Tesla Beats Ford in Tug of War. Why Ford Is Right to Be Upset. - Barron's

Tesla CEO Elon Musk decided to pick on Ford’s popular F-150 during the Cybertruck launch—and Ford Motor (ticker: F) isn’t happy about it.

During his reveal event in Los Angeles Musk played a “tug of war” video showing a Cybertruck pulling an F-150 with ease. It was a fun video. Ford isn’t laughing and they might be challenging the Cybertruck to an apples-to-apples pull-off. Musk tweeted “bring it on” in response to the suggestion. The winners in this truck-war are investors who will learn a lot about truck design as well as physics.

Apples-to-apples is the key phrase in this debate. Investors and onlookers don’t know which Cybertruck configuration was used or which F-150 was battling Cybertruck in the Tesla’s video. Configuration and conditions matter a lot. Here’s what investors need to know to evaluate who might win the truck wars.

Configuration

Tesla is offering the Cybertruck in three configurations: a one motor rear wheel drive option, a two motor all wheel drive option and a three motor all wheel drive option. A three motor all wheel drive Cybertruck is a $70,000 vehicle with about 1,000 foot-pounds of torque.

(A foot-pound is a common unit of torque—or twisting force—that correlates to how much and how easily a vehicle can pull something.)

A base model F-150 isn’t comparable to the three motor Cybertruck. A $70,000 Ford truck is more like a F-450 super duty pickup. A truck like that can also generate about more than 1,000 foot-pounds of torque—similar to the top-level configuration of Cybertruck.

Tires

A Ford F-450 also has more tires—six of them, with four in the back. That matters. A lot. Torque, for instance, is no good on ice. Surface contact with the road is critical. That raises another point. Onlookers don’t know what kind of tires were on both vehicles in the Telsa-filmed tug of war. Both Ford and Tesla didn’t respond to request for comments about the tug of war or truck configurations used in the original video.

Curb Weight

Weight obviously matters when towing. What’s less obvious is Tesla sedans tend to be heavier than comparable cars because of the battery pack. The weigh and distribution of the battery weight is one reason Tesla model cars handle so beautifully. Complete specifications aren’t available for Cybertruck, but a Tesla Model X sport-utility vehicle is about 1,000 pounds heavier than a base model Ford F-150.

Driving

Most people tend to believe they are above average drivers, which, by definition, can’t be true. There is a lot of skill in maximizing car performance. Just ask a race car driver. Original tug-or-war onlookers don’t know how both trucks were operated. Electric motors have peak torque at zero rpm. Traditional internal combustion engines don’t. How the F-150 engine is revved matters to pulling results.

“Tesla should have the advantage at zero rpm,” a retired automotive engineer tells Barron’s. “Ford will have to rev the engine and pop the clutch like we did in the old days.”

Functionality

No one is going to buy a truck to pull a friend’s car backward. And no one has yet answered Barron’s question about boats. Tesla’s base warranty doesn’t cover deep water, presumably because of the battery packs. Many people with boats know launching the craft requires backing into the river, lake or ocean. Tesla hasn’t responded to multiple request for comment about warranties.

Of course, it is impossible to design a perfect comparison. The Cybertruck, for instance, seats six in its base configuration. There is more room in electric vehicles because there is no internal combustion engine taking up space. The batteries in an EV are typically in the floor. That’s one positive for EVs that consumer may not typically consider.

And aside from being wildly entertaining, the tow off is important for Tesla, Ford and General Motors (GM). The two truck encumbents will be highly motivated to demonstrate their vehicles are as good or better than Cybertruck. Both will want to relegate the futuristic pickup to niche status.

Early results show Cybertruck might have wider appeal than many predicted. Telsa achieved a win collecting more than 200,000 orders for its latest model. But with a reservation price of only $100, which is fully refundable, it isn’t clear what reservation-to-delivery conversion the EV pioneer with realized. What’s more, the top configuration—with three electric motors—won’t be available until 2022, according to Tesla’s website. Both Ford and GM should have all electric trucks by then.

Since the launch event Tesla shares are down about 5.2%. Design disappointment might be responsible, but the stock is still up about 56% over the past three months. Ford shares have risen 3.3% since the Cybertruck launch event. The S&P 500, for comparison, is up 1% since the Tesla reveal gala.

Write to Al Root at allen.root@dowjones.com

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2019-11-26 15:59:00Z
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5 things to know before the stock market opens Tuesday - CNBC

1. Dow set for higher open after another record close

Traders work on the floor of the New York Stock Exchange (NYSE) on November 04, 2019 in New York City.

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U.S. stock futures were pointing to a modestly higher open Tuesday on Wall Street. The Dow Jones Industrial Average, S&P 500 and Nasdaq all closed at record highs Monday, putting year-to-date gains at 20%, 25% and 30%, respectively. Optimism surrounding U.S.-China talks on a "phase one" trade deal boosted the stock market Monday and there's further evidence of possible progress Tuesday. China's Ministry of Commerce said its top trade negotiator, Vice Premier Liu He, spoke with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Tuesday morning local time. "Both sides discussed resolving core issues of common concern," the ministry said.

2. Powell: Rates probably won't rise anytime soon

Jerome Powell, chairman of the U.S. Federal Reserve, speaks during a news conference following a Federal Open Market Committee (FOMC) meeting in Washington, D.C., U.S., on Wednesday, on Wednesday, Oct. 30, 2019.

Al Drago | Bloomberg | Getty Images

With the final 2019 meeting of Federal Reserve policymakers just two weeks away, Fed Chairman Jerome Powell signaled interest rates are unlikely to rise anytime soon, saying Monday the central bank remains firmly committed to seeing the inflation rate go up to 2%. Inflation has been well below that level for 2019, despite three rate cuts over the past four months. Dallas Fed President Robert Kaplan told CNBC on Tuesday he expects fourth-quarter growth to be "weak" as business cut inventories due to trade concerns. Investors will be looking for more clues on the U.S. economy Tuesday morning, when the September S&P/Case-Shiller report on home prices and government data on October new home sales are released.

3. House Democrats preparing final impeachment report

House Intelligence Committee Chairman Adam Schiff, D-Calif., joined by other House Democrats, speaks during a press conference after the House Intelligence Committee hearing on the impeachment inquiry of President Trump in Longworth Building on Wednesday Nov. 13, 2019.

Caroline Brehman | CQ-Roll Call, Inc. | Getty Images

House Intelligence Committee Chairman Adam Schiff, D-Calif., said impeachment investigators are pulling together their findings. House Democrats could deliver a finalized report as early as next week after several closed-door depositions and two weeks of public hearings looking into President Donald Trump's intention when he asked Ukraine's leader in a July phone call to investigate political rival Joe Biden. Trump has repeatedly said he's done nothing wrong, calling the impeachment inquiry a "hoax" and a "witch hunt." He said there was "no quid pro quo" on that call. If the Democratically controlled House were to vote for impeachment, the Republican-controlled Senate would hold a trial on the evidence.

4. Google fires four workers for alleged wrongdoing

Alphabet's Google has terminated four employees for allegedly sharing sensitive information after weeks of internal dissent related to the mistrust of leadership. At least two of the employees were at the center of recent worker protests. Rebecca Rivers, who previously spoke out about Google's contracts with U.S. Customs and Border Protection, tweeted she was one of them. Last week, a group of 20 Google employees in San Francisco protested the interrogation of Rivers and another employee, Laurence Berland, who had been placed on sudden and indefinite administrative leave for allegedly sharing sensitive information.

5. Cybertruck vs. F-150 — Elon Musk says 'bring it on'

Tesla's futuristic pickup truck appears set to go head to head against the Ford F-150 in an "apples-to-apples" battle. The anticipated showdown, which could take place next week, comes after Tesla this week unveiled its all-electric Cybertruck and showed a promotional video of the vehicle towing a F-150.

Critics of the demonstration have argued the test was unfavorable to Ford. Sundeep Madra, vice president at Ford X, tweeted Monday, apparently urging Tesla CEO Elon Musk to send over a Cybertruck for a tug-of-war test. In a tweet directly replying to the Ford X vice president, Musk replied, "Bring it on."

CNBC's before the bell news roundup

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2019-11-26 12:36:00Z
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Google tensions deepen over firings of 'Thanksgiving Four' - Yahoo News

Google employees contend that four of their colleagues were fired in retaliation for worker organizing (AFP Photo/Ben STANSALL)

San Francisco (AFP) - Google on Monday fired four employees on the grounds they had violated data security policies, but the tech titan was accused of persecuting them for trying to unionize staff.

The dismissals of the quartet -- dubbed the "Thanksgiving Four" on social media -- deepened staff-management tensions at a company once seen as a paradigm of Silicon Valley freedoms but now embroiled in numerous controversies.

A memo to employees titled "Securing our data" sought to correct what Google contended was misinformation about the purported wrongdoing, saying it involved "systematic searches for other employees' materials and work."

Google, the money-making engine of parent company Alphabet, confirmed a copy of the note published by Bloomberg News but declined to comment further to AFP.

The memo said the information accessed by the individuals, "along with details of internal emails and inaccurate descriptions about Googlers’ work, was subsequently shared externally."

But the Tech Workers Coalition said the employees had been fired for "organizing at work" and urged others at Google to speak out.

"This is meant to scare workers, don't let it," the campaign group tweeted, appealing for other employers to step in and hire the four. At least one job offer came through in response.

One of the workers fired was connected to a petition condemning Google for working with the US customs and border patrol agency, which has been involved in President Donald Trump's crackdown on illegal immigration.

"Four of our colleagues took a stand and organized for a better workplace," read a Medium post by Google Walkout for Real Change, which organised a staff protest last year over the issue of sexual misconduct.

"This is explicitly condoned in Google's Code of Conduct, which ends: 'And remember ... don't be evil, and if you see something that you think isn't right — speak up.'

"When they did, Google retaliated against them."

Authors of the post contended that Google policies on data security were tightened simply to provide cover for getting rid of the workers.

"This is classic union busting dressed up in tech industry jargon, and we won't stand for it," they said.

- Global disputes -

The Google workplace has been disrupted by employee opposition to top-level decisions ranging from forging contracts with the US military to tailoring a version of the search engine for China.

A year ago, Google employees poured out of premises at its Mountain View campus and around the world to protest the company's handling of sexual misconduct allegations.

When they were still suspended prior to the firings, two of the quartet on Friday addressed a protest rally at the company's San Francisco offices, according to US media.

Jeffrey Hirsch, a University of North Carolina law professor and former National Labor Relations Board attorney, said Google could face legal problems unless it could show a consistent approach towards other staff accused of the same conduct as the four.

"If not, Google will likely have to reinstate the employees and pay them back pay," he told Bloomberg.

Google's virtual monopoly on internet searches has provoked accusations that it abuses its global dominance to attract more advertising money at the expense of others, such as the news media.

In France, an alliance of press groups is fighting back with a complaint under the European Union's new copyright law. AFP has brought a separate complaint against Google.

Like Facebook and Twitter, Google also stands accused of turning a blind eye to political disinformation on its platforms.

Last week, the search leader updated how it handles political ads, stepping up actions it says it is taking in the buildup to the US presidential election next year.

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2019-11-26 11:23:00Z
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Angry Farmers Dump A Pile Of Corn Outside Trudeau’s Montreal Office - HuffPost Canada

Ryan Remiorz/CP

Farmers dump corn as they protest the ongoing rail strike in front of the riding office of Prime Minister Justin Trudeau on Nov. 25, 2019 in Montreal.

OTTAWA — Furious Quebec farmers dumped bags of corn outside the prime minister’s Montreal constituency office Monday to urge the government to take stronger action to end the ongoing CN Rail strike.

A procession of tractors and approximately 300 protesters, frustrated by the propane shortage caused by the strike, marched to Justin Trudeau’s office in the riding of Papineau. Farmers raised their bags of corn into the air and chanted in French, “We can’t leave our crops to rot.”

The strike problematically coincides with the harvest season for corn and soybeans. Before corn can be stored, it has to be dried. Grain dryers use propane, but the fuel’s transport has been significantly reduced because of the strike.

“A very wet harvest season with early snow and cold means that farmers are even more reliant on propane-powered grain dryers to condition the crop and get it to market,” the Grain Farmers of Ontario explained in a statement last week.

Up to 85 per cent of Quebec’s propane is moved by rail.

Watch: Quebec grain farmers dump corn at the steps of Trudeau’s office. Story continues under video.

It’s been a week since 3,200 CN workers walked off the job over concerns that include long hours and dangerous working conditions. 

“We regrettably have been forced to wind down our rail operations as we do not have sufficient qualified Canadian managers to safely maintain freight operations during this strike,” read a statement from CN Rail executives James Cairns and Keith Reardon on Monday. 

Farmers across the country are demanding Transport Minister Marc Garneau and Labour Minister Patty Hajdu take immediate action to get rail workers back to work. 

“We still believe in the negotiation process. They are still around the table, and we are pushing both parties to come to an agreement,” Agriculture Minister Marie-Claude Bibeau said in Regina. “This would be the best for every parties and the fastest solution as well.” 

Bibeau delivered remarks at the Canadian Western Agribition where she met with grain farmers and addressed concerns about the strike’s effect on agricultural trade.

Ryan Remiorz/CP

Farmers protest the ongoing CN Rail strike in front of the riding office of Prime Minister Justin Trudeau on Nov. 25, 2019 in Montreal.

Three senators representing Prince Edward Island, Nova Scotia, and New Brunswick sent a letter to the prime minister Monday to reconvene Parliament ahead of the throne speech to debate back-to-work legislation.

“Ideally, CN and its employees will reach an agreement soon. However, there must be a backup plan in the event that they do not,” read the letter signed by Sen. Diane Griffin, Sen. Stephen Greene, and Sen. David Richards.

A new session of Parliament is scheduled to open next Thursday with the throne speech. 

With files from The Canadian Press

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November 26, 2019 at 05:02AM

Uber loses London licence over safety, but promises to appeal - CBC.ca

London's transit authority on Monday refused to renew Uber's operating licence over concerns about impostor drivers, with the ride-hailing company vowing to appeal the decision as it struggles to secure its future in the U.K. capital.

It's the latest chapter in Uber's rocky history with London transport officials, who have subjected the San Francisco-based tech company to ever tighter scrutiny over concerns about passenger safety and security.

Uber called the decision "extraordinary and wrong." It has 21 days to file an appeal, which it said it would do. The company can continue operating during the appeals process.

Transport for London cited "several breaches that placed passengers and their safety at risk" in its decision not to extend Uber's licence, which expires at midnight Monday. Among other things, unauthorized drivers carried out thousands of rides, the regulator said.

"While we recognize Uber has made improvements, it is unacceptable that Uber has allowed passengers to get into minicabs with drivers who are potentially unlicensed and uninsured," said Helen Chapman, director of licensing and regulation at Transport for London, known as TFL.

"We cannot be confident that similar issues won't happen again in future."

The company fired back, pointing out that TFL had found it fit and proper in its most recent licence renewal in September.

"We understand we're held to a high bar, as we should be. But this [TFL] decision is just wrong" chief executive Dara Khosrowshahi tweeted. "Over the last 2 years we have fundamentally changed how we operate in London."

Struggling to turn a profit

The denial in a lucrative European market is a big setback for Uber as it struggles to turn a profit. The company posted a $1.16 billion US loss in the latest quarter, and Khosrowshahi forecast it wouldn't make a profit until 2021. Shares fell 1.3 per cent in New York.

TFL had already been keeping Uber on a tight leash. It had revoked Uber's licence once before, in 2017, but a court later granted it a licence lasting 15 months, which TFL then extended for two more months in September, but added 20 conditions.

In the latest decision, the transit authority said it was concerned Uber's systems "seem to have been comparatively easily manipulated" by drivers.

Transport for London had revoked Uber's licence once before, in 2017, but a court later restored it. (Will Oliver/EPA-EFE)

One key issue was a change to Uber's systems allowing unauthorized drivers to upload their photos to other driver accounts.

This let them pick up passengers as though they were the booked Uber driver on at least 14,000 trips, which means all those journeys were uninsured, TFL said.

The change also resulted in some passengers traveling with unlicensed drivers, including one whose licence was previously revoked by TFL.

TFL faulted Uber for another "failure" that allowed dismissed or suspended drivers to create a new account and carry passengers. And it cited other "serious breaches" involving unspecified insurance-related issues.

Increased safety measures

Uber said it has audited every London driver over the past two months and will soon launch a new "facial matching process" for its Microsoft-powered verification system, which requires drivers to periodically take selfies for comparison with their account photos.

Drivers will have to more actively confirm their identity by blinking, smiling or turning their head — part of recently announced beefed up safety measures.

Investors shouldn't be under the impression the phony photo issue is limited to London, said Dan Ives, managing director at Wedbush Securities, who estimated London represents three to five per cent of Uber's business.

"Regulators around the world are going to scrutinize this issue, peel away the onion and make sure there are no similar issues," he said.

In the U.S., safety advocates have criticized Uber for conducting less thorough background checks on drivers than traditional taxi companies, which generally check drivers' fingerprints against databases.

Uber has been slugging it out with regulators in recent months and losing. California recently passed legislation to make companies treat rideshare drivers as employees instead of independent contractors, which could force Uber to provide health and other costly benefits.

New Jersey's labour department recently sought more than $640 million US from Uber, saying it misclassified drivers as independent contractors, and New York has enacted a minimum wage for drivers, which Uber passed along to customers in the form of higher prices.

"It feels like the regulators have the upper hand," Ives said.

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November 26, 2019 at 02:54AM

Lumber giant Canfor curtails BC mill operations for Christmas - Business News - Castanet.net

Photo: Canfor

Canfor says stagnant lumber markets are behind its decision to curtail all its sawmill operations over Christmas.

The company says in a statement that it is curtailing operations from Dec. 23 to Jan. 3 for all its mills except the WynnWood sawmill in central Kootenay, which will be closed for five days.

The forestry giant has 12 sawmills around the province.

Canfor did not say how many workers are affected by the decision.

The company could not be reached for comment.

It says in a statement that the cuts are due to the high costs of fibre and continued weak lumber markets, making operation in the province "uneconomic."

Dozens of mills around the province have either closed or scaled back operations this year over weak markets and lack of timber due to forest fires and a pine beetle infestation.

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November 26, 2019 at 07:24AM

Ford challenged Tesla to an 'apples to apples' tug-of-war between pickup trucks — Musk says 'bring it on' - CNBC

Tesla co-founder and CEO Elon Musk gestures while introducing the newly unveiled all-electric battery-powered Tesla Cybertruck at Tesla Design Center in Hawthorne, California on November 21, 2019.

FREDERIC J. BROWN | AFP | Getty Images

Tesla's futuristic pickup truck appears set to go head-to-head against the Ford F-150 in an "apples to apples" tug-of-war battle.

The anticipated showdown, which could take place as early as next week, comes shortly after Tesla unveiled its all-electric Cybertruck.

During the promotional event in Los Angeles last week, which turned into a somewhat embarrassing debut for the company's first electric pickup truck, Elon Musk showcased a promotional video of the vehicle engaging in a tug-of-war battle against a Ford F-150.

The 16-second clip, which has since been viewed more than 12 million times, shows Tesla's Cybertruck hardly breaking a sweat during the display, as it comfortably pulls a screeching Ford F-150.

However, critics of the demonstration have since argued the test was unfavorable to the U.S. automaker.

Sundeep Madra, vice president at Ford X, sent a message via Twitter to Musk on Monday, apparently urging the Tesla CEO to send over a Cybertruck for an "apples to apples" tug-of-war test.

In a tweet directly replying to the Ford X vice president, Musk replied: "Bring it on."

A Ford spokesperson was not immediately available to comment when contacted by CNBC Tuesday morning.

Astrophysicist Neil deGrasse Tyson — who has previously suggested that he believes Musk is more important than Jeff Bezos, Steve Jobs and Mark Zuckerberg — was one of those skeptical about the legitimacy of the original tug-of-war test.

Tyson said the stunt may not have demonstrated the pickup truck's engine power, challenging Musk to "fully load" the Ford F-150, "giving highest traction to its rear wheels, then try to drag that up the hill."

Musk agreed to do that next week.

He has since suggested the next tug-of-war test will be available to watch via webcast.

Botched demo

On Sunday night, Musk said Tesla had received 200,000 orders for its Cybertruck, despite a botched demo that led to a broken window and sparked meme's making fun of the vehicle's steel trapezoid shape.

At the unveiling, Musk tried to showcase the Cybertruck's durability by having the company's design chief hurl a metal ball at one of the Cybertruck's armored glass windows.

The window ended up cracking. Then another ball was thrown at another window and it shattered, too.

— CNBC's Lora Kolodny contributed to this report.

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2019-11-26 10:12:00Z
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