TSLA May 2020 425.000 put

OPR - OPR Delayed price. Currency in USD
0.00 (0.00%)
As of 3:15PM EST. Market open.
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Previous close5.15
Expiry date2020-05-15
Day's range5.15 - 5.15
Contract rangeN/A
Open interestN/A
  • Tesla shares, fueled by Fed, surge on bullish analyst calls
    Yahoo Finance

    Tesla shares, fueled by Fed, surge on bullish analyst calls

    Tesla investors should probably thank the Federal Reserve for their big gains in 2020.

  • Elon Musk Bought $10 Million of Tesla Shares on Valentine’s Day

    Elon Musk Bought $10 Million of Tesla Shares on Valentine’s Day

    (Bloomberg) -- Elon Musk bought 13,037 Tesla Inc. shares for $10 million on Feb. 14, according to a filing with the U.S. Securities and Exchange Commission.Musk purchased the shares at an average of $767 each, raising his holding to 34.1 million, or 18.5% of the Palo Alto-based company. Tesla’s shares have soared more than doubled this year and closed at a record high of $917.42 on Wednesday.The rally, initially fueled by a surprise third-quarter profit, has left Tesla with a market value greater than that of General Motors Co., Volkswagen AG and Fiat Chrysler Automobiles NV combined. Traders are realizing the dangers of betting against the company: roughly 15% of its shares available for trading are short, the lowest in at least a year, according to S3 data.Musk was in Shanghai at the start of the year to open Tesla’s first manufacturing facility outside the U.S. The coronavirus outbreak in China led to a halt in production at the facility, though operations restarted last week.To contact Bloomberg News staff for this story: Harry Suhartono in Jakarta at hsuhartono@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Will DaviesFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Stock Enthusiasm Is Snowballing in a February for the History Books

    Stock Enthusiasm Is Snowballing in a February for the History Books

    (Bloomberg) -- People are starting to ask if this will be remembered as the month real euphoria broke out in the bull market.It’s showing up in the Nasdaq Composite Index, headed for its best February in 20 years with a hodgepodge of companies doubling in less than seven weeks. At almost 38 times earnings, the gauge’s price-earnings ratio is now effectively twice as high as it was in 2011, data compiled by Bloomberg show.The market’s tenor is uncannily positive. The S&P 500, also within spitting distance of its best February since 2000, has posted back-to-back down days just once all year. The S&P 500 Technology Index has eked out a new high every two days, on average.“It’s unbelievable, the rate at which the market in general and technology stocks in particular are going up,” said Matt Maley, an equity strategist at Miller Tabak & Co. “There is no stopping the sector, at least at this point. Are investors concerned about valuations? Maybe, but that’s not strong enough to stop them from buying.”Signs of investor exuberance, already elevated, are multiplying. Virgin Galactic Holdings Inc. had its second rally of at least 20% in three days, an advance that has drawn comparisons with Tesla Inc. Then there’s Tesla itself, which has rallied 119% in 2020. It’s up almost 15% this week.Elsewhere in the Nasdaq Composite, Bioxcel Therapeutics Inc. and ACM Research Inc. have also at least doubled this year.The standard explanations get trotted out. Improving economic fundamentals, the Federal Reserve, the U.S. market’s defensive status amid a global health scare. U.S. equities are a “safe haven,” Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, wrote in a recent note.Another view: “The most compelling bull case right now is that there is no credible bear case,” UBS Global Wealth Management strategists led by David Lefkowitz said in a note to clients. Stocks continue to look attractive versus low bond yields, they said, and the earnings yield on stocks is “still quite appealing.”As nuts as they are, shares look tame compared with options. Investors bought to open almost 24 million call options last week, a record amount, according to Sundial Capital’s Jason Goepfert. That as selling of calls to close dropped nearly 30% from the level a couple of weeks ago. The difference between the two is a record.Options activity in individual stocks has also been startling. About 630,000 put and call options on Virgin Galactic changed hands on Tuesday, almost twice as much as its previous record on Friday. Total options volume on Tesla reached a record of 1.3 million contracts earlier this month.Technology stocks, which have spearheaded an earnings advance in the S&P 500 for most of the past decade, reported 6.2% earnings growth in the fourth quarter. The group is expected to post a 14% profit expansion in 2020, the second-highest after energy stocks.And if fund managers’ polls are any guide, investors expect the bullish sentiment in U.S. stocks to last. Fund managers polled by Bank of America strategists said they expect further upside for U.S. stocks, with their bullish conviction underscored by bets that 10-year Treasury yields will stay within the 1.4% to 2% range in the first half of the year. Investors’ average cash balance dropped to 4% from 4.2%, the lowest level since March 2013, the bank said.“The mind shift has changed from selling bad news to buying the weakness and that is why with things like coronavirus, the market’s peak-to-trough down 3.5%,” Andrew Slimmon, managing director and senior portfolio manager at Morgan Stanley Investment Management, said by phone. “Investors are buying into the weakness -- it’s a very consistent pattern.”To contact the reporters on this story: Elena Popina in New York at epopina@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Chris Nagi, Richard RichtmyerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Electrical Tape on Sign Fooled a Tesla Into Speeding in Test

    Electrical Tape on Sign Fooled a Tesla Into Speeding in Test

    (Bloomberg) -- Researchers were able to trick a Tesla Inc. vehicle into speeding by putting a strip of electrical tape over a speed limit sign, spotlighting the kinds of potential vulnerabilities facing automated driving systems.Technicians at McAfee Inc. placed the piece of tape horizontally across the middle of the “3” on a 35 mile-per-hour speed limit sign. The change caused the vehicle to read the limit as 85 miles per hour, and its cruise control system automatically accelerated, according to research released by McAfee on Wednesday.McAfee says the issue isn’t a serious risk to motorists. No one was hurt and the researcher behind the wheel was able to safely slow the car.But the findings, from 18 months of research that ended last year, illustrate a weakness of machine learning systems used in automated driving, according to Steve Povolny, head of advanced threat research at McAfee. Other research has shown how changes in the physical world can confuse such systems.The tests involved a 2016 Model S and Model X that used camera systems supplied by Mobileye Inc., now a unit of Intel Corp. Mobileye systems are used by several automakers though Tesla stopped using them in 2016.Tests on Mobileye’s latest camera system didn’t reveal the same vulnerability, and Tesla’s latest vehicles apparently don’t depend on traffic sign recognition, according to McAfee.Tesla didn’t respond to emails seeking comment on the research.“Manufacturers and vendors are aware of the problem and they’re learning from the problem,” Povolny said. “But it doesn’t change the fact that there are a lot of blind spots in this industry.”To be sure, the real-world threats of such an occurrence today are limited. For one, self-driving cars are still in the development phase, and most are being tested with safety drivers behind the wheel. Vehicles with advanced driver-assist systems that are available now still require the human to be attentive.And the McAfee researchers were only able to trick the system by duplicating a certain sequence involving when a driver-assist function was turned on and encountered the altered speed limit sign. Manufacturers are also integrating mapping technology into systems that reflect the proper speed limit.“It’s quite improbable that we’ll ever see this in the wild or that attackers will try to leverage this until we have truly autonomous vehicles, and by that point we hope that these kinds of flaws are addressed earlier on,” Povolny said.In a statement, Mobileye said human drivers can also be fooled by such a modification and that the system tested by the researchers was designed to assist a human driver and not to support autonomous driving.Robust Redundancies“Autonomous vehicle technology will not rely on sensing alone, but will also be supported by various other technologies and data, such as crowd sourced mapping, to ensure the reliability of the information received from the camera sensor and offer more robust redundancies and safety,” the company said.The McAfee research follows similar academic work in what’s known as adversarial machine learning, a relatively new field that studies how computer-based learning systems can be manipulated. Researchers in 2017 found that placing four black and white stickers in specific locations on a stop sign could “trick” a computer vision system into seeing a 45 mile per hour speed limit sign, for example.The issue isn’t specific to Tesla or Mobileye, but is a broader weakness inherent in the advanced systems powering self-driving cars, said Missy Cummings, a Duke University robotics professor and autonomous vehicle expert, and researchers have shown that potentially serious malfunctions can be caused by changing the physical environment without accessing the system itself.“And that’s why it’s so dangerous, because you don’t have to access the system to hack it, you just have to access the world that we’re in,” she said.Cummings said McAfee’s findings illustrate why autonomous cars should be subjected to a “vision test” to evaluate whether self-driving systems can safely detect and respond to real-world situations created by other vehicles, pedestrians and other road users.Safety advocates have also urged U.S. auto safety regulators and lawmakers to include such an evaluation among other requirements in new automated vehicle legislation being developed in Congress.(Updates with context on automated vehicle legislation in penultimate paragraph)To contact the reporter on this story: Ryan Beene in Washington at rbeene@bloomberg.netTo contact the editors responsible for this story: Jon Morgan at jmorgan97@bloomberg.net, John HarneyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • It's A Beautiful Day in the Stock Neighborhood

    It's A Beautiful Day in the Stock Neighborhood

    We're talking Amazon, we're talking Tesla, Nvidia, Apple and more! When the market's looking up, a trader couldn't ask for more.

  • Virgin Galactic looks like newest cult stock as short sellers dig in

    Virgin Galactic looks like newest cult stock as short sellers dig in

    Wall Street's newest cult stock appears to be Richard Branson's Virgin Galactic Holdings Inc , as investors drive shares of the space tourism company to sky-high levels and short sellers dig in their heels. Virgin Galactic jumped 23% during Wednesday's session, adding to a rally that has seen the money-losing company surge over 400% since early December. "I’m calling it Tesla Junior because it's showing all the signs of becoming a cult stock on the long and on the short side," said Ihor Dusaniwsky, a managing director at financial analytics firm S3 Partners.

  • Oilprice.com

    Another Major Car Maker Is Backing Hydrogen

    The hydrogen fuel cell market has a serious player emerging in South Korean automaker Hyundai Motor Corp., which is jumping into the hydrogen truck market to compete with Nikola, Toyota and Tesla

  • Stocks the Pros Loved Heading into 2020

    Stocks the Pros Loved Heading into 2020

    As stocks hit new all-time highs to finish 2019, the professional money managers were busy positioning their portfolios for 2020. What were they buying, and selling, heading into the new year?

  • Wall Street Has a New Big Bull on Tesla

    Wall Street Has a New Big Bull on Tesla

    (Bloomberg) -- Tesla Inc.’s potential success in energy generation and storage will be the next big thing to fuel the rally that’s already caused the stock to almost triple in the past year, analysts at Piper Sandler Cos. said as they increased their price target by more than 27%.Piper raised its target to $928 from $729, making it the most bullish estimate among among those tracked by Bloomberg. The shares -- which have more than doubled in the past four months -- rose as much as 7.8% in New York on Wednesday and touched a high of $925.“It’s easy to forget that TSLA sells batteries and solar power products; after all, the segment was only 6% of sales in 2019,” analysts Alexander Potter and Winnie Dong wrote in a note Tuesday. “But management says that the solar+storage business will one day rival the Automotive segment, and if this is true, then investors will eventually need to pay attention.”In order to gauge Tesla’s chances of success in generating and storing solar power, the analysts recently installed a solar-based system to use for charging a Model X and the results have been “illuminating” so far, they wrote in the note. Piper’s new price estimate implies an 8.1% advance from the last close.The brokerage raised its Tesla target price twice in January, citing in part the company’s growth potential in China.The electric-car maker started delivering its China-built Model 3 sedans to local customers last month, a year after its first factory outside the U.S. broke ground. Last year, Tesla delivered a record 367,500 vehicles globally.The shares gained 7.3% on Tuesday after analysts at Morgan Stanley and Sanford C. Bernstein boosted targets. While Morgan Stanley’s Adam Jonas reiterated his sell-equivalent recommendation, he nearly doubled his bull case for the shares, citing Tesla’s potential to become a key battery supplier for electric vehicles.(Updates share move in second paragraph.)\--With assistance from Dana Hull, Beth Mellor and Esha Dey.To contact the reporter on this story: Lianting Tu in Singapore at ltu4@bloomberg.netTo contact the editors responsible for this story: Chris Nagi at chrisnagi@bloomberg.net, Margo Towie, Richard RichtmyerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Investing.com

    Watch Now: Here's What's Moving Markets - Feb. 19 (Video)

    Investing.com - Our Senior Analyst Jesse Cohen gives us his top five things to know in financial markets on Wednesday, February 19, including:

  • Europe Floors It in the Race to Dominate Car Batteries

    Europe Floors It in the Race to Dominate Car Batteries

    (Bloomberg) -- Outside the German town of Arnstadt, workers for China’s Contemporary Amperex Technology Co. Ltd. (CATL) are hustling to build Europe’s biggest electric-car battery plant.The  site, which covers an area equivalent to about 100 football fields, previously housed one of the continent’s largest solar-panel factories. During a visit in October, wooden crates filled with surplus equipment were stacked up outside the metal-clad structure to make way for car-battery-making equipment. Roaring bulldozers swarmed a nearby lot to prep for construction of a new building.The $2 billion project—one of about a half dozen battery factories under construction in Germany alone—worries European policymakers, who are desperate to ensure their auto industry doesn’t lose competitiveness in the transition to electric vehicles. EV sales in Europe are expected to jump to 7.7 million in 2030 from just under half a million in 2019, according to forecasts from BloombergNEF. Those vehicles will mainly be powered by batteries from Asian manufacturers like CATL, unless European companies fight back and build a local supply chain.EVs and clean transportation are at the heart of the European Union’s Green Deal, a more than €1 trillion ($1.1 trillion) European Commission policy initiative aimed at making the EU carbon neutral by 2050. The plan includes replacing large power plants with smaller, more local, renewable energy sources while eliminating combustion engines in buses, cars, and trucks. After betting on dirty diesel for too long, European politicians and the heads of Volkswagen, Daimler, and BMW are vowing to build a greener supply chain for all of those vehicles.“If we let China own the battery, then we lose out on the centerpiece of electric cars,” says German Deputy Economy Minister Thomas Bareiss. “I’m not sure that’s the best approach for our auto industry.”Europe has only a patchwork of small battery players. The biggest chunk of the value of a European-made electric car belongs to Asia—China, Korea, and Japan account for more than 80% of the world’s EV battery production, and companies such as CATL, LG Chem, and Samsung SDI control Europe’s biggest battery factories.To change that, the European Commission set up the Battery Alliance initiative. In December it approved €3.2 billion in aid for projects approved or currently under way at 17 companies, including BASF, BMW, and Fortum. The measure is meant to encourage greater investment in factories by these and other European companies.National governments are also committing large sums to battery efforts, especially in Germany. In early February its economy minister, Peter Altmaier, announced a €5 billion project for battery cells in Germany and France. Altmaier has been a leading proponent of developing a local battery sector. The goal, as he sees it, is to build “the best and most sustainable batteries in Germany and Europe.” There is no other option, he has said, if its carmakers are to succeed.European players, including Belgian materials technology company Umicore N.V. and German chemical company BASF SE, make battery materials from catalysts to cathodes. But there is little mining of key ingredients like lithium, and no capacity to turn those resources into high quality vehicle batteries. A desire to bring  lithium and other materials closer to the production line is partly driving the efforts. “Lithium hydroxide doesn’t travel well,” say Andreas Scherer of AMG Advanced Metallurgical Group NV. “It doesn’t like to sit in a bag in the belly of a ship for six weeks—that’s bad for quality.”Stringent environmental rules and community opposition to more mines could slow the momentum. Land owners and environmental groups fear the resulting emissions and pollution. Finland’s Keliber Oy in November postponed its planned initial public offering and the construction of a lithium mine on appeals against its environmental permit.Some countries are pushing ahead. Support from the European Commission to mine battery metals—and the potential riches—motivated Dietrich Wanke to trade a career in Australian mining for the green hills of the Lavant valley in Wolfsberg, Austria. Wanke is the Chief Executive Officer of European Lithium, a startup mining company that aims to become a supplier of raw material for batteries. It operates from an abandoned test tunnel in Austria, where government geologists looking for uranium in the 1980s found lithium instead.“We won’t be able to produce the absolute cheapest material. It is clearly a commodity mined in Europe, according to European laws and environmental standards,” Wanke says. “It must be seen as a unique product, contributing to the reduction in carbon dioxide emissions in Europe.”The Wolfsberg project is traditional hard-rock mining, with the ensuing environmental consequences. Another startup, or junior, miner, Vulcan Energy Resources Ltd., claims it will produce the material with no CO₂ emissions by adding lithium-extraction facilities to existing geothermal power plants feeding on underground reservoirs in southern Germany. The method is similar to what Warren Buffett’s Berkshire Hathaway Inc. is researching in California’s Salton Sea. “By 2028, forecasters see Europe alone needing more lithium than is being produced in the entire world today,” says Vulcan Energy’s managing director, Francis Wedin. Still, the efforts now could be too little, too late. “European manufacturers have dragged their feet,” says Jose Lazuen, senior automotive practice analyst at Roskill. “Asian producers started taking positions in Europe two or three years ago, because they knew Europeans would need batteries.”While others are talking, the Chinese are busy building out capacity in Arnstadt for what’s shaping up to be another clean energy fight. The battleground is a former solar panel factory where two previous German owners failed to compete against low-price competition from China. As Germany’s deputy economy minister, Bareiss, says, “It’s about staying in the game and playing a role in a critical technology.”\--With assistance from Ewa Krukowska and Birgit Jennen.To contact the authors of this story: Laura Millan Lombrana in Madrid at lmillan4@bloomberg.netChris Reiter in Berlin at creiter2@bloomberg.netRichard Weiss in Frankfurt at rweiss5@bloomberg.netTo contact the editor responsible for this story: Dimitra Kessenides at dkessenides1@bloomberg.netFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • CARZ ETF Gains on Tesla's Rally Despite Mixed Auto Earnings

    CARZ ETF Gains on Tesla's Rally Despite Mixed Auto Earnings

    Tesla's relentless rally is providing support to the automobile ETF amid mixed earnings results.

  • Virgin Galactic Frenzy Starting to Look a Little Like Tesla Run

    Virgin Galactic Frenzy Starting to Look a Little Like Tesla Run

    (Bloomberg) -- A seven-day surge in Virgin Galactic Holdings Inc. has lifted the stock four times above its level in December. Gains are snowballing, options traders are piling in, chatrooms are lighting up. It’s all starting to look similar to another space-age growth stock’s recent run.Though the company is just a fraction of Tesla Inc. in terms of market value, the frenzy around its shares is similar. The average increase in Virgin’s share price has totaled more than 9% since last Monday, and double-digit rallies have been propagating.Virgin Galactic options activity has kept pace with the stock’s meteoric push, and may even be fueling it. As of 2:20 pm in New York Tuesday, call volume exceeded 360,000 contracts, which dwarfs the previous record set on Friday.The notional value of calls that changed hands topped $1 billion with several hours still left in the trading day Tuesday. The company came into the session with a market capitalization just over $6 billion. For reference, the notional value of call options traded averaged about 0.5% of its market value during the final five sessions of 2019 and first five of this year.Derivatives that can extract even more gains from Virgin Galactic have become a favorite among retail investors, judging by activity on message boards like r/wallstreetbets. When a fresh option is written, a dealer who sells it will typically hedge their exposure by buying a certain amount of the stock so as not to accumulate a short position, and will tend to buy more shares in the event of a continued rally. Some traders have seized onto this dynamic as evidence that their options-buying activity is sufficient to perpetuate a rally in the underlying stock.The recent activity is reminiscent of the euphoria that overtook trading in Tesla just a few weeks ago when FOMO trading in the electric-car manufacturer overtook Google searches. While Virgin Galactic has yet to reach that level of retail excitement, more than 91 million shares traded hands on Tuesday. That’s the most since the company’s September 2017 public offering, more than 27-times the average volume, and dwarfs the activity seen in Tesla.Even with the stock’s parabolic rise, bears have continued to pile in with more than 30% of shares available for trading currently sold short, according to data compiled by S3 Partners. Bets that Richard Branson’s space-tourism company company goes bust stand in stark contrast to the market’s recent realization that wagering against Elon Musk and Tesla hasn’t panned out. Roughly 15% of Tesla shares available for trading are currently short, the lowest level in at least a year, data from S3 show.Morgan Stanley analyst Adam Jonas offered a warning to investors chasing the rally that recent gains appear “to be driven by forces beyond fundamental factors.” Branson’s Virgin Galactic and Musk’s SpaceX as well as Blue Origin, Jeff Bezos’s rocket company, are racing to make space tourism a reality.To contact the reporters on this story: Luke Kawa in New York at lkawa@bloomberg.net;Bailey Lipschultz in New York at blipschultz@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Chris Nagi, Richard RichtmyerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Virgin Galactic's stock soars, fueled by retail investors

    Virgin Galactic's stock soars, fueled by retail investors

    Virgin Galactic Holdings Inc shares surged 24% on Tuesday, extending a rally since early December to over 400% and evoking a warning from an analyst who likes the space tourism company but warns it has become overbought. Shares of the company backed by billionaire Richard Branson have taken off in popularity among individual investors in recent sessions, nearly displacing Tesla Inc , another favorite among non-professional investors. Virgin Galactic was the third most traded stock on Fidelity's online brokerage in recent sessions, with two thirds of clients buying shares, rather than selling.

  • Apple's Coronavirus Warning, Tesla Climbs & A Strong Buy Chip Stock - Free Lunch

    Apple's Coronavirus Warning, Tesla Climbs & A Strong Buy Chip Stock - Free Lunch

    Apple's coronavirus warning. Tesla's continued climb. Walmart's quarterly earnings results. And why Applied Materials, Inc. (AMAT) is a Zacks Rank 1 (Strong Buy) stock right now...

  • Bloomberg

    Tesla China Funding May Be Subject of SEC Inquiry, Evercore Says

    (Bloomberg) -- Tesla Inc.’s financing arrangements in China may be the subject of the Securities and Exchange Commission inquiry that the electric-car maker disclosed last week, according to analysts at Evercore ISI.The financing Tesla lined up from local banks last year may have allowed the carmaker to delay recognition of capital expenditures, Chris McNally, who rates Tesla shares the equivalent of a sell, said in a Feb. 14 report. The Evercore analyst said the arrangements also probably help explain how Tesla spent just $1.3 billion on capex last year, a little over half its budget for as much as $2.5 billion.“It’s possible that TSLA’s Shanghai factory and extremely limited capex may be what the SEC is looking into,” McNally wrote. Representatives for Tesla didn’t immediately respond to requests for comment, and Judy Burns, an SEC spokeswoman, declined to comment.Tesla disclosed in a regulatory filing last week that the SEC sent the company a subpoena on Dec. 4 seeking information on “certain financial data and contracts including Tesla’s regular financing arrangements.” In the same filing, the company said that much of the investment in its factory near Shanghai “has been and is expected to continue to be provided through local debt financing.”Tesla disclosed in December that it had lined up 11.25 billion yuan ($1.6 billion) in financing from local banks for the plant, which started producing Model 3 sedans late last year.“We are supplementing such financing with limited direct capital expenditures by us, at a lower cost per unit of production capacity than that of Model 3 production at the Fremont factory,” Tesla said last week in its 10-K, referring to its higher-cost assembly plant in California.After two straight quarterly profits, several analysts who have remained skeptical of Tesla’s earnings power have said the company will have to increase expenditures to follow through on Chief Executive Officer Elon Musk’s plans for new products and additional factories. The company plans to roll out the new Model Y crossover this quarter, start production of its Semi model this year and open a new plant near Berlin next year. It also has Cybertruck and Roadster models in development.\--With assistance from Matt Robinson.To contact the reporter on this story: Gabrielle Coppola in New York at gcoppola@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Chester DawsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Tesla Analysts Do About Face and Shares Resume Their Rally

    Tesla Analysts Do About Face and Shares Resume Their Rally

    (Bloomberg) -- Tesla Inc. shares resumed their steep ascent on Tuesday, after two prominent Wall Street analysts raised their price targets on the electric vehicle maker, and the company resumed deliveries of its China-built model 3 sedans after a pause due to the coronavirus outbreak.The company’s potential to become a key battery supplier for electric vehicles prompted Morgan Stanley’s Adam Jonas to nearly double his bull case for the shares.Jonas increased his most optimistic projection for Tesla to $1,200 a share from $650. That’s about 50% above the U.S. company’s $800.03 closing price Friday and would give Tesla a market capitalization of $220 billion. Jonas raised his base case target to $500 a share from $360 but reiterated his sell-equivalent recommendation.The new bull scenario is based on an “aggressive assumption” that Tesla could win 30% of the global electric-vehicle market, Jonas wrote in a report to clients. This would include 4 million car deliveries by 2030 plus the potential for Tesla to supply powertrains, including batteries and electric motors, to other auto manufacturers. In 2019, the company handed over 367,500 vehicles to customers.Separately, Sanford C Bernstein analyst Toni Sacconaghi raised his price target to $730 from $325, saying that while it is difficult to justify the company’s current share price, investors now feel much better about its ability to be sustainably profitable. The analyst also noted that Tesla’s Model 3 demand remained healthy, gross margin and operating expense were both poised to materially improve, competition was sputtering and product and production pipelines were robust.“Tesla is the ultimate ‘possibility’ stock,” Sacconaghi wrote in a note to clients, adding that the company’s core addressable market was likely to grow more than 30-times over the next 20 years, implying that even if Tesla’s current market share gets cut by half, it would still grow 15-times during the period. The analyst maintained his hold-equivalent rating.Tesla shares have had a wild ride this year. The stock is up 91% in 2020, a jump variously attributed to good results, a short squeeze, the opening of a key new factory in China or an extreme case of investor FOMO -- or all of the above. The surge cooled before the Palo Alto, California-based company undertook a $2 billion share offering Friday, priced at the steepest discount the carmaker has ever given to its investors.Analysts either have yet to adjust to the gain or remain highly skeptical. The average share-price target among analysts tracked by Bloomberg is $489.47.Morgan Stanley’s bear case for the stock is now $220. While that’s a 91% improvement from the broker’s most recent worst-price scenario, Jonas is sticking to his recommendation against buying the stock, saying the risk-reward balance on the manufacturer continues to be “unfavorable.”Tesla shares gained as much as 7.3% in New York, to touch $858.(Updates stock move.)\--With assistance from Lisa Pham and Catherine Larkin.To contact the reporters on this story: Sam Unsted in London at sunsted@bloomberg.net;Esha Dey in New York at edey@bloomberg.netTo contact the editors responsible for this story: Beth Mellor at bmellor@bloomberg.net, Tom Lavell, Scott SchnipperFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Elon Musk Calls Bill Gates Underwhelming After Billionaire Buys a Porsche

    Elon Musk Calls Bill Gates Underwhelming After Billionaire Buys a Porsche

    (Bloomberg) -- Bill Gates paid Tesla Inc. a compliment for coaxing the car industry to go electric. If he was expecting kind words in return from Elon Musk, he apparently shouldn’t have spoken about challenges that still lie ahead -- or about his new Porsche.Gates, the billionaire co-founder of Microsoft Corp., spoke with a YouTube influencer last week about the challenges of reducing emissions to slow climate change. He called the passenger-car industry “one of the most hopeful” sectors taking action in this regard.“And certainly Tesla, if you had to name one company that’s helped drive that, it’s them,” Gates told YouTuber Marques Brownlee.Then Gates discussed recently buying a Porsche Taycan. While he called the electric sports car “very, very cool,” he acknowledged its premium price -- the initial Turbo S models start at $185,000 -- and said consumers still have to overcome anxieties about EVs offering limited range and taking longer to recharge. Gasoline-powered cars travel longer between quick refuels at stations that outnumber charging points.WANT MORE? Upgrade the luxury in your life with the Pursuits Weekly newsletter. The best in high-end autos, food, real estate, fashion, culture, and lifestyle delivered every Wednesday. When a Tesla enthusiast posted about being disappointed in Gates’s decision to buy a Taycan instead of a Tesla and his comments about range anxiety, Musk replied: “My conversations with Gates have been underwhelming tbh.”Musk, 48, is of course no stranger to tweeting dismissively about fellow billionaires. The Tesla chief executive officer questioned Facebook Inc. CEO Mark Zuckerberg’s understanding of artificial intelligence risks in 2017. Last year, he called Jeff Bezos a copycat after the Amazon.com Inc. CEO embarked on an internet-satellite project that could rival one that Musk’s closely held company SpaceX is pursuing.The Tesla CEO’s commentary on Porsche’s Taycan has been mixed. After chiding the sports car brand for using internal combustion engine nomenclature for the high-end version of its debut electric vehicle, he tweeted in September that it “does seem like a good car.”(Updates with Musk’s tweets on Taycan in last paragraph)To contact the reporter on this story: Craig Trudell in New York at ctrudell1@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Will DaviesFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Singapore aims to phase out petrol and diesel vehicles by 2040

    Singapore aims to phase out petrol and diesel vehicles by 2040

    The wealthy city-state of 5.7 million, which is hiking investment in flood defences, joins Norway, Britain and others in setting a target to cut the use of vehicles with combustion engines. "Our vision is to phase out ICE (internal combustion engine) vehicles and have all vehicles run on cleaner energy by 2040," Finance Minister Heng Swee Keat said in his budget speech. Singapore, which has been criticised by Tesla CEO Elon Musk as not being supportive of electric vehicles, is one of the most expensive places in the world to buy a car and there are few electric vehicles on the roads.

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