Renault will need to fund its transition to electric vehicles by itself – The National

Renault will need to fund its transition to electric vehicles by itself – The National

Renault will need to fund its transition to electric vehicles by itself. Long-established automakers like Renault and Daimler are stepping up their electric vehicle production as they look to move away from their current models. On one side of the Atlantic, Tesla is capitalising on its soaring share price by selling $2 billion in stock so it can build more electric vehicles.. (Renault has an engineering partnership with Daimler and owns a small stake in the German car and truck maker.). Their problems are not identical but all three had expanded their workforces in anticipation of demand that has not materialised and now they have to tighten their belts to pay for expensive electric vehicles, for which demand remains uncertain.. Renault's shares are near their lowest level in eight years, which means the company is capitalised at barely 10bn euros ($11bn), a sum that includes the 43 per cent stake Renault owns in Nissan.. Needless to say, that's a sliver of what Tesla is worth, even though the US company's annual output is still almost a rounding error for the Renault-Nissan alliance.. Long-established automakers have decided that their salvation is to be found in alliances and partnerships, which spread the