|Bid||351.82 x 800|
|Ask||351.99 x 1300|
|Day's range||348.36 - 352.80|
|52-week range||176.99 - 379.49|
|Beta (3Y monthly)||0.59|
|PE ratio (TTM)||N/A|
|Earnings date||28 Jan 2020 - 3 Feb 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||263.97|
Nov.13 -- Tesla Inc. won permission to start mass production at its China factory as Chief Executive Officer Elon Musk announced that Tesla will expand its global manufacturing network with a factory near Berlin. Bloomberg's Dana Hull has the latest on "Bloomberg Technology."
(Bloomberg Opinion) -- Earlier this week, my Bloomberg Opinion colleague Chris Bryant examined the ongoing troubles for advanced jet engines used on today’s commercial airliners. These engines now seem to be reaching their technical limits, and as Bryant says, we may be asking too much of the technology.That’s not great news for the companies making those turbines, or for those flying the aircraft. It’s also not the best news for the climate, given the trajectory of emissions from air travel and air freight. Carbon dioxide emissions from commercial aviation made up 2.4% of global emissions in 2018 and, according to the International Council on Clean Transportation, have grown 32% in just five years.The geography of those emissions is highly concentrated. Three markets — the U.S., the European Union and China — account for more than half of all emissions; the top 10 emitters contribute more than 70% of the global total.There’s something hopeful, actually, in that geographical distribution. High concentration means that tackling emissions in just three markets can have an outsized impact, and standards set in those large markets are easy for others to follow. There’s another aspect to the distribution of aviation emissions that’s worth examining: emissions by type of aircraft. Bryant writes of problems with engines on both widebody and narrowbody aircraft: the Rolls-Royce Holdings Plc Trent 1000 engines used on the widebody Boeing Co. 787, and United Technologies Corp. subsidiary Pratt & Whitney’s geared turbofan used on the narrowbody Airbus SE A320neo. While widebody aircraft make up one-third of global emissions, narrowbody and regional passenger plans are almost half. If the turbines used to propel the largest and longest-range of aircraft are approaching technical limits but almost half of emissions are from shorter-range and smaller aircraft, then there’s space to innovate, for emissions’ sake, at the short and small end. And that space looks electric and hybrid. Next month, Vancouver-based Harbour Air will fly its first electric seaplane, a De Havilland DHC-2 Beaver prototype retrofitted with a propulsion system from Seattle-based electric aviation company MagniX. It’s a first look at what electric commercial flight could be, and as it draws upon a sophisticated, global and continually improving network of battery makers while the cost of batteries continues to decrease, it has room to grow. “Because of airborne mobility development, this technology is unstoppable, and it’s getting more practical as every day goes by,” says Greg McDougall, Harbour Air’s CEO. “The brainpower and money involved is snowballing, and there’s no doubt we can roll out what we’re doing to other small airlines.” It’s an infectious enthusiasm, but it just might take to the air elsewhere, too. Weekend readingThe Qantas Group plans to reach net zero carbon emissions by 2050. Meanwhile, Formula 1 plans to reach that milestone by 2030. Ferrari says its new Roma coupe is inspired by the postwar Eternal City. It’s a bit of a step up from the Vespas and Topolinos of the film “Roman Holiday.” The European Investment Bank will not consider new financing of unabated fossil fuels, including natural gas, after 2021. Sweden’s Riksbank is selling bonds issued by the Canadian province of Alberta and the Australian states of Queensland and Western Australia due to those areas’ large climate impacts. How Australia’s big businesses saw the climate turning point coming. The world’s biggest gun has helped solve a long-standing space mystery: the risk that orbiting microdebris poses to satellites. Weather-tech startup Understory is selling Hail Safe, an insurance product that protects auto dealers from hailstorm damages. Think tank Macro Polo’s deep dive into the organic light-emitting diode (OLED) supply chain in East Asia. Adidas has abandoned its robot factory experiment. Open-source code will survive the apocalypse in an Arctic cave. Silicon Valley’s Singularity University is cutting staff, and its CEO is stepping down. Elon Musk’s keep-it-in-the-family deal for SolarCity has become the top threat to Tesla Inc.’s future. The new dot-com bubble is here: It’s called online advertising. Designer Iris van Herpen’s work is inspired by the Large Hadron Collider. A fascinating look at how American brands became indelibly Japanese. In data journalism, technology still matters less than people. The coming age of generative biology. Get Sparklines delivered to your inbox. Sign up here. And subscribe to Bloomberg All Access and get much, much more. You’ll receive our unmatched global news coverage and two in-depth daily newsletters, the Bloomberg Open and the Bloomberg Close.To contact the author of this story: Nathaniel Bullard at firstname.lastname@example.orgTo contact the editor responsible for this story: Brooke Sample at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nathaniel Bullard is a BloombergNEF energy analyst, covering technology and business model innovation and system-wide resource transitions.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The Zacks Analyst Blog Highlights: Toyota Motor, Honda Motor, Nissan Motor, Tesla and Advance Auto Parts
The company committed to producing 4m additional battery-powered vehicles in the next decade and said it would spend €33bn on electric mobility in the next four years. A further €27bn will be spent on hybrid technology and digitisation in the same period. VW, which had already planned to produce 22m e-vehicles by 2028, pledged to introduce 75 electric models and 60 hybrid vehicles over the next decade.
Elon Musk’s commitment to donate $1 million to the planning of trees in forests around the world appears to clash with the fact that Tesla will need to cut down trees to build its new gigafactory
(Bloomberg) -- Tesla Inc.’s Model 3 and S sedans reclaimed recommendations from Consumer Reports, though the electric-car maker still ranks toward the bottom of the group’s annual reliability survey along with other U.S. automakers’ brands.The two Tesla models earned an average rating in Consumer Reports’ reliability survey, leading the organization to restore endorsements it revoked from the Model 3 in February and the Model S a year ago. Five of General Motors Co. and Fiat Chrysler Automobiles NV’s brands placed among the 10 worst in the survey, which was again dominated by Japanese and Korean carmakers.Consumer Reports’ fluctuating views of Tesla’s sedans reflect the company’s frequent design changes and rush to ramp up production, according to Jake Fisher, senior director of auto testing. The Model X still scores among the least reliable in the survey, leaving the electric-car maker’s brand ranking 23rd out of 30.“We recommend the Model 3 with a caveat,” Fisher said in an interview. “I don’t know what will happen in the next six or 12 months because the car keeps changing, so results may vary.”GM’s WoesReliability issues for established automakers including GM and Volkswagen AG frequently relate to their new vehicles offering technologically advanced features for the first time, such as touchscreen infotainment and driver-assistance systems.“GM really has consistently had problems with new model launches as they add new technology, and it was across the board for their vehicles,” Fisher said. Three of its four brands finished in the bottom 10, with Cadillac finishing dead last, thanks in part to a troublesome infotainment system. VW’s namesake fell nine spots to 27th, and its luxury brand Audi slipped seven places to 14th.Buick, the only GM brand to finish around the middle of the pack, fell five spots to 18th. Chevrolet ranked 25th, with some of its highest-volume models -- the Chevy Colorado mid-size pickup and Silverado full-size truck -- scoring poorly.Chevy’s Silverado rated 20 on a 100-point scale, matching Ford’s F-150 and narrowly beating the Ram pickup’s 18. The overall Ford brand ranking was unchanged from a year ago, at 16th.GM’s is having trouble with the drive system and in-vehicle electronics on the new Chevy Silverado and GMC Sierra pickups. That’s problematic especially since the new trucks underwent modest changes and have disappointed Consumer Reports’ test drivers. GM probably took a conservative approach to engineering the new trucks because the previous-generation Silverado and Sierra had reliability issues, Fisher said.For GM, improvement is a must. The Silverado and Sierra are among its most profitable vehicles, and the automaker has been fending off a challenge from Fiat Chrysler’s Ram, which has gained market share at Chevy’s expense. There’s also more competition on the way: Tesla plans to show off an electric truck on Nov. 21. The pickup, which Chief Executive Officer Elon Musk has said is inspired by the sci-fi film “Blade Runner,” will try to crack Detroit’s profit center along with another electric upstart, Amazon.com Inc.-backed Rivian Automotive Inc.Asian DominationAsian brands fared best in the study. Toyota Motor Corp.’s Lexus luxury line again took top honors, its namesake brand finished third, and Japanese partner Mazda was sandwiched in between. The best vehicle in the study was the Lexus IS sedan, with a score of 99.The Genesis luxury brand from South Korea’s Hyundai Motor Co. placed fifth, and the company’s namesake line finished in sixth. Among European brands, only Porsche and Mini were in the top 10.Tesla’s Model 3 was initially recommended by Consumer Reports in 2018 because the early models fared well in terms of customer satisfaction and reliability was initially good enough. Tesla made a lot of changes to the car that year, including adding more comfortable seating and improving the suspension to soften the ride. But some tweaks brought about glitches that cost the car the group’s blessing.In the past year, Tesla has fixed many of those problems, and its two sedans have risen in the rankings. Fisher spoke with Musk after the Model 3 lost its recommendation last year and said the CEO was eager to hear what owners were complaining about.“He wanted the feedback,” Fisher said. “He wants to build the best cars in the world.”To contact the reporter on this story: David Welch in Southfield at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Trudell at email@example.com, Kevin Miller, Keith NaughtonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
While Japan's 1 carmaker Toyota (TM) misses fiscal second-quarter 2020 earnings estimates, its top peer Honda (HMC) surpasses the same.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Foreign companies continue to invest more in China even after President Donald Trump called on U.S. firms to look elsewhere, as the rising spending power of 1.4 billion people proves too hard to resist.Companies from Tesla Inc. to Walmart Inc. are expanding operations in the world’s second-biggest economy, joined by counterparts from Korea, Japan and Europe. That’s helping offset the departure of goods manufacturers that have had to rethink supply chains after U.S. tariffs made their products more expensive.Foreign direct investment into China rose nearly 3% in the first nine months of 2019 from a year earlier, according to the Ministry of Commerce, the same pace as 2018’s increase. While the U.S. outstripped that increase last year, investment has dropped off since Trump became president.“Multinational firms are now more likely to invest in China since serving the market from abroad will be risky given the mutual trade barriers that have been erected and the fact that any truce in the trade war is likely to be only temporary,” said David Dollar, a senior fellow at the Brookings Institution in Washington.Almost 75% of China’s inbound investment is now into services, utilities and other sectors aimed at the domestic market, said Dollar, a former U.S. Treasury attache in Beijing. If anything, the trade war is encouraging companies to ensure they have a China base, he said.That’s the opposite of what President Trump has pushed for: in August the president tweeted that U.S. companies should “immediately start looking for an alternative to China.”“If you go to major U.S. companies and say, ‘well the politics in D.C. says we have to decouple so you are going to leave the China market,’ they would say ‘no we can’t because the prize is too big’,” Arthur Kroeber, head of research at Gavekal said in a presentation in Hong Kong this month.One complication in analyzing the trend is the difficulty in determining how much of the spending represents real investment, and how much is Chinese companies moving money offshore and then bringing it back to the mainland. Some three quarters of China’s FDI in 2018 came from Hong Kong, the British Virgin Islands or the Cayman Islands, which a recent International Monetary Fund report called sources of “phantom FDI.”EV BoomYet there’s also plenty of news demonstrating the big bet on China’s consumer. Tesla is eyeing mass production out of its first factory outside the U.S. in a plant near Shanghai for which the automaker has received as much as $521 million in loans from Chinese banks. Such spending generates a hive of activity right along the supply chain.LG Chem Ltd., the world’s second-biggest manufacturer of lithium-ion battery cells and said to be one of Tesla’s initial suppliers for its made-in-China Model 3 cars, said in October it plans to invest about $430 million in its Chinese business. In June, it teamed up with Geely Automobile Holdings Ltd. on a joint venture to produce electronic vehicle batteries.“China is a focal point for our battery investment,” spokesman Yoo Won Jae said in an interview this month.Economic BoostSuch inflows could help put a floor under an overall slowdown in investment, helping China hit its jobs targets even as the economy grows at its slowest rate in decades.Among other recent announcements:General Electric Co.’s GE Renewable Energy announced in July investments for undisclosed amounts in a new offshore wind factory and operation and development centerBASF SE in January signed a framework agreement with the government of Guangdong Province for a $10 billion manufacturing complex. In a first for a foreign chemical maker, BASF received permission to own 100% of the project rather than work with a local partnersWalmart in July said it will spend 8 billion yuan ($1.1 billion) on distribution centers in ChinaTrade war or not, the lure of 1.4 billion people can’t be ignored, AstraZeneca Plc Chief Executive Officer Pascal Soriot said in an interview at the second annual China International Import Expo in Shanghai. “We have to invest more in China.”Chinese investors have received a frosty reception in the U.S. By contrast, American companies are still being welcomed in China, according to Ker Gibbs, president of the American Chamber of Commerce in Shanghai.“At the provincial and municipal level, we sense an even heightened degree of enthusiasm for foreign investments,” he said. “They are very much courting us.”\--With assistance from Heesu Lee, Dong Lyu and James Mayger.To contact the reporters on this story: Bruce Einhorn in Hong Kong at firstname.lastname@example.org;Enda Curran in Hong Kong at email@example.comTo contact the editors responsible for this story: Malcolm Scott at firstname.lastname@example.org, ;Emma O'Brien at email@example.com, Bruce Einhorn, James MaygerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
German politicians are very excited right now about Elon Musk’s announcement that he will open one of Tesla’s Gigafactories close to Berlin. AP quoted economy minister Peter Altmaier as saying the mooted opening, announced Tuesday evening local time, was a "glorious success" for Germany's attractiveness as an auto industry location. It’s easy to see why the likes of Altmaier are so thrilled by a Tesla decision -- its pay-off for their recently unveiled environmental strategy.
Days to Brexit deadline: 78(Bloomberg) -- Sign up here to get the Brexit Bulletin in your inbox every weekday.Today in Brexit: When the history of Brexit is written, expect a chapter on one unlikely factor: the great British winter.What’s happening? With Britain bracing for its most important general election in a generation, set to determine the fate of Brexit, politicians are having to grapple with a very practical problem: campaigning while it’s cold, wet and dark. It’s the first December election in almost a century, and there are various implications for campaigning and potential turnout, write Bloomberg’s Alex Morales and Greg Ritchie. Transport could be snarled up by snow, preventing voters from reaching the polls. Some may have taken an early winter holiday and others could be out celebrating at office parties until after polling booths close at 10 p.m.These factors are likely to benefit the Conservatives, according to Philip Cowley, professor of politics at Queen Mary University of London. Cold weather could limit Labour’s campaigning advantage from its mass membership, he wrote last month in a Spectator blog. Postal votes might also have a greater sway, which tend to come from older and disproportionately Tory voters.Extreme conditions are already playing a role in this election. Prime Minister Boris Johnson had a tricky day on the campaign trail Wednesday, meeting flood victims who weren’t too pleased to see him in northern England. “What more can we do?” he asked one woman. “It’s a little bit too late now,” she replied.Johnson also suffered a setback as Nigel Farage’s Brexit Party continued to refuse to stand down candidates in Labour-held target seats, risking splitting the pro-Brexit vote. Though at the same time, a grand remain-supporting alliance between the pro-European Union Liberal Democrats and Labour has also not materialized, so tactical voting will be important. It’s shaping to be the election of cold and confusion.Today’s Must-ReadsElon Musk said Brexit is the reason why the U.K. missed out on being a location for a Tesla factory. In an interview with the Guardian, Unite’s Len McCluskey, Jeremy Corbyn’s key union backer, urged the Labour leader to take a tough line on free movement of workers to win the election. The U.K. election will still not settle the big questions of Brexit, Philip Stephens writes in the Financial Times.Brexit in BriefFree Trade 2020 | U.K. business minister Andrea Leadsom told broadcaster ITV that Britain “won’t know for sure” if a free trade deal is possible with the EU until the end of 2020, even though she’s confident the U.K. will get one.No Commissioner | The U.K. will not nominate an EU commissioner until after its December 12 election because of so-called “purdah” rules that prevent such appointments during a national vote, Britain’s ambassador to the EU Tim Barrow wrote in a letter to the bloc Wednesday night, according to Politico.Sluggish Property | Brexit uncertainty continues to weigh on the U.K. housing market, with the upcoming election also contributing to negative sentiment, according to the latest Royal Institution of Chartered Surveyors report.Skeletons Exit Closet | Unwise social media posts have been destroying fledgling political candidates’ careers for almost a decade now, but the evidence in Britain is that the lesson has yet to have been learned, writes Bloomberg’s Kitty Donaldson.Lib Dem Opportunity | The pro-EU Liberal Democrats see Farage’s pact with the Conservatives as an opportunity to win over moderate voters, party leader Jo Swinson said in an interview with Bloomberg.Want to keep up with Brexit?You can follow us @Brexit on Twitter, and listen to Bloomberg Westminster every weekday. It’s live at midday on Bloomberg Radio and is available as a podcast too. Share the Brexit Bulletin: Colleagues, friends and family can sign up here. For full EU coverage, try the Brussels Edition.For even more: Subscribe to Bloomberg All Access for our unmatched global news coverage and two in-depth daily newsletters, The Bloomberg Open and The Bloomberg Close.To contact the author of this story: Joe Mayes in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Chris Kay at email@example.com, Leila TahaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Sign up to our Brexit Bulletin, follow us @Brexit and subscribe to our podcast.The Conservatives are trying to put immigration at the center of their campaign on Thursday. Home Secretary Priti Patel published analysis -- which Labour rejects -- saying Jeremy Corbyn’s “open borders” policy will push up net migration to 840,000 per year.After more false starts, Boris Johnson will hope the message resonates with pro-Brexit voters in the traditional Labour heartlands he wants to win.Must Read: Voting in the Dark: U.K. Politicians Fight Rare Winter ElectionELEC for more on the U.K. electionComing up:Corbyn campaigns in Scotland; Labour to announce measures to close the gender pay gap4 p.m. official deadline for nominating candidates for the electionThe Polls:Savanta ComRes poll for the Telegraph: Conservatives 40%, Labour 30%, Lib Dems 16%, Brexit Party 7%Here’s a summary of recent pollsCatching Up:Tory leader’s office pledges more money for electric car technology and offshore wind farms, but the day did not go perfectlyElon Musk blames Brexit for U.K. missing out on Tesla Inc. gigafactoryTories offered Brexit Party leader Nigel Farage an electoral pact; he turned it down, the Telegraph reportsLib Dem Leader Jo Swinson sees a chance to woo moderate ToriesPast social media gaffes haunt candidatesThe Markets:The pound was little changed on Wednesday and edged lower early on ThursdayBetfair Exchange puts the chances of a Conservative majority at about 62%, while the party has about a 52% chance of winning more than 340 seats, according to the exchange, where punters bet against each other, rather than the bookmaker itself.\--With assistance from Peter Flanagan.To contact the reporter on this story: Tim Ross in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Flavia Krause-Jackson at email@example.com, Emma Ross-ThomasFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on what's moving European markets in your inbox every morning? Sign up here.Good morning. U.S-China talks hit another snag and economies are slowing due to trade tensions, but oil is bouncing back. Here’s what’s moving markets.SnagU.S.-China trade talks hit a snag over the agricultural purchases the pair have been negotiating, news that sent cyclical shares tumbling for a second day on renewed jitters about how the talks are going. Asian stocks dipped a little on this, along with Chinese data and worries about the situation in Hong Kong. Beyond those snags in the U.S.-China talks, U.S. President Donald Trump said he wants to strike a trade deal with Turkey and described Turkish President Recep Tayyip Erdogan, a pariah in Washington over his country's military offensive into Syria, as a “good friend.”SlowdownIf one were looking for evidence of the impact those trade tensions are having, economic data from China and Japan lays it bare. China’s economy slowed further in October, with trade concerns and subdued domestic demand offsetting the piecemeal stimulus the government is pumping in to shore things up. Worryingly, economists say the slowdown there is yet to hit the bottom. Japan’s economy, meanwhile, slowed sharply in the third quarter with exports falling, all as its government considers the size of a stimulus package it intends to launch to counter the weakness.Bounce BackIt's been a busy week for energy traders, what with Saudi Aramco’s initial public offering and the International Energy Agency’s views on when crude demand will peak spooking parts of the market, but oil is bouncing back. Crude futures are up for a second day after a report that the OPEC cartel sees a potential reduction in supply coming from non-OPEC members along with an “upswing” in the forecast for demand growth. This as the U.S. Energy Information Administration raised its forecast for crude output in 2020, even as the pioneers of the shale boom think production growth will slow.Election LandThe parties fighting the U.K.’s election continue on with what has been an uneasy campaign thus far. Conservative leader Boris Johnson faced flood-hit communities in northern England and said Brexit is holding back the country’s economy. The Liberal Democrats, who support remaining in the European Union, see an opportunity after the Brexit Party’s retreat from hundreds of seats. Social media pasts are haunting many of the candidates, the Netherlands is making a play to take London’s spot as the top restructuring hub and Brexit has cost the U.K. a Tesla factory. Just another day in Brexit election land.Coming Up…Investors will be digesting yesterday’s first day of public testimony in the impeachment probe into Trump. There are a large number of central bank officials speaking, beyond the Federal Reserve’s Jerome Powell testifying at a House Budget Committee meeting. Central bankers from the Fed, European Central Bank and Bank of Canada are all on the slate. Euro-area and German GDP data are due too and there will be an interest rate decision from Mexico later.What We’ve Been ReadingThis is what’s caught our eye over the past 24 hours. WeWork’s quarterly loss doubled as its IPO faltered. There’s a flaw in McDonald’s ordering kiosks. Mental health is still a “don’t ask, don’t tell” subject at work. A genetics company wants everyone to live to 99. Mongolia is a hotbed for road rage. Open-source code can survive the apocalypse. Travel hacks from the youngest person to visit every country.Like Bloomberg's Five Things? Subscribe for unlimited access to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close.Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. Learn more.To contact the author of this story: Sam Unsted in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Phil Serafino at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Boris Johnson found himself arguing that Britain’s future was in making electric cars, just as Tesla announced they’d chosen Germany to build a factory over the U.K. He’s having that sort of campaign.The prime minister had started the day visiting flood victims in Northern England. They weren’t as pleased to see him as he might have hoped. “What more can we do?” he asked one woman. “It’s a little bit too late now,” she replied.Burned by their disastrous 2017 election under Theresa May, the Conservatives chose Johnson as their leader partly because they felt he was a winner, a superstar politician who enjoyed the campaign trail. But on Wednesday, he didn’t look like he was having much fun.It would be dangerous to read too much into this: It’s still a month until polling day, and every poll has the Conservatives comfortably ahead. Johnson is also ahead of opposition Labour Party leader Jeremy Corbyn on questions about who would make the best prime minister.As Britain Votes, Your Enemy’s Enemy Is Your Friend: QuickTakeBut anyone looking for things to worry about in Johnson’s performance could find them. There was the way that he was standing in an electric car factory, making a speech about how Britain was going to lead a technology revolution, on a day when Elon Musk had explained that the uncertainty around Brexit made it “too risky” for Tesla Inc. to build a factory in the U.K.Then there was the speech itself. One of the prime minister’s officials said privately they’d accepted that getting other people to write his speeches is a waste of time – he simply rewrites them afterward.But that is a time-consuming process for a man with a country to run and a campaign to fight.The result can seem confused. For his speech, at an electric taxi factory near Coventry, central England, Johnson had a series of announcements to make about his plans for a revolution in British science. They included:An Advanced Research Projects Agency, modeled on the U.S. Department of Defense’s science wingAn increase in the target for wind-generated electricityInvestment in carbon capture and storage infrastructureInvestment in electric vehicle charging points, so no one in England and Wales is more than 30 miles from a charge pointJohnson failed to mention any of them in his speech. The information was handed out afterward by his staff.None of this may matter. Johnson has long played politics by a different set of rules from the rest of the world, and it’s taken him to the top. His team is counting on that run continuing. They’re also sure that, faced with a choice between Johnson and Corbyn, enough voters will choose the Tory leader.That’s why they’ve agreed to head-to-head televised debates, the first of which takes place Nov. 19.Election debates are a relative novelty in the U.K., introduced in 2010, and repeated in different forms at subsequent elections. The problem arranging them is usually getting the parties to agree to the format. Debates are a zero-sum game, and if one of the two main parties -- Labour and the Conservatives -- thinks it can benefit, the other side usually refuses.The ease with which this year’s debates were agreed stems from the fact that both the Tories and Labour think their candidate will look better for standing next to the other man. It’s likely that one of them is mistaken.To contact the reporter on this story: Robert Hutton in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Tim Ross at email@example.com, ;Flavia Krause-Jackson at firstname.lastname@example.org, Robert JamesonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Sign up to our Brexit Bulletin, follow us @Brexit and subscribe to our podcast.Boris Johnson is back in campaign mode following a tricky visit to flood-hit areas of northern England, where his government’s response was criticized by local residents. In a speech at the London Electrical Vehicle Factory in Coventry, the prime minister said getting Brexit done would trigger a wave of investment, and blamed Jeremy Corbyn’s Labour Party for the U.K.’s delayed departure from the European Union.Key Developments:Johnson said a government led by Corbyn would offer “dither, delay, discord, division”Corbyn said a Labour government would not allow a referendum on Scottish independence in its first termFormer Tory minister David Gauke urges voters not to back JohnsonCabinet minister Michael Gove says a majority Conservative government would get a free-trade agreement with the EU done by the end of the Brexit transition period in Dec. 2020Johnson Pledges Investment Boom After Brexit (5:05 p.m.)At a Coventry factory where China’s Geely Automobile Holdings makes London taxis, Boris Johnson promised to boost research and development, including putting more money into electric car charging and offshore wind farms.“We are seeing a new industrial revolution: a green industrial revolution,” Johnson said in a speech. “Creating thousands of environmentally sustainable technologies and thousands of jobs. A glorious rebuttal to the skeptics who said it couldn’t be done.”Johnson said getting Brexit done would trigger a wave of investment into the U.K., and blamed Jeremy Corbyn’s Labour Party for forcing the government to delay Britain’s departure from the European Union. He repeated some familiar attack lines, saying a Corbyn government offered only “dither and delay” and accused Labour of supporting a second referendum on Scottish independence next year -- something Corbyn denied earlier.Voters Quiz Johnson on Tory Funding Cuts (4:15 p.m.)During his visit to flood-hit areas of northern England, Boris Johnson has been meeting local residents -- and there have been some uncomfortable exchanges. In one clip posted by ITV, Johnson was asked about council funding cuts by his Conservative Party since the financial crisis.“Are you going to put it back, what’s been cut over austerity?” a woman asked. When Johnson started to reply about funds for flood relief, another resident interjected: “You’re not answering the question.”“We are increasing funding or councils, I don’t know the exact figures,” Johnson then said.The impact of almost a decade of austerity on local services in England was laid bare in a report by the Institute for Fiscal Studies on Wednesday. With councils concentrating resources on the most needy residents, services including housing, planning, transport and culture have seen their budgets slashed in half since 2009-10.Brutal Cuts to U.K. Local Services Laid Bare as Austerity EndsJudge Blocks Postal Strike During Election (2:40 p.m.)A London judge blocked a potential strike by Royal Mail Plc workers during the peak Christmas holiday season, which this year includes the Dec. 12 general election. The Communication Workers Union members voted 97% in favor of action, but Royal Mail complained of “potential irregularities” in the ballot.The court’s decision removes the risk that large numbers of postal votes could be caught up in strike action ahead of the general election.Brexit Cost U.K. Tesla’s Gigafactory (2:30 p.m.)There was bad news for Boris Johnson’s claim that Brexit will unleash commercial opportunities, as Elon Musk said Tesla Inc. has rejected the U.K. as “too risky” for its European gigafactory.The U.K. was once a candidate for the company’s research and manufacturing facilities, Musk said as he announced he has opted for Germany instead. The uncertainty around the U.K. leaving the European Union made it far too risky a proposition, he told Auto Express.Corbyn: No Scottish Referendum in First Term (12:10 p.m.)Jeremy Corbyn said a Labour government would not allow a referendum on Scottish independence in its first term.“No referendum in the first term for a Labour government because I think we need to concentrate completely on investment across Scotland,” Corbyn said in pooled comments. “I’m very clear that a Labour government’s priority is investment in Scotland.”The issue is a key one because Boris Johnson’s Conservatives have repeatedly said a vote for Corbyn means a vote for two referendums next year -- one on Brexit and one on Scottish independence.Lib Dems See Boost in Farage Pullback (11:45 a.m.)The Liberal Democrats are trying to cash in on Nigel Farage’s decision to pull Brexit Party candidates out of Conservative-held seats.In an interview, party leader Jo Swinson said Farage’s gambit makes it easier for her party to appeal to moderate Tory voters who are appalled by the association with the Brexit Party. She’s also keen to remind voters that U.S. President Donald Trump urged Farage and Johnson to work together.Read more: U.K.’s Liberal Democrats See Opportunity in Brexit Party RetreatVoter to Johnson: Flood Aid ‘Too Late Now’ (10:15 a.m.)Boris Johnson’s visit to flood-stricken areas of northern England has not yet produced the kind of footage the prime minister will have been hoping for.Walking around with reporters and TV cameras in tow, he asked a local woman: “What more can we do?”“It’s a little bit too late now,” she replied, filming the encounter on her smartphone. Another voter declined to discuss the issue with Johnson, turning away when the premier approached.Speaking to Sky News, Johnson said there’s “a lot more still to be done” to help areas affected by flooding, and to prevent recurrences.Labour Pledges ‘Rescue Plan’ for NHS (10 a.m.)The opposition Labour Party pledged to end what it described as a “crisis” in the state-run National Health Service with a funding boost of 26 billion pounds ($33.4 billion). The increase in health spending by an average 4.3% a year will be funded by higher taxes on businesses and the wealthiest taxpayers, Labour said in an emailed statement. The party said it represents 6 billion pounds more in real terms than the government announced last year.“The world-class health service we all need and depend on needs proper funding,” Labour’s economy spokesman John McDonnell will say in a speech in London on Wednesday, according to the party. “Labour’s policies to tax the richest in society and invest for the future through our Social Transformation Fund mean we will be able to improve millions of lives.”Johnson to Vow to End Brexit ‘Groundhoggery’ (9:40 a.m.)In a speech later on Wednesday, Boris Johnson will vow to end the “groundhoggery” of Brexit if he wins a majority in the Dec. 12 election and “unleash Britain’s potential” with a clean energy revolution.“We can get out of the rut,” Johnson will say, according to lines briefed by his office. A coalition formed by Labour Party Leader Jeremy Corbyn and Nicola Sturgeon’s Scottish National Party lies in wait for the U.K. if the Tories don’t succeed, he’ll say.“The country can either move forwards with policies that will deliver years of growth and prosperity, or it can disappear into an intellectual cul-de-sac of far-left Corbynism,” Johnson will say. “We can honor the wishes of the people, or else we can waste more time, at the cost of a billion pounds per month, and have two more referendums, one on Scotland and one on the EU -- an expense of spirit and a waste of shame, more political self-obsession and onanism.”Gove: Tory Majority Only Way to Get Brexit Done (8:30 a.m.)Cabinet minister Michael Gove disputed David Gauke’s assertion (see 7:30 a.m.) that voting for the Conservatives risked a hard split from the European Union. During his broadcast round, Gove told the BBC that Gauke was “precisely wrong” and said a parliamentary majority for the Tories would allow the government to deliver a free-trade agreement with the EU by the end of 2020.“The only way we can get Brexit done and move on with the people’s priorities, investing in policing and education, is by making sure that we have a functioning majority government,” Gove said. He said politicians’ warnings of a no-deal Brexit at the end of 2020 are attempts to “raise bogeys and make people’s flesh creep.”Gove also addressed the flooding in northern England that has rapidly become a key campaign issue. He said the government is releasing extra funds to help affected communities. “It’s certainly an emergency and it deserves a national response.”Gauke: A Vote for Johnson Means ‘Hard Brexit’ (7:30 a.m.)Former Tory Cabinet minister David Gauke urged voters not to support Boris Johnson, warning that “a Conservative majority after the next election will take us in the direction of a very hard Brexit.” Gauke told BBC radio it’s doubtful a free-trade deal with the European Union can be negotiated by Dec. 2020, when the Brexit transition period is due to end.“I think in reality the prime minister is so boxed in that the Conservative Party would not allow him to extend the implementation period even if he wanted to -- and he shows no signs of wanting to do so,” said Gauke, who plans to stand as an independent candidate.Gauke also said he’s “impressed” by Liberal Democrat leader Jo Swinson. “I think if I was living in a lot of constituencies, I would lend my vote to the Liberal Democrats.”Earlier:Johnson Asks Troops to Fight Floods as Weather Hits U.K. BallotU.K. Recent Election Polls Summary: Conservative 40%, Labour 29%Brexit Bulletin: Johnson Told He Can’t Avoid EU ResponsibilitiesJohnson Aims Not to Be Swept Away By Floods: U.K. Campaign TrailTo contact the reporters on this story: Alex Morales in London at email@example.com;Kitty Donaldson in London at firstname.lastname@example.org;Robert Hutton in London at email@example.comTo contact the editors responsible for this story: Tim Ross at firstname.lastname@example.org, Stuart Biggs, Thomas PennyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- When Elon Musk tweeted last year that Germany was a front-runner for Tesla Inc.’s first European car factory, it sent politicians into a frenzy to win over the billionaire.Berlin’s economy minister, Ramona Pop, responded with a two-page letter that waxed lyrical about Musk as a pioneer and visionary and offered financial sweeteners to attract him to a city bustling with a vibrant tech scene and a network of auto research institutes. She even floated access to a nearby race track where Tesla could take its cars for a spin.As the beauty contest gained momentum, it turned into a battle. Two federal states that border France also touted their virtues. Musk already had a connection with that part of Germany from his purchase of an automation company there a few years ago. There’s also Berlin’s patchy track record shouldering large infrastructure projects -- its new airport remains a mothballed mess, years behind schedule and massively over budget.Yet when Musk’s Gulfstream jet touched down in the German capital early this week, his mind was made up: the European gigafactory would sit on the outskirts of Berlin, with an additional engineering and design center within the city limits. Musk casually dropped the news at a red-carpet award populated by the top brass of Germany’s car industry, including the CEOs of BMW AG and Volkswagen AG, two companies pushing hard into an electric future.“There was very intense competition in recent months among different European nations,” Economy Minister Peter Altmaier told reporters on Wednesday in Berlin. “It’s an important and positive development that Germany was chosen.”Mounting PressureMusk is taking his fight for the future of transport into the heartland of the combustion engine, where the established players long laughed off Tesla as an upstart on feeble financial footing that couldn’t compete with their rich engineering heritage. But Musk has captured the imagination of the think-different consumer, putting pressure on the Germans to respond. Volkswagen has pulled out all the stops, earmarking more than 30 billion euros ($33 billion) to develop the industry’s largest fleet of electric cars.The choice of Berlin and its surrounding area hands Musk several advantages, not least free money in form of subsidies. There’s the proximity to a government keen to sponsor the industry’s transformation. Labor costs in eastern Germany are generally lower than in the traditional engineering hubs in the southern part of the country. And Berlin, where new startups are founded each day, is an attractive place to live for the tech workers Tesla would seek to attract for its design center.The area where Tesla plans to put the factory, called Gruenheide just east of Berlin in the state of Brandenburg, provides quick access via the Autobahn and a link to public transport. It’s a site that BMW had considered before choosing the city of Leipzig a few hours south for a new factory in 2001, the last time a car company built a major new facility in Germany.Roller-CoasterThe government in Brandenburg, one of five federal states in the former communist east, also lobbied hard to win over Musk, offering at least 100 million euros in aid. The state’s negotiators kept up the pressure in the past months, touting Brandenburg’s proximity to Berlin, its skilled labor force and an abundance of clean-energy plants, Premier Dietmar Woidke said.“Berlin can do a lot that we aren’t able to, and we can do a lot that Berlin can’t,” Woidke told reporters in Potsdam. “Together, that’s an unbeatable mix.”Officials in Brandenburg described the negotiations with Musk as an emotional roller-coaster ride, with the politicians struggling to read the billionaire’s intentions. But by last week, things were looking up. After Musk arrived in Berlin, he toured the location where the factory would sit, and he took a local train back to central Berlin to try for himself how long the commute might take.Fresh from his experience building a factory in China, Musk had a demand that was as clear as it was hard to execute for notoriously bureaucratic Germans: to build the site as swiftly as the one in Shanghai, according to Brandenburg’s economy minister, Joerg Steinbach. That caused considerable consternation among officials still chafing from the new-airport debacle.Shanghai FactoryTesla long relied on a single assembly plant, based in Fremont, California, for its car production. The company is on the verge of starting sales of Model 3s produced at its latest facility, near Shanghai, which it erected in record time. Musk estimated earlier this year that Tesla’s European gigafactory probably won’t be operational until 2021.The factory will make batteries, powertrains and vehicles, beginning with the Model Y crossover unveiled earlier this year, he said in a tweet. It’s also expected to churn out the Model 3, which beat out BMW and Audi for the award Tuesday night.With Tesla adding as many as 10,000 jobs to Berlin and the region, according to Bild, it’s also a boon for the German capital and its burgeoning tech scene. Famously labeled “poor but sexy” by a former Berlin mayor, the city has thrived in recent years thanks to a steady influx of young entrepreneurs and IT professionals attracted by the capital’s mix of affordable housing (the city just announced a rent freeze), top-notch universities, and homegrown tech successes including fashion retailer Zalando SE and food delivery startup Delivery Hero SE.In the last five years, Berlin’s population has grown by almost 50,000 annually, underscoring its attraction that can’t be matched by cities like Stuttgart, home to Daimler AG and Porsche, or Wolfsburg, where Volkswagen is based. As a sweetener, the Berlin government offered locations including the site of the existing Tegel airport for Tesla’s design center.Tech HubsThe appeal of Berlin hasn’t been lost on Musk’s rivals. Virtually all the major German carmakers have created tech hubs, and dozens of local startups are active in fields including artificial intelligence, 3D printing and autonomous driving. Tesla will have to compete for local talent with U.S. tech giants including Apple Inc., Oracle Corp., Google and Amazon.com Inc., which is preparing to move into Berlin’s highest office building by 2023 in the rugged-yet-fashionable Friedrichshain-Kreuzberg district.“The Berlin location, home to an ever growing co-working, digitally focused, young programming demographic, has already proved why many German OEMs such as Volkswagen, Porsche, BMW and Daimler are opening digital offices on the Spree” river, said Matthias Schmidt, an independent automotive analyst in Berlin.All the jubilation notwithstanding, Berlin and Brandenburg have their work cut out to build a new home for Tesla. The region lost most of its heavy industry during World War II, and much of what remained after the war was ground up by the country’s separation. Siemens AG is the only global company with a sizable manufacturing footprint in Berlin.And the sprawling new airport, still under construction, is a massive blemish on the region’s record of getting big projects off the ground. It’s an ignominy that was on the U.S. billionaire’s mind when he followed his announcement with an appeal to get the job done.“We definitely need to move faster than the airport,” Musk said.\--With assistance from Iain Rogers, Oliver Sachgau, Christoph Rauwald and Chris Reiter.To contact the reporters on this story: Stefan Nicola in Berlin at email@example.com;Birgit Jennen in Berlin at firstname.lastname@example.orgTo contact the editors responsible for this story: Anthony Palazzo at email@example.com, Benedikt KammelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Tesla is set to build a gigafactory in Germany as the company continues to target international sales, with Musk adding that outstanding German engineering is part of the reason
(Bloomberg Opinion) -- Elon Musk’s announcement that Tesla Inc. will build a factory and a research center near Berlin makes perfect sense as a loud statement. Berlin isn’t known as a car city but it does have a vigorous tech scene and Tesla isn’t so much a car company as a tech one. But it’s also reasonable from other points of view.Musk, who has spent some time deciding on a European factory location, has decided on Gruenheide in Brandenburg, the German state that surrounds Berlin, and the research facility is to be located near Berlin’s yet-to-open new international airport.That the new factory should be in Germany is logical. Germany is Europe’s biggest market for electric vehicles and the one with the biggest potential. Germany is Europe’s most populous country, Germans are in love with cars and worried about the environment, as evidenced by the recent electoral successes of the Greens.It also matters that Germany is a country with some of Europe’s strongest incentives for electric car buyers. It recently decided to increase the maximum subsidy for buyers of battery vehicles to 6,000 euros ($6,600) from 4,000 euros and extend it until 2025. France, Italy and Slovenia offer roughly as much. One could regard Musk’s move as a cheeky foray into the land of its top competitors. Volkswagen AG has launched an all-out electrification strategy that pits it directly against Musk’s mass-market hope, the Model 3 (which apparently won’t be made at the new Berlin factory, at least to start with). In September, the German giant launched the ID.3, the first car on its new platform meant for electric vehicles. Berlin is flooded with electric Golfs that VW made available this year for WeShare, the company’s nascent car-sharing operation. And even before VW starts turning out tens of thousands of cars especially developed as EVs, the e-Golf is already among the Model 3’s strong competitors in Germany, along with Bayerische Motorenwerke AG’s somewhat clunkier i3 and some other European electric cars.But then, it makes sense to keep close to the competition, work with the same suppliers and be able to poach star managers, engineers and designers. Tesla isn’t the cheeky challenger here — the German automakers are, when it comes to EVs. Musk, in a sense, is buying insurance against being overtaken technologically. That could even justify the large differential in workers’ wages: While the average Tesla assembly worker at in California makes $18 per hour, the lowest-paid German auto worker makes about 27 euros per hour, almost $30. There’s also some symbolism to Tesla’s move into Berlin in particular. The capital city was the first German location for Ford, which started assembling Model T’s there in 1926, not fearing competition from German automakers who were slower to catch on to mass production. And yet Berlin and its surrounding area aren’t obvious locations for an auto industry operation. Though BMW makes motorcycles in Berlin, Daimler AG has production sites both in and outside the city and VW has a design center in Potsdam, most of Germany’s car production, engineering and design take place elsewhere. Instead, Berlin has a flourishing startup culture. According to Deutscher Startup Monitor, 16% of Germany’s startup companies are located in Berlin. Only the country’s most populous state, North Rhein-Westphalia, has a bigger share. And when it comes to the number of tech workers, Berlin has more of them per 100,000 residents than any German state except Hamburg and Hesse. Arguably, as a European tech hub the German capital ranks second only to London and possibly Paris. Musk said Brexit ruled out the U.K. as a potential site, and France has such restrictive labor laws that it’s difficult to imagine Tesla opening a 10,000-job operation there when there are other choices.“Berlin rocks,” Musk said as he announced Tesla’s plans.On the other hand, it could be argued that the heart of the automotive industry is shifting east, and it won’t be beating too far from Berlin in the near future. Zwickau in Saxony, three hours’ drive from the capital, is where VW has started production of the ID.3. Saxony is an emerging auto-industry hub that includes BMW and Porsche factories; IG Metall, the labor union that represents many auto workers, counts Saxony as part of the same area as Berlin and Brandenburg. In other words, Musk’s choice of Tesla’s next production and development site is a considered one, even if an impulse to take the battle to Tesla’s deep-pocketed German challengers on their home turf has played an obvious role.To contact the author of this story: Leonid Bershidsky at firstname.lastname@example.orgTo contact the editor responsible for this story: Jonathan Landman at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Leonid Bershidsky is Bloomberg Opinion's Europe columnist. He was the founding editor of the Russian business daily Vedomosti and founded the opinion website Slon.ru.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Elon Musk picked a glitzy event in Germany, a few hours’ drive from the birthplace of the internal combustion engine, to drop the news before some of the world’s biggest car bosses: Tesla Inc. plans to set up shop in their backyard.The billionaire chief executive officer announced Tuesday that Tesla will expand its global manufacturing network with a factory near Berlin. At a red-carpet awards ceremony attended by the heads of BMW AG, Volkswagen AG and Audi AG, he said the company will also establish an engineering-and-design center.“Some of the best cars in the world are obviously made in Germany,” Musk said while accepting a trophy for the Model 3, which beat out BMW and Audi sedans for midsize car of the year. He said the country is “not that far behind” in electric cars, while also acknowledging that the market for them is “unproven.”The news wasn’t completely out of left field -- Musk has said before that Tesla would announce the location for a factory in Europe before the end of this year, and that Germany was a front-runner. But it nonetheless bolstered the CEO’s flair-for-the-dramatic reputation. Fresh off a surprise profit report that sent Tesla shares surging, he threw down the gauntlet in front of rival executives that no longer dismiss his company as a niche automaker.“Elon Musk has an ability to make a splash,” said John Boyd, principal of an eponymous manufacturing site-selection firm based in Princeton, New Jersey. “Not only does Germany bring top-level manufacturing skill sets and positive supply chain dynamics to the table, but there is a cachet value to Tesla establishing a brick-and-mortar presence in Germany -- a nation synonymous with precision car manufacturing.”Tesla shares traded up as much as 1.7% shortly after the start of regular trading Wednesday in New York, rising a sixth straight day. The stock closed Tuesday at $349.93, the highest in 11 months.Making a StatementMusk has until now relied on a single auto assembly plant in Fremont, California, to build a $63 billion company. That facility is supported by the first of the company’s so-called gigafactories near Reno, Nevada, that makes batteries. Tesla is on the verge of starting sales of Model 3s produced at its latest production facility, near Shanghai.While adding a European factory raises the stakes for established automakers already facing a serious threat from the electric upstart, it’s likely going to take time for the plant to get up and running. Musk estimated earlier this year that Tesla’s European gigafactory probably won’t be operational until 2021.“The Berlin location serves two unique goals,” said Gene Munster, a managing partner at venture capital firm Loup Ventures. “It’s strategic to lure German automotive talent to Tesla, and it’s a statement that Elon wants to one-up auto companies from that region.”The gigafactory will be located near Gruenheide, just outside Berlin in eastern Germany, according to Tagesspiegel newspaper -- near the coming Berlin Brandenburg Airport. It’s expected to produce both the Model Y and Model 3.For Tesla’s design center, Berlin has offered locations including the site of the existing Tegel airport, which will be phased out after the new hub is opened, according to a letter from the city’s economy minister. Around 10,000 jobs will be created, Bild reported.Tesla’s modest presence in Berlin now includes a store and service center near the Schoenefeld airport, and showrooms near Potsdamer Platz and on the West Berlin shopping boulevard Kurfuerstendamm.While the future of Germany’s electric-car market looks crowded, the politics of shifting away from the internal combustion engine also are going to be messy. Daimler AG, the maker of Mercedes-Benz cars, is running into labor-union resistance over where future electric cars will be produced ahead of a critical meeting with investors Thursday in London. Audi, the biggest profit contributor to Volkswagen AG, faces similar fights over safeguarding employment at its main German factories that specialize in sedans and station wagons.Chancellor Angela Merkel’s government and local automakers have agreed to boost incentives for EVs, intensifying Germany’s effort to move away from the combustion engine to reduce exhaust emissions. Still, building vehicles in a country that has some of the highest labor and energy costs worldwide is bound to be a challenge. European customers also expect a network of dealers and repair shops to reliably handle maintenance and repair work, which Tesla has struggled with lately.“There was very intense competition in recent months among different European nations,” Economy Minister Peter Altmaier told reporters in Berlin, adding that subsidies haven’t been discussed. “It’s an important and positive development that Germany was chosen.”Demand BoostAdding production in Germany and China will probably help Musk boost Tesla’s sales in those regions, according to Kevin Tynan, a Bloomberg Intelligence auto analyst. “The sustainability of the demand will be more the question,” he said. “And if local competition becomes real competition, it will be more difficult.”Merkel’s government announced last week that cash incentives will jump by 50% to as much as 6,000 euros ($6,680) per electric vehicle, with the auto industry covering half the cost. The changes will take effect this month and run through 2025.For Musk, choosing greater Berlin for a factory was “surprising but not fallacious,” said Ferdinand Dudenhoeffer director of Center for Automotive Research at the University of Duisburg-Essen. Battery-cell manufacturing requires space, infrastructure and subsidies, and the city is a good fit for a premium brand like Tesla’s, he said.Shortly after dropping the news, Musk sent out a pair of tweets to make sure it wouldn’t be missed by his 29.3 million Twitter followers. He said the factory will make batteries and powertrains in addition to cars, beginning with the Model Y crossover unveiled earlier this year.(Updates shares in sixth paragraph)\--With assistance from Gabrielle Coppola, Chris Reiter, Birgit Jennen, Iain Rogers and Stefan Nicola.To contact the reporters on this story: Christoph Rauwald in Frankfurt at firstname.lastname@example.org;Dana Hull in San Francisco at email@example.comTo contact the editors responsible for this story: Craig Trudell at firstname.lastname@example.org;Anthony Palazzo at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.