Today’s Pickup: Tesla’s challengers mounting all-electric SUV attack

 Good Day,

The Jaguar I-Pace, a new sport-utility vehicle, arrives in a few weeks, and starts at $70,000. They are not alone. Other European luxury auto makers are entering the high-end, long-range EV fray. According to the WSJ, German auto maker Audi [NYSE: AG NSU] revealed the production version of its electric SUV called the e-tron. It aims to begin selling the spacious, five-seater in the U.S. next spring starting at about $75,000, slightly less than the roughly $80,000 base price of Tesla’s Model X SUV. Earlier this month, Daimler AG’s Mercedez-Benz [NYSE: DDAIF] revealed its own electric SUV, the EQC. Between Musk’s public erratic behavior, quality control issues with the Model 3 and Model X, as well as headwinds with where and how repairs are made, Tesla needs an improved strategy. The challengers have the enormous advantages of brand identity and manufacturing infrastructure. 

Did you know?

The GRP (Gross Regional Product) of Freight Alley is $1.75 trillion, slightly higher than the GDP of Canada at $1.53 trillion.

Quotable:

“Many foreign business people and politicians have underestimated the determination of Chinese people to support the government in a trade war.”

—Mu Yan Kui, vice chairman of Yihai Kerry, owned by Singapore-based Wilmar International [WLIL.SI]

In other news:

Bond traders see 2019 as battleground for bets on Fed rate path

For the world’s biggest bond market, 2019 is turning into a battleground for bets on the path of U.S. monetary policy. (Bloomberg) 

Trump hit Iran with oil sanctions. So far, they’re working.

Nearly two months before American oil sanctions go into effect, Iran’s crude exports are plummeting. (New York Times)

Inside China’s strategy in the soybean trade war

China is urgently looking elsewhere for imports. (Reuters)

Revenue rises as Ocado hits the right blend of automation and human skills

So far Ocado is growing rapidly by hitting the right opportunities. (The Loadstar)

U.S. business groups urge Trump to keep Canada in Nafta

The move comes amid American and Mexican pressure on Canada to make concessions or be left out of a new two-nation pact. (WSJ)

Final thoughts:

North Carolina Ports will reopen the state’s two main ports by the end of this week after a assessing the damage wrought by Hurricane Florence. The Port of Wilmington and the Port of Morehead City both saw damage to warehouses and other structures, as well as a significant number of downed empty containers, NC Ports said. But major infrastructure, including gantry cranes, at both locations have been assessed and weathered the storm with no damage. 

Hammer down, everyone!