China Beats Tesla (NASDAQ:TSLA) to Europe
Chinese firm CATL will build a battery factory in central Germany to supply the country’s key auto industry in its transformation toward electric cars, an investment hailed Monday by Chancellor Angela Merkel as a “new step” in Sino-European cooperation.
The factory will be the only such manufacturing site in all of Europe, noted Merkel at a press conference with Chinese Prime Minister Li Keqiang following talks involving both countries’ cabinets.
“It is therefore of course a qualitative new step for a Chinese company to come here with technology that we don’t have in Europe at the moment,” she said.
One of the world’s largest battery cell producers worldwide, Ningde-based CATL is listed on the Shenzhen stock exchange and already supplies large Chinese car firms like Saic Motor and Geely.
The firm’s new factory will be based at Erfurt, in Thuringia, making the site “one of the most important European locations for battery technology,” regional economy minister Wolfgang Tiefensee told news agency DPA.
Industrial workers’ union IG Metall also hailed the deal, which it said could create around 1,000 new jobs in the high-tech sector.
Earlier Monday, luxury carmaker BMW had already announced that it had struck a 4.0 billion euro ($4.7 billion) deal to buy batteries from the Chinese giant, with 1.5 billion euros worth of sales in Germany and 2.5 billion in China.
BMW said the Chinese battery manufacturer would supply the cells for the electric Mini and for BMW’s upcoming “iNext” electric limousine, slated for production from 2021.
“CATL has the know-how needed to produce at scale… we haven’t had this know-how in Europe so far,” said BMW purchasing chief Markus Duesmann.
– Low-energy Europe? –
Politicians, industry leaders and worker representatives have frequently mooted a homegrown German option for battery production, but massive car parts supplier Bosch shied away earlier this year, calling it too risky an investment.
And calls from the European Commission last year to create an “Airbus of batteries” — referring to the success of the pan-European firm — have thus far shown little effect.
Merkel said the Chinese investment did not rule out the possibility that German companies could one day develop a competitor.
But pending the lack of homegrown companies, it is better for foreign investments to be made in Germany than elsewhere, added Merkel.
Carmakers are squeezed both by looming stricter European Union targets to reduce greenhouse gas output and years of scandal over cars built to cheat diesel emissions tests.
German firms have been hard at work lining up their supply chains to produce massive volumes of electric vehicles, hoping to solve both problems at a stroke.
While they work on motors and other components, top of the to-do list has been striking deals with battery makers and securing supplies of raw materials for the cells, especially cobalt.
BMW’s Duesmann said the firm was investing 500 million euros in supplies of the mineral, which is often mined under poor conditions including child labour in Africa.
“We buy the raw materials ourselves and then make it available to the parts supplier,” the car executive said.
In a sector dominated by Asian firms, CATL and Panasonic, allied with California-based Tesla Motors, are slugging it out for the world’s battery top spot.
As well as BMW, Mercedes-Benz maker Daimler is also weighing a deal with CATL according to German business daily Handelsblatt, while Volkswagen already has contracts with the Chinese firm as well as with South Korea’s Samsung and LG.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 347.38.
The projected lower bound is: 290.96.
The projected closing price is: 319.17.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 23.2935. This is not an overbought or oversold reading. The last signal was a buy 0 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 46.61. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 13 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -98. This is not a topping or bottoming area. The last signal was a buy 0 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 9 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 9.610 at 318.510. Volume was 13% below average (neutral) and Bollinger Bands were 10% wider than normal.
Open High Low Close Volume___
311.990 318.520 308.000 318.510 7,596,753
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 329.49 311.90 321.01
Volatility: 55 57 52
Volume: 10,258,890 8,851,534 7,204,104
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
TESLA INC is currently 0.8% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 22 periods.