Latest news with #UnitedStatesInflationReductionAct
Globe and Mail
30-04-2025
- Automotive
- Globe and Mail
Redburn Atlantic: Time to Sell Tesla Stock (NASDAQ:TSLA)
Things have not been great for electric vehicle stock Tesla (TSLA) of late, nor for its various derivatives. And new word from analysts at Redburn Atlantic say it is time to pull out altogether. Investors, meanwhile, took Redburn's advice seriously, if only slightly, and shares of Tesla slipped fractionally in Tuesday afternoon's trading. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Word from Redburn Capital analyst Adrian Yanoshik calls for a mass exodus, as Tesla's recent history of declining sales volume and accompanying hurting cash flow is likely to carry on for the rest of the year. A combination of Mexico-US tariffs, China-Europe tariffs, and overall struggles with electric vehicle pricing are likely to produce troubles for Tesla through much of 2025. In fact, Redburn's projections on Tesla are downright pessimistic. Its estimates for free cash flow, and for earnings, are each 10% below Wall Street consensus, reports noted. And if the United States Inflation Reduction Act clean vehicle credits get pulled back as well, then that will take Tesla's sales down still another notch. Thus, Redburn's projected price target on Tesla stock stands at $160 per share. That represents a 44% drop against Monday's closing figures. Good Luck Buying One in New York And in New York, it may get tougher to even try to sell a Tesla to begin with. While state lawmakers have been previously seen working to bring more Tesla dealerships to New York under the guise of supporting green energy initiatives, that, somehow, changed. Now, New York is working to remove the five directly-operated Tesla dealerships in the state, because, apparently, Tesla cars are no longer green. Particularly when large amounts of them are being set on fire by 'protestors.' In fact, some Democrats in New York want to go farther still; instead of cutting off Tesla's ability to sell, they also want a 'comprehensive audit' of a deal that lets Tesla run a plant near Buffalo on a $1-per-year lease. Further, Dems also want clawbacks on previously-awarded subsidies, because again, somehow, Tesla electric vehicles just are not 'green' enough any more. Though, certainly, some have asserted that this is a matter of politics on Tesla's CEO's part rather than any issue with the vehicles themselves. Is Tesla a Buy, Hold or Sell? Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 17 Buys, 10 Holds, and 12 Sells assigned in the past three months, as indicated by the graphic below. After a 55.58% rally in its share price over the past year, the average TSLA price target of $284.74 per share implies 0.5% upside potential. See more TSLA analyst ratings Disclosure Disclaimer & Disclosure Report an Issue
Yahoo
30-01-2025
- Automotive
- Yahoo
EU seeks to preserve auto industry as carmakers condemn fines
By Philip Blenkinsop BRUSSELS (Reuters) - European Commission chief Ursula von der Leyen hosts auto sector executives, unions and others on Thursday to debate how to ensure EU car producers can electrify their fleets and compete with more advanced Chinese and U.S. rivals at the same time. The sector, hit by factory closures and job cuts, including 54,000 job losses among auto suppliers last year, also needs to confront economic threats such as U.S. trade tariffs and a reliance on China for critical minerals and batteries. The EU executive's "strategic dialogue" will feed into an auto industry plan later this year. It has already proposed discussions on key technologies, energy and input costs, trade, demand stimulation and regulation. The European Automobile Manufacturers' Association (ACEA), representing 16 car and truck makers, said this week that its immediate priority was for the EU to axe potential fines for any auto producers that do not meet fleet CO2 emissions targets this year. Renault boss Luca de Meo said these could reach 15 billion euros for European producers, with electric vehicles (EVs) needing to push beyond a 20% market share to avoid them. The market share of EVs in Europe dropped to 13.6% last year as sales fell sharply in France and Germany. European automakers could choose to meet the electric targets by reducing petrol or diesel car production or by buying credits from Tesla or Chinese competitors. "Basically automakers would buy green credits from the country which is polluting the most in the world, and fund those Chinese EV makers on which EU has just imposed tariffs," said Gianluca Di Loreto, partner at consultancy firm Bain & Company. Leaders of auto manufacturing hubs Germany, Italy and the Czech Republic have also urged Brussels to waive penalties or have them calculated over a longer period. The Commission has hinted at some flexibility, but so far stood fast. Pro-environment think tank T&E says this is with good reason. It says the industry has had since 2017 to prepare with many new cheaper models now hitting the market, that the 2025 targets are achievable and that carmakers are unlikely to face penalties, with some credit buying, but also increased EV and hybrid sales. In the worst case, it says, fines would be below 1 billion euros for the sector. "If you postpone this by a year or by two years, you're not going to be in a better position. You're postponing something that is essential to your future success," said T&E executive director William Todts, who will also attend the dialogue. MOVING ON FROM FINES DEBATE Todts argues that instead of debating fines for months on end, the dialogue should focus on longer-term policies to help the European car industry succeed. These could include improving charging infrastructure and incentives for consumers to buy domestically produced EVs, in line with the tax credits the United States Inflation Reduction Act brought in. This could particularly apply to corporate fleets, which make up 50-60% of purchases of new vehicles. Auto suppliers said in a call before the EU dialogue that the bloc should set clear targets for regional content, following the North American model, to protect the 13 million people the sector employs. Then there is the issue of how to deal with potential U.S. tariffs, as threatened by President Donald Trump. BMW CEO Oliver Zipse said he would propose the EU lower its standard car import duty for U.S. vehicles from 10% to 2.5%, matching the U.S. rate currently applied to EU car imports. Sign in to access your portfolio
Reuters
30-01-2025
- Automotive
- Reuters
EU seeks to preserve auto industry as carmakers condemn fines
BRUSSELS, Jan 30 (Reuters) - European Commission chief Ursula von der Leyen hosts auto sector executives, unions and others on Thursday to debate how to ensure EU car producers can electrify their fleets and compete with more advanced Chinese and U.S. rivals at the same time. The sector, hit by factory closures and job cuts, including 54,000 job losses among auto suppliers last year, also needs to confront economic threats such as U.S. trade tariffs and a reliance on China for critical minerals and batteries. The EU executive's "strategic dialogue" will feed into an auto industry plan later this year. It has already proposed discussions on key technologies, energy and input costs, trade, demand stimulation and regulation. The European Automobile Manufacturers' Association (ACEA), representing 16 car and truck makers, said this week that its immediate priority was for the EU to axe potential fines for any auto producers that do not meet fleet CO2 emissions targets this year. Renault boss Luca de Meo said these could reach 15 billion euros for European producers, with electric vehicles (EVs) needing to push beyond a 20% market share to avoid them. The market share of EVs in Europe dropped to 13.6% last year as sales fell sharply in France and Germany. European automakers could choose to meet the electric targets by reducing petrol or diesel car production or by buying credits from Tesla or Chinese competitors. "Basically automakers would buy green credits from the country which is polluting the most in the world, and fund those Chinese EV makers on which EU has just imposed tariffs," said Gianluca Di Loreto, partner at consultancy firm Bain & Company. Leaders of auto manufacturing hubs Germany, Italy and the Czech Republic have also urged Brussels to waive penalties or have them calculated over a longer period. The Commission has hinted at some flexibility, but so far stood fast. Pro-environment think tank T&E says this is with good reason. It says the industry has had since 2017 to prepare with many new cheaper models now hitting the market, that the 2025 targets are achievable and that carmakers are unlikely to face penalties, with some credit buying, but also increased EV and hybrid sales. In the worst case, it says, fines would be below 1 billion euros for the sector. "If you postpone this by a year or by two years, you're not going to be in a better position. You're postponing something that is essential to your future success," said T&E executive director William Todts, who will also attend the dialogue. MOVING ON FROM FINES DEBATE Todts argues that instead of debating fines for months on end, the dialogue should focus on longer-term policies to help the European car industry succeed. These could include improving charging infrastructure and incentives for consumers to buy domestically produced EVs, in line with the tax credits the United States Inflation Reduction Act brought in. This could particularly apply to corporate fleets, which make up 50-60% of purchases of new vehicles. Auto suppliers said in a call before the EU dialogue that the bloc should set clear targets for regional content, following the North American model, to protect the 13 million people the sector employs. Then there is the issue of how to deal with potential U.S. tariffs, as threatened by President Donald Trump. BMW CEO Oliver Zipse said he would propose the EU lower its standard car import duty for U.S. vehicles from 10% to 2.5%, matching the U.S. rate currently applied to EU car imports.
