|Day's range||3.9600 - 3.9600|
Yahoo Finance speaks exclusively with Aramco Chairman Yasir Al-Rumayyan about climate change and the future of the oil industry.
Tesla reportedly reached a settlement with the State of Michigan regarding the sales and service of its vehicles. According to the AP, this settlement would end the automaker's lawsuit against the state, which barred Tesla and others from selling vehicles directly to consumers. This would lead to consumers being able to purchase, take delivery and service Tesla vehicles within the State of Michigan.
Planes and cars are the main topics today and EVs are a big deal no matter what Erique thinks. Airbus takes advantage of a limping Boeing and we get into the Battleground.
Technology shares led the S&P 500 marginally higher on Wednesday, as a healthy forecast from IBM helped mitigate worries over the developing coronavirus outbreak. The S&P 500 and the Nasdaq closed barely in the black after approaching, then backing down from record highs the day after virus fears prompted a sell-off. The Dow closed nominally lower.
Elon Musk on road to $50bn payout as Tesla's value passes $100bnUnder pay scheme, founder must build electric carmaker into $650bn company by 2028
Tech shares led all three major U.S. stock averages into the black, with the S&P 500 and the Nasdaq setting a course to notch new record closing highs, the day after virus fears prompted a sell-off. Streaming pioneer Neftlix Inc acknowledged stiffer competition in the United States, where quarterly growth fell short of analyst estimates.
Tesla (TSLA) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
(Bloomberg) -- Tesla Inc.’s market value has climbed above Volkswagen AG’s for the first time to more than $100 billion, a threshold that will trigger a huge payout for Elon Musk if he can sustain the feat for months.The electric-car maker’s shares soared as much as 8.6% on Wednesday to a new intraday high of $594.50. At that price, Tesla’s market capitalization was roughly $107.2 billion, exceeding Volkswagen’s $99.4 billion and trailing only Toyota Motor Corp.While Musk’s skeptics are dubious that Tesla should be worth more than a carmaker that sold almost 30 times as many vehicles last year, Volkswagen’s own Herbert Diess isn’t so dismissive. He’s been arguably the most vocal CEO among traditional carmakers to praise Tesla and point to its role in a radical shakeup of the more than century-old auto industry.After saying three months ago that Tesla was no niche manufacturer anymore, Diess told top Volkswagen executives at an internal meeting in Germany last week that connected vehicles will almost double the time consumers spend online, and that cars will “become the most important mobile device.”“If we see that, then we also understand why Tesla is so valuable from the view of analysts,” he said.Diess, 61, is rolling out the industry’s largest electric-car fleet and aims to boost the company’s value to a level rivaling Toyota, whose $232 billion market cap is still more than Tesla and VW’s combined.“Tesla has high innovative strength regarding battery-electric vehicles as well as connectivity, which can partly explain the high market capitalization,” Stefan Bratzel, a researcher at the Center of Automotive Management near Cologne, Germany, said in a report Wednesday. The relatively low valuation of traditional automakers is linked to uncertainty over whether they can navigate the looming industry shift, he said.The jump above $100 billion is about more than just bragging rights for Musk, Tesla’s billionaire chief executive officer. He’s eligible to receive the first tranche of an all-or-nothing pay award if the company’s market value stays above that threshold for a sustained period. On paper, the first chunk of the award would net him about $346 million.Tesla shares have more than doubled since the company reported a surprise third-quarter profit and told investors it was ahead of schedule bringing out its next product, the Model Y crossover, and opening its factory near Shanghai.The stock has room to run as Tesla grows in China, Wedbush analyst Dan Ives wrote in a report Wednesday. He boosted his target price to $550 from $370 while maintaining the equivalent of a hold rating.What Bloomberg Intelligence Says:“Tesla’s tepid 0.3% gain in 2019 domestic unit sales suggests a tapped-out U.S. Sales in China skew the U.S. demand picture, which should become clearer by year-end with the ramp-up in Shanghai output.”\- Kevin Tynan, senior autos analystClick here to read the researchGary Black, who was chief executive of Aegon Asset Management from mid 2016 through September and now holds Tesla as a private investor, said he expects Tesla to earn more than VW by 2025 and believes consensus estimates for vehicle deliveries this year are too low. He expects Musk to forecast at least 550,000 units for 2020 during next week’s earnings webcast and to tout the launch of the Model Y.While at least eight analysts have boosted their price targets by more than $100 since the year began, consensus is still well below where Tesla’s shares are trading. The average target is $363.92 with just 10 analysts rating the stock a buy, compared with 10 holds and 16 sells.(Updates with VW’s EV plans in sixth paragraph.)\--With assistance from Cécile Daurat, Tom Randall and Anders Melin.To contact the reporters on this story: Dana Hull in San Francisco at email@example.com;Christoph Rauwald in Frankfurt at firstname.lastname@example.org;Gregory Calderone in New York at email@example.comTo contact the editors responsible for this story: Craig Trudell at firstname.lastname@example.org, ;Anthony Palazzo at email@example.com, Cécile DauratFor 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.
Shares of the electric carmaker were up 8.1% at $591.78 in late morning trading, continuing their furious rally that has more than doubled the share price in the last three months. It "speaks to the inflection in electric vehicle demand globally," Wedbush analyst Dan Ives wrote in an email. The milestone comes less than a month after Tesla's stock crossed $420, the price at which Chief Executive Officer Elon Musk had tweeted he would take the electric-car maker private.
The EV momentum is expected to reach a new level in 2020 with various attractive, long-range and affordable vehicles coming up this year.
Fiat Chrysler (FCAU) to establish a 50-50 joint venture with Foxconn, in a bid to manufacture battery electric vehicles in China and engage in the IoV business.
(Bloomberg) -- Richard Branson’s Virgin Galactic Holdings Inc. is scoring its best monthly performance since going public more than two years ago as investor appetite for the space-tourism company heats up.Morgan Stanley analyst Adam Jonas wrote in a Wednesday note that the bank is having more conversations about Virgin Galactic than “any other U.S. stock in our coverage with the possible exception of Tesla.” Shares of the Las Cruces, New Mexico-based company rose more than 8% in trading before the market open, on track to add to an eighth consecutive record close.The stock has boomed 52% in the past nine days after struggling to win over investors following a move to the New York Stock Exchange in late October. This year’s 50% advance is even beating Elon Musk’s Tesla Inc., which has jumped more than 30% to its own record. Tesla shares have more than tripled from a June bottom as Wall Street piles on praise for the company.Morgan Stanley’s Jonas says Virgin Galactic’s recent strength is due to steps toward the first commercial flight later this year and management engagement, which have combined to pique investor interest. With shares heading toward his $22 price target, Jonas highlighted that the bank’s bull case of $60 still holds more than 250% upside potential.All three analysts that cover Virgin Galactic have a buy or equivalent rating, according to Bloomberg data. Jonas holds the Street’s highest 12-month price target, with the average sitting at $19, compared to Wednesday’s pre-market high of $18.78.To contact the reporter on this story: Bailey Lipschultz in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, 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.
Although several large-cap stocks have skyrocketed in the past year, some of them are set to beat earnings estimate in the ongoing reporting cycle.
(Bloomberg) -- Australia has some big decisions to make about its future. For insight into the stories that matter, sign up for our new weekly newsletter.Tesla Inc.’s latest big lithium-ion battery is set to start in South Australia, one of the nation’s biggest users of renewable generation, where it will support a steady flow of power from a wind farm.Infigen Energy’s Lake Bonney storage system, equipped with a 25 megawatt Tesla battery, is in the final stages of testing and close to full commercial operations, the state’s energy minister Dan van Holst Pellekaan said in a statement following a visit to the site, which includes an existing 278.5 megawatt wind farm. Infigen said in November the battery started operating at full capacity Nov. 29.The project “will allow South Australia to incorporate more renewable energy into the system and move towards net-100% renewable energy in the 2030’s,” van Holst Pellekaan said. Solar and wind power already meet more than half of the state’s electricity demand, compared to around 20% nationally.The Lake Bonney system follows the 100 megawatt Hornsdale facility installed by Tesla in 2017, also in South Australia. Hornsdale has been profitable for French owner Neoen SA, which bills it as the world’s biggest lithium-ion battery and said in November it plans to boost its capacity 50%. A third Tesla battery in Australia, backing up the Gannawarra solar farm in Victoria state, started commercial operations in March.Read More: A Creaking Grid Jams Up Australia’s Switch to Green EnergyPower from the Lake Bonney unit will also be used to supply Tesla’s fast-charging Supercharger car stations, which are being rolled out across Australia.To contact the reporter on this story: James Thornhill in Sydney at firstname.lastname@example.orgTo contact the editors responsible for this story: Ramsey Al-Rikabi at email@example.com, Aaron ClarkFor 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.
The milestone comes less than a month after Tesla's stock crossed $420, the infamous price at which Chief Executive Officer Elon Musk had tweeted he would take the electric car maker private. Musk tweeted he had "funding secured" to take Tesla private in August 2018, when its shares were trading in the mid-$330s, only to later give up under investor pressure and regulatory concerns. Tesla shares were last up 1.4% at $555 after the bell, building on a 7.2% gain during trading when brokerage New Street Research raised its price target to $800.
(Bloomberg) -- Tesla Inc. has reached a settlement with the state of Michigan over its federal lawsuit challenging a state ban on direct-to-consumer sales, according to people familiar with the matter.In a partial victory for Tesla, the accord clears the way for the electric-car maker to open service centers in the state through a subsidiary, said one of the people, who asked not to be identified ahead of a filing in U.S. District Court that’s expected as soon as Wednesday. Customers will still have to title their cars in another state and transfer them to Michigan.The Michigan attorney general’s office had no immediate comment. Tesla representatives didn’t respond to requests for comment.Tesla, which sells its electric cars directly to consumers in roughly two dozen states, filed suit against Michigan in 2016 seeking to overturn its ban on auto manufacturers selling directly to consumers. The suit claimed a bill signed into law by then-Governor Rick Snyder in 2014 was an “anti-Tesla” amendment designed to favor the state’s automakers and franchise dealers.Instead of operating a network of franchised dealerships with hundreds of vehicles on the lot, Tesla’s strategy has been to open small stores in shopping malls and other visible locations with lots of foot traffic. General Motors Co., Ford Motor Co., Fiat Chrysler Automobiles NV and other carmakers operate under franchise laws that have been on the books for decades and were originally put in place to prevent manufacturers from opening stores that would compete with dealers.Key to SalesTesla has operated a gallery -- where it showcases vehicles but cannot sell them -- at a high-end mall in the Detroit suburb of Troy, Michigan, since 2017. Tesla owners in the state had to travel to Cleveland or Columbus, Ohio, to have their vehicles worked on until the company recently opened a service center in Toledo, near the state border.Tesla Chief Executive Officer Elon Musk said in July that service centers are key to growing sales.“You’ve got to have service, you have to have the supercharging and charging all sorted out, good consumer financing, and then the price must makes sense,” Musk said on an earnings call. “Any place where those four things are true, our sales are great. So we’re rolling out service centers like crazy.”In March, Tesla reversed a controversial plan to close most of its stores, but said that shoppers who visit its retail locations will be shown how to order a car on their phone in minutes. Its stores have played a critical role in educating consumers about making the switch to electric and in arranging test drives.Similar BattlesIn the 2016 lawsuit, Tesla said it was being stymied by automakers and dealers in Michigan. It’s been waging similar battles in Texas and Connecticut for a license to sell directly to consumers, arguing that it doesn’t violate dealers’ rights because the company doesn’t have any dealers.In 2016, Diarmuid O’Connell, then Tesla’s vice president of business development, accused GM of pushing legislation that would keep its direct-sales model banned in Indiana.Tesla now has two stores and one service center in the state, according to its website.(Updates with details of settlement terms in second paragraph)To contact the reporters on this story: Gabrielle Coppola in New York at firstname.lastname@example.org;Dana Hull in San Francisco at email@example.comTo contact the editors responsible for this story: Craig Trudell at firstname.lastname@example.org, Kevin MillerFor 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.
The company will be able to deliver vehicles within Michigan, but will have to issue titles for the vehicles in another state, which the customers can then transfer to Michigan, the person said. Tesla sued Michigan officials in 2016 after the state refused to allow the company to sell cars directly to consumers instead of through franchised dealerships.
(Bloomberg) -- Tesla Inc.’s most bullish Wall Street analyst predicts the electric-car maker’s dizzying rally will accelerate this year and that the stock will trade in the $640-to-$960 range in early 2021.New Street Research analyst Pierre Ferragu anticipates the company will sell 2 million to 3 million cars per year after 2025 at industry-leading margins, justifying a market capitalization of $230 billion to $350 billion, or about $1,100 to $1,700 per share.“The stock will remain volatile, as the spread between bull and bear cases remains wide,” said Ferragu, who boosted his price target to a Street high. “And God only knows what the next controversy will be.”Tesla is set to report quarterly earnings next week. Shares of the company rose as much as 6.9% to touch $545.90 in New York on Tuesday, and have increased more than 100% over the past three months. A surprise third-quarter profit and strong deliveries for the fourth quarter helped fuel the rally, along with the opening of its China plant.Ferragu, who raised his price target to a $800 from previous $530, expects the company to beat estimates for free cash flow when it releases fourth-quarter earnings on Jan. 29.He also predicts 2020 delivery guidance will exceed projections, and sees a potential drop in gross margins in the first half of the year as Shanghai-assembled Model 3s -- which have higher fixed costs per car -- increase in the overall mix.Earlier on Tuesday, Bernstein analyst Toni Sacconaghi struck a cautious note, saying the Shanghai Gigafactory production could pressure margins in fourth and first quarter.(Updates share move in fourth paragraph.)To contact the reporter on this story: Esha Dey in New York at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Will DaleyFor 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.