆ Tesla shares fall further as it cuts price on cars in China
▼ + stars: | 2022-10-24 | by ( ) edition.cnn.com time to read: +3 min

The price cuts, posted in listings on the electric vehicle giant’s China website on Monday, are the first by Tesla in China in 2022, and come after Tesla began offering limited incentives to buyers who opted for Tesla’s insurance last month. Shares of Tesla (TSLA) fell nearly 4% in US premarket trading on the report about lower prices for its cars in China. The price cuts come after Tesla CEO Elon Musk said last week that “a recession of sorts” was under way in China and Europe and Tesla said it would miss its vehicle delivery target this year. “The price cuts underscore the possible price war which we have been emphasizing since August,” said Shi Ji, an analyst with CMBI. But Tesla has also regularly adjusted prices of its cars in China, including reductions, reflecting government subsidies.

☆ EXCLUSIVE Automakers to double spending on EVs, batteries to $1.2 trillion by 2030
▼ + stars: | 2022-10-21 | by ( Paul Lienert | ) www.reuters.com time to read: +4 min

Register now for FREE unlimited access to Reuters.com RegisterAutomakers have forecast plans to build 54 million battery electric vehicles in 2030, representing more than 50% of total vehicle production, according to the analysis. To support that unprecedented level of EVs, carmakers and their battery partners are planning to install 5.8 terawatt-hours of battery production capacity by 2030, according to data from Benchmark Mineral Intelligence and the manufacturers. Leading the charge is Tesla (TSLA.O), where Chief Executive Elon Musk has outlined an audacious plan to build 20 million EVs in 2030, requiring an estimated 3 terawatt-hours of batteries. Japan's Toyota Motor Corp (7203.T) is investing $70 billion to electrify vehicles and produce more batteries, and expects to sell at least 3.5 million battery electric models (BEVs) in 2030. It plans at least 30 different BEVs and expects to transition the entire Lexus range to battery electric over that span.

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