Tesla (Nasdaq: TSLA) will be joining the S&P 500 index, expanding its investor base and putting the electric car maker in the same company as market behemoths such as Alphabet, Amazon.com, Apple, and Microsoft.
The announcement, made Monday afternoon by the S&P Dow Jones Indices, sent the company’s shares 13.7% higher in after-market trading. Tesla will officially join the benchmark stock index before the market opens on December 21, the index stated.
When Tesla joins the S&P 500, it will be one of the most valuable companies on the benchmark index. The weighting will be so influential that the S&P is debating whether or not to add the stock at its full market capitalization weight all at once, or in two separate tranches.
FRANKFURT (Reuters) – The head of the Berlin engine plant run by Mercedes-Benz has defected to rival Tesla <TSLA>, German union IG Metall said on Wednesday, calling on employees to protest over his departure.
IG Metall declined to name the head of the plant, which has been run by Rene Reif, one the most experienced manufacturing executives at Mercedes-Benz who helped expand manufacturing capacity for Daimler <DAI> in China.
Reif used to be head of engineering and manufacturing at Beijing Benz Automotive Co. Daimler’s Chinese joint venture, which has a manufacturing capacity of around 480,000 cars and started building the electric Mercedes-Benz EQC last year.
Tesla declined to comment on whether it had found a new manager for a Gigafactory being built on the outskirts of Berlin but the electric carmaker is on a global manufacturing expansion push, building or expanding new factories in Texas, Germany and China.
Last month, a source told Reuters that a Tesla manager who oversaw the construction of the electric carmaker’s Gruenheide plant, had left his position.
Daimler said on Wednesday that Reif, 57, the manager of its Mercedes-Benz Berlin plant, which makes powertrains, would go into early retirement at the end of the year, at his own request.
Mercedes-Benz Werk Berlin, Deutschland: Montage des Mercedes-Benz V6 Dieselmotor OM642
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Mercedes-Benz Berlin Plant, Germany: Assembly of the Mercedes-Benz V6 diesel engine OM642
German unions have lamented the fact that traditional carmakers are cutting investment into combustion engine technologies as regulators clamp down on emissions and as demand for vehicles is hit by the COVID-19 pandemic.
IG Metall said there would be a protest in front of the Mercedes factory on Thursday and called on Daimler to present solutions that would help to guarantee the future of the plant.
The union said Daimler managers had outlined cost savings plans and union officials fear the Berlin plant’s future is at risk.
Daimler said Clemenz Dobrawa, who currently heads up the Mercedes-Benz battery manufacturing plant in Kamenz, had taken over leadership of the Mercedes-Benz plants in Hamburg and Berlin earlier this month.
“Thanks to his activity as representative in Kamenz, he brings important know-how for the transformation toward electromobility,” Daimler said, adding the Berlin plant would be restructured to serve an ‘Electric First’ strategy.
(Reporting by Edward Taylor and Ilona Wissenbach. Editing by Jane Merriman)
FRANKFURT, Sept 7 (Reuters) – Volkswagen’s Chief Executive Herbert Diess on Monday sought to quell speculation that the world’s largest carmaker, which is on a mass production push for electric cars, has plans to develop deeper ties with start-up rival Tesla.
Diess met with Tesla’s Chief Executive Elon Musk in Braunschweig, Germany, last week, and during his visit VW let Musk drive its new ID.3 electric car.
“Just to be clear: We just drove the ID.3 and had a chat – there is no deal/cooperation in the making,” Diess said in a post on Linkedin which included a video of the two executives driving the vehicle on an airfield.
“Thanks for the visit, Elon! Hope you like the video. It was great driving the ID.3 with you! You were just quite critical with the available torque at higher speed. I told you: “Yes, we are on the runway – but no need for take off – its not a sports car.”
– New Documentary Celebrates Workforce Response to Covid-19
https://youtu.be/lYHgV2u1T2Y
DEARBORN, Michigan, Sept. 4, 2020 – Following completion of its 50,000th ventilator to help clinicians treat COVID-19 patients, Ford is pivoting to target production of 100 million masks through 2021 for communities across the U.S. with limited access to personal protective equipment. The company, currently manufacturing 2.5 million medical-grade masks a week for its employees and at-risk communities, is growing the number of mask-making machines by mid- to late-October to increase production and deliver on its goal.
Ford is working with Ford Motor Company Fund, the company’s philanthropic arm, to identify donation recipients across the U.S. through a network of nonprofit and state and local partners. The company is focusing on military veterans, schools, food banks and African American communities, among others.
This announcement comes ahead of a new short documentary by award-winning director Peter Berg (“Friday Night Lights,” “Patriots Day,” “Lone Survivor”) titled “On the Line.” Premiering on YouTube at 2 p.m. EDT today, the documentary focuses on Ford’s Project Apollo, the internal codename for the company’s all-out effort to design and manufacture personal protective equipment, including powered air-purifying respirators, face shields, medical gowns for healthcare workers and first responders, plus ventilators for COVID-19 patients.
Berg’s deep dive into the story features members of Ford’s Project Apollo team – from the engineers who led the project to the UAW team members who volunteered to work at the height of the pandemic.
Last week, Ford Motor Company Fund shipped 10 million face masks to the National Urban League, American Red Cross, Disabled American Veterans and other local organizations to protect against COVID-19.
Ford, in partnership with the UAW, has produced more than 72 million pieces of personal protective equipment to meet the enormous demand. Altogether, this amounts to:
– More than 45 million face masks and 20 million face shields
– 50,000 patient ventilators
– More than 32,000 powered air-purifying respirators in collaboration with 3M
2021 Ford GT Heritage Edition inspired by the GT40 MK II’s 1966 Daytona 24 Hour Continental race victory!
– Ford Performance unveils new Ford GT Heritage Edition inspired by the 1966 Daytona 24 Hour Continental, a stylish Frozen White with exposed carbon fiber and Race Red livery that pays homage to the 55th anniversary of the epic race where Ford achieved its first 24-hour endurance win
– Exclusive Ford GT Studio Collection offers even more exclusivity with unique and widely customizable design features in a limited-availability package for only 40 Ford GT supercars slated for production across the 2021 and 2022 model years
– New 2021 Ford GT Heritage Edition and Studio Collection are the pinnacle of Petersen Car Week, which started airing Wednesday on the Petersen Museum’s YouTube channel, which includes highlights include several virtual events featuring 25 hours of original content from manufacturers and enthusiasts, plus automotive lifestyle and auction house activities
The Ford GT is America’s only Le Mans-winning supercar, and taking this pinnacle of Ford Performance even further for 2021, Ford is revealing two new enhancements today – the first-ever Heritage Edition inspired by the original model’s first endurance win at the 1966 Daytona 24 Hour Continental race, plus an all-new Studio Collection package offers even more exclusivity and design enhancements.
“For this Heritage Edition, the Ford Performance team went deeper into the Ford GT’s race history and crafted a limited-edition model that stylistically honors the 55th anniversary of the Daytona 24 Hour endurance race that would eventually lead to our successes at Le Mans,” said Mike Severson, Ford GT program manager. “Plus, for customers who want to highlight the carbon-fiber body and functional cooling ducts that help deliver Le Mans-winning performance, the Ford GT Studio Collection offers another new way GT fans can personalize their supercars.”
The announcement of two new variants of the Ford GT were the highlights at the conclusion of 2020 Petersen Car Week, which started airing Wednesday on the museum’s YouTube channel. The virtual event featured 25 hours of original content from manufacturers and enthusiasts, along with automotive lifestyle and auction house activities.
Tesla (TSLA) posted a surprise second-quarter profit last week on cost cutting and strong deliveries, offsetting the effects of its Covid-19 related factory shutdowns. The report may help the electric vehicle manufacturer gain inclusion into the S&P 500 index (^SPX).
Tesla announced earned net income of $104 million for the quarter, or $0.50 per share. This marks the first time the company has posted four straight quarterly profit, a benchmark for the company to be considered for inclusion in the highly coveted S&P 500.
This marks another major win for Chief Executive Elon Musk, whose quest to lead the global auto industry with Tesla, and the aerospace industry with SpaceX, has increasingly been making major leaps forward.
Musk said last Wednesday that the city of Austin, located in Travis County, would be the site of Tesla’s newest factory. The victory for Texas comes at a loss for Oklahoma, which also was seeking to have the factory land in Tulsa. The facility seeks to create as many as 5,000 new jobs. The County offered up to $65 million in tax rebates to entice the company, and plans to begin construction in the third quarter.
The additional plant is slated to produce Model 3 and Model Y vehicles for the Eastern half of the United States, as well as a potential new Tesla Semi truck and its Cybertruck pickup. Elon Musk has stated that his cars are not affordable enough yet for the average consumer, and he hopes to develop a plan to address that issue.
The company also needs to address its growing need for affordable battery cell production, and is looking to expand its partnerships with Panasonic Corp <PCRFY> and Contemporary Amperex Technology of China (CATL) <300750.SZ>.
(Reuters) – German logistics company DHL plans to cut as many as 2,200 jobs of U.K-based workers at Jaguar Land Rover factories, the Unite trade union said on Tuesday.
The job cuts comprise just under 40% of the entire DHL workforce on the contract, the union said.
DHL indicated that the half of the job cuts are due to a decline in car production and half are the result of anticipated “efficeincy savings”, the union added.
“DHL must not attempt to make permanent full-time staff redundant while continuing to outsource work to sub-contractors,” Matt Draper, Unite national officer for logistics, said.
Last month India’s Tata Motors Ltd said it expected to shed about 1,100 temporary jobs at Jaguar Land Rover after it raised the cost-cutting target at its luxury unit by 1 billion pounds ($1.3 billion) to ride out the disruptions caused by the coronavirus outbreak.
DHL and Jagaur Land Rover were not immediately available for comment.
(Reporting by Sabahatjahan Contractor in Bengaluru; Editing by Stephen Coates)
Presentation of a new DHL/Deutsche Post parcel center in Bochum
(Reuters) – Electric carmaker Tesla Inc is negotiating possible incentives with a Texas county that could bring a new auto assembly plant to the area near Austin, the state capital, the Austin American-Statesman reported on Monday.
Travis County Commissioners Court is scheduled to discuss terms of the deal on Tuesday, the paper reported, citing people with knowledge of the situation. A vote is expected in the coming weeks.
The paper said it was unclear whether negotiations with Travis County show that Tesla has picked the Austin region as the site for the plant, which would build the company’s electric pickup truck and Model Y SUV and employ thousands of people, or if the company is also negotiating with officials in Tulsa, Oklahoma.
Tesla officials could not immediately be reached to comment. The company’s chief executive, Elon Musk, has tweeted previously about the possibility of bringing a plant to Texas. Oklahoma also has been mentioned as a possible site.
Travis County officials declined to comment, and a spokesman for the Texas governor’s office did not immediately comment.
Last month, Texas Governor Greg Abbott said he had spoken with Musk about a potential plant.
Abbott’s comments came three days after Musk had threatened to move Tesla’s headquarters and future operations to Texas or Nevada after officials in California’s Alameda County, where Tesla’s only U.S. vehicle assembly plant is located, said the plant could not yet reopen because of coronavirus lockdown measures. The plant has since reopened.
Officials with the United Auto Workers union, which represents hourly workers at General Motors Co’s assembly plant in Arlington, Texas, said they believe a Tuesday county meeting will include talks about the possible deal. The union, which has unsuccessfully tried organizing Tesla’s Fremont, California, plant, called on Texas officials to obtain assurances from Tesla about any potential jobs.
(Reporting by Ben Klayman in Detroit and Brad Brooks in Austin, Texas; Editing by Leslie Adler and Jonathan Oatis)
A Tesla logo on a Model S is photographed inside of a Tesla dealership in New York
Tesla Inc <TSLA> has cut prices of its electric vehicles by as much as 6% in North America following a decline in auto demand in the region during weeks of lockdown that have now started to ease.
Tesla also said its Supercharger quick-charging service will no longer be free to new customers of its Model S sedans and Model X sport utility vehicles (SUV’s).
Auto retail sales in the United States likely halved in April from a year earlier, showed data from J.D. Power. However, sales in May are likely to improve due to pent-up demand and incentives offered by most carmakers, the analytics firm said.
Automakers including General Motors Co <GM>, Ford Motor Co <F> and Fiat Chrysler Automobiles NV <FCAU>, are offering 0% financing rates and deferred payment options for new purchases.
Factories in the United States started to reopen earlier this month with suppliers gearing up to support an auto industry employing nearly 1 million people.
Tesla was briefly forced to stop work at its Fremont, California, factory due to stay-at-home orders. It resumed production after resolving a dispute over safety measures with local authorities.
On Wednesday, Tesla website’s showed the starting price for its Model S sedan is now $74,990, down from $79,990.
Its Model X SUVs are now priced at $79,990, from $84,990, and the lowest-priced Model 3 sedan is $2,000 cheaper at $37,990.
Tesla said it will also cut prices in China – as per usual after price adjustments in the United States – by around 4% for the Model X and Model S.
Tesla China, which is delivering Model 3 sedans from its Shanghai factory, in a Weibo post said it has also cut prices for the Model S and Model X cars it imports, but will keep prices of locally made Model 3 cars unchanged.
(Reporting by Yilei Sun and Brenda Goh; Editing by Tom Hogue and Christopher Cushing)
FILE PHOTO: VW hosts photo workshop at Zwickau plant
FRANKFURT (Reuters) – German carmakers including Volkswagen <VOW.DE> and Mercedes-Benz <DAI.DE> will restart production at some German factories next week after the country eased restrictions designed to contain the coronavirus outbreak.
Chancellor Angela Merkel on Wednesday said that Germany has achieved a “fragile intermediate success” in its the fight against the coronavirus and that its emergence from lockdown would begin with the partial reopening of shops next week and schools from May 4.
Unlike Italy and Spain, Germany never banned car production, though factories came to a standstill after authorities restricted the movement of people and ordered the closure of car dealerships, hitting demand.
Volkswagen said it will start producing cars for its core brand in Zwickau, Germany, and in Bratislava, Slovakia, on April 20.
Plants in Russia, Spain, Portugal and the United States will ramp up production from April 27 onwards, joined by factories in South Africa, Argentina, Brazil and Mexico in May.
“With the decisions by the federal and state governments in Germany and the loosening of restrictions in other European states, conditions have been established for the gradual resumption of production,” Ralf Brandstaetter, Chief Operating Officer of the Volkswagen brand, said in a statement.
The carmaker has retooled production to ensure that workers keep 1.5 metres apart. Other measures include the staggering of shifts and lunch breaks, plus steps to change worker interaction in VW’s supply chain.
Bernd Osterloh, Chairman of the company’s Works Council, said: “In the light of the pandemic, we need to adapt our routines. One answer is our new agreement on health protection. With about 100 measures, we are keeping the risk of infection at Volkswagen as low as possible.”
In China, where a Volkswagen has already implemented health measures, 32 of the 33 plants have resumed production and no coronavirus infections among employees have been reported.
Mercedes-Benz parent Daimler said that its plants in Hamburg, Berlin and Untertuerkheim will resume production next week. Its Berlin plant makes engine-management systems for vehicles sold in China.
Production will initially start in a one-shift system, Daimler said, with plants in Sindelfingen and Bremen also making preparations to ramp up production.
(Reporting by Edward Taylor and Jan Schwartz; Editing by David Goodman)
