Category: US Motoring Press

Uber shares slide after reporting disappointing quarterly results

VIDEO3:2503:25Uber reported a $5.2 billion loss—What five experts are watching nowTrading NationUber shares dropped as much as 12% in extended trading Thursday after the company delivered disappointing second-quarter results.
Shares remained down roughly 8% in premarket trading Friday.
It was a miss on both top and bottom lines for Uber. Net losses for the ride-hailing company soared to $5.24 billion, largely owing to stock based compensation.
Here's how the numbers stacked up otherwise versus analysts' expectations (according to consensus estimates compiled by Refinitiv):
Loss per share: $4.72, versus $3.12 expectedRevenue: $3.17 billion versus $3.36 billion expected “We think that 2019 will be our peak investment year and we think that 2020, 2021, you'll see losses come down. I think our break even is something that we can push the company to break even if we really wanted to frankly,” said CEO Dara Khosrowshahi in a conversation with CNBC's Deirdre Bosa. “No doubt in my mind that the business will eventually be a break even and profitable business.”
VIDEO21:1121:11Watch Uber CEO Dara Khosrowshahi's full interview following Q2 earnings missSquawk on the StreetExcluding stock-based compensation, Uber's losses were around $1.3 billion, roughly 30% worse than in the preceding quarter.
While Uber helped establish ride-hailing in markets all over the world, over the past decade, the company has been investing in and operating myriad “on-demand” businesses including food delivery, bike-sharing and a freight service that matches shippers with carriers who can haul their goods.
Uber's core ride-hailing business generated $12.19 billion in gross bookings during the second-quarter of 2019, beating analysts' estimate of $12.11 billion in gross bookings. But the newer, Uber Eats business generated $3.39 billion in gross bookings falling short of analysts' expectations of $3.51 billion in gross bookings.
Khosrowshahi said in the call with CNBC, “The Eats business is still a business that carries very significant growth going forward and that continues to attract a lot of capital. Not just in the US, but all over the world. With the eats business there's a lot of capital chasing a lot of growth and we're the leader on a global basis. So, I don't expect that business to be profitable in the next year or year after frankly.”
In recent weeks, Uber cut approximately 400 jobs from its marketing team.
The company boasted over 30 million riders in 2018. In July, the Uber platform reached over 100 million “Monthly Active Platform Consumers” for the first time, the company reported on Thursday.
Still, Uber has been working to keep riders, and drivers, loyal to its app with membership offerings and loyalty rewards, while battling formidable competitors including Lyft in North America, and Grab and Didi in Asia.
Uber previously recorded a $1 billion loss on $3.1 billion in revenue in its first report as a public company in May 2019.
Now, Uber must convince investors that, under CEO Dara Khosrowshahi's leadership, it is on a path to profitability with a realistic long-term plan for generating returns for investors. That's no easy feat since Uber, like other ride-hailing providers, has long subsidized its rides.
Uber priced its IPO shares at $45 in its market debut, and shares closed on Wednesday ahead of the second-quarter update at $39.15, trending higher after hours after its chief U.S. competitor, Lyft, reported lower than expected losses, higher than expected revenue, and gave a rosier outlook for the rest of 2019.
–Paayal Zaveri contributed to this report.
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This is breaking news. Please check back for updates.
VIDEO6:2906:29Uber is losing money — will it ever be profitable?Tech

Car-crazy Californians slow their purchases of new vehicles

Getty ImagesNew car sales in the largest U.S. auto market have slowed this year as more and more drivers opt for less-expensive used cars.
New vehicles sales in California dropped 5.6% in the first half of 2019, setting the state on track for full-year sales to fall short of 2 million vehicles for the first time since 2014, according to the California New Car Dealers Association.
“It is not a huge surprise that after years of increased sales, we are seeing the market level off, reflecting the broader economic and political climates,” Ted Nicholas, the association's chairman, said in a release Wednesday announcing sales for the first half of the year.
The drop in new vehicle sales in California is greater than the 1.5% decline seen in the U.S. from January through June. One reason could be that cars make up a bigger percentage of new model sales in California than around the rest the country. Sales of new cars, which include sedans and compacts, dropped by 10.8% during the first half of the year across the state while sales of new pickups, SUV's, crossover utility vehicles and other light trucks fell by 1.1%.
Californians, who have long been known for their love of cars and trucks, are still buying vehicles. But they are increasingly turning to the used market. Sales of preowned models in California climbed more than 5% in the first half of the year.
Sales of new electric and hybrid vehicles continue to climb in a state where green transportation is in demand. In fact, the trade group says EVs and hybrids made up 13% of all new models sold. In addition, the California car group now estimates sales of fully electric vehicles will top 100,000 this year.
Much of the rise in EV sales in the Golden State is due largely to the popularity of the Tesla Model 3, which is built in Fremont, just outside of San Francisco. In the first half of this year, Californians bought 33,005 Model 3s. That means 1 in 4 Model 3s sold worldwide in the first half of this year was purchased in California.

Bugatti reveals its most powerful supercar yet: The $10 million Centodieci

VIDEO1:2001:20Bugatti unveils the Centodieci, its most powerful supercarThe Bottom LineBugatti debuted its most powerful supercar at Pebble Beach on Friday: a $10 million,1,600 horsepower throwback to the '90s that sprints from 0 to 62 mph in 2.4 seconds.
The French carmaker is making a splash at Monterey's annual auto week. The Centodieci is the company's latest coachbuilt super car commemorating Bugatti's 110th anniversary.
Unlike Bugatti's $18.7 million La Voiture Noire, which was built for grand touring, the Centodieci was built for speed. The company is making just 10 of the Centodiecis, which feature Bugatti's 8.0-liter W16 engine. The company added an extra air inlet to help cool the engine.
Bugatti CentodieciSource: BugattiIt pays tribute to the EB110, the company's famous supercar of the 1990s. The La Voiture Noire, which literally translates to the black car, and a white Centodieci are both on display at “The Quail: A Motorsports Gathering” car show in Monterey, California, on Friday.
“With the Centodieci we pay homage to the EB110 super sports car which was built in the 1990s and is very much a part of our tradition-steeped history,” Bugatti President Stephan Winkelmann said in a press release. The EB110 is the only Bugatti produced under former Italian owner Romano Artioli at a factory in Campogalliano, Italy, and not at the company's famous chateau in Molsheim, France.
The Centodieci races from zero to 62 mph in 2.4 seconds, to 124 mph in 6.1 seconds and to 186 mph in 13.1 seconds. Like its cousin the Chiron, Bugatti electronically limited the top speed of the car to 236 mph.
Bugatti CentodieciSource: BugattiIt's about 44 pounds lighter than the Chiron. Bugatti did that with a lot of carbon fiber. The car's windshield wipers and stabilizers both use the material, creating a power-to-weight ratio of just 2.5 pounds per horsepower. With more than 200 pounds of downforce, Bugatti said it corners like the Bugatti Divo — a car built for cornering.
The Centodieci's design echoes the EB110's with familiar styling cues like the five circular air intakes toward the back of the car. Bugatti also designed all-new LED headlights to further evoke the Italian wedge shape of the previous car.
“The challenge was not to allow oneself to be captivated too much by the design of the historic vehicle and work solely in retrospect, but instead to create a modern interpretation of the shape and technology of that time,” said Achim Anscheidt, head designer at Bugatti.
Bugatti CentodieciSource: BugattiThe car's white color is also no coincidence.
“With the communication paint finish in white, we're demonstrating a powerful contrast with the La Voiture Noire – the black car just presented in March: two completely opposing yet related forces, like yin and yang,” said Winkelmann.
Bugatti made only one La Voiture Noire, which already has a buyer even though the car won't be ready for at least 2½ years. It plans to build 10 Centodiecis, which will cost roughly $10 million after taxes.
Bugatti's output is generally very limited, with the company producing just 70 cars a year. It only plans to make 500 of its Chiron supercar, and more than 400 of those were already spoken for as of April, according to the company.
Bugatti CentodieciSource: Bugatti

Luxury automakers from Bugatti to Pagani to debut new cars at Pebble Beach

The Hennessey Venom F5 concept vehicle is displayed during the 2018 Pebble Beach Concours d'Elegance in Pebble Beach, California, U.S., on Sunday, Aug. 26, 2018.David Paul Morris | Bloomberg | Getty ImagesThousands of classic car fans are rolling onto California's Monterey Peninsula for what has become one of the year's most eagerly awaited automotive events.
Centered around Sunday's Pebble Beach Concours d'Elegance, it's a week-long series of car shows, auctions, parties and other events featuring some of the world's rarest and most expensive collector cars.
But what has become known as Pebble Beach car week has also become a major event for new car fans, as well. More than a dozen different luxury brands, including Acura, BMW, Bugatti, Mercedes-Benz and Pininfarina, will be on hand to show off their latest concept and production models, many of them making their world debuts.
Here's an A-to-Z look at some of the more significant introductions that already have been confirmed for Pebble Beach Car Week.
AcuraAcura Type S ConceptSource: AcuraAcura, the luxury arm of Honda, will offer the public debut of the Type S Concept at the Quail, a Motorsports Gathering, on Friday. The Type S badge has been used on a number of limited-run Acuras over the past two decades but will soon become a regular part of the line-up as a challenge to such performance sub-brands as BMW M and Mercedes-AMG. The Type S Concept is based on the next-generation Acura TLX sedan that will come to market next year.
BMWA Vision M Next concept vehicle is revealed during an event of German car producer BMW in Munich, southern Germany, on June 25, 2019.Chirstof Stache | AFP | Getty ImagesBMW is a frequent participant in the Pebble Beach Car Week events and will have a number of different models to show off this year. That includes the North American debut of the Garmisch Concept that won wild acclaim during a debut at the concourse in Villa d'Este, Italy earlier this year.
Also on hand: the Vision M Next Concept which blends a variety of different technologies that could reshape BMW's future product line-up, including battery power and autonomous driving capabilities. The automaker is keeping some secrets, however, hinting that a production version of an older concept – possibly a high-performance 8-Series Gran Coupe – will also debut in Pebble Beach.
BugattiSource: BugattiBugatti will bring the most expensive new car ever sold, the $18.7 million La Voiture Noire, to Pebble Beach. But the ultra-premium arm of the Volkswagen Group has been building suspense by teasing plans to “unveil the next great project for La Marque” at the Friday gathering at the Quail Lodge.
What's in store? Speculation has been rampant, covering everything from a new one-off of Bugatti's only current nameplate, the Chiron, to something entirely new. During an interview with Automobile magazine this month, the brand's CEO Stephan Winkelmann confirmed Bugatti has been working on an ultra-exotic utility vehicle that could top 200 mph and cost as much as $1 million.
De TomasoThe DeTomaso P72 seen at Goodwood Festival of Speed 2019 on July 4th in Chichester, England. The annual automotive event is hosted by Lord March at his Goodwood Estate.Martyn Lucy | Getty Images Sport | Getty ImagesDe Tomaso is a name that delights serious classic car collectors but has been all but forgotten by most luxury buyers. The revived brand is bringing its new P72 supercar to the Monterey Peninsula — along with the only existing version of the old P70 race car developed by namesake Alejandro de Tomaso and the late Carroll Shelby in 1965.
InfinitiA Nissan Motor Co. Infiniti brand QX80 Monograph concept sports utility vehicle (SUV) sits on display during the 2017 New York International Auto Show (NYIAS) in New York, U.S.Andrew Harrer | Bloomberg | Getty ImagesInfiniti comes to Pebble Beach celebrating its 30th anniversary with an array of Edition 30 models. These are specially trimmed-out versions of its most popular product lines, the Q50, Q60, QX50, QX60 and QX80. It also will bring several of its earliest models to the second-annual Japanese Automotive Invitational, one of the many ancillary events that take place during the extended classic car weekend.
KarmaKarma Revero on display at the In goop Health Summit at 3Labs on June 9, 2018 in Culver City, California.Matt Winkelmeyer | Getty ImagesKarma, currently sells the Revero, an updated version of the plug-in hybrid from the old Fisker Automotive it purchased out of bankruptcy.
The now Chinese-owned battery-car brand has promised to expand its single-car line-up over the next few years and will give a hint of what's coming at the Pebble Beach Concours in the form of both the GT and the SC1 concepts. Designed by Italy's Pininfarina, the latter, all-electric model “is a signpost to Karma's future,” according to Karma CEO Lance Zhou.
LotusThe Lotus Evija electric hypercar, manufactured by Group Lotus Plc, a unit of Zhejiang Geely Holding Group Co Ltd., sits on display following its unveiling at the Royal Horticultural Halls in London, U.K., on Tuesday, July 16, 2019.Bloomberg | Bloomberg | Getty ImagesLotus was all but written off for dead a few years ago when its grand expansion plans collapsed. Sold to Geely, the Chinese company that also owns Volvo, it is making a grand entrance at Pebble Beach with the first of what it promises will be an assortment of new sports cars.
The Lotus Evija is an electric hypercar making 1,972 horsepower. That should be good for around 200 mph or, if you prefer, 250 miles per charge. Evija is expected to cost about $2 million.
McLarenThe McLaren GT seen at Goodwood Festival of Speed 2019 on July 4th in Chichester, England. The annual automotive event is hosted by Lord March at his Goodwood Estate. (Photo by Martyn Lucy/Getty Images)Martyn Lucy | Getty Images Sport | Getty ImagesMcLaren will bring to Pebble Beach both the new GT supercar set to go on sale for $210,000 late this year, as well as the McLaren GT by MSO, a heavily customized version of the 612-horsepower grand tourer.
Like several other exotics, the British marque is betting its affluent buyers are willing to reach even deeper into their pockets for bespoke one-offs that will pair unique design features — including custom colors — with performance.
PininfarinaFerrari's Pininfarina BattistaCompany handoutPininfarina is a name that will show up seemingly everywhere during Pebble Beach Car Week. The legendary Italian design house styled a number of classics at shows like the Concours d'Elegance, as well as new models like the Karma SC1 concept.
It's also bringing its own battery hypercar, the Battista, which made its debut at the Geneva Motor Show last March. This updated version now can deliver as much as 300 miles per charge, as well as a top speed of 217 mph and a 0-60 sprint of less than 2 seconds. The price tag? About $2.3 million.
PaganiPagani, the Italian-Argentine supercar company will use Pebble Beach as the stage to debut its own, all-new hypercar, the Huayra Roadster BC. Dubbed a “tribute to scientific research, beauty, and uniqueness,” by the automaker, it is powered by a 750-horsepower Mercedes-AMG V-12. For those who can't wait for the official intro, Pagani loaded a digital version of the Roadster into the CSR Racing 2 videogame. That will be a lot less expensive way to drive the hypercar, of which only 40 will be made – each carrying a $3.4 million price tag.
This is only a partial list of all the brands that will be on hand during the various events over the long week, in one form or another. Indeed, it will be the rare luxury marque that won't host a reception or place one of its concept vehicles on the lawn at the Lodge at Pebble Beach.
Collectors, meanwhile, will have an assortment of auctions to attend where some rare and unusual models will go across the block. Last year generated sales of nearly $120 million, according to McKeel Hagerty, CEO of Hagerty Insurance, which specializes in classic cars.
VIDEO2:0002:00The five hottest rides at this year's Pebble Beach Concours d'EleganceThe Bottom LineDisclosure: Paul Eisenstein is a freelancer for CNBC. His travel and accommodations to Pebble Beach were paid for by Bentley.