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IF (and its a big IF) Tesla's supercharging network is up for sale (I assume split geographically) there would be a bid process in which I anticipate bp would be squeezed out of, or at least have serious competition from PE, Hedge funds, Shell, Total etc.
I think Tesla could get a better valuation if they split it up vs. divest it in its entireity - Which is why I feel this story is just lazy journalism to get clicks, rather than what makes business sense.
Senate Majority Leader Chuck Schumer called on the Federal Trade Commission to stop the merger between Chevron and Hess Corp., claiming it would be detrimental to consumers.
“I’m sounding the alarm against yet another proposed Big Oil merger—a $53B deal between Chevron and Hess,” Schumer wrote on X on Sunday. “It would give Big Oil more fuel to raise gas prices. Trump might be hosting dinners for Big Oil execs, but the FTC should side with consumers and pump the breaks on this deal,” the Senate Majority Leader wrote.
It has been a long-running claim of Democrat lawmakers that consolidation in the energy space would lead to higher retail prices for fuels. On these grounds, Democrats in Congress have attacked all major deals from the past couple of years as consolidation gained momentum.
Earlier this year, Schumer led a group of 22 senators to call on the Federal Trade Commission to look into the tie-up between Exxon and Pioneer Natural Resources, and the Chevron-Hess deal.
“Exxon’s and Chevron’s operations downstream would enable them to redirect Pioneer’s and Hess’s crude supply to themselves, away from (and possibly to the detriment of) their midstream competitors,” the group wrote in a letter to the FTC.
“These new market dynamics could result in price hikes for midstream customers, and such added costs are often passed downstream to retail customers, including drivers at gas stations.”
Despite the legislators’ push, the FTC greenlit the merger between Exxon and Pioneer on the condition that former Pioneer CEO Scott Sheffield would not join the board of the combined company following allegations of collusion with OPEC to control oil production to keep prices higher.
The Chevron tie-up with Hess already faces a challenge in the face of Hess’ partner in Guyana, Exxon, which claims it has right of first refusal to Hess’ stake in their joint project there.
Many agree
This may be 2 + 2 = 5 but an interesting, speculation provoking question is how does Musk disband his entire Supercharger team and still, as he said last week, expand the Tesla supercharger network this year. Maybe the answer is 5.
We wait and see.
Apologies for the end. Pressed post by mistake before my conclusion. Either fat fingers or no glasses to blame
WP
The truth is that no one knows outside of Musk and BP. Tesla have refused to comment on the speculation.
What we do know is that Musk wanted to scale back the Supercharger team to cut costs by laying off 14% of employees and when the team's chief, Rebecca Tinucci refused Musk laid off the entire Supercharger team and it's Chief.
Sometimes you do get smoke without fire as with those ghastly strawberry chocolate flavoured vapes but there may be something going on beyond the £100m order for Tesla Superchargers as announced last November. The £1 billion figure is lazy as the expenditure to expand the programme will cost billions more over the next few years. Does Musk want to spread his diminishing revenues on this project or focus on saving his car business, one in my opinion is in terminal decline in the face of Chinese competition.
However, one man's trash is another man's treasure, so the move prompted energy companies to battle for the Supercharger sites and former employees.
WP
I think you are probably right,but it’s nice to have a rumour going round.
I do think BP and Tesla would make a good fit ( for charging) as a stand alone company, with the advantage that Tesla would be able to focus on its other business.
However that doesn’t mean it will happen.
The sooner someone buys us out the better.... New CEO useless... Company being run for board not shareholders.... Should this hit £6 I am out
I think the media has somewhat distorted the bp - Tesla Story.
bp came out and said they are interested in purchasing Tesla supercharging sites from landlords, not via equity investment or acquisition of Tesla charging business [from Tesla]. The articles somehow tie bp's investment commitment of $1bn by 2030 to active deals with Tesla for an equity position. I can't see Musk divesting any stake of his charging business until he really has too (i.e. after layoffs stop working to cut SG&A costs). To put it bluntly $1bn is nothing to Tesla, why would it risk giving up strategic control of its charging network for this figure - it simply doesnt pass the logic test.. no matter how much bp would like a piece of Tesla's market position.
It's made a splash in the news, but it seems like bp weren't clear enough in our comms which has led to media speculation.
Https://www.livecharts.co.uk/MarketCharts/brent.php
Thankyou for all the exciting news
There is never a dull moment holding Bp
:)))))))))
It’s all obviously a price thing.
At the right price it could be good.
If I was Musk ( and down to my last x billion dollars), I would be looking for a joint venture with BP.
BP to put up cash for future growth and run it as a stand alone company like Aker BP with some shares listed just to get a real value of it.
Wasn’t this exactly the kinda strategy and opportunity that good old Bernard was surely dreaming about in his (unpopular) stanse to steer the Company away from it’s hitherto core business of finding and marketting CO2 producing products ?
Take a bow Bernard (perhaps - if Murray can pull it off before Bigger Oil catches on).
Time and TESLA will tell.
( SP and propensity to be bought out for serious bucks will follow).
Evening meoryou and all
Hi meoryou, this should be very significant and very lucrative should the rumour become fact. EV's are currently going through silly season with the press knocking EV's at every opportunity. Half - truth stories about Mercedes, Ford etc scaling back on EV production or extending full electricity vehicle production deadlines has more to do with short term economics rather than any fundementals.
EV's are here to stay and will be the only new car to buy in ten years. Sales of electric cars, maybe out of vogue with the media, but starting from a very low base they are growing quickly in many markets around the world. Globally, around 25% of new cars sold were electric in 2023. In Norway, this share was over 90%, and in China, it was almost 40%. Once the US infrastructure improves, and prices and production costs ease, which is currently starting to happen thanks to Chinese EV production / competition, US EV numbers will boom as will the delayed production of EV commercial vehilcles in the next few years. Investing now for that inevitability makes excellent financial sense. Together with the Travel Centres of America deal, this would put BP at a competitive advantage with massive revenues in 5 to 10 years in my opinion.
From those investors who dislike the transition strategy to the O&G ONLY luddites. EV's are here to stay and as demand for petrol and diesel reduces over the next decade demand for premium EV charging will rocket.
Have a great evening all.
Mark
Can’t say if it would be significant.
It would probably make BP first in charging.
It would get them to their target ahead of time
It would be Murray’s first big deal.
Don’t know how it would affect earnings.
But it would help put a value on BPs charging network.
As for sp being affected we can only wait and see
Apologies, what’s the significance of this rumour and, will it have a tangible affect on the SP if it transpires?
BP’S POTENTIAL $1 BILLION ACQUISITION OF TESLA’S SUPERCHARGER FACILITIES
https://evxl.co/2024/05/11/bp-acquisition-tesla-supercharger-facilities/
Hi Mark,
I’m reading a lot more into it,
As Murray kind of said they could do a deal in the renewable space.
I was wondering if TELSA whole charging business might be available,and that was what Murray was talking about.
Not just a few stations but the whole system.
There was an article saying car manufacturers like Ford did not do the whole petrol station thing 100 years ago, so now TESLA no longer need to be in car EV charging.
Might be nothing to it
Dumbdog, you seem to have been more than "rather chipper this evening" not even aware of the 04:46 Morning time !!
Those taking "HUGE" profits in Rolls Royce (your "Rollers" ?) are taking them a bit early as I also hold them and expect substantially more over the next 6 months as planes fly more and Putin attacks more !!
BP is currently adversely affecting my portfolio as its performamce is not good vesus my other shares including SHEL and HBR. So I rest my case re Auchincloss as CEO !!
Hi meoryou, Spights and all.
No smoke without fire. Courtesy of Bloomberg. Youtube opinion on the same below.
NEWS: Oil giant BP wants to buy Tesla Supercharger sites in the U.S.
BP “is aggressively looking to acquire real estate to scale our network, which is a heightened focus following the recent Tesla announcement.” It plans to spend $1 billion by 2030, half of it within the next two to three years to install over 3,000 charging points across the US. A key part of the strategy is building large-scale hubs with 12 or more chargers that it calls Gigahubs.
“If there are stranded real estate partners who are looking for someone to call, they should feel free to pick up the phone and call me or look me up on LinkedIn,” Sujay Sharma, chief executive officer of bp pulse Americas, said in an interview with Bloomberg.
BP last year signed a deal to procure about $100 million of Tesla supercharger hardware, with the deployment expected to start later this year and early 2025, the CEO said.
Source: bloomberg.com/news/articles/…
https://www.youtube.com/live/V0BE3uKax3I?feature=shared
BP Oil Giant to BUY TESLA Supercharger Stations.
Repeat it’s nothing more than a rumour.
But it might just make sense of why TELSA have been actively cutting back staff etc
Https://oilprice.com/Energy/Crude-Oil/OPEC-Signals-Lasting-OPEC-Alliance-in-Oil-Market-Management.html
Onwards and upwards
Good Evening Gentlemen,
One is rather chipper this evening, as the gentlemen around the world have realised just how much value one’s shares hold.
While bean-counters generally do not make good CEOs, Murray is a good fit for BP restoring the dividend to pre-pandemic levels.
Gentlemen and a few scoundrels have been making HUGE profits at Rollers and one’s Other Love, GSK is showing EXCELLENT form. One has taken the extraordinary decision to go ALL-IN to capitalise on the current trend. One has topped up in Percy (PSN) amongst others.
There have been some scurrilous rumours going around in Sussex, however this Sir Boner has NOT been seen in public.
Tiny brain at Charlies pleasure. Bfn]
Here's my view on the global econ (for what its worth, I estimate £2.50).
We had one huge slew of COVID money come into the economy causing inflation.
Therefore inflation impact will be one big hit (that we're mostly over now). Central banks (Fed, BofE, CEB) will manage it back down to 2-3% over the next 30 months.
Markets are returning to normality and US big tech remains largely in-line from a historical PE perspective, despite 'AI boom'. This means you simply have to be in the US big 5/6 or it'll be extremely challenging to beat the market. Also, are the big 5 really going to smaller or larger in 5 years time?.
As interest rates go down, the cash in savings account/mm funds flows back into the market... those who sought the safety of cash will have their head turns by reliable divi players. This should give a boost to the 'old economy' stocks referred to below. As econs start to grow again, mftg picks up, production picks up, construction picks up creating a mini boom for commodity stocks (O&G, mining etc.). FTSE becomes more appealing and lifts the index as whole.
£2.50 please
In short I'm long on US big tech (obvs) and large FTSE stocks who dont have too much exposure to the UK, but generate most of their cash overseas.
As a side I've got a portion dedicated to India and asia ex. Japan... China and India still the two fastest growing economies which will lift themsleves and the region (think US - Mexico impact). I think India is better positioned to grow as it has more native english speakers vs. China (and a more trad. capitalist govt).
Planit
Was looking at the shares in my ISA yesterday.
Couple 25 % gains couple 10%+ gains the rest all up a couple of %.
So that suggests the FTSE100 is doing betterthan a few month ago ( new highs)
No BP in ISA current.
In the interest of honesty must admit my last 2 shares Bt and Vod are down about 25%( been trying to average down and quite big positions).
Over all my ISA end up down £16.
It’s a stock pickers market
Lol meoryou, that would be good !