|Bid||596.22 x 1200|
|Ask||596.50 x 900|
|Day's range||539.49 - 627.77|
|52-week range||70.10 - 900.40|
|Beta (5Y monthly)||2.06|
|PE ratio (TTM)||934.30|
|Earnings date||27 Apr 2021 - 03 May 2021|
|Forward dividend & yield||N/A (N/A)|
|1y target est||621.72|
A growing semiconductor shortage could hamstring the EV boom in 2021. Here’s who could profit in the days ahead
(Bloomberg) -- After years of not doing much to foster the uptake of electric cars, Singapore has started to embrace them.Transport Minister Ong Ye Kung, speaking in parliament last week, said there is a net carbon positive impact in switching from gas guzzlers to electric vehicles, “even if the electricity is generated by fossil fuels.” And last month, Singapore pledged S$30 million ($22 million) over five years for EV-related initiatives.“With our urban environment, Singapore is quite ideal as a test-bed for the rapid adoption of EVs,” Ong said.That’s an about face from a few years ago when Elon Musk, the chief executive officer of Tesla Inc., rebuked the city-state several times over Twitter. In early 2019, he described the island as “unwelcome.” The government is “not supportive” of electric vehicles, he said in 2018.According to Zafar Momin, adjunct associate professor at Nanyang Technological University’s Nanyang Business School, when the first Tesla was imported in 2016, local regulators were in a quandary about how to assess it. After some debate, the owner was taxed S$15,000 for the carbon emissions generated during battery charging.“Penalizing an EV, instead of providing incentives like the rest of the world, was contrary to Singapore’s aspiration to be a smart and green nation,” Zafar said. “This incident may have led Musk to form the view that he tweeted.”While the amount Singapore is spending on EVs pales in comparison to the billions of dollars China is outlaying, it is a much smaller market and the nation’s size also means public transport is an effective way of getting around.Indeed, Singapore aims to have all buses run on electricity by 2040 as part of its goal to reach net zero emissions as soon as is viable in the second half of the century. It plans to phase out fossil fuel-powered vehicles by 2040 and won’t allow diesel-powered cars or taxis to be registered from 2025.As part of the push, Deputy Prime Minister Heng Swee Keat said in the 2021 budget that 60,000 charging points at public carparks and private premises will be installed by 2030, an increase from a previous target of 28,000.Road taxes levied on mass-market EVs have been lowered by as much as 40% so they’re comparable to internal combustion engine cars and the government will remove the $5,000 minimum additional registration fee for EVs from January 2022, helping buyers maximize early-adoption rebates, which are capped at S$20,000 per vehicle.After the deduction in the minimum additional registration fee, over 80% of respondents in a survey conducted by car app Motorist expressed interest in adopting electric cars.Such moves could help boost EVs to about 4% of total passenger car sales in Singapore by 2023, or around 3,300 units, according to BloombergNEF. By comparison, registrations of electric vehicles, which includes passenger cars, buses and taxis, in the city-state was 1,396 last year, up from 1,334 in 2019, Land Transport Authority data show.“The government’s efforts to ensure availability of chargers at public parking lots and at public-housing car parks will help improve consumer acceptance of EVs,” BNEF analyst Allen Tom Abraham said.“A shortage of public EV chargers can be a big hurdle to rapid adoption,” he added, noting that’s particularly the case in Singapore where most of the population live in dense, high-rise apartments that don’t have dedicated parking spaces let alone room for individual car-charging stations.Musk hasn’t taken to Twitter lately about Singapore but Tesla has launched a dedicated sales portal that went live in February. Consumers can use the website to order a Model 3, Tesla’s most popular and affordable sedan, starting from around S$113,000, and expect delivery in mid-2021. The cars will likely be made and shipped from Tesla’s factory in Shanghai. Representatives for Tesla in China didn’t immediately respond to a request for comment.The news was met with excitement on social media, with the buzz primarily centered around cost. Singapore is one of the world’s most expensive places to buy a car with excise and registration duties sometimes more than double a vehicle’s market value. People must also bid for a limited number of car-ownership permits that are auctioned by the government and that allow drivers to own an automobile for a maximum of 10 years.Once that so-called certificate of entitlement expires, owners have to either bid for a new 10-year permit, export the car, or scrap it. The S$113,000 price tag for the Model 3 excludes that certificate, which can cost another S$47,000, depending on engine capacity.“Cars in Singapore have never been, and I doubt will ever be, described as cheap relative to similar makes and models anywhere in the world,” said Tesla owner Adrian Peh, who imported his EV from Hong Kong in 2016. “I understand that building a sustainable future isn’t cheap, but if everyone shies away, then what kind of future do we leave behind for our children and grandchildren?”Tesla’s official entry into Singapore was also welcomed by local fan club, the Tesla Owners Singapore group, which has more than 65 members.“It’s encouraging to see that the government has placed a lot more emphasis on sustainability-related policies this year, specifically EV incentives and infrastructure commitment,” the group’s representative Chia Yan said. “We believe the government can still provide more support in the next few years.”Outside of government support, would-be EV owners are also being offered financial help. The country’s biggest bank, DBS Group Holdings Ltd., introduced Singapore’s first green car loan on March 1, providing a rate of 1.68% per annum for anyone buying a new or used electric or hybrid vehicle. That compares to a rate of around 3.88% for regular personal loans. DBS is also Tesla’s preferred financing partner.And soon, buying a made-in-Singapore EV may be possible, with Hyundai Motor Group planning to complete an innovation center that will include EV production by the end of 2022.“As the path toward EV adoption appears more committed and clear, more manufacturers like Tesla will want to invest resources to serve future EV customers in Singapore,” Nanyang Business School’s Zafar said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Bhavish Aggarwal surveys the empty 500-acre expanse encircled by neon-painted homes, tiny shrines and mango groves. The high-profile Ola founder hopes to erect the world’s largest electric scooter plant on this vacant plot on Bangalore’s outskirts within the next 12 weeks, cranking out about 2 million a year -- a landmark for one of India’s largest startups.A two-and-a-half hour drive southeast of Bangalore, Aggarwal’s envisioned $330 million mega-factory marks a bold foray into uncharted territory for an entrepreneur who’s spent 10 years building a ride-hailing giant. His follow-up Ola Electric is getting into an electric vehicle market already crowded by names from Tesla Inc. to China’s Nio Inc. -- albeit with a humble two-wheeler initially -- but that could play in a $200 billion domestic EV industry in a decade.If all goes according to plan, his Ola Electric Mobility Pvt hopes to make 10 million vehicles annually or 15% of the world’s e-scooters by the summer of 2022, starting with sales abroad later this year. That would be one scooter rolling out every two seconds after the plant expands next year. It’s the first step in Aggarwal’s goal to eventually assemble a full line-up of electric cars in a boost for Prime Minister Narendra Modi’s Make in India and sustainable mobility ambitions.“It’s a vehicle we’ve engineered ground-up so India can get a seat at the world EV table,” the 35-year-old said in an interview last week. Indian companies “have the smarts and energy to leapfrog into the future of EV.”Aggarwal is getting into the market just as the core business of ride-hailing slows during the pandemic. Fume-spewing scooters and motorcycles remain the most popular mode of transport in India’s infamously polluted cities. But the country is now pushing electric vehicles and self-reliance in battery technologies that could, according to the think-tank CEEW Centre for Energy Finance, underpin a $206 billion EV market in 10 years.That won’t be easy. Middle-class Indians worry about air quality but are reluctant -- at current rates -- to fork out twice the price of a regular scooter for an electric version. Aggarwal too will have to fend off competition from not just local rivals Hero MotoCorp and Bajaj Auto, but also up-and-comers such as Ather Energy and Chinese brands including Niu Technologies.Read more: Why One Startup Founder Turned Down a $1.1 Billion SoftBank DealThe entrepreneur takes inspiration from the likes of Tesla, Nio and Xpeng Inc., which have out-engineered established auto giants with ever-cheaper batteries and over-the-air software capabilities, but he’s taking a different tack. He wants to sell affordable two-, three- and four-wheelers for urban rides. “Our ambition is to build the world’s leading urban mobility EV company,” he said.Ola Electric is Aggarwal’s second act. A decade ago, he pioneered ride-hailing in the country and took on Uber Technologies Inc., expanding across 200 cities before heading overseas to the U.K, Australia and New Zealand. His EV startup was incorporated in 2017 and became a billion-dollar company, or unicorn, two years later, when SoftBank Group Corp. and Tiger Global Management forked out hundreds of millions. It was the second time for the pair of global investors, even though Aggarwal had fought them to maintain control of Ola.This time round, he’s even more firmly in the driving seat. He’s also secured capital from Hyundai Motor Co. and Kia Motors Corp. and recently won over more backers whose names he wouldn’t reveal.“We’re very well-capitalized and investor interest is unprecedented,” said Aggarwal.Aggarwal, who often interrupts himself to ask “What do you think?,” wants to introduce five two-wheeler models at the outset, including mass-market, premium and self-balancing versions. Even more audaciously, he wants to get the first electric cars on Indian roads in 18 to 24 months. He talks about someday selling autonomous vehicles and futuristic four-wheelers that don’t look like cars.Read more: Next Big Wave of Tech Unicorn Listings Could Be in IndiaOn this particular Thursday, he zipped around on a sleek scooter prototype in the office park in the Koramangala neighborhood, the epicenter of Bangalore’s startup scene. He showed off novel lighting, removable batteries and a large storage trunk. His plan is to sell the scooters digitally as well as via dealerships, offering monthly payment plans to make it easier on buyers’ pockets.Vehicle affordability could be key to cracking the India market, and it boils down to the running cost per kilometer. Aggarwal’s not revealing prices yet but said his product would compete with traditional scooters going for about $1,000 apiece. “We’ll drive costs down by playing at scale.”To keep costs in check, Ola is designing, engineering and manufacturing its own battery pack, motor, vehicle computer and software. Like Tesla, it wants to keep costs down by building its own power cells. It’s testing charging solutions and battery-swapping stations. Last year, it acquired Amsterdam-based smart scooter startup Etergo BV to jumpstart its own scooter manufacturing.Ola’s factory site will sport more than 3,000 robots working alongside 10,000 workers. Software built by its 1,000-member team -- mostly engineers -- will divvy up the work. The factory’s roof will be covered with solar panels and be carbon negative. Two supplier parks at either end of the complex will make about half of the scooter components required.Aggarwal oversees it all scrupulously. Once a week, he trudges around the construction site checking on progress. On other days, cameras mounted on tall pipes around the site relay the action directly to his desk. His pride is evident: a graduate of the elite Indian Institute of Technology, he said he designed the automated storage, retrieval and delivery system for the electric scooters and won a patent for it.“It has to come in handy sometime, right?” he said of his education, using the popular Hindi phrase “kahin toh kaam aana chahiye na.”India’s Ride-Hailing Honeymoon is Over: Fully ChargedFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.