Ride-hailing platform Lyft expects to raise as much as $2 billion in IPO

Ride-hailing platform Lyft said on Monday it would raise as much as $2 billion in its much-awaited initial public offering. Lyft expects to price 30.77 million shares between $62 and $68 per share, it said in a filing. At the higher end of the range, the company will have a market valuation of $19.64 billion. The San Francisco, California-based company was seeking a valuation above $20 billion, Reuters reported on Sunday, citing people familiar with the matter. The company expects to list on the


Ride-hailing platform Lyft said on Monday it would raise as much as $2 billion in its much-awaited initial public offering. Lyft expects to price 30.77 million shares between $62 and $68 per share, it said in a filing. At the higher end of the range, the company will have a market valuation of $19.64 billion. The San Francisco, California-based company was seeking a valuation above $20 billion, Reuters reported on Sunday, citing people familiar with the matter. The company expects to list on the
Ride-hailing platform Lyft expects to raise as much as $2 billion in IPO Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-18
Keywords: news, cnbc, companies, raise, ipo, symbol, billion, vice, ridehailing, suisse, lyft, expects, shares, platform, valuation, company, zimmer, voting


Ride-hailing platform Lyft expects to raise as much as $2 billion in IPO

Ride-hailing platform Lyft said on Monday it would raise as much as $2 billion in its much-awaited initial public offering.

Lyft expects to price 30.77 million shares between $62 and $68 per share, it said in a filing.

At the higher end of the range, the company will have a market valuation of $19.64 billion. The San Francisco, California-based company was seeking a valuation above $20 billion, Reuters reported on Sunday, citing people familiar with the matter.

Lyft’s Chief Executive Logan Green and Vice President John Zimmer together will hold 48.8 percent of voting power after the offering.

The company expects to list on the Nasdaq under the symbol “LYFT.”

J.P. Morgan, Credit Suisse, and Jefferies are among the lead bookrunners for the listing.


Company: cnbc, Activity: cnbc, Date: 2019-03-18
Keywords: news, cnbc, companies, raise, ipo, symbol, billion, vice, ridehailing, suisse, lyft, expects, shares, platform, valuation, company, zimmer, voting


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Morgan Stanley says automakers want to sell cars like Tesla does but can’t: ‘It’s against the law’

“Tesla is the only [original equipment manufacturer] to our knowledge that is allowed to sell its wares through company owned stores,” Jonas said. Morgan Stanley believes that U.S. auto dealers, through regulatory representatives, “may resist this tactic,” Jonas said. But, because Tesla does not technically have any dealer franchises, and already sells without dealerships, Tesla’s move online will likely also be protected, Jonas expects. If this change works, and Tesla sees the cost savings the


“Tesla is the only [original equipment manufacturer] to our knowledge that is allowed to sell its wares through company owned stores,” Jonas said. Morgan Stanley believes that U.S. auto dealers, through regulatory representatives, “may resist this tactic,” Jonas said. But, because Tesla does not technically have any dealer franchises, and already sells without dealerships, Tesla’s move online will likely also be protected, Jonas expects. If this change works, and Tesla sees the cost savings the
Morgan Stanley says automakers want to sell cars like Tesla does but can’t: ‘It’s against the law’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: michael sheetz, paul hennessy, nurphoto, getty images
Keywords: news, cnbc, companies, sell, tesla, does, online, elon, expects, company, cars, jonas, dealer, law, debate, morgan, stanley, automakers, cant


Morgan Stanley says automakers want to sell cars like Tesla does but can't: 'It's against the law'

“Tesla is the only [original equipment manufacturer] to our knowledge that is allowed to sell its wares through company owned stores,” Jonas said. “Tesla is now trying to take this a major step further to be the only [automaker] to sell new cars directly to consumers on-line without the involvement of a physical dealer.”

Morgan Stanley believes that U.S. auto dealers, through regulatory representatives, “may resist this tactic,” Jonas said. But, because Tesla does not technically have any dealer franchises, and already sells without dealerships, Tesla’s move online will likely also be protected, Jonas expects. If this change works, and Tesla sees the cost savings the company expects, Jonas said Elon Musk’s electric-car company may be a catalyst for automakers to re-evaluate existing regulations.

“Then investors should look for a revival of the debate around auto dealer franchise laws,” Jonas said. He compared that debate to retail banking, where evolving regulations “resulted in banks offering services on-line at lower costs to them and better pricing to consumers,” Jonas added.

Tesla’s plan may work, Jonas said, as “it’s just so easy to buy a Tesla” through the company’s website.

“It’s 3 clicks. That’s about as many clicks as it takes to buy catnip on Amazon,” Jonas said.

Morgan Stanley has an equal-weight rating and a $283 price target on Tesla shares.

WATCH: How taxpayers have boosted Elon Musk and Tesla


Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: michael sheetz, paul hennessy, nurphoto, getty images
Keywords: news, cnbc, companies, sell, tesla, does, online, elon, expects, company, cars, jonas, dealer, law, debate, morgan, stanley, automakers, cant


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Morgan Stanley says automakers want to sell cars like Tesla does but can’t: ‘It’s against the law’

“Tesla is the only [original equipment manufacturer] to our knowledge that is allowed to sell its wares through company owned stores,” Jonas said. Morgan Stanley believes that U.S. auto dealers, through regulatory representatives, “may resist this tactic,” Jonas said. But, because Tesla does not technically have any dealer franchises, and already sells without dealerships, Tesla’s move online will likely also be protected, Jonas expects. If this change works, and Tesla sees the cost savings the


“Tesla is the only [original equipment manufacturer] to our knowledge that is allowed to sell its wares through company owned stores,” Jonas said. Morgan Stanley believes that U.S. auto dealers, through regulatory representatives, “may resist this tactic,” Jonas said. But, because Tesla does not technically have any dealer franchises, and already sells without dealerships, Tesla’s move online will likely also be protected, Jonas expects. If this change works, and Tesla sees the cost savings the
Morgan Stanley says automakers want to sell cars like Tesla does but can’t: ‘It’s against the law’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: michael sheetz, paul hennessy, nurphoto, getty images
Keywords: news, cnbc, companies, sell, tesla, does, online, elon, expects, company, cars, jonas, dealer, law, debate, morgan, stanley, automakers, cant


Morgan Stanley says automakers want to sell cars like Tesla does but can't: 'It's against the law'

“Tesla is the only [original equipment manufacturer] to our knowledge that is allowed to sell its wares through company owned stores,” Jonas said. “Tesla is now trying to take this a major step further to be the only [automaker] to sell new cars directly to consumers on-line without the involvement of a physical dealer.”

Morgan Stanley believes that U.S. auto dealers, through regulatory representatives, “may resist this tactic,” Jonas said. But, because Tesla does not technically have any dealer franchises, and already sells without dealerships, Tesla’s move online will likely also be protected, Jonas expects. If this change works, and Tesla sees the cost savings the company expects, Jonas said Elon Musk’s electric-car company may be a catalyst for automakers to re-evaluate existing regulations.

“Then investors should look for a revival of the debate around auto dealer franchise laws,” Jonas said. He compared that debate to retail banking, where evolving regulations “resulted in banks offering services on-line at lower costs to them and better pricing to consumers,” Jonas added.

Tesla’s plan may work, Jonas said, as “it’s just so easy to buy a Tesla” through the company’s website.

“It’s 3 clicks. That’s about as many clicks as it takes to buy catnip on Amazon,” Jonas said.

Morgan Stanley has an equal-weight rating and a $283 price target on Tesla shares.

WATCH: How taxpayers have boosted Elon Musk and Tesla


Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: michael sheetz, paul hennessy, nurphoto, getty images
Keywords: news, cnbc, companies, sell, tesla, does, online, elon, expects, company, cars, jonas, dealer, law, debate, morgan, stanley, automakers, cant


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China trade deal looking more and more like a ‘sell the news’ opportunity for stock investors

“As such, a China deal is the most important ‘stimulus’ Trump could provide in 2019,” he wrote. U.S. Trade Representative Robert Lighthizer last week said the provisions to protect intellectual property are a big part of the working document. Bianco said even if the deal does come up short in some investors’ minds, it would be a positive. It’s about trade being a policy tool to get China to the negotiating table, on the topics of trade and many other things,” he said. Bianco said trade is an ope


“As such, a China deal is the most important ‘stimulus’ Trump could provide in 2019,” he wrote. U.S. Trade Representative Robert Lighthizer last week said the provisions to protect intellectual property are a big part of the working document. Bianco said even if the deal does come up short in some investors’ minds, it would be a positive. It’s about trade being a policy tool to get China to the negotiating table, on the topics of trade and many other things,” he said. Bianco said trade is an ope
China trade deal looking more and more like a ‘sell the news’ opportunity for stock investors Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-04  Authors: patti domm, fred dufour, afp, getty images, jim watson
Keywords: news, cnbc, companies, opportunity, going, investors, important, expects, trade, china, uncertainty, stock, sell, provide, looking, meetings, deal, tariffs


China trade deal looking more and more like a 'sell the news' opportunity for stock investors

If tariffs are retained, some strategists say that would be a negative for the market since uncertainty would remain, and so would the impact on businesses.

“Removing the uncertainty of escalating tariffs should be enough to stimulate capex, but a cut to existing tariffs should provide a significant boost to US capex,” Clifton notes.

“As such, a China deal is the most important ‘stimulus’ Trump could provide in 2019,” he wrote.

U.S. Trade Representative Robert Lighthizer last week said the provisions to protect intellectual property are a big part of the working document. The plan is that bilateral meetings would take place on any disputes, and if the talks don’t resolve them, the U.S. could impose tariffs.

“By the time you get through all these meetings and Chinese denials, you already did harm to America’s businesses and workers. This is the U.S. going back to the Obama and Bush era,” said Derek Scissors, resident scholar at American Enterprise Institute.”We’re in a situation where we’re not enforcing our law now, and we’re setting up a mechanism which is very similar to past mechanisms where we failed to enforce our laws.”

Bianco said even if the deal does come up short in some investors’ minds, it would be a positive. He said he expects the S&P to reach 2,950 by year end, and if there was a strong deal with China, removing all tariffs, it could move to 3,000.

But he expects a deal that could retain some tariffs.

“It’s not just about trade. It’s about trade being a policy tool to get China to the negotiating table, on the topics of trade and many other things,” he said. Bianco said trade is an opening to other important issues, like the South China Sea.

“They’ve taken a lot of risks with the economy to make incremental gains, but this is going in the right direction. Overall it’s a pretty good outcome,” Bianco said.


Company: cnbc, Activity: cnbc, Date: 2019-03-04  Authors: patti domm, fred dufour, afp, getty images, jim watson
Keywords: news, cnbc, companies, opportunity, going, investors, important, expects, trade, china, uncertainty, stock, sell, provide, looking, meetings, deal, tariffs


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Here’s the calls of the day we’re watching

“Our downgrade is based on the following: (1) The helium supply shortage is now expected to persist throughout 2019, which is a step change from management’s earlier commentary that the situation was likely to improve with the opening of new refining facilities… PRTY is currently at 60-70% helium allocation vs. ~80-85% normally and expects the shortfall to continue at these levels in 2019. (2) We see risk to PRTY’s backhalf-weighted ~1% comp guidance for 2019 that will likely weigh on the stoc


“Our downgrade is based on the following: (1) The helium supply shortage is now expected to persist throughout 2019, which is a step change from management’s earlier commentary that the situation was likely to improve with the opening of new refining facilities… PRTY is currently at 60-70% helium allocation vs. ~80-85% normally and expects the shortfall to continue at these levels in 2019. (2) We see risk to PRTY’s backhalf-weighted ~1% comp guidance for 2019 that will likely weigh on the stoc
Here’s the calls of the day we’re watching Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-01  Authors: michael bloom, al seib, los angeles times, getty images
Keywords: news, cnbc, companies, watching, heres, expects, 2018, shortage, 2019, calls, comp, prty, helium, day, growth, underlying, expected


Here's the calls of the day we're watching

“Our downgrade is based on the following: (1) The helium supply shortage is now expected to persist throughout 2019, which is a step change from management’s earlier commentary that the situation was likely to improve with the opening of new refining facilities… PRTY is currently at 60-70% helium allocation vs. ~80-85% normally and expects the shortfall to continue at these levels in 2019. (2) We see risk to PRTY’s backhalf-weighted ~1% comp guidance for 2019 that will likely weigh on the stock until disproved… Peeling back the onion, PRTY laps ~70 bps of net headwinds in 2018 (helium shortage and supply chain disruptions in China, offset by the tailwinds from the lapping of hurricanes and search-engine related glitch in 2017), while management expects 50-100 bps drag from continued helium shortage in 2019. This suggests the underlying core comp is expected to be ~1% in FY19… Although we believe the IP pipeline in 2019 is strong, we remain skeptical about the magnitude of expected acceleration as PRTY only posted a flattish underlying comp despite a flush consumer environment in 2018… We are modeling FY19 comp at 0.6%. (3) PRTY ended the year with 25% inventory growth YoY against a sales growth of 2.4%, about half of which was the result of sales underperformance in 2018, which we believe poses meaningful markdown risks as management expects inventory to be a source of cash to paydown debt in 2019… Lastly, the CFO is leaving and it’s unclear what will drive growth for the retail concept given prior efforts and considering we just passed through one of the most buoyant consumer environments in 2018…”


Company: cnbc, Activity: cnbc, Date: 2019-03-01  Authors: michael bloom, al seib, los angeles times, getty images
Keywords: news, cnbc, companies, watching, heres, expects, 2018, shortage, 2019, calls, comp, prty, helium, day, growth, underlying, expected


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Nutanix plunges 25 percent on a sales forecast that’s way below estimates

Shares of Nutanix plunged 25 percent in extended trading after the provider of cloud infrastructure technology gave a weaker-than-expected forecast in its fiscal second quarter earnings report. For the latest quarter, the company beat analyst expectations on the top and bottom lines. Here are the key numbers:Earnings: Loss of 23 cents per share vs. 25 cents per share expected, per RefinitivRevenue: $335 million vs. $331 million expected, per RefinitivNutanix expects revenue between $290 million


Shares of Nutanix plunged 25 percent in extended trading after the provider of cloud infrastructure technology gave a weaker-than-expected forecast in its fiscal second quarter earnings report. For the latest quarter, the company beat analyst expectations on the top and bottom lines. Here are the key numbers:Earnings: Loss of 23 cents per share vs. 25 cents per share expected, per RefinitivRevenue: $335 million vs. $331 million expected, per RefinitivNutanix expects revenue between $290 million
Nutanix plunges 25 percent on a sales forecast that’s way below estimates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-28  Authors: lauren feiner
Keywords: news, cnbc, companies, cents, quarter, thats, 25, sales, earnings, nutanix, expects, forecast, million, cloud, plunges, share, way, expected, vs, estimates


Nutanix plunges 25 percent on a sales forecast that's way below estimates

Shares of Nutanix plunged 25 percent in extended trading after the provider of cloud infrastructure technology gave a weaker-than-expected forecast in its fiscal second quarter earnings report. For the latest quarter, the company beat analyst expectations on the top and bottom lines.

Here are the key numbers:

Earnings: Loss of 23 cents per share vs. 25 cents per share expected, per Refinitiv

Revenue: $335 million vs. $331 million expected, per Refinitiv

Nutanix expects revenue between $290 million to $300 million in the third quarter, compared to the $348 million analysts expected.

In the earnings release, Nutanix CFO Duston Williams said he expects the next quarter to reflect “the impact of inadequate marketing spending for pipeline generation and slower than expected sales hiring.”

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Watch: Nutanix CEO sees an opportunity improve efficiencies in the cloud


Company: cnbc, Activity: cnbc, Date: 2019-02-28  Authors: lauren feiner
Keywords: news, cnbc, companies, cents, quarter, thats, 25, sales, earnings, nutanix, expects, forecast, million, cloud, plunges, share, way, expected, vs, estimates


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Why this strategist expects the British pound to rise

Why this strategist expects the British pound to rise2 Hours AgoMarc Chandler of Bannockburn Global Forex says the market is pricing in a delay in the Brexit deadline which, in turn, may see the U.K.’s Labour Party endorsing a second referendum. He says there’s room for the pound to appreciate because the market sees a second vote as a possibility that Britain may not leave the European Union.


Why this strategist expects the British pound to rise2 Hours AgoMarc Chandler of Bannockburn Global Forex says the market is pricing in a delay in the Brexit deadline which, in turn, may see the U.K.’s Labour Party endorsing a second referendum. He says there’s room for the pound to appreciate because the market sees a second vote as a possibility that Britain may not leave the European Union.
Why this strategist expects the British pound to rise Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-25
Keywords: news, cnbc, companies, british, turn, theres, vote, sees, rise, pound, union, market, strategist, uks, expects, second


Why this strategist expects the British pound to rise

Why this strategist expects the British pound to rise

2 Hours Ago

Marc Chandler of Bannockburn Global Forex says the market is pricing in a delay in the Brexit deadline which, in turn, may see the U.K.’s Labour Party endorsing a second referendum. He says there’s room for the pound to appreciate because the market sees a second vote as a possibility that Britain may not leave the European Union.


Company: cnbc, Activity: cnbc, Date: 2019-02-25
Keywords: news, cnbc, companies, british, turn, theres, vote, sees, rise, pound, union, market, strategist, uks, expects, second


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Singapore bank expects China slowdown to hit growth in loans

The economic slowdown in China will affect Oversea-Chinese Banking Corp’s ability to grow its loans business this year, the lender’s chief executive said on Friday. OCBC, the second-largest Singaporean bank by assets, reported a 9 percent increase in customer loans in 2018. That growth rate is expected to moderate this year amid greater uncertainties in China and globally, said its CEO Samuel Tsien. Last year’s loan growth was 9 percent, we expect this year’s to slow down to low- to middle-singl


The economic slowdown in China will affect Oversea-Chinese Banking Corp’s ability to grow its loans business this year, the lender’s chief executive said on Friday. OCBC, the second-largest Singaporean bank by assets, reported a 9 percent increase in customer loans in 2018. That growth rate is expected to moderate this year amid greater uncertainties in China and globally, said its CEO Samuel Tsien. Last year’s loan growth was 9 percent, we expect this year’s to slow down to low- to middle-singl
Singapore bank expects China slowdown to hit growth in loans Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: yen nee lee, nicky loh, bloomberg, getty images
Keywords: news, cnbc, companies, china, loans, market, reported, slowdown, singapore, bank, 2018, growth, net, expects, profit, expect, hit


Singapore bank expects China slowdown to hit growth in loans

The economic slowdown in China will affect Oversea-Chinese Banking Corp’s ability to grow its loans business this year, the lender’s chief executive said on Friday.

OCBC, the second-largest Singaporean bank by assets, reported a 9 percent increase in customer loans in 2018. That growth rate is expected to moderate this year amid greater uncertainties in China and globally, said its CEO Samuel Tsien.

“Despite that there’s a slowdown, the market is still growing … We still expect that the market will offer us opportunities to continue to grow as we have done in the past,” Tsien told CNBC’s Martin Soong when asked about the impact of China’s slowdown.

“I do expect that our loan growth for this year will be lower than that we saw last year. Last year’s loan growth was 9 percent, we expect this year’s to slow down to low- to middle-single digit,” he said, after the bank reported its full-year earnings.

The Greater China region was the second-largest profit contributor for OCBC in 2018, after its home market Singapore. The region accounted for 19 percent of the bank’s overall profit before tax last year and about 25 percent of its total customer loans.

OCBC rounded up the earnings release of the three Singapore-listed banks. The lender reported an 11 percent fall in net profit last year.

In contrast, OCBC’s smaller peer United Overseas Bank announced on the same day an 18 percent increase in annual net profit, while Singapore’s largest bank DBS Group Holdings said on Monday its net profit for 2018 rose 28 percent from the previous year.

Shares of OCBC declined by close to 2 percent in Friday trading, while UOB fell by nearly 2 percent and DBS inched up close to 1 percent.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: yen nee lee, nicky loh, bloomberg, getty images
Keywords: news, cnbc, companies, china, loans, market, reported, slowdown, singapore, bank, 2018, growth, net, expects, profit, expect, hit


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Elon Musk is ‘almost unethical’ says outgoing AutoNation CEO

Tesla CEO Elon Musk acts in an “almost unethical” way, the outgoing CEO of the largest U.S. auto dealer chain told CNBC on Friday. Musk recently said he expects Tesla to have all the features needed for fully self-driving cars by the end of the year. “I think he is overpromising on autonomous vehicles in an almost unethical way,” AutoNation CEO Mike Jackson said on “Squawk Box,” referring to Musk. Tesla initially advertised its Model 3 at a price of $35,000 but has so far sold only more expensiv


Tesla CEO Elon Musk acts in an “almost unethical” way, the outgoing CEO of the largest U.S. auto dealer chain told CNBC on Friday. Musk recently said he expects Tesla to have all the features needed for fully self-driving cars by the end of the year. “I think he is overpromising on autonomous vehicles in an almost unethical way,” AutoNation CEO Mike Jackson said on “Squawk Box,” referring to Musk. Tesla initially advertised its Model 3 at a price of $35,000 but has so far sold only more expensiv
Elon Musk is ‘almost unethical’ says outgoing AutoNation CEO Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: robert ferris
Keywords: news, cnbc, companies, way, autonation, expects, ceo, long, outgoing, vehicles, musk, model, elon, tesla, jackson, unethical


Elon Musk is 'almost unethical' says outgoing AutoNation CEO

Tesla CEO Elon Musk acts in an “almost unethical” way, the outgoing CEO of the largest U.S. auto dealer chain told CNBC on Friday.

Musk recently said he expects Tesla to have all the features needed for fully self-driving cars by the end of the year. That seems like an almost impossible goal, Cox Automotive executive publisher Karl Brauer said Wednesday on CNBC’s “The Exchange.” Other companies working on autonomous driving technology, such as Waymo, are not making such bold predictions.

“I think he is overpromising on autonomous vehicles in an almost unethical way,” AutoNation CEO Mike Jackson said on “Squawk Box,” referring to Musk.

Jackson has long been a Tesla critic and has accused Musk of using “bait-and-switch” tactics on consumers, making commitments he cannot keep, and has said the electric car maker’s business will not be sustainable over the long term.

In the interview Friday, Jackson once again criticized Tesla’s practice of taking orders on the midsize Tesla Model 3 sedan, saying the cars Tesla has been building are different from the ones the company had said it planned to build. Tesla initially advertised its Model 3 at a price of $35,000 but has so far sold only more expensive versions.

“There’s not another retailer in America that could get away with that bait and switch,” Jackson said. Currently the cheapest Model 3 starts at $42,900. Musk has said that despite the originally advertised price, Tesla has had to prioritize the production of more expensive versions to keep margins high. At one point, Tesla had more than 400,000 reservations for the the Model 3.

Tesla has faced political and legal battles in several states over its decision to eschew the traditional dealership model in favor of a direct model that sells to customers.

AutoNation reported earnings of $1.10 on Friday, missing a consensus estimate by 4 cents. The dealership chain also said Jackson will end his long tenure in the top job in March, and Carl Liebert will succeed him on March 11. Liebert was formerly chief operating officer at financial services company USAA. He was also executive vice president of stores at home improvement retailer Home Depot.

AutoNation shares sank 6 percent in early trading Friday. Tesla’s stock was up 1.2 percent.

“It was a challenging quarter, no question,” Jackson said. New vehicle sales across the industry were down 10 percent in California, and environments in Texas and Florida were also problems.

“But even beyond those two explanations, I think retail automotive is getting more difficult,” he said, attributing the challenges in part to the cyclical nature of the business.

Jackson said he expects a gradual downturn across the industry. He expects sales in 2019 to be about 16.8 million vehicles, down from 17.2 million in 2018.

Tesla did not immediately respond to CNBC’s request for comment about Jackson’s remarks.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: robert ferris
Keywords: news, cnbc, companies, way, autonation, expects, ceo, long, outgoing, vehicles, musk, model, elon, tesla, jackson, unethical


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Elon Musk is ‘almost unethical’ says outgoing AutoNation CEO

Tesla CEO Elon Musk acts in an “almost unethical” way, the outgoing CEO of the largest U.S. auto dealer chain told CNBC on Friday. Musk recently said he expects Tesla to have all the features needed for fully self-driving cars by the end of the year. “I think he is overpromising on autonomous vehicles in an almost unethical way,” AutoNation CEO Mike Jackson said on “Squawk Box,” referring to Musk. Tesla initially advertised its Model 3 at a price of $35,000 but has so far sold only more expensiv


Tesla CEO Elon Musk acts in an “almost unethical” way, the outgoing CEO of the largest U.S. auto dealer chain told CNBC on Friday. Musk recently said he expects Tesla to have all the features needed for fully self-driving cars by the end of the year. “I think he is overpromising on autonomous vehicles in an almost unethical way,” AutoNation CEO Mike Jackson said on “Squawk Box,” referring to Musk. Tesla initially advertised its Model 3 at a price of $35,000 but has so far sold only more expensiv
Elon Musk is ‘almost unethical’ says outgoing AutoNation CEO Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: robert ferris
Keywords: news, cnbc, companies, way, autonation, expects, ceo, long, outgoing, vehicles, musk, model, elon, tesla, jackson, unethical


Elon Musk is 'almost unethical' says outgoing AutoNation CEO

Tesla CEO Elon Musk acts in an “almost unethical” way, the outgoing CEO of the largest U.S. auto dealer chain told CNBC on Friday.

Musk recently said he expects Tesla to have all the features needed for fully self-driving cars by the end of the year. That seems like an almost impossible goal, Cox Automotive executive publisher Karl Brauer said Wednesday on CNBC’s “The Exchange.” Other companies working on autonomous driving technology, such as Waymo, are not making such bold predictions.

“I think he is overpromising on autonomous vehicles in an almost unethical way,” AutoNation CEO Mike Jackson said on “Squawk Box,” referring to Musk.

Jackson has long been a Tesla critic and has accused Musk of using “bait-and-switch” tactics on consumers, making commitments he cannot keep, and has said the electric car maker’s business will not be sustainable over the long term.

In the interview Friday, Jackson once again criticized Tesla’s practice of taking orders on the midsize Tesla Model 3 sedan, saying the cars Tesla has been building are different from the ones the company had said it planned to build. Tesla initially advertised its Model 3 at a price of $35,000 but has so far sold only more expensive versions.

“There’s not another retailer in America that could get away with that bait and switch,” Jackson said. Currently the cheapest Model 3 starts at $42,900. Musk has said that despite the originally advertised price, Tesla has had to prioritize the production of more expensive versions to keep margins high. At one point, Tesla had more than 400,000 reservations for the the Model 3.

Tesla has faced political and legal battles in several states over its decision to eschew the traditional dealership model in favor of a direct model that sells to customers.

AutoNation reported earnings of $1.10 on Friday, missing a consensus estimate by 4 cents. The dealership chain also said Jackson will end his long tenure in the top job in March, and Carl Liebert will succeed him on March 11. Liebert was formerly chief operating officer at financial services company USAA. He was also executive vice president of stores at home improvement retailer Home Depot.

AutoNation shares sank 6 percent in early trading Friday. Tesla’s stock was up 1.2 percent.

“It was a challenging quarter, no question,” Jackson said. New vehicle sales across the industry were down 10 percent in California, and environments in Texas and Florida were also problems.

“But even beyond those two explanations, I think retail automotive is getting more difficult,” he said, attributing the challenges in part to the cyclical nature of the business.

Jackson said he expects a gradual downturn across the industry. He expects sales in 2019 to be about 16.8 million vehicles, down from 17.2 million in 2018.

Tesla did not immediately respond to CNBC’s request for comment about Jackson’s remarks.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: robert ferris
Keywords: news, cnbc, companies, way, autonation, expects, ceo, long, outgoing, vehicles, musk, model, elon, tesla, jackson, unethical


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