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BenzingaEditorial

China Is Accelerating Into the EV Future

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Across the globe, the auto industry is struggling with the ongoing pandemic and the supply shortage of semiconductors. Meanwhile, the demand for electric cars continues to rise, especially in the world’s largest auto market.

A new era for Audi

As it pivots towards the electrification era, Volkswagen AG (OTC: VWAGY)-owned Audi unveiled its newest Grandsphere concept car as a “private jet for the road.” When in self-driving mode, the design of the interior of transforms into a “first class lounge” as the design of the steering column “moves” away to even more space for the driver and the passenger on the front seat. Audi plans to solely offer EVs by 2033 after introducing its last gas-powered model in 2026.

The future of Audi

The Grandsphere is the second of three vehicles under the same concept. The first has been named Skysphere and it was unveiled last month as a performance roadster. It is a blend of Batmobile-like technologies, aggressive design and luxury amenities. While the two models have some similarities in terms of their exterior, the Grandsphere features a far cleaner and more luxurious interior, which is its main selling point. Head of the brand, Henrik Wenders, emphasized that the value proposition is longer just about driving, but the experience that sophisticated technology provides. Potentially the most surprising feature is that there are no obvious screens as everything will be communicated via an infotainment system. Even movies. projected onto the vehicle’s wooden panel located under the windshield. This vehicle is not just a concept as it will be on display at the Munich Motor Show next week.

The third concept has been named the Urbansphere and is scheduled for unveiling during the first half of 2022.

Chine plays an important role

At the end of August, the premium brand of Volkswagen group reaffirmed the country’s electric journey when it unveiled its new strategy Vorsprung 2030 under which all new models starting from 2026 will be electric. Moreover, the company also stated it will end the production of ICE vehicles by 2033. According to the company’s estimates, the premium vehicle market in China will grow to 4.5 million sales annually by the end from the decade, up from 3.1 million in 2020. Moreover, it expects electric vehicles’ share could increase from 10 percent today to as much as 40 percent by 2030.

In China for China

Audi is already producing EVs, including the e-tron SUV, in China. It also established a joint venture in the countrydedicated to EVs based on the PPE platform it previously developed with Porsche, with the first model scheduled to hit the market in 2024.

The number of China-made Audi models, both gasoline and electric, is forecasted to grow to 12 by the end of this year. The German carmaker is also manufacturing Audi vehicles with another Chinese carmaker, SAIC Motor Corporation Limited, with the first model scheduled for launch in 2022.

In China alone, Audi has sold a total of more than 7 million vehicles. Last year, it delivered 727,358 vehicles and during the first half of 2021, it delivered 418, 749 which is  38.6 YoY increase.

BYD remains ahead

Warren Buffett-backed BYD Company Limited (OTC: BYDDF) reported its August sales skyrocketed more than 300% as it sold 61,409 battery electric vehicles and plug-in hybrids. This figure equates to more than four times the amount sold in August 2020 and exceeds 50,492 cars sold in July. Upon the news, BYD shares rose 5.5% during the morning trade in Hong Kong.

Although BYD is one of the biggest electric vehicle makers in China, a number of start-ups including Nio Inc (NYSE: NIO), Li Auto Inc (NASDAQ: LI) and Xpeng Inc (NYSE: XPEV) are doing their best to challenge it, although their deliveries for August were below 10,000. It is important to note that this is an ‘apples to oranges’ comparison as BYD reports sales volumes whereas the other three startups reveal delivery numbers, but the figures still help to assess the scale of respective companies.

Although BYD did not provide any comments, it did reveal that profitability is being affected to some extent by rising prices of raw materials and similar factors.

China is going full speed ahead to an all-electric future

The truth of the matter is that despite the issues hampering the auto industry’s electric transformation and workings, the demand for electric vehicles continues to climb, especially in China where the government is greatly supporting this journey. Based on comments from the vice minster of China’s Ministry of Industry and Information Technology made on Saturday, Reuters expects China is set to have sold 1.7 million new EVs during the first eight months of this year, nearly tripling from 600,000 cars in the same period of 2020.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

BenzingaEditorial

BMW, XPENG and Worksport Switching Gears Forward

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The EV revolution is happening with governments and automakers going full speed ahead to combat carbon emissions with all-electric vehicles. Many players joining forces in the attempt to win the race with the power of synergy. Even the almighty Toyota Motor (NYSE: TM) knew better than going at it alone as it partnered with Panasonic Corporation (OTC: PCRFY) to form Prime Planet Energy & Solutions to develop batteries that can be used over and over again anytime, anywhere. In June, Renault SA (OTC: RNLSY) revealed it formed two major partnerships to specialize in the design and production of EV batteries. In March, Volkswagen (OTC: VWAGY) announced it aims to build several “gigafactories” in Europe by 2030. This week, we got a few more expansion updates.

BMW receives battery ‘fuel’

Bayerische Motoren Werke Aktiengesellschaft (OTC: BMWYY) is also working on new concepts and ideas related to batteries.  Its project BMW-UK-BEV that is centered around the development of a long-distance EV battery has been awarded $36.07 million in joint funding from the industry and the U.K. government. The U.K. is determined to stop selling new diesel and gasoline cars and vans by 2030, the Oxford-based project is one of four to receive funding as new technologies that address range anxiety are crucial to wider EV adoption.

XPeng is is quadrupling capacity

The Chinese EV maker announced it will quadruple capacity as it signed an agreement with a Zhaoqing Smart EV Manufacturing Base expansion project that will boost capacity to 200,000 units annually from 100,000 units. The expansion will enable Xpeng Inc (NYSE: XPEV) to capture the anticipated increase in consumer demand for its smart EVs. In addition to Zhaoqing, XPeng is building manufacturing capacity in Guangzhou and Wuhan, which should enable it to make 400,000 EVs a year, four times what it produces today.

XPeng has delivered about 58,000 vehicles over the past 12 months, behind 76,000 vehicles from NIO Inc (NYSE: NIO) and 59,000 by Li Auto Inc (NASDAQ: LI).

All these three U.S.-listed Chinese EVs are expanding production to meet rising demand. Nio recently announced it will more than double its current production of 100,000 vehicles to 240,000 units a year. Li Auto raised more money in August selling stock in Hong Kong, part of which will commit to doubling capacity to 200,000 units a year.

Worksport announcing Pre-Order Date Solar Covers

Worksport moved into its new headquarters and 55,000 sqaure feet manufacturing facility. As its tonneau cover business continues to grow, Worksport Ltd (NASDAQ: WKSP) is getting ready for pre-production of its TerraVis solar-powered tonneau cover and its extension, the standalone COR battery system. The company also revealed it is expanding its EV ecosystem with a new product termed NPEV that aims to contribute to making transportation greener. Today Worksport announced its anticipated Pre-Order platform will go live on 21ste of September.

With a physical foundation and the right partners, as it joined forces with two EV players on two upcoming electric pickups, Worksport seems ready for the next chapter of its growth story that is bound to bring new technologies to the EV table.

These updates make it clear that capacity is expanding to meet rising EV demand. In July alone, EV sales grew about 200% YoY, and approximately 5% from June.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Even Covid-19 Cannot End Disney’s Enduring Magic

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Disney’s (NYSE: DIS) blowout third quarter that beat expectations across the board was fueled by growth in Disney+ subscribers and parks returning to profit. But now that Walt Disney World’s 50th anniversary is around the corner, things are looking even better.

50th anniversary celebration

Walt Disney World is gearing up for its celebration which starts on October 1. Dining is returning to Orlando, Florida park as preparations are ongoing. The fact that normal operations are resuming at parks is a good sign that the company is on track when it comes to guest and travel confidence, which translates to an improved bottom line. The party tickets are sold separately from park entry tickets which implies an exponential growth as this segment was literally crushed by the pandemic one and a half year ago. The celebration will open a busy holiday travel season so it can be assumed that Disney stands to benefit from an increase in guest spending, from large purchases like annual passes to shopping for seasonal merchandise. As for the outlook, 2022 is looking brighter for the Parks, Experiences and Products segment.

Delta variant is looming

However, Covid continues plaguing the entertainment industry and the world for more than 18 months now, and there are fears that new variants will reverse the progress at Disney’s biggest money makers as theme parks and cruise lines are its lifeblood. Box office revenue also wasn’t exempt from the devastating blowdespite management trying to reinvent the release structure to drain as much benefit as possible. Streaming also resulted in a compensation-related and public lawsuit from Scarlett Johansson who found like many of her colleagues she was severely harmed by this model.

The White House steps in

On Wednesday, U.S. President Joe Biden met with several top U.S. leaders, including the CEO of Disney, Bob Chapek, as part of his ongoing effort to push companies to require workers to be be vaccinated against COVID-19 as the delta variant rages on. Participants in the meeting also included Microsoft Corp (NASDAQ: MSFT) and Walgreens Boots Alliance Inc (NASDAQ: WBA). However, corporations such U.S. automakers General Motors Co (NYSE: GM) and Ford Motor Co (NYSE: F) are encouraging employees to get the vaccine, but they remain quiet about the executive order. The White House hopes that this meeting will serve “as a rallying cry for more businesses across the country to step up and install measures to boost vaccination rates.

Luckily for Disney that it released Disney+ when it did

Direct to consumer division that includes several streaming services besides Disney+, including ESPN+, Hulu has benefited from people being much more at home. Launched in November 2019, just a few months before the pandemic struck, Disney+  has literally kept Disney afloat while the other divisions struggled to keep their heads above water. Without this division, Disney would not have a rare bright spot over the past year and a half.

The magic lives on

Almost a century old company has endured many things, but the COVID-19 pandemic was by far the worst crisis that the entertainment giant faced as its business model was perfectly exposed to this invisible enemy. Although COVID held its cash-cows hostage, the power of Disney goes beyond the physical experience. Back in August, Target (NYSE: TGT) revealed it will nearly triple the number of Disney shops inside its stores to more than 160 by the end of year, in an attempt to increase foot traffic ahead of the anticipated holiday season. Target hopes that Disney can help it stand out and raise its toy department’s price point. Over almost a century, Disney’s brand evolved while staying loyal to its core values of its founder. In doing so, it became a synonym for storytelling that brings magic to life. Its “once upon a time” earned it an iconic status that made this global brand stronger than any virus- related fear.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Oracle Is Aiming for the Cloud

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The enterprise software maker reported its fiscal first quarter revenue on Monday, with its top segment, as well as hardware, missing expectations. Revenue came below expectations as Oracle Corporation (NYSE: ORCL) announced a program during the quarter to encourage customers to adopt its public cloud services in the quarter by reducing or even eliminating its licensing support costs.

Encouraging migrations to the cloud

The support rewards program offers customers who make new commitments to buy Oracle Cloud Infrastructure services to earn rewards that can reduce or even eliminate their Oracle on-premises technology licensing support bills.

Fiscal Q1 figures

For the quarter that ended on August 31st, revenue increased 4% YoY as it amounted to $9.73 billion. Refinitiv reported analysts expected $9.77 billion, whereas the prior quarter’s growth rate was double at 8% respectively.

The two new cloud businesses

The cloud license and on-premises license segment brought in $813 million to the revenue table, down 8% and lower than the $859.7 million consensus. Cloud is fundamentally a more profitable business compared to on-premise. Management expects operating margins to be the same or better than pre-pandemic levels. The company does not disclose revenue nor operating income from its two services that now make 25% of its total revenue with an annual run rate of $10 billion.

The largest business segment, cloud services and license support, generated $7.37 billion in revenue, which is up 6%, although below the StreetAccount consensus estimate of $7.41 billion.

The hardware unit generated $763 million in revenue, down 6% and below the $778.5 million estimate.

Increased capital expenditures

Oracle’s capital expenditures exceeded $1 billion, more than doubling compared to the $436 million in the year-ago quarter as executives invested to build the necessary infrastructure to meet expected cloud demand.

To expand and strengthen its footing in the cloud computing space, Oracle, which counts Zoom Video Communications (NASDAQ:ZM) as one of its customers, has been heavily investing in opening more data centers to rent to clients as they shift their operations to the cloud.

 Fiscal Q2 guidance

For the undergoing quarter, CEO Safra Catz expects earnings per share to come in the range between $1.09 to $1.13 on 3% to 5% revenue growth. Analysts polled by Refinitiv are expecting a 5% revenue growth to result in adjusted earnings of $1.08 per share.

A crowded space

Austin, Texas-based company whose shares have risen about 40% year to date is in a crowded space of rivals no other than tech titans Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN), Salesforce.com (NYSE:CRM) and IBM (NYSE:IBM) Corp that makie it much more challenging to benefit from cloud computing trends.

In a nutshell, Oracle fell short of Wall Street expectations because of incentives it offered to its customers in an attempt to position itself among the clouds.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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