COE prices close mostly higher in latest bidding exercise

SINGAPORE: Certificate of Entitlement (COE) premiums closed mostly higher in the latest bidding exercise on Wednesday (Feb 20).

For Category A cars, or those 1,600cc and below with horsepower not exceeding 130bhp, premiums closed at S$26,301, up from S$25,689 in the last exercise.

Premiums for larger and more powerful cars in Category B rose to S$35,403 from S$34,509.

COEs for commercial vehicles, which include goods vehicles and buses, rose to S$26,914 from S$26,378 in the previous bidding exercise.

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Motorcycle premiums closed at S$3,689, down from S$3,709 in the last exercise.

Open category COEs, which can be used for any vehicle type but end up being used mainly for large cars, rose to S$36,667 from S$35,310.

A total of 6,445 bids were received, with a quota of 4,403 COEs available.

Tesla Faces Heavy Lift as Model 3 Enters Europe and China

For Tesla Inc. investors, the last year was all about whether the company could make enough cars at a stable rate. This year is going to be all about who would buy those cars.

As Tesla gears up to expand into Europe and China, investors and analysts are now focused on the demand trends experienced by the company in all of its markets. “Tesla has now shifted from a production story to a demand story,” Wedbush analyst Daniel Ives wrote in a note to clients on Monday, adding that Norway, the Netherlands, and Germany are front and center as the countries with strong pent-up demand for Model 3s in Europe.

“The big question for investors will be watching this Model 3 demand trajectory throughout Europe to gauge the pace of unit deliveries and how quickly can it reach the 100,000 units delivery barometer over the next 12 months in this key region, with China also a demand driver/potential wild card,” the analyst wrote.

Tesla chief Elon Musk visited Europe over the weekend, stopping in Norway, which is the company’s third-biggest market, helped by generous incentives for low-emission vehicles and high taxes on gas-fueled cars. Separately, China’s state-run newspaper Global Times tweeted on Monday that the first shipment of the Model 3 had arrived at the Port of Tianjin, ready for delivery to Chinese customers.

The electric-vehicle maker kicked off this year on a dull note after fourth-quarter deliveries slightly lagged expectations, and multiple price cuts have followed for the Model 3 sedan to compensate for the gradual elimination of federal tax incentives. Tesla’s quarterly profit, reported in late January, also missed estimates and failed to inspire investor confidence.

Tesla stock had fallen more than 8 percent this year through Friday, before Monday’s gains. The S&P 500 Index gained 8 percent over the same period.

Yet despite the shaky numbers and a lackluster outlook, some say the company is on the right path. “We believe the last two quarters and recent guidance for first quarter have removed significant concerns for both production capability and profitability of the critical Model 3,” Canaccord Genuity analyst Jed Dorsheimer wrote in a note. “As such, we see a more stable 2019 with far fewer concerns for investors in the company.”

Dorsheimer also upgraded Tesla to buy from hold, and raised his price traget to $450 from $330, saying the Street underappreciates the company’s progress in the electric vehicle market.

The steady advance of global automakers into the electric car market has weighed on Tesla’s valuation over the past twelve months, with Morgan Stanley calling Tesla’s 80 percent U.S. electric vehicle market share in 2018 unsustainable. Morgan Stanley analyst Adam Jonas said he expected the “next serious competition” to come “from a ‘clean sheet’ start-up with access to talent & capital focused on the fastest growing segments of pickup trucks & SUVs.”

Tesla has long been a far-from-stable story. While the stock gained as much as 4.2 percent on Monday, investors should brace for a choppy ride this year.

“The profitability picture for 2019 and the all-important Model 3 demand trajectory in Europe for Tesla looks encouraging for Musk & Co., but there is clearly heavy lifting ahead around Europe logistics/cost-cutting/driving incremental U.S. demand that will remain overhangs and thus make Tesla a ‘prove me’ story the next few quarters,” Wedbush’s Ives said.

All-New Mercedes CLA-Class To Take On Future Cadillac CT4

Mercedes-Benz recently debuted its all-new, second-generation CLA-Class – and the new German compact looks to be everything a small “four-door coupe” should be. Let’s take a closer look at what the world’s best-selling luxury carmaker has in store, since it will be one of the models that the upcoming Cadillac CT4 will be up against when it launches later this year.

Positioning
Following the wild success of the first-generation CLA-Class and the A-Class hatchback in Europe, Mercedes-Benz is taking a one-two punch to the highly-competitive C-segment this time around by fielding two models in the space: the new A-Class Sedan (and five-door Hatchback in Europe) as well as this CLA-Class “four-door coupe.” All models are mechanically related, as they ride on Mercedes’ new front-drive architecture, which will also derive the next-gen GLA-Class and GLB-Class crossover SUVs.

Though the four-door coupe moniker is a misnomer, the four-door coupe is an extremely successful strategy: by putting a sleeker body on the exact same chassis as a traditional sedan and giving it a different name, Mercedes is able to charge considerably more, thereby making a higher profit on each unit sold. The practice was practically invented by Mercedes-Benz with the original CLS-Class, which placed a four-door coupe body (there’s that misnomer again) on the frame of the E-Class Sedan. Other German automakers followed, including BMW with the 4 and 6 Series Gran Coupé models, as well as Audi with the A5 and A7 Sportback variants.

To that end, BMW is planning a competitor of its own to the new Mercedes CLA-Class, expected to be called 2 Series Grand Coupe. BMW fields a traditional C-segment sedan in China called the 1 Series, and that model could potentially make its way to the Americas in the future. Audi, meanwhile, has the A3 in the traditional C-segment space, and has been rumored to add an A3 Sportback to the next-gen A3 family.

Exterior
The 2020 Mercedes-Benz CLA is slightly larger than the first-generation model, while serving as a more expressive alternative to the new A-Class Sedan. In fact, the new CLA is longer, narrower, and lower than its predecessor, faros that help it be more aerodynamic than ever before. The main differentiator over the traditional A-Class Sedan is the rapidly-sloping, fastback-style roof.

Other than that, styling is in line with Mercedes’ current exterior design trends, which feature swooping lines and fewer creases. The design is not a love-it-or-hate-it affair since it’s not exactly offensive or ground-breaking, though it potentially borders on bland.

Powertrain
At launch, the second-generation 2020 CLA-Class will be offered with a single powertrain combination in the U.S. – a new, turbocharged 2.0-liter inline-four cylinder paired to a seven-speed dual-clutch automatic. The combo produces 221 horsepower and 258 pound-feet of torque in the model called CLA250. Front-wheel-drive is standard, while 4MATIC all-wheel-drive is optional.

Other powertrain variants are expected, including a range-topping CLA45 AMG with about 400 horsepower and 4MATIC AWD, and an in-between model called CLA35 AMG making in the vicinity of 300 horses.

Interior
The cabin of the new Mercedes CLA-Class is more spacious than that of the first-gen, with additional shoulder and elbow room for everyone. The trunk, however, is a bit smaller than the predecessor.

Inside, the new CLA-Class receives the Mercedes-Benz User eXperience (MBUX) infotainment system with a high-resolution, 10.25-inch touchscreen display. The AI-powered software adapts to individual users by learning their habits, making the driving experience more personal. Natural voice recognition technology lets passengers navigate the vehicle’s various functions by simply saying “Hey, Mercedes!”, following by their command. For added convenience, passengers can also use either the touchscreen or the touchpad found on the center console.

The 2020 Mercedes-Benz CLA-Class will begin arriving in showrooms later this year. Pricing information will be announced closer to the on-sale date. GM’s answer to the CLA-Class and A-Class will be the upcoming Cadillac CT4, which is expected to arrive by the end of the 2019 calendar year. The CT4, however, will have a more traditional body style similar to the A-Class Sedan, rather than this CLA-Class “four-door coupe”.