Billion cash

Share to Twitter Share to Linkedin With an equity market capitalization of $53 billion Tesla is not often characterized as a small company.  In the metrics that matter, however, Tesla is truly a minnow amongst the whales that dominate global auto production.  As the world’s automakers look to transform themselves from manufacturers and marketers of cars to providers of "mobility solutions" the need for investment is enormous.  Most mobility solutions are based on battery-electric vehicles (BEVs) which will eventually be capable of performing self-driving, thereby becoming autonomous vehicles (AVs.) This transition, like most, requires one material above all: capital.  That capital needs to be in liquid form, and that is where Tesla trails its rivals badly.  In the table below I present the amount of automotive (i.e. ex-financial services) cash sitting on balance sheets of the world's major global automakers; figures are as of the most recent reporting periods … [Read more...] about Tesla Is Staring Down $267 Billion In Cash Firepower From The Global Automakers

Share to Twitter Share to Linkedin Tesla’s attempts to raise capital in any way possible other than selling stock entered the realm of the bizarre this weekend with news of the company’s requests for clawbacks from some suppliers.  As Elon Musk and co. attempt to run a global car company on shoestring, it’s notable how much private equity and venture capital money is flowing into the electric vehicle (BEV) and autonomous vehicle (AV) space.  Tesla has built an expensive infrastructure (40,000 employees strong, reportedly, before the recent layoffs) without the positive cash flow that legacy automakers derive from selling vehicles with internal combustion engines. I mentioned NIO in my Forbes column yesterday, and it is striking how different this company's business model is from Tesla’s.  Also striking is the fact that NIO has attracted several of the same key investors that have backed Musk at Tesla. Devoted Teslaphiles mindlessly repeat the mantra “Elon is … [Read more...] about As Tesla Begs Its Suppliers For Capital, NIO Has Raised Billions From Some Of Tesla’s Key Investors

BEIJING  – China’s policymakers plan to show more support for domestic demand this year but are likely to stop short of splashing out big on direct consumer subsidies, keeping their focus mainly on investment, three sources close to policy discussions said. In recent weeks, top policymakers have repeatedly signalled their intention to work towards harvesting the consumer power of China’s 1.4 billion people, after economic growth in 2022 slumped to one of its weakest levels in nearly half a century. That has raised expectations that large-scale household stimulus measures could be announced at an annual parliament meeting in March. Prominent academics have felt emboldened to speak publicly about sizeable demand-side measures such as 1 trillion yuan ($148.28 billion) or more in nationwide consumption vouchers. The sources close to policy discussions, however, expect China to stick more closely to its familiar playbook of policies to support key industries and splurge on … [Read more...] about Big stimulus unlikely as China considers steps to support consumers-sources

The Union Budget for 2022-23 (FY23) announced on February 1 is clearly prepared within tough fiscal constraints. The backdrop for the Budget is defined by a steeply elevated public debt hovering near 90 percent for the general government (i.e., central and states together) and a significant shortfall of the order of 55.4 percent in the expected privatisation receipts during FY22. Production Linked Incentive (PLI) Scheme for achieving Aatmanirbhar Bharat has received an excellent response, with the potential to create 60 lakh new jobs and additional production of 30 lakh crore during the next Keycap digit five years. Moreover, additional spending on subsidies over the budgeted estimates — especially food (up 18 percent) and fertiliser (up 76.2 percent) subsidies — has gone up significantly during FY22 on account of elevated commodity prices and shortages. Allocation for MGNREGA scheme too had to be increased by 34.2 percent during FY22 from the budgeted Rs 730 billion to Rs … [Read more...] about Budget 2022 | Government strikes a fine balance between growth and fiscal consolidation

Share to Twitter Share to Linkedin General Motors GM published a better-than-expected set of Q4 2022 results on Tuesday, driven by continued strong demand, particularly in North America, and signs that supply chain conditions were improving after over a year of shortfalls. Over the quarter, revenue rose 28% year-over-year to $43.11 billion, while adjusted earnings stood at $2.12 per share, up from $1.35 in the year-ago quarter. Volumes in North America jumped by about 43% versus Q4 2021, to 729,000 units, although sales in international markets contracted. GM has also made meaningful progress in the commercial fleet business, driven by its capacity expansions in crew cabs and heavy-duty pickups. For the quarter, GM saw its adjusted operating profit margins rise by about 30 basis points to 8.8%, driven by stronger volumes and favorable pricing, although this was partly offset by higher costs and a greater mix of cars (which typically have lower margins). … [Read more...] about What’s Next For GM After A Solid Q4?

Adani group's stocks have nosedived after the Hindenburg report's release The Reserve Bank of India (RBI) is looking into the details of banks' exposure to Adani group companies and has sought the present status of these loans, people familiar with the matter told Moneycontrol . The RBI has already reached out to some of the major banks which are the lenders to the group and is engaging with lenders to verify the exposure details, one of the persons quoted above said. The Adani group companies have seen shares plummeting following a recent research report by a short-seller which followed the cancellation of group's Rs 20000 crore follow on share sale. An email sent to Adani group seeking a response to this story remained unanswered till the press time. A separate email sent to the RBI too seeking official comment didn't elicit any response. According to a report by CLSA, bank debt that include term loans, working capital and other facilities form just 38 percent of … [Read more...] about RBI looking at banks’ exposure to Adani group companies, seeks present status: Sources

Share to Twitter Share to Linkedin While the world was a different place in 2014 when Congressman and recent Vice-Presidential candidate Paul Ryan emerged with his analysis and critique of the War on Poverty and the vast array of programs that emerged from it. What hasn’t seemed to change in the intervening decade is that the discussion over approaches to solving poverty still revolve around a dichotomy between approaches that rely on government programs and interventions and those that lean more on economic growth in the private sector. This characterization might be dismissed as overly simplistic, but the discussions then and now about housing, for example, almost always end up about money; do people in poverty need the benefits of more spending on government funding housing or the benefit of lower prices created by a more competitive market. It’s worth looking at the broad conversation Ryan sparked before digging into the details. When Ryan held the … [Read more...] about Series: Ryan Critique Of Poverty Programs Sparked Usual Battle Over Spending

Adani Group chairman Gautam Adani Touting February 3, 2023, as an eventful day might be an understatement for the Adani Group. A stunning recovery from the worst-ever intraday fall in Adani Enterprises' stock to Finance Minister Nirmala Sitharaman's first comments on the entire Hindenburg-Adani fiasco , there was a lot of action. After falling 35 percent intraday, Adani Enterprises closed in the red on NSE – down 2 percent – while on BSE it was over a percent higher. Adani Ports closed 5 percent higher on the NSE at Rs 488.40 after falling to Rs 395 intraday. ACC and Ambuja Cements gained 5 percent and 4 percent, respectively. Meanwhile, Adani Total Gas and Adani Wilmar ended at a 5 percent lower circuit. Here's a recap of all that happened, starting from pre-market developments ASM Framework Read More Pre-market open, the big news was National Stock Exchange (NSE) placing Adani Enterprises, Adani Ports and Ambuja Cements under an additional … [Read more...] about Adai Group stocks: A recap of everything that happened on February 3

Share to Twitter Share to Linkedin Topline Identity management company Okta announced plans on Thursday to lay off roughly 300 employees, one day after FedEx, DraftKings, cloud data company NetApp and automaker Rivian all announced major rounds of layoffs—the latest U.S. companies to implement job cuts as recession fears continue into 2023. Timeline February 2 Okta CEO Todd McKinnon unveiled plans to reduce the tech company’s workforce by 5% (roughly 300 positions) in a Securities and Exchange Commission filing on Thursday, citing a period of over-hiring over the past several years that did not account for the “macroeconomic reality we’re in today.” February 1 NetApp , a San Jose, California-based cloud data company, announced plans in an SEC filing to lay off 8% of its staff ( estimated to affect 960 employees) by the end of the fourth fiscal quarter of 2023 “in light of the macroeconomic challenges and reduced spending environment.” … [Read more...] about 2023 Layoffs: Okta Slashes 300 Jobs As DraftKings, FedEx Cut Staff

Share to Twitter Share to Linkedin In late January Chevron CVX announced fourth quarter and full year 2022 results. Chevron earned a record $36.5 billion profit in 2022, more than doubling 2021 earnings. In addition, Chevron increased its quarterly dividend by 6%, and announced a $75 billion stock buyback : “The Board also authorized the repurchase of the company’s shares of common stock in an aggregate amount of $75 billion. The $75 billion authorization takes effect on April 1, 2023, and does not have a fixed expiration date. It replaces the Board’s previous repurchase authorization of $25 billion from January 2019, which will terminate on March 31, 2023, after the completion of the company’s repurchases in the first quarter 2023.” The Biden Administration Responds This stock buyback announcement got immediate attention from the Biden Administration. In a series of tweets, White House spokesperson Abdullah Hasan wrote: and … [Read more...] about If Chevron Can Sell Shares, Why Can’t They Buy Them Back?