Legendary investor Jeremy Grantham says the stock-market bubble could burst before May in a new interview. Here are the 16 best quotes.

jeremy grantham
Jeremy Grantham.

  • Jeremy Grantham said the stock-market bubble would likely deflate before May.
  • The GMO cofounder also criticized SPACs and cheered electric vehicles.
  • Here are Grantham’s 16 best quotes from his “Invest Like the Best” interview.
  • Visit the Business section of Insider for more stories.

Retail investors piling into stocks have fueled a historic bubble that will probably burst before May, the veteran investor Jeremy Grantham said on the “Invest Like the Best” podcast this week.

The GMO cofounder and chief investment strategist also discussed how the bubble would deflate, slammed SPACs, shared some of the insults he’d received for criticizing bitcoin, and predicted that electric vehicles would revolutionize the auto industry.

Here are Grantham’s 16 best quotes from the interview, lightly edited and condensed for clarity:

1. “This bubble is more impressive even than 2000, which was the champion. About 80% of the value measures have this one higher. We’ll be rather lucky to have this bubble last until May.”

2. “When the financial headlines migrate to the front page, when the evening news mentions the market or some crazy behavior of GameStop, Tesla, you know you’re getting very warm.” – outlining some of the signs of a bubble about to burst.

3. “This is not primarily an institutional bubble; this is an individual bubble. The individuals are absolutely crazy. They have expanded their share of the market trading, and they have really entered into the market with great enthusiasm for the first time in decades.”

4. “I have to confess that I find it all exhilarating. I’m only concerned somewhat for the relatively new investors who get drawn into these things and then find out the hard way. I sympathize completely with these people out there enjoying this bubble, but they’ve always ended very badly, and I have no doubt this one will too.”

5. “I’m not optimistic that anyone caught up in this wants to hear my advice and consequently would act on it. When you get into that excitement, mini frenzy, pretty hard to stop you with dry historical stories. ‘That was then, this is now, baby! Get aboard. You don’t understand. You dinosaurs don’t get it.’ Well, the trouble is we do get it, but there is no way I can persuade them. Just tread out the regular story, and one out of a hundred might listen. I will sympathize with them when they’re cleaned out.”

6. “We’re a crazy marketplace full of irrational human beings who behave themselves 80% of the time and then 20% of the time totally freak out one way or the other.”

Read more: The world’s top investment firms pay Rob Arnott for advice. He shares 2 investing ideas that could go down as ‘the trade of the 2020s’ as the world bounces back from COVID-19.

7. “They don’t want to look foolish with their neighbor, and I concede that seeing your neighbor get rich is about as irritating as anything that life has to offer.” – discussing how retail investors get caught up in speculation.

8. “The market tops out when the last bull has put his last money in. There is a moment of maximum enthusiasm, and the next day there’s plenty of enthusiasm but less than the previous day. So the buying pressure is released a little bit, like the famous water jets under the ping-pong balls. You turn the faucet down a little bit and the ball is still way up in the air, but it’s just dropped a couple of inches. It’s that process of slowly lowering the pressure, and the overpriced ping-pong ball slowly descends until it hits the proper level.”

9. “Rapidly rising hostility to bears is a very good, very late signal that the bubble is way advanced. I gave my fairly bland opinion about bitcoin, just that it was faith-based, there’s nothing new or shocking about that. But armies of individual fanatics descended on the comments. There was no insult that was not good enough for me, not just senility and old age and complete ignorance about bitcoin. I got three insults back about my big ears which I hadn’t had since I was 7 years old.”

10. “SPACs are terribly speculative, undesirable, unnecessary instruments. They’re really a license to rip investors off. It’s a testimonial to the sloppiness and slow-moving nature of the SEC that they haven’t banned these things long ago.”

11. “QuantumScape went from $10 to $130, where it was worth more than General Motors or Panasonic. That compares pretty well in scale with anything around in 1929 or 2000. To have a company that has no earnings or sales for four years, brilliant or not, and to look out that far into the future and make it worth more than General Motors, that’s a pretty good demonstration of something. And it was wonderfully ironic, because by then I’d already been sounding off about the undesirableness of SPACs. And there I am with far and away, for a second or two, my biggest investment ever.” – discussing his 53-fold gain on QuantumScape after a SPAC acquired the solid-state-battery company.

12. “I don’t believe the banks are nearly as important as they would love us to believe. They managed to fake the majority of people in ’09 into thinking they were so desperately important that if we didn’t bail them all out, if we let a single banker go out of business, we’d be deep in 1932, in the Great Depression.”

13. “The baby bust is going to be worse than anybody thinks, way off the scale of anything we’ve ever talked about. It’s going to change the world.” – emphasizing the effects of declining birth rates in many of the world’s largest economies.

14. “Electric cars will be cheaper to build. They’re already cheaper to run and cheaper to operate by far, and safer and better to drive. We have killed gasoline and diesel cars.”

15. “We’re compounding the wealth of society much more slowly. If you’re not in the game, just think how terrible it is: You pay twice as much for a house, the stock market is twice the price it used to be, the farm up the road if you’re in the countryside is twice the price it used to be. It’s glorious for the people who own a lot of assets, for old fogies who are selling their assets, that’s terrific. But everybody else, and particularly the young, it’s a pain in the ass.”

16. “For heaven’s sake, do the little that you can do to prepare for the future, which is to have a great infrastructure and a great educational system. Reality is the quality and quantity of your workforce. How motivated, how happy, how well-organized they are, how well-trained they are, and how well-retrained they are, if necessary, plus the quantity and quality of your assets per worker. That’s real life.”

Read the original article on Business Insider

Workhorse extends 2-day slide to 57% after losing USPS contract to Oshkosh

Workhorse Truck
Workhorse Truck

  • Workhorse stock extended its two-day slide to 57% on Wednesday after losing a coveted USPS contract to Oshkosh Defense.
  • The electric vehicle maker was a front runner for the ten-year, multi-billion dollar USPS contract to modernize the delivery fleet.
  • Oshkosh received $482 million in the first part of the deal and expects to assemble 50,000 to 165,000 vehicles over the contract period.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Workhorse extended its two-day slide to 57% on Wednesday after losing a coveted US Postal Service contract to Oshkosh Defense.

The company’s stock fell over 50% amid increased volatility after the news on Tuesday, triggering multiple trading halts before the stock recovered slightly, ending the day 47.5% lower.

The USPS awarded Oshkosh Defense the first part of a 10-year, multi-billion dollar contract to modernize the postal delivery fleet. An initial investment of $482 million will help finalize the design of the new vehicles for mail and package delivery, and allow Oshkosh to assemble 50,000-165,000 vehicles over the contract period.

The USPS made the agreement an indefinite-delivery, indefinite-quantity (IDIQ) contract, meaning that after an initial dollar commitment, the Postal Service will be able to order more vehicles throughout the 10-year contract period.

According to Bloomberg Intelligence analyst Christopher Ciolino, the total contract could be worth more than $5.7 billion in revenue for Oshkosh.

The USPS had been looking for a partner to help modernize its fleet of postal vehicles since 2015, but when Rep. Jared Huffman (D-CA) introduced the Federal Leadership in Energy Efficient Transportation Act in 2019 the postal service finally had the backing to narrow in on a deal.

For a time, the electric vehicle maker Workhorse was thought to be a leader in the competition for the lucrative contract. The USPS commissioned five prototype postal service vehicles and Workhorse partnered with truck builder VT Hackney to produce their own.

Analysts at BTIG said they saw Workhorse securing a portion of the USPS contract as a part of their base case scenario and held a “buy” rating on the company, per CNBC.

But now Oshkosh has secured the contract to make both fuel-efficient internal combustion engines and some battery-electric powertrains for USPS, leaving the pre-revenue EV startup Workhorse in a difficult spot.

In October of last year, short-seller Fuzzy Panda Research alleged that Workhorse destroyed its chances of landing the USPS contract.

According to the short-seller, there were numerous failures including suspension issues, motor outages, and even a parking brake malfunction that led to a postal worker injury.

Workhorse stock was down 9.14% as of 8:44 a.m. ET on Wednesday.

Workhorse chart
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Legendary investor Jeremy Grantham warns the stock-market bubble could burst before May in a new interview. Here are the 16 best quotes.

jeremy grantham
Jeremy Grantham.

  • Jeremy Grantham warned the stock-market bubble will likely deflate before May.
  • The GMO cofounder also criticized SPACs and cheered electric vehicles.
  • Here are Grantham’s 16 best quotes from his “Invest Like The Best” interview.
  • Visit the Business section of Insider for more stories.

Retail investors piling into stocks have fueled a historic bubble that will probably burst before May, veteran investor Jeremy Grantham warned on the “Invest Like The Best” podcast this week.

The GMO cofounder and chief investment strategist also discussed how the bubble will deflate, slammed SPACs, shared some of the insults he received for criticizing bitcoin, and predicted electric vehicles will revolutionize the auto industry.

Here are Grantham’s 16 best quotes from the interview, lightly edited and condensed for clarity:

1. “This bubble is more impressive even than 2000, which was the champion. About 80% of the value measures have this one higher. We’ll be rather lucky to have this bubble last until May.”

2. “When the financial headlines migrate to the front page, when the evening news mentions the market or some crazy behavior of GameStop, Tesla, you know you’re getting very warm.” – outlining some of the signs of a bubble about to burst.

3. “This is not primarily an institutional bubble, this is an individual bubble. The individuals are absolutely crazy. They have expanded their share of the market trading, and they have really entered into the market with great enthusiasm for the first time in decades.”

4. “I have to confess that I find it all exhilarating. I’m only concerned somewhat for the relatively new investors who get drawn into these things and then find out the hard way. I sympathize completely with these people out there enjoying this bubble, but they’ve always ended very badly and I have no doubt this one will too.”

5. “I’m not optimistic that anyone caught up in this wants to hear my advice, and consequently would act on it. When you get into that excitement, mini frenzy, pretty hard to stop you with dry historical stories. ‘That was then, this is now baby! Get aboard, you don’t understand. You dinosaurs don’t get it.’ Well, the trouble is, we do get it, but there is no way I can persuade them. Just tread out the regular story, and one out of a hundred might listen. I will sympathize with them when they’re cleaned out.”

6. “We’re a crazy marketplace full of irrational human beings who behave themselves 80% of the time, and then 20% of the time, totally freak out one way or the other.”

7. “They don’t want to look foolish with their neighbor, and I concede that seeing your neighbor get rich is about as irritating as anything that life has to offer.” – discussing how retail investors get caught up in speculation.

8. “The market tops out when the last bull has put his last money in. There is a moment of maximum enthusiasm, and the next day there’s plenty of enthusiasm but less than the previous day. So the buying pressure is released a little bit, like the famous water jets under the ping-pong balls. You turn the faucet down a little bit and the ball is still way up in the air, but it’s just dropped a couple of inches. It’s that process of slowly lowering the pressure and the overpriced ping-pong ball slowly descends until it hits the proper level.”

9. “Rapidly rising hostility to bears is a very good, very late signal that the bubble is way advanced. I gave my fairly bland opinion about bitcoin, just that it was faith-based, there’s nothing new or shocking about that. But armies of individual fanatics descended on the comments. There was no insult that was not good enough for me, not just senility and old age and complete ignorance about bitcoin. I got three insults back about my big ears which I hadn’t had since I was 7-years-old.”

10. “SPACs are terribly speculative, undesirable, unnecessary instruments. They’re really a license to rip investors off. It’s a testimonial to the sloppiness and slow-moving nature of the SEC that they haven’t banned these things long ago.”

11. “QuantumScape went from $10 to $130, where it was worth more than General Motors or Panasonic. That compares pretty well in scale with anything around in 1929 or 2000. To have a company that has no earnings, or sales, for four years, brilliant or not, and to look out that far into the future and make it worth more than General Motors, that’s a pretty good demonstration of something. And it was wonderfully ironic, because by then I’d already been sounding off about the undesirableness of SPACs. And there I am, with far and away, for a second or two, my biggest investment ever.” – discussing his 53-fold gain on QuantumScape after a SPAC acquired the solid-state battery company.

12. “I don’t believe the banks are nearly as important as they would love us to believe. They managed to fake the majority of people in ’09 into thinking they were so desperately important that if we didn’t bail them all out, if we let a single banker go out of business, we’d be deep in 1932, in the Great Depression.”

13. “The baby bust is going to be worse than anybody thinks, way off the scale of anything we’ve ever talked about. It’s going to change the world.” – emphasizing the impacts of declining birth rates in many of the world’s largest economies.

14. “Electric cars will be cheaper to build. They’re already cheaper to run and cheaper to operate by far, and safer and better to drive. We have killed gasoline and diesel cars.”

15. “We’re compounding the wealth of society much more slowly. If you’re not in the game, just think how terrible it is: You pay twice as much for a house, the stock market is twice the price it used to be, the farm up the road if you’re in the countryside is twice the price it used to be. It’s glorious for the people who own a lot of assets, for old fogies who are selling their assets, that’s terrific. But everybody else, and particularly the young, it’s a pain in the ass.”

16. “For heaven’s sake, do the little that you can do to prepare for the future, which is to have a great infrastructure and a great educational system. Reality is the quality and quantity of your workforce. How motivated, how happy, how well-organized they are, how well-trained they are, and how well-retrained they are if necessary, plus the quantity and quality of your assets per worker. That’s real life.”

Read the original article on Business Insider

Nio’s 2-day plunge stretches to 24% as electric-vehicle stock momentum slows

Nio
  • Nio shares fell as much as 18% Tuesday, extending their two-day loss to 24%.
  • The company is one of several electric-vehicle makers to see sharp two-day declines.
  • Tesla specifically has led a broader sell-off in tech stocks.
  • Visit the Business section of Insider for more stories.

Nio stock slid as much as 18% on Tuesday, extending the electric-vehicle maker’s two-day skid to 24%. The company has been swept up in a broader industry sell-off led by larger rival Tesla.

Shares of both company are being pulled back alongside other technology stocks as investors evaluate rising borrowing costs in the face of rising bond yields. Bond yields have stepped higher as investors price in a potential pickup in inflation on the back of economic recovery from the COVID-19 pandemic.

“Given their aggressive discounting to present of long-term cash flows, they’re suffering from the same effects as investment grade corporate bonds and anything else that pushes cash flow far into the future,” Bespoke Investment Group said of tech stocks in a Monday note.

For evidence, the firm highlighted the Nasdaq 100‘s more than 4% underperformance versus the Russell 2000 index of small-cap stocks over the past two days.

Tesla shares fell 5% as much as 9% on Tuesday following a similarly-sized drop the prior day. The stock has been under pressure since the company stopped orders for the lowest-priced version of its Model Y SUV over the weekend.

Prior to the two-day dip, Nio’s stock price had been climbing in recent months on growing interest among investors in electric vehicles and green-energy products, factors that have also contributed to the surge in shares of EV maker Tesla.

Screen Shot 2021 02 23 at 8.53.05 AM
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Tesla reliability issues drag down its scores in 2 major car-brand rankings

Tesla Model 3_9
Tesla Model 3.

  • Two major rankings of the best car brands came out on Thursday. 
  • In Consumer Reports’ 2021 ranking, Tesla slid five spots to No. 16 due to reliability issues. 
  • JD Power’s 2021 Vehicle Dependability Study put Tesla near the bottom of the pack. 
  • Visit the Business section of Insider for more stories.

Tesla received poor rankings in Consumer Reports’ Brand Report Card and JD Power’s US Vehicle Dependability Study, two major annual reports on the best car brands that were released on Thursday. 

In Consumer Reports’ 2021 study, Tesla dropped five spots to 16th place due to reliability problems with the Model S, Model Y, and Model X. The nonprofit research organization noted that Teslas get high scores in owner satisfaction and its road tests, but only the Model 3 received a high enough overall score to be recommended. 

The Tesla Model 3 made it into Consumer Reports’ “10 Top Picks” list, also released Thursday, as one of four “Green Choice” models that demonstrate good safety, performance, reliability, and affordability along with low emissions. 

For the Brand Report Card, Consumer Reports evaluated 32 brands based on expected reliability, owner-satisfaction surveys, road tests, safety features, and crash-test results. 

Mazda took the top spot, besting many more expensive luxury brands including last year’s winner, Porsche. In total, five non-luxury brands made it into the top 10: Mazda, Subaru, Honda, Toyota, and Hyundai. 

Consumer Reports Brand Report Card 2021
2021 Consumer Reports Brand Report Card.

But Tesla wasn’t the only brand to slide several spots in this year’s rankings. Lincoln fell 15 spots to 28th, due to below-average reliability for the redesigned Aviator and Corsair SUVs. 

JD Power, the influential market research company, included Tesla for the first time this year in its 32nd annual US Vehicle Dependability Study. The report measures the number of problems per 100 vehicles that drivers of three-year-old models experienced over the last 12 months. 

JD Power vehicle dependability
JD Power 2021 US Vehicle Dependability Study.

Tesla received a score of 176, placing it 30th out of 33 brands surveyed. But JD power couldn’t officially list Tesla in the ranking because it doesn’t allow JD Power to survey its owners in 15 states, so the firm had to go off of surveys from drivers in the other 35. 

JD Power said the industry-average score was 121. Lexus, Porsche, Kia, and Toyota claimed the top spots, while Jaguar, Alfa Romeo, and Land Rover ranked last. 

Read the original article on Business Insider

Tesla’s Model Y standard range has vanished from its sales website, days after the price dropped by $2,000

Tesla Model Y
  • Tesla’s Model Y standard range vehicle is no longer listed on the company’s sales webpage.
  • Tesla launched sales of the SUV in January, and slashed its price just last week.
  • It is unknown why the Model Y standard range is no longer listed, or whether the move is permanent.
  • Visit the Business section of Insider for more stories.

Tesla has stopped taking orders for its Model Y standard range, the electric carmaker’s second-cheapest vehicle, just days after slashing its price by $2,000.

On Thursday, the electric carmaker cut the price of its Model Y standard range, which it launched last month, from $41,990 to $39,990, making it just $3,000 more than Tesla’s cheapest vehicle, the Model 3 standard range plus.

The Model Y standard range sports utility vehicle is now no longer listed on the company’s sales webpage.

As well as not being listed on Tesla’s US and Canada sales sites, the standard range vehicle has also been removed from Tesla’s Model Y webpage, where customers can compare the different versions of the car.

Electrek first reported on the news on Sunday, noting that Tesla had also reduced the price of its Model Y long range by $1,000. This was separate to the automaker’s series of price cuts on Thursday.

It is unknown whether the move is permanent. Insider has contacted Tesla for comment.

The $48,990 long range model is now the cheapest available version of its sports utility vehicle. Tesla also sells a performance version with higher top speeds, which costs $60,990.

The entry-level version has a lower range of 244 miles, according to estimates by the EPA, compared to the long range version’s 326-mile rating. The cheaper model also comes with rear-wheel drive, instead of the all-wheel-drive setup on the long range and performance versions.

Tesla began delivering Model Y vehicles in Shanghai, China, in January, but only offered the long range and performance versions. It is selling both models for almost a third less than the price Tesla quoted in August.

The news comes as Tesla ramps up efforts to make a more affordable electric car. In September, CEO Elon Musk said the company would make a $25,000 “fully autonomous” electric car in about three years. 

The head of Tesla China said the company’s Shanghai research and development center, where it will develop the vehicle, will be running by the end of 2021.

Do you have a tip you want to share? Contact Grace Dean via email (gdean@insider.com). Always use a non-work email.

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Here are 13 new EVs on sale for $40,000 or less in 2021

EMBARGO 2/14/2022 4PM ET 2022 Chevrolet BoltEV 006
2022 Chevrolet Bolt EV.

  • Electric vehicles aren’t quite cheap yet, but they’re cheaper than ever before. 
  • More than a dozen can be had for under $40,000, the average price for a new car in the US. 
  • Some of the lowest-cost EVs available include the Mini Electric, Chevy Bolt EV, and Tesla Model 3.
  • Visit the Business section of Insider for more stories.

There are more inexpensive electric vehicles on the market than ever before – and they’re only getting cheaper. 

EVs have burst into the mainstream market in recent years, and as an increasing number of car companies make ambitious pledges to ramp up sales, zero-emission vehicles have steadily decreased in price. This year, shoppers can choose from an array of more than a dozen EVs that cost less than $40,000, roughly the average price paid for a new car in the US. 

But not all sub-$40,000 EVs are created equal. Estimated ranges for the cars listed below span 149 miles on the low end to more than 250 miles on the high end. Some are luxury offerings from Tesla, while others come from mass-market brands like Volkswagen and Nissan. 

Only General Motors and Tesla have sold enough EVs that their offerings are no longer eligible for the $7,500 federal tax credit that’s meant to spur sales of low-emission and zero-emission cars. This means that most of the vehicles below can be had for much less than their official MSRP, and why a few of the cars listed retail for more than $40,000. 

Mini Electric – $29,900

Mini Electric
Mini Electric.

BMW unveiled the Mini Electric back in 2019 and started selling it last year. It’s the lowest-cost electric car currently available in the US, and its eligibility for the $7,500 federal EV tax credit makes the deal even sweeter. 

That low MSRP means that the Mini Electric only gets an estimated 110 miles of range, but it’s aimed primarily at people who live in cities and probably don’t drive long distances. And with a claimed 181 horsepower and a 0-60-mph time of under seven seconds, it’s pretty quick. 

Nissan Leaf – $31,620

2021 Nissan Leaf
2021 Nissan Leaf.

Introduced in 2010 and now in its second generation, the Nissan Leaf is one of the longest-running electric cars on the market.

The base model gets an EPA-estimated 149 miles of range, while pricier trim levels promise up to 226 miles along with a more powerful motor. 

Chevrolet Bolt EV – $31,995

EMBARGO 2/14/2022 4PM ET 2022 Chevrolet BoltEV 002
2022 Chevrolet Bolt EV.

Like the Leaf, the Chevrolet Bolt EV was one of the first EVs to go mainstream. Chevrolet recently unveiled the revamped 2022 Bolt EV, which will retail for more than $5,000 less than the outgoing model when it hits dealers this summer. 

The latest generation of the Bolt EV promises 259 miles of range across all its trim levels – just like the previous generation – but sports a much sleeker design all around. 

Hyundai Ioniq Electric – $33,045

Hyundai Ioniq Electric
Hyundai Ioniq Electric.

While the Hyundai Ioniq Electric’s base price is appealing – especially with the addition of a federal tax credit – the hatchback isn’t sold in every state and has less range than some of its rivals. It gets an EPA-estimated range of 170 miles. 

There’s also a more expensive $38,615 trim level available with the same powertrain but an upgraded interior and tech features. 

Chevrolet Bolt EUV – $33,995

EMBARGO 2/14/2022 4PM ET 2022 Chevrolet BoltEUV 010
2022 Chevrolet Bolt EUV.

The 2022 Bolt EUV is a brand new electric crossover from GM that shares its innards with the Bolt EV. Since it’s a little bigger than the hatchback, it has a slightly reduced range of 250 miles. 

It affords a few inches more legroom to rear passengers than the Bolt EV and offers GM’s semi-autonomous driver-assistance tech, Super Cruise, as an option. 

Tesla Model 3 – $36,990

Tesla Model 3_4
Tesla Model 3.

Tesla recently dropped the price of the Model 3 by $1,000 to $36,990, making an already popular car even more attractive. The Model 3 offers some of the best range for the money, with the base Standard Range model delivering 263 miles on a charge. 

The Model 3 Long Range, which costs $46,990, can go 353 miles on a charge, while the sportier Performance model retails for $55,990. 

Hyundai Kona Electric – $37,390

Hyundai Kona Electric
Hyundai Kona Electric.

The base 2021 Hyundai Kona Electric sports a 201-horsepower motor and a respectable EPA-estimated range of 258 miles. 

This month, Hyundai revealed a refreshed 2022 Kona Electric (pictured above) with a sleeker design but no powertrain changes. It hasn’t said how much the new model will cost yet. 

Kia Niro EV – $39,090

Kia Niro EV 1
Kia Niro EV.

The Kia Niro EV shares a battery pack and motor with the Hyundai Kona Electric, which is no surprise given that both brands fall under the same umbrella. Specs are slightly different however, with the Niro EV getting an EPA-estimated range of 239 miles. 

Tesla Model Y – $39,990

Model Y Sunset White
Tesla Model Y.

In January, Tesla unveiled a new base model of its popular Model Y crossover with a “standard” range. And this month, Tesla slashed the car’s price by $2,000, bringing it just below $40,000. 

The Model Y Standard Range can travel 244 miles on a charge, according to the EPA, and can be optioned in five-seat or seven-seat layouts. The top-tier Model Y Performance costs roughly $61,000. 

Volkswagen ID.4 – $39,995

Volkswagen ID.4
Volkswagen ID.4.

Volkswagen’s first EV for the US market hits streets this year, with the first deliveries beginning in March. The vehicle promises a 250-mile range and a familiar crossover shape that’s all the rage right now, so it very well may give the Tesla Model Y a run for its money. 

Nissan Ariya – $40,000

Nissan Ariya front quarter_1 source
Nissan Ariya.

Another new entry to the electric-crossover market is the Nissan Ariya, the Japanese brand’s first major EV since it launched the Leaf more than a decade ago.

Details are still scant, as the Ariya isn’t set to go on sale in the US until late 2021, but we do know that the base model will start at around $40,000, there will be an all-wheel-drive option, and the longest-range model will travel up to 300 miles on a charge.

Ford Mustang Mach-E – $42,895

Mustang Mach E GT Performance Edition 03
Mustang Mach-E GT Performance Edition.

Since the 2021 Mustang Mach-E is Ford’s first major electric car – and the Blue Oval hasn’t sold very many EVs yet – the vehicle is eligible for the $7,500 federal tax credit, bringing its theoretical starting price to just over $35,000. 

That starting price gets you an EPA-estimated 230 miles of range for the rear-wheel-drive model, and 211 miles for the all-wheel-drive version. There are also several other trims, including one with a 300-mile range and a high-performance model in the works that Ford claims will hit 60 mph in 3.5 seconds. 

BMW i3 – $44,450

BMW i3
BMW i3.

BMW i3 buyers can still take advantage of the full $7,500 federal tax credit, since the carmaker hasn’t sold all that many of the quirky hatchback in the several years it’s been on the market. That knocks the i3’s starting cost to around $37,000. 

But there are a few reasons that sales may have been sluggish. Aside from its unconventional looks and high price point, the base BMW i3 delivers just 153 miles of range, significantly less than more affordable options like the Tesla Model 3, Chevrolet Bolt EV, and Hyundai Kona Electric. 

There’s also a pricier version that gets a range boost from small gas engine. 

Read the original article on Business Insider

Apple could soar 66% in bull-case scenario as it searches for a ‘golden’ partnership to build electric vehicles, Wedbush says

Elon Musk Tim Cook
Tesla CEO Elon Musk and Apple CEO Tim Cook.


Apple’s ambitions in the electric-vehicle space are heating up, as recent reports have suggested that the iPhone-maker has held talks with Hyundai and Nissan on a partnership to develop an Apple car.

The Wedbush analyst Daniel Ives expects Apple to strike a formal partnership with an auto manufacturer sometime in 2021, which could lead to a bull-case scenario in which shares of Apple surge 66%, to $225.

Ives said there was an 85% chance that Apple would announce an EV partnership over the next three to six months; pressure for Apple to finalize its plans is likely rising as recent announcements from Ford and General Motors revealed aggressive EV ambitions.

“With a Biden-driven green tidal wave on the horizon, we believe now is the time for Apple to dive into the deep end of the pool on the EV front,” Ives said.

The electric-vehicle sector is “entering a golden age” as factors like battery technology, regulatory incentives and tax credits, and more affordable models create “a perfect storm for demand,” Ives said in a note on Monday.

“With a market that could be $5 trillion+ over the next decade, if Apple gets just 5% – 10% of share this could represent another major growth pillar within Cupertino,” Ives said.

Read more: EXCLUSIVE: An asset manager overseeing nearly $100 billion divested from Exxon over concerns it’s failing to move fast enough to address climate change

To capitalize on the opportunity, a “golden partnership” could set Apple up well for the next decade, Ives said. Ives speculated that Apple could strike a strategic partnership with Hyundai, Tesla, Ford, Nio, or Volkswagen.

The top two choices, according to Ives, are Hyundai and Volkswagen. Hyundai has “huge” production capabilities thanks to its proprietary Electric Global Modular Platform, and its robotic assembly design could fit well with Apple’s software and autonomous integration capabilities, Ives said.

Volkswagen’s so-called modular electric drive matrix “is a next generation design framework that would allow easy integration of new models from the likes of Apple,” Ives said. Volkswagen is also invested in QuantumScape, which could develop a differentiated battery pack for electric vehicles with its solid-state battery technology, the note said.

“In a nutshell, Apple with the right partner would be a major force in the EV industry and could disrupt market share from the likes of Tesla, GM, Ford if the company is able to get the Apple Car on the road by 2024,” Ives said.

Wedbush reiterated its “outperform” rating and 12-month price target of $175 on shares of Apple, representing potential upside of 29% from Friday’s close.

Read more: GOLDMAN SACHS: These 40 heavily shorted stocks could be the next GameStop if retail traders target them – and the group has already nearly doubled over the past 3 months

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Jaguar Land Rover plans to go fully electric by 2039, and said it would spend $3.5 billion on the goal each year

2020 Land Rover Defender 110 SE.KL_50
2020 Land Rover Defender 110 SE.

  • Jaguar Land Rover plans to become net zero on carbon emissions by 2039, it announced Monday.
  • Vehicles across both Jaguar and Land Rover brands would go all-electric, it said.
  • The car maker, the UK’s biggest, will spend around £2.5 billion ($3.5 billion) on the goal each year, it said.
  • Visit the Business section of Insider for more stories.

Luxury car group Jaguar Land Rover (JLR) unveiled plans to go all-electric on Monday, saying it aims to be net zero on carbon emissions by 2039, as it joined a global race to roll out clean-energy vehicles.

Land Rover will add six pure electric variants in the next five years and future Jaguar models would be built exclusively on a pure electric architecture, the British car giant said, adding that the first all-electric variant of Land Rover will debut in 2024.

By 2030, it is anticipated that 100% of Jaguar cars, and 60% of Land Rovers, will be equipped with zero-tailpipe powertrains, JLR said.

This feeds into its plans to become a net-zero-carbon business across its supply chain, products, and operations by 2039, it said.

Read more: One of Apple’s key execs might be moving to work on the tech giant’s electric vehicle project. Here are the 3 auto companies that are most likely to build the car, experts say.

The Tata Motors-owned group’s strategy comes as car groups worldwide accelerate moves towards fleets powered by electric and other green technologies.

Last month, General Motors said it aimed for all new cars, SUVs, and light pickup trucks to have zero-tailpipe emissions by 2035, a dramatic shift away from gasoline and diesel engines by the largest US automaker.

JLR is also preparing for the expected adoption of clean fuel-cell power, it said, and expected its prototypes to arrive on UK roads within the next 12 months.

To achieve this, it would work alongside other companies owned by Tata and would spend around £2.5 billion ($3.5 billion) on the project each year, including investments in electrification technologies, connected services, and data-centric technologies, it said.

Shares of parent company Tata Motors, based in India, jumped as much as 3% after the announcement.

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‘Big Short’ investor Michael Burry says Tesla stock could plunge 90% without major fallout – and a slump could reduce speculation

Michael Burry
Michael Burry.

  • Michael Burry says Tesla stock could plunge 90% without crashing the financial system.
  • “The Big Short” investor suggested a slump could temper speculation.
  • Burry, who is short Tesla, has criticized reckless investing in recent months.
  • Visit Business Insider’s homepage for more stories.

If Tesla stock plummets 90% this year, it would put a stop to cult-like support of certain companies without endangering the financial system, Michael Burry tweeted on Monday.

“$TSLA below $100/share by later this year will not crash the system,” the investor said. “There is no reflexivity in such a fall,” he continued, dismissing the risk of a positive feedback loop where investors lose confidence and hoard their money, hurting the economy and scaring investors even more.

“But it would trigger the end of an era for a certain type of investing,” Burry added. His latest comments echo his recent criticism of speculative betting on Tesla, bitcoin, and GameStop, and his warning of “dangerous” bubbles in markets last week.

Read more: GOLDMAN SACHS: These 40 heavily shorted stocks could be the next GameStop if retail traders target them – and the group has already nearly doubled over the past 3 months

Burry is best known for his billion-dollar bet against the US housing market in the mid-2000s, which was immortalized in author Michael Lewis’ book “The Big Short.” The Scion Asset Management boss also laid the groundwork for the recent GameStop short-squeeze when he invested in the video-game retailer in 2019.

The investor has been skeptical of Tesla since at least last fall, when he began tweeting about the automaker’s limited profitability, reliance on sales of regulatory credits, and sky-high valuation relative to its industry peers.

Burry revealed he was short Tesla in December and called its stock price “ridiculous.” Elon Musk’s electric-vehicle company has soared in market capitalization by 37% to north of $780 billion since then.

Read more: Tom Finke recounts how he went from running a $345 billion money manager to joining in the SPAC boom as a sponsor – and shares 3 characteristics investors should look for in an ideal blank-check company

The Scion chief compared his bet against Tesla to his wager on a housing-market collapse in a January tweet. “My last Big Short got bigger and bigger and BIGGER too,” he said. “Enjoy it while it lasts.”

It might seem extreme for Burry to suggest a drop in Tesla’s stock price from more than $815 as of Friday’s close to less than $100. However, the company’s shares traded at that level as recently as last April.

Here’s a chart showing Tesla’s remarkable stock performance over the past year:

Tesla_stockchart_150221
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