Electric cars : News

In 2020, Europe replaced China as the biggest market of EVs. Europe registered over 1.4 million new electric cars in 2020, followed by China with 1.2 million. Overall, global electric car sales rose in 2020, despite the pandemic-related restrictions. In the U.S., consumers spent over $120 billion on electric car purchases in 2020, presenting a 50% growth from 2019.

• Apr 3, 24: Chinese smartphone maker Xiaomi said it has received more than 100,000 orders for its first car - a sporty electric vehicle called the SU7 - as it began deliveries.
• March 24: The Chinese electric-vehicle maker BYD sold more than 526,000 fully electric vehicles in the fourth quarter; overtook Tesla as the top global seller of electric vehicles on a quarterly basis.
• March 24: Fisker gets delisted from the NYSE.  Cuts its EV prices up to $24,000. Extreme's base price drops from $63,937 to $39,937; the entry-level Sport and mid-tier Ultra now start at $27,437 and $37,437.
• March 24: Rivian owners now have access to the Tesla Supercharger network and will start receiving NACS DC adapters in April.
• Jan 24: For the first time ever, the Tesla Model Y was officially the best-selling car overall in the world in 2023, with 1.23 million units sold. This is the first time an EV took the #1 spot in global sales. Model Y production started only 4 years ago.
• Dec 23:  Biden to Limit Chinese Role in U.S. EV Market (source: WSJ). An EV tax credit, part of the Inflation Reduction Act, aims to decrease reliance on Chinese suppliers by restricting the credit for EVs with battery materials from "foreign entities of concern." The Biden Administration hopes the tax credit will encourage auto-supply chain development and cut the cord from China.
• Dec 23:  Electric vehicles and hybrids grow to a record-high 18% of U.S. light-duty vehicle sales (EIA). In the US, 16% of all light-duty vehicle sales came from battery EVs (BEV). Hybrid and plug-in hybrid sales contributed to bringing that figure up to a 17.7% record high. Notably, the average transaction price for BEVs decreased by 5% in the third quarter to $50,283, making them more competitively priced compared to the overall industry average for light-duty vehicles. However, BEV sales are still primarily concentrated in the luxury vehicle market, comprising 34% of total luxury vehicle sales but less than 2% in the non-luxury segment.
• May 23: The Tesla Model Y was the world's best-selling vehicle in Q1, according to data compiled by industry analyst JATO Dynamics for Motor1. The Model Y had 267,200 sales in Q1, according to data from 53 markets and estimates for the rest of the world. The result comes as Tesla has cut Model Y prices early in 2023.
• Apr 18, 23: Germany's Volkswagen said it plans to introduce 10 more electric vehicle models by 2026 and it remained committed to China, where established foreign brands are losing ground to nimble local rivals (source) 
• Apr 14. 23: Lucid Group (LCID) announces Q1 production and delivery totals. Co says it produced 2,314 vehicles during Q1 at its manufacturing facility in Arizona and delivered 1,406 vehicles during the same period.
• March 1, 2023: Tesla investor day; the company did not announce any new vehicle specific details; plans to reduce production costs by as much as 50%; Cybertruck coming later this year; company will offer Texas residents unlimited overnight charging for $30/month starting in July.
• Feb 2023: GM CEO Mary Barra says the carmaker this year will move past its Big 3 rivals and seek to close the gap on Tesla in EVs. By 2025, GM is estimated to build 1 million electric vehicles. (source)
• Sep 2022: Sales of all-electric vehicles (also known as battery electric vehicles, or BEVs) in western Europe totaled 812,000 during the first eight months of 2022, Schmidt Automotive Research finds. Total new passenger car sales reached 6.46 million units in the same period. The firm projects all-electric or BEV sales of 1.4 million to 1.5 million units in the region for the full year, up from 1.2 million in 2021, and making up one in seven overall new car sales in 2022.
• Aug 2022: Lucid Group introduced Sapphire, Lucid's new ultra-high-performance brand, led by the new Lucid Air Sapphire - the world's first fully electric luxury super-sports sedan.
• 5 Apr 2022: Rivian Automotive (RIVN) produced 2,553 vehicles and delivered 1,227 during Q1; believes to be well-positioned to meet 25,000 annual production guidance.
• 28 Feb 2022: Lucid Motors USA (LCID) signs agreements for a full production factory in Saudi Arabia. The agreements are expected to accelerate Saudi Arabia's strategic goal to transform and diversify its economy through the development of sustainable energy and transportation. Lucid estimates that the location of Lucid's first international manufacturing plant in the Kingdom of Saudi Arabia may result in up to $3.4 billion of value to Lucid over 15 years, and the facility will enable Lucid to address growing demand for Lucid's products.
• 28 Dec 2021: Kandi Technologies (KNDI) announced that its wholly owned subsidiary Jiangxi Province Huiyi New Energy Co. Ltd entered mass production of its lithium iron phosphate battery.
• 28 Sept 2021: Ford Motor (F) to invest $11.4 bln to develop electric vehicle campuses, creating 11K new jobs.  Ford is announcing plans to bring electric vehicles at scale to American customers with two new massive, environmentally and technologically advanced campuses in Tennessee and Kentucky that will produce the next generation of electric F-Series trucks and the batteries to power future electric Ford and Lincoln vehicles.
• 22 Sept 2021: Ford Motor (F) and startup Redwood Materials said on Wednesday they are partnering to form a "closed loop" or circular supply chain for electric vehicle batteries, from raw materials to recycling.
• 16 Sept 2021:  Ford Motor (F) begins pre-production of all-electric F-150 Lightning truck. Ford confirmed construction of the Rouge Electric Vehicle Center a year ago as part of an initial $700 million investment in the historic Ford Rouge Center, creating a manufacturing home for the F-150 Lightning. Now Ford's pre-production F-150 Lightning trucks are leaving the factory for real-world testing, with the truck available to customers next spring.
• 1 Sep 2021: Xpeng (XPEV) reports August deliveries increased 172% yr/yr.  In August, XPeng delivered 7,214 Smart EVs, representing a 172% increase year-over-year. Deliveries in August consisted of 6,165 P7s, the Company's sports smart sedan, and 1,049 G3s, its smart compact SUV.  2021 year-to-date deliveries reached 45,992 vehicles, representing a 334% increase year-over-year. P7 deliveries continued to strengthen, achieving a record month in August and a 209% increase year-over-year.
• 1 Sep 2021:  NIO reports August deliveries increased 48.3% yr/yr. NIO delivered 5,880 vehicles in August 2021, representing a 48.3% year-over-year growth. While the Company's new order reached an all-time high in August driven by the increasing demand, the vehicle production, especially the manufacturing of the ES6 and EC6, was materially disrupted by supply chain constraints resulting from the COVID-19 pandemic in certain areas in China and Malaysia. The deliveries consisted of 1,738 ES8s, the Company's six-seater or seven-seater flagship premium smart electric SUV, 2,342 ES6s, the Company's five-seater high-performance premium smart electric SUV, and 1,800 EC6s, the Company's five-seater premium smart electric coupe SUV. As of August 31, 2021, cumulative deliveries of the ES8, ES6 and EC6 reached 131,408 vehicles.
• 1 Sep 2021:  Li Auto (LI) reports August deliveries increased 248% yr/yr. Co announced that the Company delivered 9,433 Li ONEs in August 2021, increasing 248.0% year over year and 9.8% month over month, breaking the Company's monthly delivery record again. Total deliveries in the first eight months of 2021 and cumulative deliveries of Li ONEs reached 48,176 and 81,773 respectively.
• 5 Aug 2021: Ford Motor (F) confirms that it expects to be well positioned to have fully electric vehicles account for 40 to 50% of its US sales by 2030.
• 15 July 2021: The EU unveiled plans to effectively ban the sale of new gasoline-powered cars by 2035.
• July 2021: Chinese companies posted record sales of electric cars. Li Auto Inc. (NASDAQ: LI) sold over 8,589 cars in July, showing a 251% year-over-year growth. Similarly, XPeng Inc. (NYSE: XPEV) also managed to deliver more than 8,000 cars in the same month.
• 17 May 2021: Canoo (GOEV) opened its reservations and is taking preorders: Starting today, the lifestyle vehicle, MPDV and pickup truck can be reserved in the United States, with a $100 deposit per vehicle at www.canoo.com/reservations. The Lifestyle Vehicle will be the first vehicle to market in 2022, and has targeted pricing starting from $34,750 -$49,950i for Delivery, Base and Premium models, before incentives, or optional equipment. Deliveries for the Pickup Truck and scaled production for MPDV are scheduled to begin as early as 2023.
• 15 May 2021: Ford (F) hosts an event to reveal the all-electric F-150 Lightning. The automaker says the F-150 Lightning will bring stunning innovation, technologies and capabilities to the popular F-Series, without sacrificing power, payload and towing capability. Production of the F-150 Lightning begins next spring at the company's Ford Rouge Electric Vehicle Center.
• 26 Jan 2021: CarParts.com (PRTS)  Announced its launch of a new dedicated shopping hub for the hybrid, plug-in hybrid, and electric vehicle community; the hub will also feature news, guides, blog content, and maintenance insight for the community.
• Dec 2020, Tesla: Despite the impact of the pandemic, Tesla produced and delivered half a million EVs in 2020. It ended the year by finally getting included in the S&P 500 Index after five profitable quarters. Deliveries of Model Y that is being produced in Shanghai's Gigafactory are expected to begin shortly. Tesla Cybertruck, Semi, and Roadster are due to be launched this year. Tesla's revenue increased 45.3 percent to $8.77 billion in Q3 2020. Its non-GAAP net income increased 155.5 percent YoY to $874 million, while its EPS rose 105.4% from last year's $0.76. 
• 19 Nov 2020: General Motors (GM) announced more aggressive plans to pivot toward electric cars as it accelerates efforts to challenge Tesla (TSLA). GM stock rose. The No. 1 U.S. automaker now plans to spend $27 billion on electric cars and autonomous vehicles through 2025, up from a prior target of $20 billion. Also by 2025, GM plans to launch 30 electric cars around the world, with two-thirds of them available in the U.S. Previously, it planned at least 20 new models by 2023.
• The Lyriq, Cadillac's first all-electric vehicle, which will arrive in Q1 2022, nine months ahead of its prior schedule.
• 19 Nov 2020: GM will develop two electric cars for Honda (HMC) using the Ultium platform and anticipates others will want to license the new proprietary battery technology. The Ultium will allow electric cars to go 400 miles on a single charge, GM has said. That would top Tesla's projected range of 322 miles for its Model 3 sedan.
• 16 Nov 2020: Lordstown Motors (RIDE) released updates on commercial, operational, and strategic developments; as a highlight among those updates, co indicated that it remains on track to begin production of its full-size, all-electric pickup truck, the Lordstown Endurance, in September 2021, with full production ramping through 2022. Co has received approx. 50,000 non-binding production reservations from commercial fleets for the Lordstown Endurance.
• 2 Nov 2020: NIO reports October deliveries increased 100% yr/yr. NIO delivered 5,055 vehicles in October 2020, a new monthly record representing a strong 100.1% year-over-year growth. The deliveries consisted of 2,695 ES6s, the Company's 5-seater high-performance premium smart electric SUV, 1,477 ES8s, the Company's 6-seater and 7-seater flagship premium smart electric SUV, and 883 EC6s, the Company's 5-seater premium electric coupe SUV. NIO delivered 31,430 vehicles in 2020 in total, representing an increase of 111.4% year-over-year. As of October 31, 2020, cumulative deliveries of the ES8, ES6 and EC6 reached 63,343 vehicles.
• 2 Nov 2020: Li Auto (LI) reports deliveries of 3,692 Li ONEs in October, representing a steady increase compared to September.
• 2 Nov 2020: Xpeng Inc (XPEV) reports October deliveries increased 229% yr/yr to 3040 vehicles. XPeng delivered a total of 3,040 Smart EVs in October 2020, consisting of 2,104 P7s, the Company's smart sports sedan, and 936 G3s, its smart compact SUV. The Company's October deliveries represented a 229% increase year-over-year. As of October 31, 2020, year-to-date deliveries of the Company's Smart EVs reached 17,117 units, representing a 64% increase year-over-year.
• 10/26/20: DiamondPeak Holdings Corp (DPHC) completes business combination with Lordstown Motors; starts trading on the Nasdaq under ticker symbol "RIDE".
• 10/10/20: Renault (OTC:RNSDF) is expected to unveil a new electric SUV concept alongside the production version of the Dacia Spring next week. The French automaker is charging in late with a strong electrification push.
• August 2020: The Lucid Air is slated to be revealed on Sept. 9, 2020. Lucid expects to achieve a driving range of about 500 miles per charge.
• August 2020: The Nikkei Asian Review reported that Panasonic (6752.Japan) will invest another $100 million in its joint-venture Tesla (TSLA) Gigafactory in Nevada. The report says plant capacity will rise about 10%, to 39 gigawatt-hours year.  A 39 gigawatt-hour a year plant can make 39,000,000 kilowatt-hours of batteries, or enough to power 400,000 to 500,000 EVs.
• August 2020: Nikola (NKLA) is designing a pickup truck called Badger to get 600 miles of range through a combination of a battery pack and a hydrogen fuel cell to power its electric motors. It’s a little like having a portable generator on board.

• When trying to compare the efficiency of battery power versus gasoline engines, the discussion around miles per gallon gets a little strange. The EPA is the entity converting values for U.S. drivers, and the agency decided that about 34 kilowatt-hours of energy is the same as a gallon of gas. So an EV that goes 100 miles using 34 kWh gets about 100 miles per gallon.
• June 2020: Volkswagen (OTCPK:VWAGY) is scheduled to start taking binding orders for its "first edition" ID.3 electric car at a list price of €40K ($45.5K). The German automaker expects to start making some European deliveries in September and sending out full-featured ID.3s by the end of the year as the company's broad goal to be a mass EV producer accelerates. EV buzz is picking up in general after Tesla (NASDAQ:TSLA) crossed the $1,000 per share threshold and Nikola (NASDAQ:NKLA) soared in its public debut. Investors also have been putting a charge into EV-related stocks like Electrameccanica Vehicles (NASDAQ:SOLO), Arcimoto (NASDAQ:FUV), Workhorse Group (NASDAQ:WKHS), Kandi Technologies (NASDAQ:KNDI) and Nio (NYSE:NIO), Aptiv (NYSE:APTV), Delphi Technologies (NYSE:DLPH) and to name a few. Of course, chipmakers like Nvidia (NASDAQ:NVDA), Maxim Integrated Products (NASDAQ:MXIM), NXP Semiconductors (NASDAQ:NXPI) and TE Connectivity (NYSE:TEL) also benefit from the increased focus on EVs.
• September 2019: Michigan-based Rivian Automotive landed an order from Amazon to purchase as many as 100,000 electric delivery vans over the next decade, with the first ones showing up on the road in 2021.
• Jan 7, 2019 Shanghai:  Tesla (TSLA) broke ground on its Chinese Gigafactory where it plans to mass-produce Model 3 and Model Y electric vehicles. "We think with the resources here we can build the Shanghai Gigafactory in record time and we’re looking forward to hopefully having some initial production of the Model 3 towards the end of this year and achieving volume production next year," Elon Musk stated at the event. The local Gigafactory is the first wholly-owned car plant in China operated by a foreign company. 
• Jan 2018: Tesla (TSLA) has started to roll out its all-electric Model 3 vehicles, while Volvo last year announced plans to phase out gas-only cars and launch new electric and hybrid vehicles in 2019.
• Dec 2017:  Panasonic is considering jointly developing batteries for electric vehicles with Toyota (NYSE:TM), a move that would cement its position as the world's leading producer of automotive batteries. Panasonic (OTCPK:PCRFF) already supplies lithium-ion assemblies for Toyota's hybrid vehicles, but has also carved out a name for itself as the major battery supplier to Tesla (TSLA).
• July 2017:  Toyota (NYSE:TM) is working on an electric car with improved driving range and a fast-charging battery. The Japanese automaker is expected to build the new EV on a new platform and use solid-state batteries that can be recharged in minutes. The new model could arrive as early as 2022.  Other automakers such as BMW are also working on developing all-solid-state batteries, eyeing mass production in the next 10 years.
• March 2015:  Mercedes is launching its first plug-in hybrid-electric midsize sedan, the C350e, in U.S. dealerships in September 2015, according to reports. Chatter on the street suggests that the German auto-making powerhouse plans to deeply undercut Tesla stickers, with a price around $42,000 before $5,250 worth of federal and state incentives. The 85 kWh Tesla starts at twice that level. And the brash young automaker will not have a competitive product until at least 2017. Mercedes can undercut the pricing because it has a lot more experience at mass production and sourcing; will make the car in low-cost Alabama instead of high-cost California; and it can subsidize the vehicle with its other vehicles, just to gain market share. The market for electrics is growing dramatically; this is just the start.

Electric cars: BYD Co. (OTCMKTS: BYDDF)

BYD Auto is the fourth largest plug-in electric vehicle (BEV and PHEV) company and fourth largest BEV company in the world, with 9.1% and 7% global market share respectively in 2021. 

The company has mainly based its sales in Mainland China, but is undertaking rapid expansion into the global market, with sales hitting over 100,000 per month in March 2022, and is expecting to sell between 1.5 million to 2 million plug-in EVs in 2022, around 3 to 4 times the volume in 2021, possibly overtaking current world leader Tesla.

• Sector(s): Consumer Cyclical
• Industry: Auto Manufacturers
• Local EV rivals: XPeng, Li Auto and Nio
• Full Time Employees: 224,280
• Founded in 1995 
• headquartered in Shenzhen, China
• https://www.byd.com

BYD, the largest seller of EVs in China and the world's largest seller of EVs and plug-in hybrids, aims to sell four million vehicles in 2023, at least doubling this year's estimated total.

Warren Buffett's Berkshire Hathaway (BRKB) is a longtime investor.

Like Nio and Xpeng, BYD began selling EVs in Norway in late 2021, starting with the Tang SUV.

Notably, BYD is profitable, in sharp contrast to Li Auto, Nio and Xpeng Motors, though capital spending surged in 2021 to power the company's ongoing expansion.

Majority of its EVs and hybrids selling for $15,000-$34,000, though some vehicles top $40,000.

It's possible that BYD's EV-only sales will top Tesla sales by year-end.   BYD's sales are far above those of Nio, Li Auto and Xpeng, let alone U.S. EV startups Lucid and Rivian Automotive.

On April 3, BYD reported that March sales of new energy vehicles hit 104,878, up 333% vs. a year earlier and 88,283 in February.

The March total includes 104,338 passenger cars, virtually all in China. Of that, BYD sold 53,664 pure electric vehicles, up 229% from a year earlier. Plug-in hybrid sales skyrocketed 615% to 50,674.

BYD's hybrid sales have skyrocketed thanks to a new DM-i system that provides substantial battery range.

For the quarter, BYD sold 286,329 EV and hybrid vehicles. That is nearly equal to Tesla's all-electric deliveries.

BYD also is adding significant EV capacity.

The auto giant has signaled that it will conservatively sell 1.5 million new energy vehicles in 2022, or up to 2 million if supply issues ease. That's up from 2021's NEV sales of 593,745.

BYD has opened or will open three new factories in early 2022, boosting annual capacity by 500,000 vehicles. Local media reported that a new factory in Jiangxi province was set to begin mass production on April 15.

BYD EVs Big And Small

BYD has a slew of models, some with electric and hybrid versions such as the flagship BYD Han sedan. The automaker is rolling out several new EV and hybrid models in the next several months, along with notable revamps or longer ranges for key models.

Yuan Plus

BYD began China sales of the Yuan Plus in February, with a subsidized price starting below $21,000. The all-electric Yuan Plus has a range of 267 miles-317 miles under a very loose China standard. The compact SUV is BYD's second Ocean line EV using its e-platform 3.0, following the smaller Dolphin. The Yuan Plus also is kicking off an expansion into new export markets, notably Australia. The compact SUV has begun presales in Australia as the Atto 3. The Yuan Plus also will enter the Singapore market. 

BYD Dolphin

BYD Seal 

Among BYD's upcoming models is the Seal sedan. The Seal will be a Model 3 rival, but significantly cheaper. Unlike many Tesla rivals, when BYD launches a new model, it quickly produces in volume.

BYD Han

BYD on April 10 officially launched more-advanced hybrid versions of its BYD Han, with an electric-only range of up to 150 miles on a China standard. The flagship BYD Han already comes in all-electric and an older hybrid form. The all-electric Han also got a substantial upgrade, including a big increase in battery range. BYD said on April 10 that it received more than 48,000 order for the updated Han EV and hybrid models, which have been available for preorder since March 19.

 

BYD Tang
 BYD has sold the Tang in Norway since late 2021, but will sell the SUV and two other electric vehicles across much of Europe starting in the fourth quarter. (Business Wire).  The Han and Tang begin at 72,000 euros.

 

BYD also is one of the biggest makers of electric buses, with plants in the U.S. and many other countries besides China. In late January, BYD unveiled a new, smaller school bus for the U.S. market with bus-to-grid charging abilities.

BYD has gotten a slew of bus orders recently in Europe, where diesel buses are being phased out. That could serve as a steppingstone for BYD's personal EV ambitions on the Continent.

BYD also makes EV delivery trucks, big rigs, garbage trucks and more. Anheuser Busch recently added an additional 20 BYD electric trucks to its California fleet. BYD signed a deal to deliver 200 Class 8 electric trucks in the U.S. for Sweden's Einride.

BYD makes buses, big rigs and other heavy vehicles for the U.S. market at its Lancaster, Calif., plant. Also at Lancaster, BYD will assemble the next generation of Nuro self-driving delivery vehicles, using many BYD parts, including Blade batteries.

 

A BYD advertisement at the Mexico City airport.

Foreign sales: 40% of revenue comes from the international market

BYD's auto plants are in China, with virtually all its sales there. BYD easily tops Tesla in local China sales, even just in EVs.

Another upside is that BYD has a lot of markets to expand into. In late 2021 it began selling the Tang SUV in Norway, giving it a foothold for a much-larger expansion across Europe.

It is shipping various EVs and hybrids to Latin America, launching its BYD Han in Brazil.

BYD officially launched Yuan Plus presales in Australia, branded as the Atto 3 for the local market, on Feb. 19. Atto 3 deliveries are set to begin in July. BYD's Dolphin and Seal will enter the Australian market, perhaps with the Atto 2 and Atto 4 names, BYD's importer says. The Dolphin could launch by year-end, with the Seal in Q2 2023.

BYD's low to moderately priced vehicles could serve rich and developing nations, while Tesla's current and planned vehicles are clearly aimed at affluent customers in rich nations. But America isn't in BYD's sights for now. Tariffs on China-made autos make exports to the U.S. cost prohibitive.

Candlesticks: Hammer

• finviz : hammer, oversold, daily > 750k 

One of the most visually compelling candlestick patterns is the hammer signal. This signal is easily recognized by the lower shadow also known as the tail that protrudes to the downside after an extended downtrend.


The hammer signal is comprised of one candle and it is easily identified by the presence of a small body with a shadow at least two times greater than the body. It is found at the bottom of a downtrend and this shows evidence that the bulls started to step in. The color of the small body is not important but a white or green candle has slightly more bullish implications than a black or red body. A positive day is then required the following day to confirm this signal.

Criteria for the hammer signal

• The lower shadow should be at least two times the length of the body.
• The real body is at the upper end of the trading range. The color of the body is not important although a white or green body should have slightly more bullish implications.
• There should be no upper shadow or a very small upper shadow.
• The following day needs to confirm the hammer signal with a strong bullish day.

Signal Enhancements

• The longer the lower shadow the higher the potential of a reversal occurring.
• A gap down from the previous day’s close sets up for a stronger reversal move as long as the day after the Hammer signal opens higher.
• Large volume on the Hammer day increases the chances that a blow-off day has occurred.

Pattern Psychology
After a downtrend has been in effect the atmosphere is very bearish. The price opens and starts to trade lower. The bears are still in control but the bulls then step in and they start to bring the price back up towards the top of the trading range. This creates a small body with a large lower shadow and represents that the bears could not maintain control. The long lower shadow now has the bears questioning whether the decline is still intact and a higher open the next day would confirm that the bulls had in fact taken control.

Big pharma’s blockbuster obesity drug battle is just getting started

• Novo Nordisk and Eli Lilly are both over a century-old, but one of their biggest successes ever is just taking hold, the blockbuster obesity drugs Ozempic, Wegovy and Mounjaro, the latter of which just saw its quarterly sales grow year over year from $16 million to nearly $1 billion.
• Pfizer, Amgen and other pharmaceutical companies are rushing to develop weight-loss drugs, though they may not be available for another year or more.
• Barclays predicts a $100 billion global market for obesity drugs by around 2030.
• And that’s without the latest headlines that these drugs are now also being investigated as treatments for dementia and addiction.

In their most recent earnings reports, Novo Nordisk and Eli Lilly proved why they are the undisputed heavyweights in the prizefight for control of the rapidly growing weight-loss medications market. Beyond staggering sales figures for Novo’s Ozempic and Wegovy and Lilly’s Mounjaro, news of a study showing Wegovy can reduce the risk of heart disease and the anticipated approval of even more powerful prescription drugs to treat obesity will only strengthen the position of these venerable pharmaceutical giants, which have been in business for 100 years and 147 years, respectively.

Even so, their competitors are not ceding the market to the current leaders. Pfizer, Amgen and other pharmaceutical companies are rushing to develop weight-loss drugs, though they may not be available for another year or more.

Ozempic and Wegovy are both GLP-1 agonists, substances originally formulated by Novo to treat type 2 diabetes. Besides controlling blood sugar, GLP-1s affect hunger signals to the brain, tricking the body into feeling full and slowing the rate at which the stomach empties. The sales growth has been so sharp that Novo Nordisk contributed the majority of recent economic growth for its home nation of Denmark.

The Food and Drug Administration approved Ozempic in 2017 for diabetes and Wegovy in 2021 to treat obesity. Over time, both reduce body weight by about 15%. Mounjaro, introduced in 2022 to treat diabetes, contains GLP-1, plus GIP, a similar appetite suppressor that can lead to weight loss. All three drugs are prescribed as injectable pens that patients self-administer weekly.

On August 8, Lilly reported that its second-quarter income jumped 85% from the same period a year ago, driven in large part by Mounjaro, which generated $979.7 million in sales for the quarter, compared to $16 million in the year-ago period and $569 million in the first quarter of this year. In December, analysts at SVB Securities projected that Mounjaro sales could reach $26.4 billion by 2030.

A month earlier, Lilly released data from a phase three trial of the drug, showing that it helped patients with obesity, though not diabetes, lose up to 26.6% of their body weight after 84 weeks of treatment. Mounjaro is currently only approved by the Food and Drug Administration to treat diabetes, but the company has filed for FDA approval of Mounjaro specifically to treat obesity, which could come later this year or in early 2024.

Novo traded earnings jabs with its opponent on August 10, reporting that in the first six months of this year, sales of Wegovy soared 344% in the U.S. alone to nearly $1.7 billion, while sales of Ozempic jumped 50% to more than $3.7 billion. According to financial analyst firm FactSet, sales of Wegovy and Novo’s other weight-loss injectable, Saxenda, could reach $6.1 billion before the year is out and $15 billion annually by 2030. (Saxenda, on the market since 2015, reduces weight by 6%-8%.)

Potentially bigger news came a couple of days earlier, when Novo released headline results of SELECT, a multi-year clinical trial of Wegovy, showing that it reduced the risk of major cardiovascular events such as heart attacks or strokes by 20%, compared with a placebo. During the earnings call with analysts, Novo CEO Lars Fruergaard Jorgensen said that the SELECT trial “underlines the importance of recognizing obesity as a serious chronic disease.”

The company expects to file for regulatory approvals of a label indication expansion for Wegovy in the U.S. and the European Union this year, adding the drug’s cardiovascular benefits.

Attitudes about obesity being transformed

Overall, per the CDC, obesity in the U.S. affects 100 million (41.9%) adults and 14.7 million (19.7%) children and accounts for approximately $147 billion in annual health care costs. Historically, obesity has been considered a behavioral and lifestyle condition among people lacking the willpower to moderate eating habits and exercise regularly. But those attitudes have been changing, not only in society at large but also among health care providers.

In 2021, Novo announced plans to invest nearly $2.6 billion to build three new ingredients manufacturing facilities and to expand an existing production site in Kalundborg, Denmark.​ Then last May, the company committed $2.3 billion to expand its site in Hillerød, Denmark. In April, Lilly said it is investing an additional $1.6 billion in its two new factories in Boone County, Indiana, bringing the company’s total commitment to the site to $3.7 billion.

At an American Diabetes Association event in June, Lilly released phase two data for orforglipron, its first oral drug for obesity, saying it achieved up to 14.7% weight reduction after 36 weeks. The company also released phase two data from trials on retatrutide, an injectable obesity medication that achieved up to 17.5% weight reduction after 24 weeks.

Pfizer was testing two different oral drugs to treat type 2 diabetes and obesity, but is now focusing on one, danuglipron, after phase two trial results. “While we have our data from the type 2 diabetes study [of danuglipron], we are still studying the potential in obesity,” a Pfizer spokesperson said in an email. “When we have this information, which should be later this fall, we will make a plan for what the phase three [trial] will look like.”

In December, Amgen reported that in phase one tests of its injectable obesity drug, AMG133, patients showed a weight loss of 14.5% after 12 weeks of treatment. Phase two trials are ongoing, with data expected in 2024, and a product launch is not likely before 2026.

Nvidia joins the trillion-dollar club

Nvidia Corp., seen as the leader in producing chips for artificial-intelligence applications, finally entered the $1 trillion market value club by Tuesday’s close. 

Cryptocurrency news

 

• 1/12/24: Cboe Global Markets (CBOE) successfully launches margined Bitcoin and Ether futures and completes its first margined Bitcoin futures trade
• 12/29/23: India announced today that it plans to block crypto exchanges like Kraken and Binance, according to Bloomberg. Bitcoin's (-1.1%) downward momentum from yesterday seeping into today's price action, placing continuous selling pressure on many crypto-related stocks, many of which became overextended in recent trading ahead of SEC's spot ETF decision.
• 6/29/23: CME Group announces plans to launch Ether/Bitcoin Ratio futures on July 31, pending regulatory review.
• 6/5/23: Traders on Cboe Global Markets Inc.’s digital-asset exchange will soon be able to enter into margined Bitcoin and Ether futures contracts after the firm received a critical regulatory sign-off.  Cboe Digital is the only US-registered exchange that allows for both spot and derivatives trading of digital assets including Bitcoin, Bitcoin Cash, Ether, Litecoin and USDC. It also operates a clearinghouse.
• 7/26/21:  Amazon posted a job for a digital-currency expert recently, saying in the description that the person will “own the vision and strategy for Amazon’s Digital Currency and Blockchain strategy.” Amazon may also launch its own “stablecoin,” or digital token pegged to a hard currency like the dollar.
• 7/26/21: Goldman Sachs has filed for a DeFi and blockchain exchange-traded fund, according to a public filing.
• 5/24/18: U.S. Justice Department launches criminal probe into bitcoin price manipulation.
• 4/13/18:  Yahoo Japan (OTCPK:YAHOY) said it would buy a 40% stake in cryptocurrency exchange BitARG Exchange Tokyo. Services are planned for launch in the fall. The deal also comes after Japanese online brokerage firm Monex (OTCPK:MNXBY) announced last week that it would acquire hacked crypto exchange Coincheck for $34M.
• 3/7/18:  Japan's Financial Services Agency punished seven cryptocurrency exchanges, ordering two of them to suspend business, just hours after a warning from the SEC that many online trading platforms must register with the agency. 
• 3/7/18:  The Commodity Futures Trading Commission can legally classify and regulate cryptocurrencies as commodities, according to a new ruling from a federal judge that allowed a CFTC lawsuit against company Coin Drop Markets. Crypto legislation is still in its early stages in the U.S. and the federal government has held off from making any major rulings on regulation.
• 1/8/17:  The Financial Industry Regulatory Authority (FINRA), the organization that regulates brokers, advisers and financial institutions in the United States, announced that it was going to focus on cryptocurrencies. 
• 12/28/17:  South Korea said it was eyeing options including a potential shutdown of at least some cryptocurrency exchanges to stamp out a frenzy of speculation.  South Korea has been ground zero for a global surge in interest in bitcoin and other digital currencies as prices surged this year.  South Korea will require real-name cryptocurrency transactions and impose a ban on the offering of virtual accounts by banks to crypto-exchanges, according to a statement from the Office for Government Policy Coordination.
• Ethereum has jumped 5,628% in 2017 from $8.03 on Dec. 31, 2016, and was at $459.99 Dec. 8, 2017. It surged as high as $464.99 early in the day.
• 11/21/17 NY Times: Warning Signs About Another Giant Bitcoin Exchange (Bitfinex, and exhcange incorporated in the British Virgin Islands)
• In other moves by financial companies to bring bitcoin to investors, on Sept. 6, 2017, CoinIRA, Goldco's digital currency unit, launched its new Digital IRA Bundles. The bundles, available in amounts of $25,000, $50,000 and $100,000, come prepackaged with digital currencies. Investors can choose from three portfolios based on their risk appetite: conservative, moderate or aggressive. The conservative bundle is made up of 50% Bitcoin, 41% Ethereum and 3% each in Ether classic, Litecoin and Ripple.
• China banned initial coin offerings and trading in cryptocurrencies. (Sept 2017)
• But many retailers are accepting Bitcoins as payment, including Microsoft, Target, Home Depot and Subway. And more uses are in the works.

Big beer values since Bud Light boycott

The market value of Anheuser-Busch InBev ($BUD), whose fourth bestselling brand is Bud Light, dropped $15.7 billion since April 1, based on a conversion to U.S. dollars by Investor's Business Daily using data from S&P Global Market Intelligence. 

That's the day Dylan Mulvaney, a TikTok influencer and transgender woman, pitched the Bud Light brand during the NCAA March Madness tournament.

• Bud Light sales are down more than 23% as of the week ended on May 6, said Jared Dinges, beverage analyst at JPMorgan Chase in a note to clients Tuesday, citing data from NielsenIQ.
• $BUD has lost approx. $16 billion in market value this past month. While its competitors, such as Heineken and Molson Coors ($TAP), have gained market cap.
• Anheuser-Busch's stock shows just how significant the boycott has been. With shares down 11.9% since April 1, the company's investors are suffering while most other beer companies are trending higher.

 

 Dylan Mulvaney

Changes in market value since April 1

Company	Symbol (global exchange: symbol)	Stock % ch. since April 1	Market value ch. ($ millions)*
Anheuser-Busch InBev SA/NV	ENXTBR:ABI	-11.9%	-$15,687
Carlsberg A/S	CPSE:CARL B	4.4%	-$200
Olvi Oyj	HLSE:OLVAS	-5.2%	-$34
Ottakringer Getränke AG	WBAG:OTS	-6.5%	-$25
Alefarm Brewing A/S	CPSE:ALEFRM	-15.6%	-$1
Browar Czarnków S.A.	WSE:BRO	6.6%	$0
Brouwerij Handelsmaatschappij NV	ENXTBR:COBH	0.6%	$1
Harboes Bryggeri A/S	CPSE:HARB B	6.0%	$3
Royal Unibrew A/S	CPSE:RBREW	4.8%	$209
Heineken N.V.	ENXTAM:HEIA	1.7%	$1,009
Molson Coors Beverage	NYSE:TAP	20.2%	$2,201

Sources: S&P Global Market Intelligence, IBD, *converted to U.S. dollars

 

All beer companies ($TAP, $SAM, $STZ) increased market cap this past month except for $BUD (-16%).

(live chart)