California’s AB5 bill implements a more difficult “test” to justify classifying workers as contractors. But keep in mind that drivers would need to argue in court / arbitration that Lyft / Uber does not pass the “test”. This could take a long time to play out. In the meantime, discussions are ongoing to maintain contractor status for drivers but provide higher minimum earnings levels and some benefits. We see this as the most likely outcome.
Search Coverage List, Models & Reports
Search Results1-10 out of 137
We wanted to flag a few highlights in today's (09/06/19) Wolfe Research Auto Daily....
We wanted to flag a few highlights in today's (09/05/19) Wolfe Research Auto Daily....
We wanted to flag a few highlights in today's (09/04/19) Wolfe Research Auto Daily....
China demand remains sluggish, but major auto stimulus still not on the horizon
Industry demand in China remains weak, with August retail sales tracking down >10% y/y and the China SAAR stuck in the 20.0-21.0 MM range. And while the govt’s recent proposal to loosen purchase restrictions in major cities is encouraging, meaningful auto stimulus remains unlikely.
Will the decline in interest rates support demand?
Based on the decline in benchmark rates we expect Auto loan rates to decline by 75 bps, driving lower monthly payments. If US economic growth merely slows, and does not enter recession, this could serve as a significant support for demand.
Tesla China purchase tax exemption more evidence of strong relationship with gov’t
For the first time, imported Tesla’s can take advantage of one of China’s policies to spur EV adoption, helping to partially offset the import duty hike scheduled for Dec 15.
We wanted to flag a few highlights in today's (08/22/19/) Wolfe Research Auto Daily....
While investors were clearly bracing for a rough Q2, it was still strikingly bad. 13 of 15 U.S. suppliers reduced full-year guidance. We gathered cautionary commentary on pricing, R&D reimbursements, low incremental/high decremental margins, and diminished ability to extract annual cost savings from Tier 2 suppliers. The average supplier saw earnings decline by 8.9% YOY in Q2. Since April 1, the average supplier shares are down 15% and 2019 / 2020 estimates have come down by 8% / 9%. And this isn’t yet recessionary. The US SAAR is still around 17 mln and Western European demand is still near peak levels.
Wolfe Research's Auto & Auto Retail Analyst, Chris Bottiglieri, hosted a webcast to discuss latest thoughts on Carvana, KAR, IAA, and AAP.
We wanted to flag a few highlights in today's (08/15/19) Wolfe Research Auto Daily....
NIO reports weak July sales; August better but not enough
Weak volumes are blamed on a previously-announced recall that consumed most of NIO’s supply of batteries in July. Bottom-line is the newly-launched ES6 and NIO Pilot are getting good reviews but it’s unclear if that is translating to order flow. We’re assuming a 5k per month run-rate starting in September (vs 800 in July and 2,000-2,500 Aug guidance) but risks are clearly to the downside.
Digging Beneath the Surface Raises Concerns About Europe, and a Positive for China
We’ve taken a closer look at the Auto Sales data coming out of several International Markets, digging beneath the headline numbers. Our conclusions: 1) The data looks very weak for Europe (German production continues to decline; and European OEMs appear to be having difficulty making any progress towards complying with CO2 mandates); 2) However, surging luxury demand in China could produce an unexpected positive for certain OEMs & Suppliers.
- 1 of 14
- next →