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BBC News
20-05-2025
- Automotive
- BBC News
CATL: World's biggest EV battery maker sees shares jump on debut
The world's largest electric vehicle (EV) battery maker has made its debut on the Hong Kong Stock Exchange, in the biggest initial public offering (IPO) so far this year. China's Contemporary Amperex Technology Co Limited (CATL) produces more than a third of all EV batteries sold worldwide and supplies major carmakers including Tesla, Volkswagen and company raised almost HK$35.7bn ( $4.55bn, £3.4bn) from the listing. Its shares jumped by more than 10% at the market open. In January, the US Department of Defense added the battery maker to a list of businesses it says works with China's military. CATL denies this, claiming its inclusion on the list was a "mistake". The company is already listed on China's Shenzhen Stock Exchange, where it has a valuation of more than 1tn yuan ($138.7bn, £104.3bn). Founded in 2011 in the eastern Chinese city of Ningde, it enjoyed rapid growth thanks to the boom in the country's EV industry. The battery giant employs over 100,000 people and has 13 production plants around the world. CATL is currently building its second European factory in Hungary, after opening a plant in Germany in early 2023. In December, the firm announced a tie-up with Chrysler-owner Stellantis to build a $4.3bn (£3.2bn) EV battery plant in Spain. The facility is set to be in operation by the end of next firm invests heavily in new technology, with six research and development centres around the world. "The innovations that we're seeing from CATL are unbelievable, particularly in the fast charging area", said Tim Buckley founder of the independent Australian think tank Climate Energy Finance. Last month, the company unveiled a new battery that it said can be charged for 323 miles (520km) in just five minutes. CATL is a major supplier to Elon Musk's Tesla, providing lithium iron phosphate batteries for the EV makers Shanghai factory. But US lawmakers have expressed concerns about potential national security risks surrounding the Chinese company. In April, the chair of the House Select Committee on China wrote letters to the chief executives of JPMorgan and Bank of America, asking them to withdraw from working on CATL's Hong Kong listing. Despite scepticism about Chinese firms from Washington, Mr Buckley says the US should be looking to work with Beijing on the advancement of renewable energy."They're rejecting by far the best technology players in the world when it comes to clean tech", he told the BBC.
Globe and Mail
28-03-2025
- Automotive
- Globe and Mail
Elon Musk says Tesla (NASDAQ:TSLA) 'Not Unscathed by Tariffs'
Donald Trump's announcement that he plans to slap 25% tariffs on all car imports to the United States has given most automakers whiplash as shares have been roiled by expectations that it will drive up costs and drive down sales. Light Up your Portfolio with Spark: Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. Except, that is, for Tesla (TSLA), which through its domestic U.S. manufacturing and sourcing footprint is seen as a relative winner from the tariffs at the expense of its Big Three rivals Ford (F), General Motors (GM) and Chrysler-owner Stellantis (STLA). TD Cowen analyst Itay Michaeli believes the automaker is a relative beneficiary given 100% U.S. production and substantial U.S, sourcing, and points out its Model Y is competing in a midsize crossover segment where close to 50% of vehicles from rivals could be subject to tariffs. But Elon Musk was quick to stress that Tesla is not immune, writing on X last night, 'Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.' It comes after the company sent an unsigned letter to U.S. Trade Representative Jamieson Greer warning that the company was exposed to potential retaliatory tariffs by trade partners and higher prices in its supply chain. Tesla noted that 'potential actions to rectify unfair trade should also take into account exports from the United States' since 'U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions.' The company called on the USTR to ensure manufacturers 'are not unduly burdened by trade actions that could result in the imposition of cost-prohibitive tariffs on necessary components, or other import restrictions on items essential to support U.S. manufacturing jobs.' Investors don't seem to agree much with the idea – Tesla stock has rallied about 16% this week while GM for instance slumped over 7% yesterday. GM makes about half its vehicles outside the U.S. and is seen as among the most exposed to auto tariffs and levies on imported parts such as engines and transmissions. Another reason for the more positive view on Tesla in the market this week is increasingly the company is seen as insulated from Trump and the GOP-led Congress pulling $7,500 EV tax credits. 'I think it would be devastating for our competitors and for Tesla slightly,' Musk said during an earnings call last year. 'But long term probably actually helps Tesla, would be my guess.' The other reason is autonomy. Investors are hoping that Trump will ease regulations around the deployment of robotaxis and self-driving technology. 'The value of Tesla overwhelmingly is autonomy,' Musk said on the same call. Tesla bulls like Dan Ives and Adam Jonas have long argued that self-driving and robotaxis are the main appeal of the stock. Is TSLA Stock a Buy? TSLA stock has a Hold consensus rating, with 14 Buys, 11 Holds, and 11 Sells assigned in the last three months. The average price target for Tesla stock is $335.32, suggesting a potential upside of about 23% from the current level. See more TSLA analyst ratings
Yahoo
28-03-2025
- Automotive
- Yahoo
Auto stocks slide as US tariffs send 'fatal signal' for trade
By Tom Westbrook, Ankur Banerjee, Amanda Cooper and Shivansh Tiwary (Reuters) -Shares of global automakers took a dive on Thursday after President Donald Trump put a wall of tariffs around the U.S. automotive sector, exacerbating worries over the impact on global trade and potential hits to industry profits. Trump on Wednesday followed through on weeks of threats for new tariffs on imported cars, saying a 25% import tax on vehicles not built in the U.S. would begin on April 3. Although the duties have been well flagged, shares in automakers across the globe tumbled on Thursday, with U.S. auto giant General Motors sliding 7% in premarket trading and Ford Motor shedding about 4%. Trump's tariffs leave American automakers vulnerable after years of building an extensive cross-border supply chain and expanding assembly facilities in Mexico and Canada that are crucial to supporting their U.S. sales. As European markets opened, shares in Volkswagen, Europe's top car maker, dropped 2%, while those in luxury brands BMW and Mercedes-Benz fell about 3% each. In Japan overnight, some $16.5 billion was wiped off transport stocks, according to LSEG data, as shares in Toyota fell 2.7%, Honda 3% and Nissan 2.2%. Hyundai Motor and Kia in South Korea dropped about 4% each. "Mexico, Japan, South Korea, Canada and Germany are the biggest suppliers of auto-related products to the U.S. and stand to lose out if Trump doesn't back down," said Russ Mould, investment director at AJ Bell. "It's another blow to relations between the U.S. and the rest of the world, and a further reason for investors to be gloomy." Volkswagen is in the frame since 43% of its U.S. sales are sourced from Mexico, S&P Global Mobility estimates, as is Chrysler-owner Stellantis, which, along with Ford, is one of the top producers of U.S. vehicles based in Mexico. The head of Germany's car industry association said the tariffs are a "fatal signal" for global trade. "The risk of a global trade conflict - with negative consequences for the global economy and growth, prosperity, jobs and consumer prices - is high on all sides," VDA President Hildegard Mueller said in a statement, calling for bilateral U.S.-EU talks to find a solution. The U.S. administration had set a deadline of April 2 to unveil its broader policy on tariffs, meaning the hit to shares was less dramatic than when Trump first threatened non-U.S. manufacturers with extra charges. But the signal - hurting allies and car buyers - was nevertheless unsettling for markets which have been slow to accept that the levies may become permanent fixtures and drive lasting changes in world trade flows. Almost half of the 16 million cars sold in the U.S. last year were imported, with a total value exceeding $330 billion, Goldman Sachs analysts said. 'HURRICANE-LIKE HEADWIND' The new levies could add thousands of dollars to the cost of an average U.S. vehicle purchase and impede production due to the intertwined manufacturing operations developed over decades by car makers across Canada, Mexico and the U.S. "In our view these initial tariffs (if they hold in their current form) would be a hurricane-like headwind to foreign (and many U.S.) automakers and ultimately push the average price of cars up $5,000 to $10,000," analysts at Wedbush said. Shares of Tesla were down marginally in premarket trading, with losses limited as the tariffs add to already punitive levies keeping Chinese electric vehicle makers mostly out of the U.S. market. Investors are waiting for further details of a wider range of tariffs Trump says he will levy on trading partners next week. "I think the big concern is that not only will these tariffs be disruptive and economically harmful, but they indicate that the Trump administration's shake-up of global trade won't necessarily end with next week's announcement," said Kyle Rodda, a market analyst at in Melbourne. "This potentially drags out trade uncertainty even longer and raises the question of how radical a change to the global trade order is Trump trying to bring about." (Additional reporting by Tom Westbrook and Ankur Banerjee in Singapore and Anna Pruchnicka in Gdansk; Editing by Muralikumar Anantharaman and Anil D'Silva)
Express Tribune
27-03-2025
- Automotive
- Express Tribune
Auto stocks slide as tariffs send 'fatal signal'
Listen to article Shares of global automakers took a dive on Thursday after President Donald Trump put a wall of tariffs around the US automotive sector, exacerbating worries over the impact on global trade and potential hits to industry profits. Trump on Wednesday followed through on weeks of threats for new tariffs on imported cars, saying a 25% import tax on vehicles not built in the US would begin on April 3. Although the duties have been well flagged, shares in automakers across the globe tumbled on Thursday, with US auto giant General Motors sliding 7% in premarket trading and Ford Motor shedding about 4%. Trump's tariffs leave American automakers vulnerable after years of building an extensive cross-border supply chain and expanding assembly facilities in Mexico and Canada that are crucial to supporting their US sales. As European markets opened, shares in Volkswagen, Europe's top car maker, dropped 2%, while those in luxury brands BMW and Mercedes-Benz fell about 3% each. In Japan overnight, some $16.5 billion was wiped off transport stocks, according to LSEG data, as shares in Toyota fell 2.7%, Honda 3% and Nissan 2.2%. Hyundai Motor and Kia in South Korea dropped about 4% each. "Mexico, Japan, South Korea, Canada and Germany are the biggest suppliers of auto-related products to the US and stand to lose out if Trump doesn't back down," said Russ Mould, investment director at AJ Bell. Volkswagen is in the frame since 43% of its US sales are sourced from Mexico, S&P Global Mobility estimates, as is Chrysler-owner Stellantis, which, along with Ford, is one of the top producers of US vehicles based in Mexico.
Globe and Mail
25-03-2025
- Automotive
- Globe and Mail
Tesla (NASDAQ:TSLA) European Sales Plunge Again in February
Tesla's (TSLA) dismal start to the year in Europe continued as sales plunged over 40% last month as the company was rocked by tougher competition in the electric vehicle market and antipathy towards CEO Elon Musk. Light Up your Portfolio with Spark: Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. Combined Tesla new car registrations in the European Union, the European Free Trade Association and the UK slid 40.1% year-on-year in February to 16,888 units, according to the European Automobile Manufacturers' Association. The data broadly confirmed earlier reports from JATO Dynamics. Tesla Market Share Collapses Market share in the region shrank to from 2.8% to 1.8% and the decline for Tesla, which comes after a similar 45% slump in sales in January, was set against a healthy market that saw EV registrations in Europe grow 26.1% year-on-year in February. Tesla is facing increasingly tough competition, particularly from Chinese EV players like SAIC, which saw sales in the region leap more than 26% last month. Meanwhile, Musk's close ties to the White House and support for right-wing parties such as the AfD in Germany has sparked a backlash in Europe and elsewhere, with a slew of arson attacks on Tesla showrooms highlighting how tensions have flared. Among the other automakers, Volkswagen (VWAGY) saw its sales rise 4% in February, while Chrysler-owner Stellantis (STLA) posted a 16.2% decline in sales. Ford (F) sales were down 5.8%, while Renault (RNLSY) enjoyed a 10.8% rise in sales from the same month a year before. Within just the European Union, across the first two months of 2025, new battery-electric car sales grew by 28.4%, to 255,489 units, capturing 15.2% of total market share. Overall, new EU car registrations declined by 3% compared to the same period in 2024. Is Tesla a Buy, Sell, or Hold? On Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 11 Holds, and 11 Sells assigned in the past three months. The average TSLA price target of $335.32 per share implies about 20% upside potential. See more TSLA analyst ratings Questions or Comments about the article? Write to editor@
