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The Tesla of China is ‘an easy stock to steer clear of,’ investor says (NIO) – Finance – Pulselive.co.ke

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  • Nio, widely seen as the Tesla of China, is tumbling after its initial-public-offering highs.
  • Nio began to deliver its first volume-manufactured vehicle — the ES8 — to customers on June 28, and started to generate revenue this year.
  • “An unproven management team along zero experience in manufacturing cars makes this an easy stock to steer clear of,” said Mark Tepper, president of Strategic Wealth Partners.
  • Watch Nio trade in real time here.

Nio, widely seen as the Tesla of China, is tumbling this week, which echoes an investor’s bearish view.

“Nio’s not a stock we have any interest in,” said Mark Tepper, president and CEO of Strategic Wealth Partners, managing over $1 billion in assets. “An unproven management team along zero experience in manufacturing cars makes this an easy stock to steer clear of.”

Nio has gained 21% since the company’s initial public offering on September 12. Shares priced at $6.26 apiece, the low end of its range, causing the electric-car maker to fall short of raising the $1.8 billion it had sought. But one day after its lackluster debut, the stock soared 75%, sending its market capitalization above $12 billion — despite Bernstein analyst Robin Zhu assigning an “underperform” rating and saying he thinks a capital raise is coming in the next 12 to 18 months.

Now with the shares sliding from their post-IPO high, Nio’s market cap has dropped below $8 billion. But the company is still overvalued based on its sales, according to Tepper. “With $7 million of sales and an $8 billion market cap, we can’t justify owning it,” he said.

The Tencent-backed electric-car startup delivered its first volume-manufactured vehicle — the ES8 — to users on June 28, and started to generate revenue this year, according to its IPO filing. Nio said it generated revenue of $6.95 million in the first half of 2018, and that it had 6,201 unfilled ES8 reservations by the end of August, for which non-refundable deposits had been made but customers could still cancel their orders.

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And for Nio, scaling production may take some time. Tesla has suffered through production problems nearly every time it rolled out a new model.

In July 2017, CEO Elon Musk warned Tesla would face manufacturing challenges for “at least six months of production hell” as it ramped up Model 3 production to 500,000 per year. The electric-car maker endured even larger production hell with its previous three vehicles, the original Roadster, the Model S sedan, and the Model X SUV, Musk told Business Insider.

“Look at Tesla’s recent struggles,” Tepper said. “That makes it even less attractive for us.”

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(Business Insider)



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200 homeless families seek Governments’ help to recover their land – KBC

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Hundreds of homeless families in Kinango Sub-county, Kwale County are appealing to the Government to help them repossess their land from a private developer.

The 200 families from Mwamdudu in Bonje area are accusing a private developer of colluding with top Government officials to grab their ancestral land.

Their houses were demolished with the residents saying they couldn’t salvage anything as the demolition caught them unprepared.

They condemned act saying it was inhumane and a violation of their human rights and access to justice.

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Mwamdudu secondary school, a dispensary and a children orphanage were also demolished.

Ramadhan Lewa Kalume a resident in the area dismissed claims that they had entered into a consent with the company associated with the private developer.

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 “I wish to insist that we were never consulted in the sale of the land to the private developer,” he pointed out.

The local resident allege that the demolition exercise was carried out by officers from the General Service Unit [GSU] and not regular police.

Ms. Salama Kenga, a single mother said they are spending nights in the cold with their children and appealed for Government’s intervention.

Mwanahamisi Ramadhan, a 24 years old mother of three said she only managed to rescue her three children including a one day child she had given birth to on the day the demolitions were conducted.

The distraught mother says she is surviving on handouts from well-wishers to feed her young family and is sleeping outside in the cold with her newborn baby.

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PwC lauds ease of Customs tax

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PwC has commended the Kenya Revenue Authority (KRA) for lifting restrictions on warehousing of goods in Customs bonded warehouses, noting that the action will enhance the competitiveness of Kenya as a global and regional logistics hub.
PWC said the policy will also boost to businesses that utilise Customs bonded warehouses to store goods, defer payment of duties and are involved in regional trade. It however called for consistency in tax law.
“We expect that with Customs having lifted restrictions on warehousing of goods will help contribute to the State’s agenda of reviving the economy in light of the ravages of Covid-19, improve cash flow and stock management for businesses,” said Indirect Taxes Associate Director at PwC Kenya Maurice Mwaniki.
“We expect this will once again enhance the competitiveness of Kenya as a global and regional logistics hub and assist attract inward investment into Kenya.”

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Kenya Revenue Authority

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Kenya: Court Cancels Former Rugby Player Alex Olaba’s Sh300,000 Bail

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Nairobi — A Nairobi Chief Magistrate’s Court has cancelled the Sh300,000 cash bail issued on former rugby player Alex Olaba, after the prosecution said he had committed an offense of conspiracy to murder while he was still face a change of gang rape.

Trial Magistrate Zainab Abdul said the accused committed the offense while he was out on bond and proceeded to threaten the complainant in the case.

Olaba will remain in custody until the two cases are heard and determined. He wull be back in court on June 3 for purposes of taking a hearing date.

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The former Kenya Sevens and Kenya Harlequins player was arrested last month by detectives for allegedly trying to hatch a plot to kill witnesses in the case.

At the same time, the Court has also barred the media from publishing images of the complainant and directed that the matter will be heard in camera.

Olaba was previously charged with Frank wanyama with an offense of gang rape in 2019. They had been found gulty and sentenced to 15 years in jail. They however appealed against the sentence and the same was quashed by the High Court on a technicality.

The duo was later arrested in 2020 and charged afresh

When the matter came up for mention in April 22nd the suspect mulamba did not appear virtually instead he told the court that he was away in Bungoma, but according to the investigating officer he lied to the court he was in Nairobi.

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