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Kamis, 02 Mei 2019

Elon Musk may plan to buy more Tesla shares - CNBC

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https://www.cnbc.com/video/2019/05/02/elon-musk-may-plan-to-buy-more-tesla-shares.html

2019-05-02 12:48:56Z
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Tesla to raise $2 billion from share, debt issues - Yahoo Finance

(Reuters) - Tesla Inc said on Thursday it had filed with regulators to launch around $2 billion (£1.5 billion) in fundraising through issues of new shares and debt, with Chief Executive Officer Elon Musk pitching in $10 million of his own money to buy shares.

The company's shares were up 5 percent at $245 in early trading after it unveiled the plans, which follow Musk's hint last week that a capital raise was imminent after the electric carmaker lost $700 million in the first quarter..

Analysts have been predicting for months that Tesla would need to raise funds for its expansion plans, which include the construction of a factory in Shanghai, the upcoming Model Y SUV, and other projects.

Tesla said it would seek to raise $650 million in new shares and $1.35 billion in debt with underwriters having the option to buy an additional 15 percent of each offering, potentially raising the proceeds of the deals to $2.3 billion.

Tesla expects capital expenditures of $2 billion to $2.5 billion this year and about $2.5 billion to $3 billion annually for the next two fiscal years. It ended its first quarter with $2.2 billion in cash.

"Both bulls and bears alike that we speak to see it as highly likely that Tesla will seek to raise equity capital sufficient in amount to quell questions about its potential financing needs," Morgan Stanley analysts wrote in a note dated April 30.

So far, Tesla has raised funds through bank loans, several rounds of equity sales, issued convertible notes, a $1.8 billion junk bond sale, securitisation of its vehicle leases and solar asset-backed notes.

Goldman Sachs and Citigroup will manage the offering, with BofA Merrill Lynch, Deutsche Bank Securities, Morgan Stanley and Credit Suisse will be additional book-running managers.

(Reporting by Supantha Mukherjee in Bengaluru; Editing by Saumyadeb Chakrabarty and Patrick Graham)

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2019-05-02 12:23:00Z
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Productivity and labor costs Q1 2019 - CNBC

A worker welds metal components onto a round baler at the New Holland Ltd. Haytools assembly plant in New Holland, Pennsylvania.

Luke Sharrett | Bloomberg | Getty Images

U.S. worker productivity increased at its fastest pace in more than four years in the first quarter, depressing labor costs and suggesting inflation could remain benign for a while.

The Labor Department said on Thursday nonfarm productivity, which measures hourly output per worker, increased at a 3.6% annualized rate in the last quarter. That was the strongest pace since the third quarter of 2014.

Data for the fourth quarter was revised down to show productivity rising at a pace of 1.3% instead of the previously reported 1.9% rate.

Economists polled by Reuters had forecast first-quarter productivity would advance at a 2.2% rate.

The acceleration in productivity was flagged by a surge in gross domestic product growth in the January-March period.

The economy grew at a 3.2% rate in the first three months of the year after expanding at a 2.2% pace in the fourth quarter.

The trend in productivity is improving. Compared to the first quarter of 2018, productivity increased at a rate of 2.4%, the best performance since the third quarter of 2010.

The strong pace of productivity suppressed growth in labor costs, a potential boost to corporate profits. Unit labor costs, the price of labor per single unit of output, fell at a 0.9% rate in the first quarter after increasing at a 2.5% rate in the prior quarter.

Compared to the first quarter of 2018, labor costs grew at a 0.1% rate, the weakest pace since the fourth quarter of 2013. Weak unit labor costs came on the heels of a report on Tuesday showing wages increasing steadily in the first quarter despite a tightening labor market.

The Federal Reserve on Wednesday held interest rates steady and signaled little desire to adjust them anytime soon. Fed Chairman Jerome Powell told reporters the moderation in price pressures was likely due to transient factors, and predicted inflation would rise back to the U.S. central bank's 2% target. A key inflation measure tracked by the Fed increased 1.6% in the year to March, the smallest gain in 14 months.

In the first quarter, hourly compensation increased at a 2.6% rate, slowing from the fourth quarter's brisk 3.9% pace. Hourly compensation increased at a 2.5% rate compared to the first quarter of 2018.

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2019-05-02 12:31:23Z
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Tesla raising $2 billion with Elon Musk planning to buy $10 million in stock - CNBC

GP: Elon Musk, chief executive officer of Tesla Inc., speaks during an event at the site of the company's manufacturing facility in Shanghai, China, on Monday, Jan. 7, 2019.

Qilai Shen | Bloomberg | Getty Images

Tesla said in a filing on Thursday that it would raise up to $2 billion, with $650 million coming in the form of new equity and $1.35 billion in convertible notes.

CEO Elon Musk signaled the intent to buy about $10 million of the company's stock in the new offering. The total equity offering is for 2.7 million shares of Tesla. Musk's purchase would be 41,896 shares. Before the offering, Musk owned about 20% of Tesla's outstanding shares, worth about $12.6 billion, according to FactSet.

The move comes only a week after Musk deferred on questions about the company raising capital any time soon.

"I don't think raising capital should be a substitute for making the company operate more effectively," Musk told shareholders on the company's quarterly conference call. "I do think there is some merit to raising capital, but this is sort of probably about the right timing."

Musk was pressed by Wall Street analysts on the call on the topic, as Tesla burned through around $2 billion in cash in the first quarter of 2019.

Tesla shares fell earlier in premarket trading when the company put out an initial filing indicating it would be offering a mix of debt and equity securities. The stock then reversed course and was last trading 5.7% higher when a second filing revealed details of the offering, including Musk's interest in buying a block of the new shares.

Musk's purchases have been reliable short-term buy signals for the stock in the past, according to InsiderScore.com. Following the last 5 purchases by Musk, the shares were higher on average by 41% in the next three months, according to InsiderScore.

Shares of the controversial electric automaker have been under pressure lately, down nearly 30% from the beginning of the year. The stock's surge following the filing came from "the fact that they ripped off the band aid and decided to raise the capital," Dan Ives, managing director of equity research at Wedbush Securities, told CNBC.

"There was growing fears that this company was going to need incremental cash going to the second half of the year. For the first time, they listened to investors and the math doesn't lie in terms of what they needed to do," Ives said. "Now there's a relief because the liquidity issue and the finance concern could be put to rest in the near term."

The offering is being underwritten by Goldman Sachs, Citigroup, Bank of America, Deutsche Bank, Morgan Stanley, Credit Suisse, Societe Generale and Wells Fargo.

– CNBC's Yun Li contributed to this report.

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2019-05-02 12:18:40Z
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Tesla files for offering to raise capital - CNBC

NEW YORK, NY - APRIL 4: Tesla CEO Elon Musk arrives at federal court, April 4, 2019 in New York City. A federal judge will hear oral arguments this afternoon in a lawsuit brought by the U.S. Securities and Exchange Commission (SEC) that seeks to hold Musk in contempt for violating a settlement deal. (Photo by Drew Angerer/Getty Images)

Drew Angerer | Getty Images News | Getty Images

Tesla filed for a mixed shelf offering for an undisclosed amount on Thursday, a week after Chief Executive Officer Elon Musk suggested a capital raise could be imminent.

Many analysts had predicted the electric-car maker would need to raise funds for its expansion, including building a factory in Shanghai, the upcoming Model Y SUV, and other projects.

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2019-05-02 11:10:18Z
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Tesla files for a shelf offering to raise capital - CNBC

Drew Angerer | Getty Images News | Getty Images

Tesla filed for a mixed shelf offering for an undisclosed amount on Thursday, a week after Chief Executive Officer Elon Musk suggested a capital raise could be imminent.

Many analysts had predicted the electric-car maker would need to raise funds for its expansion, including building a factory in Shanghai, the upcoming Model Y SUV, and other projects.

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2019-05-02 11:08:36Z
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VW profits meet expectations, warns of rising economic risks - CNBC

The Volkswagen logo is displayed at Serramonte Volkswagen on November 18, 2016 in Colma, California.

Justin Sullivan | Getty Images

Volkswagen reported first-quarter earnings in line with expectations on Thursday, as the automaker attempts to increase the pace of its transformation.

The German firm posted operating profit of 3.9 billion euros ($4.4 billion) for the first three months of the year. That compared with operating profit of 4.2 billion euros a year earlier. Analysts polled by Reuters had expected first-quarter operating profit to come in at 3.9 billion euros.

Volkswagen, which is still battling to recover from a 2015 scandal over emissions test cheating, also said it had decided to take a 1 billion euro charge in the first quarter, as a result of legal risks.

"It is certainly very unfortunate that we had to book more provisions but we assess every single risk and exposure we have continuously and it was the point in time to make those provisions," Frank Witter, chief financial officer of Volkswagen, told CNBC's "Squawk Box Europe" on Thursday.

The company confirmed its full-year guidance and said it expected sales to increase as much as 5%. It projected an operating return on sales between 6.5% and 7%.

Revenue advanced 3.1% to 60 billion euros for the first three months of 2019, despite a drop in deliveries.

The company did not provide a net profit figure.

'Optimistic but realistic' over potential US tariffs

Earlier this year, Volkswagen CEO Herbet Diess said the carmaker would need to redouble its efforts in 2019 in order to meet its ambitious annual targets.

Diess told the Financial Times in February that the biggest risk to Volkswagen's 2019 profit would be potential tariffs from President Donald Trump's administration.

At the time, he estimated the worst-case scenario regarding potential U.S. tariffs could cost around 2.5 billion euros a year — roughly 13% of expected earnings.

"We certainly hope that the trade disputes can be resolved but it is no secret that 100% of the Porsche cars are being exported from Europe to the United States," Witter said.

He explained that approximately 70% of all Audi products were sold in the U.S., while for Volkswagen passenger cars it was a very small percentage being exported from Europe to the U.S. since most of their cars were built in North America.

"So, we still hope for the best, we do whatever we can but we are not party to the negotiations … We continue to be optimistic but also realistic," Witter said.

In February, Trump said he would impose tariffs on cars imported from the European Union if U.S. talks with the bloc can't produce a new deal. The EU has since threatened to tax 20 billion euros ($22 billion) worth of U.S. goods.

Both sides have cautiously hung on to existing agreements, promising to take no action until talks are concluded.

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2019-05-02 05:56:08Z
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