|Day's range||665.38 - 665.38|
(Bloomberg) -- Brazil President Jair Bolsonaro will travel to the U.S. next month for the fourth time in a year with a pro-business agenda that includes trying to convince electric vehicle manufacturer Tesla Inc. to set up a plant in the South American country.Bolsonaro’s visit will be on March 7-10 and his plans include attending a business seminar in Miami, according to the presidency’s press office. On Twitter, Bolsonaro said his “extensive agenda” consists of the possibility of Tesla building a factory in Brazil, without providing further details. The Palo Alto, California-based company didn’t immediately reply a request for comment.Since taking office last year, Bolsonaro has revamped his nation’s foreign policy by pursuing closer ties with the U.S. and its allies while eschewing multilateralism. In a major win for the South American president ahead of his trip, the U.S. on Friday lifted a ban on fresh-beef imports from Brazil that had been in place since 2017. Other victories for Bolsonaro came when the administration of President Donald Trump announced plans to promote Brazil’s bid to join the Organisation for Economic Co-operation and Development and refrained from placing tariffs on Brazil’s steel.An encounter between Trump and Bolsonaro during his visit is almost a given, White House economic adviser Larry Kudlow told reporters in Washington on Friday.“I would almost certainly expect him to be meeting with President Trump, they are friends, looking forward to the bilateral,” he said.Nicknamed by some as “Trump of the Tropics,” Bolsonaro has made his admiration of his U.S. counterpart no secret. The Brazilian president has repeatedly forecast Trump will win re-election this year and has even gone as far as broadcasting himself watching the U.S. head of state’s speeches.Read more: Brazilian President Streams Himself Watching Trump’s Iran SpeechWhile in the U.S., Bolsonaro will also participate in the event “Brazil-U.S. Business Relations in Florida” organized by export agency Apex. More than 300 business executives are expected to attend the seminar, which will feature presentations on Brazil’s economic outlook, business climate and efforts to privatize billions of dollars in state-controlled assets.The Brazilian presidency’s press office wasn’t immediately able to confirm whether or not Bolsonaro will meet Trump during the March trip.(Updates with U.S. decision to lift ban on Brazil beef imports in 3d graph.)\--With assistance from Dana Hull and Samy Adghirni.To contact the reporters on this story: Simone Iglesias in Brasília at firstname.lastname@example.org;Josh Wingrove in Washington at email@example.comTo contact the editors responsible for this story: Juan Pablo Spinetto at firstname.lastname@example.org, Matthew MalinowskiFor 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.
(Bloomberg) -- Small investors are back. In a big way.Their fingerprints are on Apple Inc.’s staggering rally. They piled into Tesla Inc. as it tripled, and turned speculative fliers like Virgin Galactic Holdings Inc. into some of the most heavily traded shares in the country. Why the enthusiasm? Some see a link to decisions by brokerages to cut commissions on trades to nothing.While it’s tough to know what’s causing what -- bull markets are fueled by new converts but also lure them -- trading volume at online and discount brokers has exploded. TD Ameritrade Holding Corp., which started offering free trading in October, has seen million-trade days multiplying at a record pace.Along with E*Trade Financial Corp., daily average revenue trades -- a standard industry metric that may be a bit of a misnomer now since buying and selling is free -- have almost doubled to an all-time high since last September, data compiled by Sundial Research showed.“When you take a bull market and juice it with zero commission trading, we can expect it to generate interest among retail accounts. That, it did,” said Jason Goepfert, president of Sundial. “Retail traders have become manic.”Individual investors were seen as indifferent participants for much of the 11-year bull market. No more. The latest leg of their emergence times closely with October, when E*Trade, Charles Schwab and TD Ameritrade slashed commission fees to zero. Not that it’s firm proof of anything, but since the start of that month, the S&P 500 is up 12% and the Nasdaq 100 has surged 22%.Conversations with a handful of clients found lots of praise for zero-commission trades but mostly conservative purchases -- index funds and blue chips. Matt Hermansen, 23, who works for a concrete company in Oakland, California, said the absence of fees makes him more willing to trade.“I’ll invest smaller amounts. Before I never really invested anything less than $1,000, $500 minimum,” he said in a phone interview. “Now if I have enough to buy an extra share, I’ll do it. I’ll do like $300.”At TD Ameritrade, the number of days where the amount of trades topped 1 million reached 38 during the fiscal first quarter ended Dec. 31, according to Steve Boyle, interim president and chief executive officer. That compares to 23 such days in all of fiscal year 2019.It’s “a new world in discount brokerage where price no longer clouds the comparison for trades,” Boyle said in an earnings statement on Jan. 21. By that date, the firm’s monthly volume had already risen 40% from a year ago, averaging 1.4 million trades per day.At E*Trade, similar trends has played out. Daily average revenue trades have increased 74% since the firm’s fee cut, Sundial’s data showed.Randy Frederick, a vice president of trading and derivatives at Charles Schwab, says the surge in trading also reflects a growing confidence in the bull market. Indeed, from the coronavirus outbreak to Apple’s sales warning, nothing has been able to stop shares from marching higher.“It’s partially driven by free commissions, but I don’t think it’s just that, because not everyone is offering free commissions,” Frederick said. “The fact that we have been in a bull market for a long time, people are just optimistic. Things are going up and they continue to go up.”U.S. households are turning more optimistic on the stock market. According to the latest sentiment reading from the Conference Board, the share of respondents expecting stocks to rise in the next year advanced to 43.1% in January, the highest since October 2018.Hot stocks get the most attention. At TD Ameritrade, Apple, Microsoft Inc., Tesla and Virgin Galactic have been among the highly traded this year, according to JJ Kinahan, the firm’s chief market strategist. Shares of the two tech giants have climbed at least 9%, double the S&P 500’s gain. Tesla, Elon Musk’s automaker, and Virgin Galactic, Richard Branson’s space-tourism company, have done even better, with triple-digit advances. Virgin Galactic, in particular, has seen retail investors talking up their positions on message boards like r/wallstreetbets on Reddit.“A lot of our millennial clients over the past six months were buyers of Tesla,” Kinahan said. “Younger people buy products they are familiar with, or more importantly, think are going to be viable products down the road,” he added. “It does make sense to say that some of these, maybe Virgin Galactic, may be a product that makes sense in 10 years.”For Peter Cecchini, chief global market strategist at Cantor Fitzgerald LP, affection among retail investors for both tech stocks and loss-making companies is creating flashbacks to the internet frenzy in late 1990s.“There’s sometimes no fundamental reason for it. It just is based on perception -- a perception based on narratives that run only an inch deep,” he said in note. “Let’s see how much longer it persists. This kind of activity often unwinds much faster than the wind up.”(Updates prices in sixth paragraph)\--With assistance from Claire Ballentine and Esha Dey.To contact the reporters on this story: Lu Wang in New York at email@example.com;Vildana Hajric in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, 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.
Tesla, Inc. (NASDAQ:TSLA) shareholders (or potential shareholders) will be happy to see that the Founder, Elon Musk...
Tesla Inc said it had resumed tree cutting in Gruenheide, Germany so it can construct its first European car and battery factory following moves by environmentalists to stop local deforestation. "Tree clearance is proceeding in an orderly manner," Tesla said on Friday. There were no environmentalists holding up the process, Tesla's spokeswoman Kathrin Schira said in a statement.
Everi, Franklin Electric, Tesla, General Motors and Fiat Chrysler highlighted as Zacks Bull and Bear of the Day
Investing.com – SpaceX, the private space exploration and tourism company founded by Tesla (NASDAQ:TSLA) CEO Elon Musk, is looking to raise $250 million in its next round of funding, according to a published report Friday.
(Bloomberg) -- Tesla Inc. has overcome a legal roadblock standing in the way of Elon Musk’s plan to build an electric-car factory in Germany.A Berlin-Brandenburg court on Thursday ruled that Tesla can resume cutting down trees at a forest site in the small town of Gruenheide to make way for its first assembly plant in Europe. That puts the U.S. carmaker on track to start construction before the start of a crucial breeding period for local wildlife in March.The court found that local authorities didn’t violate laws when they allowed work on the factory to start, throwing out a complaint by Gruene Liga Brandenburg, an environmental group that claimed Tesla and local authorities were sidestepping regulations to rush the project.The decision is a boon to Tesla’s ambitious timetable to have the plant up and running by the middle of next year. The company plans to eventually produce as many as 500,000 cars a year at the site, employing 12,000 people and posing a serious challenge to Volkswagen AG, Daimler AG and BMW AG.Tesla shares were down about 1.8% to $883.21 in pre-market New York trading, from a close of $899.41 on Thursday. The stock has more than doubled this year, giving the company a market value of about $166 billion.Musk, Tesla’s chief executive officer, recently tried to ease local concerns about water usage at the plant, which would border a nature reserve.Local officials had warned that construction could be delayed by six to nine months if the forest isn’t cleared by mid-March. Tesla has already cut down two-thirds of the trees and should be able to fell the remainder in time.“It’s a good signal for environmental protection, jobs, and future technologies,” Economy Minister Peter Altmaier said in a statement. “We’ve learned that we’ll only have a chance in such significant projects if we can come to decisions in an appropriate time frame.”Brandenburg’s environment ministry this month gave Tesla a preliminary green light to start cutting down trees in an area equivalent to 100 soccer fields ahead of granting final approval. The court stopped the process with an injunction on Feb. 15. By late Thursday, the appeals court ruled that legal requirements to allow early construction were met.Gruene Liga has warned that Tesla’s plant could threaten the region’s water supply and overburden local transport infrastructure. The group argued that authorities shouldn’t have allowed the forest to start being cleared until after March 5, the deadline set for environmental groups to comment on the project.Local officials argue the site is an inferior pine forest planted to be harvested in the first place.The factory will be designed with “sustainability and the environment in mind,” Musk said last month on Twitter, adding Tesla will plant three new trees for every one cut. The company still needs final approval for the project from authorities in the state of Brandenburg.Tesla will also have to scare off or relocate wolves, bats, snakes, ants and lizards until construction is over. Under German regulations, the project must consider the breeding period for local wildlife in spring.(Updates with Economy Minister statement in seventh paragraph.)To contact the reporters on this story: Karin Matussek in Berlin at firstname.lastname@example.org;Stefan Nicola in Berlin at email@example.comTo contact the editors responsible for this story: Anthony Aarons at firstname.lastname@example.org, Christopher Elser, 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.
(Bloomberg Opinion) -- A year ago Richard Branson was on his private island, Necker, when the former Twitter executive Adam Bain came to see him with a proposal for how to take Branson’s suborbital space travel company public.The bearded British billionaire is doubtless glad he took the meeting: After an unsteady start, Virgin Galactic Holdings Inc.’s valuation has rocketed. The stock has surged more than 400% since a low in December, valuing the company at close to $8 billion, or almost 2,000 times the revenues it’s estimated to have generated in 2019. (For comparison, Uber Technologies Inc. trades on about 5.5 times last year’s revenue).Vieco USA, a Virgin-controlled entity, still owns more than half of the shares,(1) meaning Branson’s net worth — estimated by the Bloomberg Billionaires Index at about $5 billion before the listing — is suddenly a whole lot bigger. The loss-making company is now his most valuable asset. There haven’t been any big company developments to justify such market euphoria, which makes you wonder whether it’s sustainable. The stock gains since the start of this year are about double those enjoyed by Tesla Inc.’s rip-snorting shares.Several hedge funds, including Suvretta Capital Management, which owns 3.4% of Virgin Galactic’s equity, have profited from the surge but plenty of its peers are betting that a meeting with cold reality is inevitable. About 30% of the free float has been shorted, according to IHS Markit data. This space battle isn’t for the fainthearted, and there’s a danger that overenthusiastic retail investors end up getting hurt. On Thursday, the stock rose as much as 13%, erased all those gains, then fell as much as 18%, before closing broadly unchanged.In fairness, Virgin Galactic’s technical achievements are impressive, even inspiring. Branson’s company has spent years perfecting its product, giving it a head start in the nascent space tourism business. At $250,000 a ticket for a 90-minute flight (including a few minutes of zero-gravity weightlessness) it could prove to be pretty lucrative. The company might have almost $600 million of yearly revenue by 2023, according to a management projection.But, as I’ve noted before, a lot can go wrong when your business is carrying tourists into suborbital space and twitchy regulators are poring over your every move. Any unexpected delays or interruptions (never mind an accident) would cause the stock to swiftly lose altitude.As with Elon Musk’s Tesla faithful, Virgin Galactic’s fans don’t seem too bothered by these near-term challenges. One hope among investors is that the company will use the technology and experience gained from ferrying tourists into space to build a potentially far more lucrative market: intercontinental hypersonic flight.Yet the regulatory hurdles to launching such flights will be daunting. Perfecting the technology will require much more than the $430 million in net proceeds that Virgin Galactic received from the listing.(2)It’s conceivable, then, that the huge run-up in the stock — if sustained — might tempt Branson to raise more money, just as Tesla did last week with a $2 billion stock offering. The investor enthusiasm shown for Branson’s company won’t have escaped Musk’s attention either. His Space Exploration Technologies Corp. (SpaceX) has had no trouble raising money in private markets; it’s been valued at about $33 billion. But the Tesla founder is also considering a public offering of SpaceX’s internet offshoot, Starlink, in a few years, and any market fervor around space investing would make that easier. A hard landing for Virgin Galactic investors could change the dynamic.For now, Branson could afford to splash out on another private island if he wanted. Or maybe some acreage on the moon. (1) Vieco owns a 58.6% stake and Branson is the beneficial owner of 80.7% of that, according to this filing.(2) Virgin Galactic could receive a further cash boost if warrants conveying the right to purchase a total of 31 million shares are exercised for cash.To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
China is not only the world’s top supplier of battery metals, but also the world’s top processor, and that means the country is vital to the electric vehicle revolution
Tesla Inc got approval from a German court on Thursday to continue to cut down forest near the capital Berlin to build its first European car and battery factory, in a defeat for local environmental activists. The court said in a statement it had rejected urgent applications to stop the land being cleared of trees from several environmental groups, adding its ruling was final. The U.S. electric carmaker announced plans last November to build a Gigafactory in Gruenheide in the eastern state of Brandenburg that surrounds Berlin, a decision that was initially lauded as a vote of confidence in Germany.
Tesla's Model 3 is among the top 10 choices for car buyers in 2020, according to Consumer Reports. The nonprofit organization released its "Top Picks" of the year on Thursday, and it included Tesla's most affordable vehicle alongside cars from automakers including Toyota, Subaru, Honda, Kia and Lexus. Consumer Reports also specifically called out a worry about the Model 3 that "Autopilot, an optional system on the vehicle, does not require the driver to stay engaged, creating safety concerns." Tesla has always positioned Autopilot as a driver-assist feature that still requires a driver to be ready to take over control at a moment's notice, but critics have suggested its implementation can lead to misuse resulting in inattentiveness.
(Bloomberg) -- Tesla Inc.’s electric cars raced up Consumer Reports’s latest auto brand rankings, inching closer to leader Porsche.Tesla jumped eight spots -- more than any other brand -- to No. 11 in an annual report based on road tests, reliability data, owner satisfaction surveys and safety performance. Consumer Reports ranked Tesla higher than any U.S. brand and made the Model 3 sedan a top pick for the first time, a designation the nonprofit bestows to only 10 cars, SUVs and trucks per year.“The vehicles perform phenomenally,” Jake Fisher, senior director of automotive testing, said of Teslas in a phone interview. “People just love these vehicles.”The acclaim is a major coup for Elon Musk, who eschews the traditional advertising that costs major automakers billions. Many car buyers consult Consumer Reports for big-ticket purchases because it’s built a reputation for thorough and meticulous testing. The organization buys all the vehicles it tests and doesn’t accept any marketing dollars from manufacturers.The Model 3 didn’t perform as well when it first launched in 2017 because, as with the Model S sedan, Tesla was making regular changes to the car on the fly, Fisher said. While the company made some tweaks using over-the-air software updates, others involved changes to hardware that tend to cause problems with reliability. Those cars have stabilized and continue to help the brand overcome poor scores for the Model X sport utility vehicle.Porsche climbed two spots in the rankings to knock Subaru out of first place, though two of the Japanese brand’s models were top picks: the Forester SUV and Legacy sedan. Toyota Motor Corp. dominated those honors by winning four designations with its namesake models -- the Supra sports car, Avalon sedan, Prius hybrid and Corolla small car -- and one with Lexus for the RX SUV.Hyundai Motor Co.’s Genesis luxury brand finished second, unchanged from a year ago. The Korean brand has been on a roll in several influential surveys, leading J.D. Power’s Initial Quality Study each of the last two years. Its first SUV model, the GV80, goes on sale this summer.“Genesis is a luxury brand that competed extremely well right out of the gate,” Fisher said. “It reminds you of 1989 when Lexus arrived.”Ford Motor Co.’s Lincoln line was the second-best American car brand, placing 13th. U.S. automakers were otherwise relegated mostly to the bottom third of the rankings. The Ford brand fell to 23rd, and General Motors Co.’s Chevrolet and GMC placed 25th and 26th.Cadillac’s continued reliability problems dropped the brand to 29th. The Fiat brand again finished last among 33 brands, while Jeep, the cash-cow brand within Fiat Chrysler Automobiles NV, didn’t fare much better.Owners like Jeep’s styling, but the SUVs continue to have ride, handling and quality issues that contributed to the brand slipping two spots to 31st.“Take the badge off and look what do they do, how do they handle, what’s the reliability,” Fisher said. “They just are not competitive.”To contact the reporters on this story: David Welch in Southfield at email@example.com;Keith Naughton in Southfield, Michigan at firstname.lastname@example.org;Gabrielle Coppola in New York at email@example.comTo contact the editors responsible for this story: Craig Trudell at firstname.lastname@example.org, 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.
(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 email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, 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.