Morgan Stanley upgrades an under-the-radar China robotics play, sees big upside
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
33 minutes ago
- Yahoo
Starbucks Shortlists Dozen Firms Including Tencent for China Investment
(Bloomberg) -- Starbucks Corp. has shortlisted about a dozen parties including private equity firms and technology companies into the second round of a process to invest in its China business, people familiar with the situation said. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival We Should All Be Biking Along the Beach Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Boyu Capital, Carlyle Group Inc., EQT AB, FountainVest Partners, KKR & Co., Hillhouse Investment and Primavera Capital are among the private equity firms invited to participate, along with tech giants Inc. and Tencent Holdings Ltd., the people said, asking not to be identified discussing private information. The shortlisted firms will be given access to the coffee chain's China financials so they can evaluate and prepare bids in the coming months, the people said. Fresh backing and more local expertise could help Starbucks expand its store count and further develop its supply chain in China, as well as enhance mobile platforms and brand strategies for Chinese consumers, according to the people. The search for a partner in China is 'not about capital,' Starbucks Chief Executive Officer Brian Niccol said on a July 29 earnings call with analysts. 'What this is about is how do we ensure that the Starbucks brand is in a much better place in the future.' Niccol has previously said the China business could grow to 20,000 stores from roughly 7,800. China is the Seattle-based chain's second-biggest market, but Starbucks has fallen behind local rivals such as Luckin Coffee Inc., which have boomed with much cheaper alternatives and frequent product launches. Starbucks has started to follow suit by incorporating lower-priced and tailored offerings such as fruit teas and sugar-free alternatives to its China menus. And there are signs of some improvement, with same-store sales rising in the latest quarter for the first time since the end of 2023, the company said this week. The process to introduce new backers in China attracted more than 20 potential investors in total, Niccol said on the call with analysts. Starbucks wants to retain a 'meaningful' stake in the business, he said. Bloomberg News first reported in May that Starbucks was reviewing its China operations. By July, the company had received proposals from prospective investors with an eye on taking a controlling stake in the business. The company has said it isn't considering a full sale. Deliberations are ongoing and may not lead to a transaction. Other industry and financial investors could also join at later stage when talks are more advanced, the people said. Starbucks declined to comment. Representatives for EQT, FountainVest, Hillhouse, KKR and Primavera also declined to comment. Boyu, Carlyle, and Tencent didn't respond to requests for comment. --With assistance from Echo Wong, Zheping Huang, Bei Hu and Claire Che. Russia Builds a New Web Around Kremlin's Handpicked Super App Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts How Podcast-Obsessed Tech Investors Made a New Media Industry ©2025 Bloomberg L.P.
Business Insider
an hour ago
- Business Insider
XPeng, Li Auto, NIO, or BYD: Which Chinese EV Maker Had the Strongest July?
Chinese electric vehicle (EV) makers posted a mixed bag of delivery results for July, with XPeng (XPEV) reporting record sales, while other major players such as BYD (BYDDF), Li Auto (LI), and Nio (NIO) saw month-over-month declines. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Following this news, share prices for the EV makers were largely lower on Friday morning. Despite reporting the strongest month, XPEV stock dipped 1.5%. At the same time, Nio, Li Auto, and BYD stocks gave up 0.3%, 3.3%, and 1.6%, respectively. XPeng's Record Deliveries Driven by New Models XPeng delivered 36,717 vehicles in July, marking a 229% year-over-year jump and a 6.1% increase from June. The success of its affordable Mona 03 sedan has been a major growth driver. Also, the company's expansion into Europe and rollout of new models, such as the G6, G9, and P7+, helped fuel demand. Further, XPEV's advanced driver-assistance tech (XNGP) also saw strong adoption, with a monthly active user penetration rate of 86% in urban driving last month. Li Auto Slips Sharply Li Auto delivered 30,731 vehicles in July, down 15.3% from June and 39.7% year-over-year. The company's July slump extended a months-long decline, raising concerns about its product lineup and market position. While Li Auto launched the new Li i8 SUV at the end of July, deliveries will not start until late August, so it did not help boost July sales. NIO Reports Mixed Results Nio reported 21,017 deliveries, a 15.7% drop from June, but up 2.5% year-over-year. It marked NIO's lowest monthly volume since March. Importantly, the company recently launched the new ONVO L90 SUV, which sold out within hours. This boosted investor optimism and sent NIO stock up nearly 10%. Wall Street analysts say the ONVO brand is a smart way to meet middle-market demand and expand beyond luxury EVs. BYD's July Deliveries Fall BYD delivered 344,296 vehicles in July 2025, marking just a 0.6% year-over-year increase and a 10.1% decline from June. Passenger BEV sales were down 14% sequentially but up 36.8% year-over-year to 177,887 units. Meanwhile, plug-in hybrid (PHEV) sales fell by 4.45% from June and 22.6% year-over-year to 163,143 units. This raised concerns about its ability to meet its 5.5 million annual delivery target. The slowdown is partly due to weaker seasonal demand in China and growing regulatory scrutiny over steep discounts that have sparked a price war. Which Is the Best EV Stock? Using TipRanks' Stock Comparison Tool, let us take a look at Wall Street's ratings for the four EV stocks mentioned above. Analysts are optimistic with a 'Strong Buy' consensus rating on BYDDF stock, whereas Li Auto and XPEV stocks have a 'Moderate Buy' rating. NIO stock has a Hold. The average price target for these stocks indicates the highest upside potential of 55.49% for BYD.
Business Insider
3 hours ago
- Business Insider
Nvidia Stock (NVDA) Trembles as Chinese Ramp Up Pressure on Chip Security Fears
Nvidia (NVDA) stock dropped 2% today as a war of words over security risks erupted between it and Chinese authorities. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Security Proofs The semiconductor giant was warned that it must produce 'convincing security proofs' to eliminate Chinese users' worries over security risks in its chips and 'regain market trust.' That is according to a commentary published in China's state-run media People's Daily. Foreign companies must comply with Chinese laws and take security to be a basic prerequisite; the commentary said. It comes 24 hours after The Cyberspace Administration of China (CAC) summoned Nvidia to explain 'backdoor security risks' of its H20 chips sold in China and submit relevant documents. The move is reportedly aimed at 'safeguarding the network and data security of Chinese users' after comments from American AI experts suggested that Nvidia's chips have location tracking and can remotely shut down the technology. It is not clear who these experts are and if China has undertaken its own tests into the chips. Nvidia came out fighting telling Reuters that: 'Cybersecurity is critically important to us. NVIDIA does not have 'backdoors' in our chips that would give anyone a remote way to access or control them.' It is understood that company representatives have already been interviewed by the CAC. It comes at an important time for Nvidia and its relationship with China, which is a key part of its overall revenues. China Crisis Earlier this month, Nvidia said that it could resume its H20 AI chip sales in China, months after the U.S. Commerce Department put export restrictions on the chips amid ramped-up U.S.-China tariff trade tensions. Nvidia estimated that the ban had cost it a huge $15 billion in lost sales. The chip was specially designed for Chinese customers to meet U.S. export rules and has been a top seller in the country since 2024. Nvidia has also introduced a new AI chip for China. The model is designed for use in factory automation and logistics and is built on the company's advanced Blackwell architecture. If security fears are confirmed, then this could have a detrimental impact on the Nvidia share price which has performed well this year. In 2023, the CAC said products from semiconductor group Micron Technology (MU), failed a national security review, resulting in a sales ban of its products to key infrastructure operators in China. Is NVDA a Good Stock to Buy Now? On TipRanks, NVDA has a Strong Buy consensus based on 34 Buy, 3 Hold and 1 Sell ratings. Its highest price target is $250. NVDA stock's consensus price target is $185.79, implying a 4.45% upside.
