|Day's range||2.8000 - 3.0000|
Tesla has lowered the price of another vehicle. This time it's the Model Y, an electric SUV the company started shipping in March. The traditional big three U.S. automakers -- Ford, GM and Fiat Chrysler Automobiles -- are offering 0% financing rates, in addition to deferred or longer-term payment options, while other automakers have also announced incentives and payment plans to appeal to new buyers and keep existing owners from defaulting on loans.
The latest leg of Tesla's rally comes after the company on Saturday cut the price of its Model Y sport utility vehicle by $3,000, just four months after its launch, as it tries to maintain sales momentum in the COVID-19 pandemic. Higher-than-expected second-quarter vehicle deliveries, announced earlier this month, have some analysts and investors expecting the company will show a profit in its quarterly report on July 22. With its market capitalization now at $310 billion, Tesla would be among the most valuable companies ever added to the S&P 500.
(Bloomberg) -- It was sold as an all-or-nothing moonshot into space, the boldest pay package in corporate history.Now, with Tesla Inc.’s stock on a seemingly unstoppable rise, Elon Musk is poised to collect the second tranche of his pay award, worth $2.4 billion.Barring a sudden drop in the electric-car maker’s shares, the final performance threshold tied to market value should be met in a matter of days. That would unlock 1.69 million stock options, yielding Musk the 10-figure sum if he were to exercise and immediately sell the shares.The remarkable payout follows an equally remarkable ride for Tesla, whose shares have more than quadrupled this year and ballooned Musk’s net worth to $70.5 billion, making him the seventh-richest person on the Bloomberg Billionaires Index. The automaker is currently worth more than Toyota Motor Corp., Volkswagen AG and Hyundai Motor Co. combined.Read more: Elon Musk Soars Past Warren Buffett on Billionaires RankingThe rally has left Wall Street analysts struggling to make sense of the firm’s valuation, which topped $300 billion on Monday. Some have focused on the company’s work to improve batteries or the prospect that it may soon start selling cars in India.Tesla is scheduled to release second-quarter results July 22. If it reports a profit, it would be the fourth consecutive such quarter -- a milestone needed to be considered for inclusion in the S&P 500 Index.Ambitious TargetsMusk, 49, has never accepted a salary, with his pay instead consisting of option awards that he can collect only if the California-based company meets ambitious targets.The most recent iteration, unveiled in early 2018, was the largest-ever corporate pay deal struck between a company’s board and its chief executive officer. It includes 20.3 million options, split into 12 tranches, that could yield Musk more than $50 billion if all goals are met, according to Tesla’s estimates.Getting all of it, however, is far from certain. Each tranche is tied to specific targets for revenue, adjusted earnings before interest, taxes, depreciation and amortization, as well as Tesla’s average trailing market capitalization over 30 days and six months. The first market-value threshold was set at $100 billion, with the others following in $50 billion increments.Tesla reached its first milestones for sales and Ebitda -- $20 billion and $1.5 billion, respectively -- last year. And its 30-day market value average has been well above the $150 billion threshold for some time. Once the six-month average exceeds that level, Musk will claim the 1.69 million options and can exercise them at will.Musk said on Twitter last week that he could cash in on some of his stock eventually to further the mission of his other most high-profile company, Space Exploration Technologies Corp.For 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) -- Tesla Inc.’s relentless surge continued Monday ahead of several events that include the possible unveiling of new battery technology, the entry into a lucrative new market and the stock’s potential addition to the prestigious S&P 500 Index.The incredible rally in the stock has left Wall Street analysts struggling to make sense of the sky-high valuation -- which soared past that of Toyota Motor Corp. earlier this month and topped $320 billion on Monday. Tesla shares are up about four-fold just this year, despite a steep pandemic-related sell-off in February and March.Although Tesla had kicked off this year with a strong run, its ascent has been turbo-charged after reporting better-than-expected delivery numbers earlier this month, leading many to say the company may be poised to report a profit for the second quarter. Profitability is good news in itself, but in the case of Tesla, this would also mark the fourth consecutive quarter of profit, a milestone it needs to achieve to be considered for inclusion in the S&P 500.At the current price, Tesla’s stock reflects an expectation of 2030 volume of 5 million units, which is more than ten times what the company appears on track to achieve this year, Morgan Stanley analyst Adam Jonas said. “We’re not saying these are assumptions that are not possible, but they are a very big leap ahead from what the company has proven to date,” the analyst wrote in a report. Jonas has a sell-equivalent rating on Tesla, with a price target of $740.Tesla jumped as much as 16% to $1,794.99 on Monday, the biggest intraday gain since March 24.Good News AboundsTesla late Friday said its much-anticipated “Battery Day” event will be held on Sept. 22, at its factory in Fremont, California. According to Wedbush analyst Daniel Ives, the company could announce a number of “game-changing” battery developments at the event.“The technology innovations around Fremont remain the key ingredients in Tesla’s success on the battery front and we believe the company is getting closer to announcing the million-mile battery,” Ives wrote to clients. Ives expects the new battery to potentially last for decades, as well as withstand all types of weather and terrain.Roth Capital analyst Craig Irwin, one of the more skeptical analysts on the Street, upgraded his rating on Tesla to the equivalent of a hold from sell, saying the company is well down the path of preparing to enter the Indian market, where the analyst sees China-like potential. “We expect tangible evidence by the end of 2020, with sales in India starting as soon as 2021,” Irwin said.(Adds Morgan Stanley comments in fourth paragraph, plus chart, other details)For 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.
Positive views on prospects for a coronavirus solution helped make market participants more confident.
Shares of the growth stock are likely up for a combination of reasons, including building on last week's momentum, speculation that the stock will soon be included in the S&P 500 index, and analyst commentary about the company's upcoming Battery Day event. Last week, Tesla shares jumped on news that the stock may soon be included in the S&P 500. Now shares may be getting an additional lift from an analyst note saying that the company's Battery Day event on Sept. 22 could be "a major positive catalyst" for Tesla stock.
Shares of Tesla (NASDAQ: TSLA) opened the week sharply higher, as investors reacted to a series of news items, including a report that Tesla might be preparing to launch a small, affordable electric vehicle for India. Over the weekend, Electrek reported that Tesla has cut the U.S. price of its Model Y crossover SUV by $3,000, suggesting that demand for its latest model has been weaker than expected. The starting price for the Model Y is now $49,990, down from the $52,990 that Tesla had been charging since deliveries of the electric crossover began in March.
While Ford's (F) second-quarter vehicle sales in China rise 3% year over year, Asbury (ABG) is set to acquire Park Place dealerships.
Although the opportunities in the EV sector are abundant, the latest hype in the industry is a reminiscent of the dot-com boom in the 1990s.
An electric-car speedster, discount brokerage giant, and airport-tethered wellness chain seem pretty vulnerable this week.
Intriguing research into stock market price trends shows that investors behave strangely when a stock trades close to its 52-week high... Despite flying high,...
(Bloomberg) -- Tesla Inc. needs to succeed in China if it wants to dominate the world of electric cars—especially in a post-virus world. To do that, Elon Musk is turning to a battery engineer who once helped Apple Inc. extend the life of its MacBook laptops.Zeng Yuqun, 52, built Contemporary Amperex Technology Co. Ltd. into China’s battery champion in less than a decade, creating the largest global producer of rechargeable cells for the plug-in vehicles considered to be the future of cars. That effort has helped propel Zeng from a modest hillside village and $30-a-month job with a state-run company to an estimated $17 billion fortune.CATL’s products are in the vehicles of almost every major global auto brand, and starting this month they’ll also power electric cars manufactured by Tesla at its new factory on the outskirts of Shanghai. It’s an alliance with lucrative potential, combining the sector’s most-popular plug-in model—the Tesla Model 3—with low-cost batteries in a market that last year bought more than three electric vehicles for every one sold in the U.S., but faces an uncertain future as the pandemic rocks the global economy.There’s already a developing partnership between the two executives, according to Zeng. The pair trade text messages to discuss prospective innovations in technology, their responses to the challenges wrought by the coronavirus and the Tesla chief’s primary obsession: cheaper batteries and vehicles.“Elon talks about cost all day long, and I told him to be assured that I would have solutions,” Zeng said in an interview at CATL’s headquarters in Ningde, where his 20th-floor office overlooks a fishing hub on China’s southeastern coast now transformed by clusters of battery plants and laboratories. “We get along well. He’s a fun guy.”CATL’s batteries can offer the Palo Alto, California-based company key advantages in China, particularly the potential to boost margins and lower sticker prices in a market on track to have 59 million EVs on the road by 2030, even after the impact of the virus. Most importantly, Zeng is expected to supply Tesla with lithium-iron-phosphate (LFP) batteries that use a cheaper mix of raw materials and cost about 20% less to make than other common types of packs, according to BloombergNEF.Tesla and CATL—the latter confirmed in a February filing it would become a supplier to the carmaker—declined to disclose precise details, including the types of packs involved. CATL shares have more than doubled this year, rising 9.9% on Monday to close at a record high in Shanghai trading.Working with a domestic supplier like CATL could further burnish Tesla's relations with China's authorities, which have been key to its local success. What’s more, Zeng serves on the Chinese People’s Political Consultative Conference, the advisory body to top leadership. There, he’s put forward proposals to further focus on renewable energy.For CATL, the alliance comes at a crucial time. Battery sales fell almost a third in the first five months of 2020, according to SNE Research, as car purchases plunged in China amid the pandemic, trade war and a scaling back of government subsidies. Electric-car sales have declined about 38 percent from a year ago, the China Association of Automobile Manufacturers said July 10, and that risks exposing the country’s multi-billion-dollar EV push as a bubble.The battery producer’s domestic market share also ebbed as Tesla rolled out its first China-made Model 3s with batteries from LG Chem Ltd. and Panasonic Corp. Starting next year, CATL should supply components for about half the Shanghai plant’s output, according to Sanford C. Bernstein.Aligning with Tesla will boost domestic sales, though CATL also needs to secure additional clients to improve its prospects outside China, where LG Chem and Samsung SDI Co., among others, are positioning themselves at a rapid pace.“CATL's success is largely because of the strong demand in China,” BNEF analyst Daixin Li said. “In the future, as EV markets outside China are growing quickly, maintaining and even increasing market share in the global market will rely on how successfully it can secure demand outside China.”Read More: A Million-Mile Battery From China Could Power Your Electric CarThe battery supplier has an eye on extending links with Tesla overseas, including to the automaker’s first European factory under construction outside Berlin. CATL, which also supplies Volkswagen AG and BMW AG, is building its own facility in central Germany and encouraging China-based suppliers to set up outposts there.“We won't exclude the possibility to supply its Berlin Gigafactory,” Zeng said in the interview.Tesla didn’t respond to requests for comment.Zeng has delivered in the past for blue-chip partners. His team helped BMW’s China joint venture develop its early battery-powered models, and CATL now has an 11-year supply contract with the German parent. At CATL’s forerunner company, Zeng helped Apple deliver long-life batteries for the MacBook Air.The supplier now sees an advantage in accelerating research on lower battery costs to help electric-powered cars achieve price parity with, and subsequently supplant, gas guzzlers.“You have to be more innovative, more cost-efficient, with better performance,” Zeng said. “That's the only way to beat them.”CATL is poised to commercialize new types of batteries made without cobalt, among the most-expensive raw materials. Beyond that, it wants to eliminate other costly metals, such as nickel and manganese.According to Zeng, the supplier also is capable of producing a long-life battery that lasts 16 years and 2 million kilometers (1.24 million miles), and is intended for use in multiple vehicles and in energy storage. That’s a milestone others, including Tesla and General Motors Co., are chasing.More research facilities are under construction in Ningde, where entire city blocks are filled with laboratories and apartment towers for CATL staff, including the “Cloud-Capped Pavilion” neighborhood where Zeng and his wife have a top-floor home. A 3.3 billion-yuan ($470 million) research-and-development complex is intended to be a global flagship.“Incremental improvements can build a well-performing company, but not a great one,” said Zeng. A sand model of the planned center sits on the floor by his office door. “We invest in geniuses.” Zeng himself earned a doctorate in condensed matter physics from the Chinese Academy of Sciences in Beijing.Spending by CATL on R&D jumped about 50% last year, to almost 3 billion yuan, and the firm has almost 5,400 staff focused on the tasks. They include 143 workers with Ph.D.s—who receive such perks as their own canteen and can take advantage of a company-run dating service that took credit for 52 marriages last year.Even before the new research hub, CATL’s efforts put it among the top tier of the industry, said Hu Feng, a partner at Shenzhen-based Gao Gong Lithium Battery Research Center who has tracked Zeng’s work for almost a decade.The sophisticated labs and new factories coming in China and Germany are a marked contrast to the makeshift production lines of Zeng’s early career. Staff members coated batteries with a paint brush in one hand and a hairdryer in the other, and Zeng once used paper clips as a temporary fix to stop vibrating equipment from damaging cells.Now, staff don medical-style protective clothing to limit the spread of dust before passing through a high-pressure air shower. In a nearby lab, batteries are shaken, crushed, immersed in water for 48 hours and placed into boxes heated to 130 degrees Celsius (266 degrees Fahrenheit).“What we do is try to bring innovations to the structure and chemical system, which will enable Tesla cars to drive a longer range at a better cost,” said Zeng, leaning against an armchair in a fifth-floor meeting space decorated with a Chinese painting on the wall and a tea set on a table. “That’s probably why Tesla likes us.”By using CATL’s cheaper and smaller batteries for the Model 3, Tesla’s costs per car could fall between $600 and $1,200, according to Bernstein. LFP packs traditionally haven’t been as powerful as more expensive alternatives, yet the technology is catching up.“It could be pretty explosive if they get that in the international market because no one else is using LFP outside China in pure EVs,” said Mark Newman, a Hong Kong-based senior analyst at Bernstein. “Tesla would have a pretty meaningful advantage.”For 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.
Many investors who have hit the gas on investing in electric vehicle (EV) manufacturers recently have enjoyed massive gains. Other investors, however, have been sitting on the side of the road for the right time to pick up shares -- eating the dust of EV stocks, like Tesla (NASDAQ: TSLA), NIO (NYSE: NIO), and Nikola (NASDAQ: NKLA) that have passed them by. Founded in 2015, Li Auto is a China-based manufacturer that filed paperwork with the SEC last week to debut on the American market with a $100 million offering.
The reduction follows price cuts in May on Tesla's Model 3, Model X and Model S. The company headed by Elon Musk this month posted a smaller-than-expected fall in car deliveries in the second quarter, resilient results despite the pandemic that hit the global auto industry. The Model Y now starts at $49,990, down nearly 6% from its previous price of $52,990, according to the carmaker's website.
(Bloomberg) -- Elon Musk is now richer than Warren Buffett.The fortune of Tesla Inc.’s chief executive officer rose $6.1 billion on Friday, according to the Bloomberg Billionaires Index, after the carmaker’s stock surged 11%. Musk is now the world’s seventh-richest person, also ahead of tech titans Larry Ellison and Sergey Brin.The 49-year-old owns about a fifth of Tesla’s outstanding stock, which comprises the bulk of his $70.5 billion fortune. His majority ownership of closely held SpaceX accounts for about $15 billion.Shares of the electric-car maker have risen 269% this year. The company’s booming valuation helped Musk land a $595 million payday, making him the highest-paid CEO in the U.S.Musk is the latest tech entrepreneur to rise above Buffett in the ranks of the world’s richest. Steve Ballmer, the former Microsoft Corp. CEO, and Google’s co-founders Larry Page and Brin also have leapfrogged the Oracle of Omaha. And Indian tycoon Mukesh Ambani surpassed Buffett this week.Mike Novogratz, the longtime money manager who now runs digital currency investor Galaxy Digital Holdings Ltd., warned that valuations of technology companies are getting way too high and that small investors should get out of the market before it crashes.“We are in irrational exuberance -- this is a bubble,” he said Friday in a Bloomberg Television interview. “The economy is grinding, slowing down, we’re lurching in and out of Covid, yet the tech market makes new highs every day. That’s a classic speculative bubble.”Surpassing Buffett may be especially sweet for Musk. In an interview in May, he told comedian Joe Rogan that he wasn’t “the biggest fan” of his fellow billionaire. “He’s trying to find out does Coke or Pepsi deserve more capital? I mean that’s kind of a boring job, if you ask me,” Musk said.Buffett has also criticized Musk, saying last year that although Musk was “a remarkable guy,” he had “room for improvement” in behaving like a CEO, singling out his tweeting habits.Buffett’s fortune dropped earlier this week when he donated $2.9 billion to charity. The 89-year-old has given away more than $37 billion of Berkshire Hathaway shares since 2006. The company’s stock performance has also underwhelmed recently.(Adds Musk comments on Buffett in eighth paragraph.)For 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.
Fractional stock investing is a popular but misleading term. In reality, all shares represent fractions of an entire company.
Musk is the seventh richest in the world, behind the likes of Amazon tycoon Jeff Bezos, Microsoft founder Bill Gates and Facebook entrepreneur Mark Zuckerberg.
Musk's fortune rose by $6.07 billion on Friday, Bloomberg News said, following a 10.8% jump in the electric carmaker's stock. Buffett's net worth dropped earlier this week when he donated $2.9 billion in Berkshire Hathaway stock to charity, the report added.
The company's "Battery Day", where it is expected to reveal significant advances in battery technology will also be held on the same day, Tesla said. Chief Executive Officer Elon Musk said last month the shareholder meet would tentatively be held on Sept. 15. Tesla has been facing pressure from shareholder advisory firms, Glass Lewis and ISS, against the re-election of Chairwoman Robyn Denholm over concerns of corporate governance and her leadership.
The stock market has posted an amazing rebound from its March lows, but the real standout among major market benchmarks has been the Nasdaq Composite (NASDAQINDEX: ^IXIC). Tesla (NASDAQ: TSLA) and Zoom Video Communications (NASDAQ: ZM) have been among the top performers in the stock market lately, and today both companies saw their stocks move to new record levels. For Tesla, momentum seems to be unstoppable right now, even as short-sellers remain skeptical of the electric vehicle maker's prospects.
The growth stock's move follows speculation that the company may be considering building a small hatchback for the European market. Also helping is news of the possible inclusion of Tesla shares in the S&P 500 market index. When a Twitter user reached out to Tesla CEO Elon Musk on the platform Friday to note that the Model Y is too big for some cities in Europe, he asked whether the company would consider a smaller European-style hatchback.
Oil prices fell on Thursday as COVID-19 cases continued to spike in the U.S., which the IEA highlighted as a major threat to oil markets in today’s report, but prices were quick to return to the $40 mark on Friday.
Yahoo Finance checks in with Carvana founder and CEO Ernie Garcia on car buying demand amidst the COVID-19 pandemic.