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BMW dismisses Tesla tie-up talk

Despite recent rumors to the contrary, don't expect to see much collaboration between Tesla and BMW in the near future. Based on some rather prickly statements from the German automaker, Elon Musk might have even burnt some bridges in Bavaria with his latest proclamations. The spat stems from Musk's recent interview with German magazine Der Spiegel where he discusses future collaboration with BMW on "battery technology or charging stations" and the possibility of a battery factory in Germany. But apparently, any future tie-ups are news to the Bavarian automaker. In an interview with the German business publication Wirtschafts Woche, an unnamed spokesperson for the company claims Musk said it all for PR value and swats down most of the statements. BMW has no intention of acquiring Tesla shares, and they aren't working together on any tech. There's not much chance for future cooperation on a battery factory in Germany, either. BMW believes that the cells can just as easily be purchased from suppliers, like other auto parts. The one slight concession is that the spokesperson said that the German automaker would be willing to supply Tesla with carbon fiber. That's not an exclusive offer, though, and the company is open to negotiate such a deal with any interested automaker.

Battery-pack production for plug-ins, hybrids, triples in three years

Panasonic's standing in the plug-in and hybrid battery production industry has zoomed ahead like a Tesla Model S taking off from a standstill. That's appropriate because the Japanese company's relationship with the California-based automaker has been the primary reason for its growth, which looks like it will continue to be rapid. According to new numbers from Lux Research, battery manufacturers are producing 1.4 gigawatt-hours worth of batteries for plug-in and pure battery-electric vehicles per quarter, up from under 200 MWh in early 2011. Lithium-ion batteries account for 68 percent of the current total, while nickel-metal hydride batteries (like the one used in the non-plug-in Toyota Prius) account for 28 percent. The rest are made up of small numbers of things like solid-state batteries. Panasonic has been the primary beneficiary of electric vehicle growth (click on chart to enlarge). The company has a 39percent market share for plug-in and hybrid batteries, while NEC has 27 percent and LG Chem has 9 percent. As for demand, Toyota, Tesla and Renault-Nissan account for about three-quarters of all batteries used for plug-in and hybrid vehicles. Panasonic expanded its battery-production deal with Tesla last October. There are more details in the Lux Research press release below. Panasonic Has 39% Share of Plug-In Vehicle Batteries, Thanks to Its Deal With Tesla Batteries for Plug-Ins and Hybrids Were a $660 Million Market in Q1 2014, Led by U.S. Demand, According to Lux Research's New Automotive Battery Tracker BOSTON, MA--(Marketwired - May 6, 2014) - Batteries for hybrids and plug-in vehicles are growing fast, more than tripling over the past three years to reach 1.4 GWh per quarter, according to the Automotive Battery Tracker from Lux Research. Panasonic has emerged as the leader thanks to its partnership with Tesla, capturing 39% of the plug-in vehicle battery market, overtaking NEC (27% market share) and LG Chem (9%) in 2013. "Even at relatively low volumes -- less than 1% of all cars sold -- plug-in vehicles are driving remarkable energy storage revenues for a few developers, like Panasonic and NEC, that struck the right automotive partnerships," said Cosmin Laslau, Lux Research Analyst and the lead author of the new Lux Research Automotive Battery Tracker.

Ferrari, not Tesla, might be the stock to buy

Last week Tesla's earnings – or lack thereof – were one of the big stories in the auto industry. As usual, the electric carmaker didn't make money, but the news sent the market, analysts, and Tesla's devoted fans into a lather. But another company, this plucky upstart called Ferrari, also attracted a positive reaction from the market and actually had the financials to back it up. Ferrari posted net revenues of $898 million (at today's exchange rates) EBITDA of $265 million (a slightly complicated way to snapshot financial performance) and an adjusted net profit of $136 million in the first quarter. The company delivered 2,003 cars, and sales of its V12 models increased 50 percent. It quietly made progress nearly a year and a half into its life as an independent automaker. For 2017, Ferrari expects to deliver 8,400 cars and rake in net revenue of $3.6 billion. No one thought Ferrari would flounder when Fiat Chrysler Automobiles spun it off in fall 2015. With a rich history, expensive products, and its own loyal fan base that's arguably even larger than Tesla's, the company seemed poised for success, though skeptics wondered how it might fare after longtime chief Luca di Montezemolo stepped down before the spinoff. Plus, the company remains within the FCA sphere, as its key stakeholders are largely connected to its former parent in some way, and Chairman Sergio Marchionne also steers FCA. Last week's results showed Ferrari is gaining footing in the evolving automotive world, and analysts responded. UBS analyst Michael Binetti reiterated Ferrari stock (RACE on the NYSE) as buy status and raised his target price from $85 to $92. Morgan Stanley's Adam Jonas was even more bullish, raising projections to $100 in the next 12 months. Shares were trading around $82 Monday morning. Both analysts viewed Ferrari as something different than a conventional automaker stock, with Binetti comparing it to luxury house Hermes, which produces high margins even for a specialty goods maker. Jonas suggested Ferrari's singular reputation and history (16 Formula One Constructors titles, the most ever) could insulate its products when autonomous and electric cars become even more commonplace. "In our view, a Ferrari is not transportation," he wrote in a note to clients. "Ownership is viewed as an exclusive club, and membership requires more than just money.