Tag Archives: INDS08

Tesla Q2 deliveries meet analysts’ estimates despite chip shortage, shares gain

  • Shares up 3% on record vehicle deliveries
  • Deliveries of higher priced models fell

July 2 (Reuters) – Tesla Inc (TSLA.O) on Friday posted record vehicle deliveries for the second quarter that were in line with Wall Street estimates as the electric-car maker coped with a shortage of chips and raw materials.

Tesla delivered 201,250 vehicles in total during the second quarter. Analysts had expected Tesla to deliver 200,258 vehicles, according to Refinitiv data.

“Congrats Tesla Team on over 200,000 car built & delivered in Q2, despite many challenges!!” Musk said in a tweet.

Shares of the company were up 3% in early trading on Friday.

The numbers showed that strong deliveries of its Model 3 sedans and Model Y crossovers, its two lower priced variants, offset a drop in deliveries of higher-end Model S and X variants.

Tesla has been raising prices for its vehicles in recent months, which its billionaire boss, Elon Musk, blamed in May on “major supply chain price pressure”, especially raw materials. read more

He also said in early June that “Our biggest challenge is supply chain, especially microcontroller chips. Never seen anything like it.”

Tesla sold 21,936 cars to Chinese customers in May, rebounding from a sales slump in April, but still well below March numbers. read more

MODEL S,X DELIVERIES FALL

Overall deliveries of its higher priced Model S and X cars fell to 1,890 during the April to June period, from a meager 2,020 the preceding quarter, Tesla said.

After delays, the company launched the Model S Plaid in June, a high-performance version of its Model S, starting at $129,990. read more

A Tesla Model S Plaid electric vehicle burst into flames on Tuesday while the owner was driving, just three days after the car was delivered. Tesla did not have an immediate comment when contacted by Reuters. read more

Total production in the second quarter rose about 14% to 206,421 vehicles from the first quarter.

Reporting by Akanksha Rana in Bengaluru and Hyunjoo Jin in Berkeley, Calif, Additional reporting by Subrat Patnaik; Editing by Sriraj Kalluvila, Saumyadeb Chakrabarty and Philippa Fletcher

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China’s Didi raises $4.4 bln in upsized U.S. IPO -sources

  • Didi sold 317 mln ADS, more than planned 288 mln -sources
  • Sells ADS at $14 a piece – sources
  • Would give Didi $73 bln valuation on fully diluted basis

June 29 (Reuters) – Chinese ride hailing company Didi Global Inc (DIDI.N) raised $4.4 billion in its U.S IPO on Tuesday, pricing it at the top of its indicated range and increasing the number of shares sold, according to two sources familiar with the matter.

Didi sold 317 million American Depository Shares (ADS), versus the planned 288 million, at $14 apiece, the people said on condition of anonymity ahead of an official announcement.

This would give Didi a valuation of about $73 billion on a fully diluted basis. On a non-diluted basis, it will be worth $67.5 billion. The company is expected to debut on the New York Stock Exchange on June 30.

The increase in deal size came after the Didi investor order book was oversubscribed multiple times, one of the sources said.

Investors have been told to expect their orders to be scaled back once allocations are completed on Wednesday, according to a separate source with direct knowledge of the matter.

Didi did not respond to a request for comment.

The listing, which will be the biggest U.S. share sale by a Chinese company since Alibaba raised $25 billion in 2014, comes amid record IPO activity this year as companies rush to capture the lucrative valuations seen in the U.S. stock market.

Didi’s IPO is more conservative than its initial aim for a valuation of up to $100 billion, Reuters has previously reported. The size of the deal was cut during briefings with investors ahead of the IPO’s launch. read more

This suggests increasing investor worries about China’s potential anti-trust related crackdown and a more volatile IPO environment globally in 2021, said Douglas Kim, a London-based independent analyst, who writes on Smartkarma.

A Didi logo is seen at the headquarters of Didi Chuxing in Beijing, China November 20, 2020. REUTERS/Florence Lo/File Photo

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“But it seems like many investors like this deal, the volatile IPO environment helped to lower IPO price and valuation looks attractive,” Kim told Reuters.

Didi’s IPO was covered early on the first day of the book-build last week and the investor books were closed on Monday, a day ahead of schedule. read more .

An over-allotment option, or greenshoe, exists where another 43.2 million shares can be sold to increase the deal size.

DIDI HISTORY

Didi was co-founded in 2012 by former Alibaba employee Will Wei Cheng, who currently serves as the chief executive officer. Cheng was joined by Jean Qing Liu, a former Goldman Sachs banker and the current president of the ride-sharing company.

The company counts SoftBank (9984.T), Uber Technologies Inc (UBER.N) and Tencent (0700.HK) as its main backers.

Didi is also known for successfully pushing Uber out of the Chinese market after the U.S. company lost a price war and ended up selling its China operations to Didi for a stake. Liu Zhen, the head of Uber China at the time, is Didi’s Liu’s cousin.

Like most ride-hailing companies, Didi had historically been unprofitable, until it reported a profit of $30 million in the first quarter of this year.

The company reported a loss of $1.6 billion last year and an 8% drop in revenue to $21.63 billion, according to a regulatory filing, as business slid during the pandemic.

Its shares are due to start trading under the “DIDI” symbol.

Reporting by Echo Wang in New York and Anirban Sen in Bengaluru and Scott Murdoch in Hong Kong; Editing by Greg Roumeliotis, Bill Berkrot and Himani Sarkar

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Saudi Arabia plans new national airline as it diversifies from oil

CAIRO, June 29 (Reuters) – Saudi Arabia’s Crown Prince Mohammed bin Salman announced plans on Tuesday to launch a second national airline as part of a broader strategy to turn the kingdom into a global logistics hub as it seeks to diversify from oil.

The creation of another flag carrier would catapult Saudi Arabia into the 5th rank globally in terms of air transit traffic, official state media reported, without giving details on when and how the airline would be created.

Prince Mohammad has been spearheading a push for Saudi Arabia, the biggest Arab economy and the largest country in the Gulf geographically, to boost non-oil revenues to about 45 billion riyals ($12.00 billion) by 2030.

Making the kingdom a global logistics hub, which includes the development of ports, rail and road networks, would increase the transport and logistics sector’s contribution to gross domestic product to 10% from 6%, state news agency SPA said.

“The comprehensive strategy aims to position Saudi Arabia as a global logistics hub connecting the three continents,” Prince Mohammed was quoted as saying in the SPA report.

“This will help other sectors like tourism, haj and umrah to achieve their national targets.”

The addition of another airline would increase the number of international destinations from Saudi Arabia to more than 250 and double air cargo capacity to more than 4.5 million tonnes, the SPA report said.

With current flag bearer Saudi Arabian Airlines (Saudia), the kingdom has one of the smallest airline networks in the region relative to its size. Saudia has struggled with losses for years and like global peers, has been hit hard by the coronavirus pandemic.

Local media reported earlier this year that the kingdom’s sovereign wealth fund, the Public Investment Fund, (PIF), planned to build a new airport in Riyadh as part of the new airline launch, without giving further details.

The fund is the main vehicle for boosting Saudi Arabian investments at home and abroad as the young prince, known in the West as MbS, seeks to diversify the kingdom’s oil-heavy economy through his Vision 2030 strategy.

($1 = 3.7503 riyals)

Reporting by Nayera Abdallah and Alaa Swilam; Writing by Ghaida Ghantous and Marwa Rashad; Editing by Sonya Hepinstall, Marguerita Choy and Jane Wardell

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Mars helicopter flight test promises Wright Brothers moment for NASA

The planet Mars is shown in this NASA Hubble Space Telescope view taken May 12, 2016. NASA/Handout via Reuters

NASA hopes to score a 21st-century Wright Brothers moment on Monday as it attempts to send a miniature helicopter buzzing over the surface of Mars in what would be the first powered, controlled flight of an aircraft on another planet.

Landmark achievements in science and technology can seem humble by conventional measurements. The Wright Brothers’ first controlled flight in the world of a motor-driven airplane, near Kitty Hawk, North Carolina, in 1903 covered just 120 feet (37 meters) in 12 seconds.

A modest debut is likewise in store for NASA’s twin-rotor, solar-powered helicopter Ingenuity.

If all goes to plan, the 4-pound (1.8-kg) whirligig will slowly ascend straight up to an altitude of 10 feet (3 meters) above the Martian surface, hover in place for 30 seconds, then rotate before descending to a gentle landing on all four legs.

While the mere metrics may seem less than ambitious, the “air field” for the interplanetary test flight is 173 million miles from Earth, on the floor of a vast Martian basin called Jezero Crater. Success hinges on Ingenuity executing the pre-programmed flight instructions using an autonomous pilot and navigation system.

“The moment our team has been waiting for is almost here,” Ingenuity project manager MiMi Aung said at a recent briefing at NASA’s Jet Propulsion Laboratory (JPL) near Los Angeles.

NASA itself is likening the experiment to the Wright Brothers’ feat 117 years ago, paying tribute to that modest but monumental first flight by having affixed a tiny swath of wing fabric from the original Wright flyer under Ingenuity’s solar panel.

The robot rotorcraft was carried to the red planet strapped to the belly of NASA’s Mars rover Perseverance, a mobile astrobiology lab that touched down on Feb. 18 in Jezero Crater after a nearly seven-month journey through space.

Although Ingenuity’s flight test is set to begin around 3:30 a.m. Eastern Time on Monday (0730 GMT Monday), data confirming its outcome is not expected to reach JPL’s mission control until around 6:15 a.m. ET on Monday.

NASA also expects to receive images and video of the flight that mission engineers hope to capture using cameras mounted on the helicopter and the Perseverance rover, which will be parked 250 feet (76 meters) away from Ingenuity’s flight zone.

If the test succeeds, Ingenuity will undertake several additional, lengthier flights in the weeks ahead, though it will need to rest four to five days in between each to recharge its batteries. Prospects for future flights rest largely on a safe, four-point touchdown the first time.

“It doesn’t have a self-righting system, so if we do have a bad landing, that will be the end of the mission,” Aung said. An unexpectedly strong wind gust is one potential peril that could spoil the flight.

NASA hopes Ingenuity – a technology demonstration separate from Perseverance’s primary mission to search for traces of ancient microorganisms – paves the way for aerial surveillance of Mars and other destinations in the solar system, such as Venus or Saturn’s moon Titan.

While Mars possesses much less gravity to overcome than Earth, its atmosphere is just 1% as dense, presenting a special challenge for aerodynamic lift. To compensate, engineers equipped Ingenuity with rotor blades that are larger (4-feet-long) and spin more rapidly than would be needed on Earth for an aircraft of its size.

The design was successfully tested in vacuum chambers built at JPL to simulate Martian conditions, but it remains to be seen whether Ingenuity will fly on the red planet.

The small, lightweight aircraft already passed an early crucial test by demonstrating it could withstand punishing cold, with nighttime temperatures dropping as low as 130 degrees below zero Fahrenheit (minus 90 degrees Celsius), using solar power alone to recharge and keep internal components properly heated.

The planned flight was delayed for a week by a technical glitch during a test spin of the aircraft’s rotors on April 9. NASA said that issue has since been resolved.

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