Tuesday Ticker September 17

Toronto, Ontario — September 18, 2018 — In this week’s Tuesday Ticker: Big problems for big OEMs, Saudi Arabia invests in electric, Toyota teams up with Uber and much, much more!


General Motors and Ford stocks drop

The past three months have seen General Motors and Ford stocks drop 20 percent. Both vehicle manufacturers, once seen as stable investments, have suffered the slings and arrows of investor skepticism because of the percieved disconnect between corporate initiatives and the state of the global automotive economy. Ford’s new CEO, Jim Hackett, delivered a number of statements meant to outline restructuring plans and new ventures into self-driving and electric vehicles.The statements were, however, seen as being short on detail by industry analysts. While GM CEO Mary Barra has not found herself in similar hot water, her tenure as GM’s chief has seen the company cement its position as the leading manufacturer of vehicles in China – a notable success, but one made less useful to the company as the Chinese auto market’s once-exceptional growth rate has petered out, which North American sales have remained generally flat.


Tesla’s Saudi surprise

A month after Tesla CEO Elon Musk tweeted “Funding Secured” to follow up his unfounded claims that he would be taking the electric car manufacturer private with the help of Saudi Arabian investors, Saudi Arabia’s soverign wealth fund has, in fact, invested a billion dollars in a rival electric vehicle company. Lucid Motors, which is a start-up company founded more than a decade ago, will use the money to fund the launch of their first vehicle. It is expected to arrive in 2020. While Musk may dislike Saudi Arabia’s decision to invest in his competition, Tesla has already seen significan investments from Saudi Arabia, with the state owning a five percent stake in the company.


Nio’s dismal debut

Chinese vehicle manufacturer NIO, which saw its stocks debut in the U.S. last week, has been pilloried by the open market. Its stocks dropped 12 percent from their initial value, raising $1 billion, or about $800 million shy of its goals. While the stock briefly rebounded in its first week, new of President Donald Trump’s plans to place $200 billion in tariffs on Chinese goods saw the stock again drop.


Toyota teams-up with Uber

Toyota has invested half-a-billion dollars with Uber, earmarking the funds to invest in self-driving vehicle technology. The companies aim to have driverless Toyota Sienna minivans in operation by 2021, though many technological and regulatory barriers will have to be overcome. While Uber had previously been making headway on its own AV development, progress had been halted this summer when one of their vehicles killed a woman walking in Arizona.


Sign-up for the Collision Repair daily e-zine and never miss a story –  SUBSCRIBE NOW FOR FREE!

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *