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SpaceX launched its 19th commercial resupply flight to the International Space Station on Thursday. Yahoo Finance’s Zack Guzman, Kristin Myers and Black Hawk's Financial Founder Leanna Haakons discuss on YFi PM.
Dow futures: The stock market rally is acting well going into Friday's jobs report. Tesla, DocuSign, Okta, Zoom and Ulta Beauty led movers late.
(Bloomberg) -- Tesla Inc. shares may rise to as much as $500 if its Cybertruck becomes a success and sales in China pick up pace, Morgan Stanley analyst Adam Jonas wrote in a note to clients on Thursday, boosting his bull case for the stock.The analyst raised his most optimistic scenario to $500 from $440 per share, saying it reflected $20 from the new pickup truck that was unveiled on Nov. 21 and $40 from incremental volume and profit in China.Jonas assumed the company will be able to sell 100,000 Cybertrucks by the end of 2024 at an average price of $50,000 and Ebitda margins of 20%.Since Elon Musk has said on Twitter that the truck currently has 250,000 pre-orders, Jonas’s assumption implies that roughly 40% of those would translate to an actual sale by 2024. “We believe this is a fairly optimistic assumption, given that a pre-order only requires a $100 refundable deposit,” Jonas wrote. The analyst’s base case assumption does not include the Cybertruck.For China, Morgan Stanley assumed 200,000 Tesla units in incremental volume, with revenue of $40,000 per unit.However, even with the new-found optimism, Jonas maintained his 12-month, $250 price target and hold-equivalent rating on the stock, which assumes 24% downside from the electric-vehicle maker’s Thursday closing price in New York. His caution is derived from the perception that in the longer term, Tesla could be perceived by the market as a traditional automaker. “We are prepared for a potential surge in sentiment through first half of 2020, but question the sustainability,” he added.To contact the reporter on this story: Esha Dey in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Drew SingerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
With combined annual earnings of over three billion dollars, the 10 highest paid CEOs in the world in 2019 prove that disparity of income is not just a myth, it’s the stark reality facing us today, though the total has been significantly skewed by the one man, who we will reveal later. While we’ve been […]
Competition is heating up. Alliances are forming in the nascent electric-car wars and the new joint ventures demonstrate that stalwart car companies are preparing for an all-electric future.
The British cave explorer suing Elon Musk for calling him a "pedo guy" on Twitter testified on Thursday that his criticism of the Tesla Inc chief executive that led to the tweet was not a personal attack. "My insult was to the tube and not to Mr. Musk personally," Unsworth said while being cross-examined by Bill Price, one of Musk's lawyers. Unsworth's lawsuit focuses on three Musk tweets on July 15, 2018, five days after the diver helped complete the rescue of 12 boys and their soccer coach from the cave.
Riding a wave of recent innovations, digital freight network powerhouse Convoy moved up a notch on this year's FreightTech 25, edging out Tesla Inc (NASDAQ: TSLA) to occupy the No. 3 slot on FreightWaves' list of most disruptive companies. Ziad Ismail, the company's chief product officer, said 2019 has been an especially fruitful year for Convoy, which netted $400 million in a Series D round announced Nov. 13. Ismail credited the Seattle-based company's innovation model, rooted in small teams that operate autonomously, with enabling Convoy to crack some of the industry's most pressing challenges.
Shares of Nio Inc. rallied 3.7% in active premarket trading Thursday, after the China-based electric vehicle maker disclosed an uptick in November deliveries, to mark a fourth straight monthly increase. The company said it delivered 2,528 vehicles last month, up from 2,526 deliveries in October. Of the total, Nio delivered 2,067 ES6s, the company's 5-seater high-performance SUV, and 461 ES8s, the 7-seater SUV. "In November, we achieved another month of solid delivery results as we expanded our sales network by adding more NIO Spaces," said Founder and Chief Executive William Li. "By the end of November, NIO and our partners successfully opened 37 NIO Spaces in total." The stock has tumbled 18% over the past three months through Wednesday, while shares of U.S.-based rival Tesla Inc. have run up 45% and the S&P 500 has gained 4.6%.
ADR (NYSE: NIO), often called as China's Tesla Inc(NASDAQ: TSLA), churned in strong November deliveries, sending its shares higher. November marked the fourth consecutive month of expanding deliveries following a dismal performance in the summer, when deliveries took a tumble on a host of factors, including weaker domestic macroeconomic condition and a cut in EV subsidies. The turnaround was echoed in comments by William Li, Nio's founder, chairman and CEO, who suggested in late November EV sales in China are on the road to recovery.
The British cave explorer suing Elon Musk for calling him a "pedo guy" on Twitter testified on Thursday that his criticism of the Tesla Inc chief executive that led to the tweet was not a personal attack. "My insult was to the tube and not to Mr. Musk personally," Unsworth said while being cross-examined by Bill Price, one of Musk's lawyers.
The billionaire entrepreneur continued his testimony from Tuesday in the case filed against him by a U.K. caver, whom Musk had called a “pedo guy” on Twitter. The Tesla CEO reiterated his stance from Tuesday that he didn’t mean to imply that Unsworth was a peadophile and that it was, in fact, Unsworth who started the conflict by launching an “unprovoked attack,” Reuters reported.
(Bloomberg) -- Cash-strapped electric-car upstart NIO Inc. is introducing its third sport utility vehicle, a streamlined model aimed at spurring demand in China’s slowing EV market.NIO didn’t disclose the price for the electric SUV coupe, which comes with a panoramic-view window and is set to compete against vehicles such as the Mercedes-Benz GLC Coupe and Tesla Inc.’s Model Y. NIO’s existing models are the ES8 and ES6 SUVs, and the EP9 performance car.“Coupes fall in a niche market in China and it’s really hard to position this kind of product,” said Yale Zhang, managing director of Shanghai-based consultancy AutoForesight. “But if they only aim at selling hundreds of cars a month, it should be fine.”The unprofitable carmaker is battling an unprecedented slump in Chinese auto sales, including electric vehicles, as the country’s economy cools. The company also faces intensifying competition from the likes of Tesla and Daimler AG just as some investors scrutinize its funding situation.Backed by technology giant Tencent Holdings Ltd., NIO sought $200 million from founder William Li and a Tencent affiliate -- though hasn’t clarified whether the investment has been completed -- and has also reduced its workforce. U.S. shares of NIO have dropped more than 60% since the company’s initial public offering in New York last year.By the end of the third quarter, NIO had cut its staff to 7,800 from 9,900 in January. Having burned through more than $5 billion in four years, the company failed in an attempt to get local government funding, according to media reports.China’s EV sales have slumped for four consecutive months, while the overall auto market is down in 16 of the 17 past months. That’s impacting fundraising for EV startups in China, according to rival XPeng Motor. China is raising its 2025 sales target for electrified cars as the government tries to spur the industry.(Updates with government sales target in seventh paragraph)To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Young-Sam Cho at email@example.com, Ville Heiskanen, Angus WhitleyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
It seems that the masses and most of the financial media hate hedge funds and what they do, but why is this hatred of hedge funds so prominent? At the end of the day, these asset management firms do not gamble the hard-earned money of the people who are on the edge of poverty. Truth […]
The US stock market registered a mixed performance last week helped by trade optimism, a wave of M&A deals, and positive economic data. The S&P 500 and the NASDAQ Composite inched up by 0.23% each, while the Dow Jones Industrial Average declined by 0.05%. In a big step-up in trade negotiations, China reportedly agreed to […]
(Bloomberg) -- Elon Musk says he doesn’t have a lot of cash.Musk’s wealth came up in the second day of his testimony before a federal jury in Los Angeles where the Tesla Inc. and SpaceX chief executive is on trial over a tweet in which he referred to a British cave expert as a “pedo guy.”After an unsuccessful objection from his lawyer, Musk told the jury he has Tesla stock, and SpaceX stock, with debt against those holdings, and his net worth is about $20 billion. But contrary to public opinion, he said, he didn’t have much cash. Musk finished testifying after a total of about six hours on the stand over two days.Caver Vernon Unsworth sued Musk over the “pedo guy” tweet, which the CEO called “a flippant, off-the-cuff insult.” Musk said he was responding to Unsworth’s criticism of Musk’s effort to help rescue members of a Thai soccer team from a flooded cave in 2018. Musk and engineers at his companies prepared a mini submarine to help with the rescue efforts. The 12 kids,aged 11 to 16, and their coach were ultimately saved without the sub.Usnworth, who knew the caves well, ridiculed the high-profile effort from Musk. He told CNN that Musk could “stick his submarine where it hurts” and called the idea a PR stunt with no chance of working.That angered Musk, who said a team of engineers worked very hard to build the sub to save the boys. He said Unsworth’s comments denigrated the efforts of his team.Thai rescue officials were “very happy” with his team’s effort and the government thanked him for it, Musk said, contradicting Unsworth’s comments in the CNN interview.Musk also explained to the jury his penchant to tweet. (He retweeted a Tesla post during a break in his testimony.)Musk said he likes to solicit public input on Twitter.“There are pretty smart people out there,” Musk said.Despite Musk’s status as one of the richest people on the planet, his net worth is largely illiquid.The Bloomberg Billionaires Index puts his fortune at $26.6 billion. That comprises an estimated $14.6 billion stake in SpaceX. Musk has said previously he doesn’t intend to sell any of his holdings in the closely held company.Musk has also long been a buyer of Tesla shares to bolster his $11.4 billion holding.He’s pledged about 40% of his Tesla shares to unlock some of the wealth without shrinking his stake. A May filing revealed that he had access to about $500 million of credit lines from affiliates of Morgan Stanley, Goldman Sachs and Bank of America as of April 30. Still, that’s a fraction of his $26.6 billion overall fortune on the Bloomberg Billionaires Index and it’s unclear how much of those credit lines remain unused.Musk’s wealth is an issue at the trial because a jury may consider evidence of his net worth in determining punitive damages. But Musk’s lawyers argued in court papers that the jury can’t award more in punitive damages than in compensatory damages. There is no way the jury would award more than $1 billion in compensation, so Musk’s net worth exceeding that isn’t relevant, the lawyers said.In his testimony, Musk cited his mother as having some good advice, that Unsworth might want to follow.“As my mom said, if somebody insults you, just let it go,” Musk said.In September, Musk revealed in court documents that one of his trustedaides, Jared Birchall, paid $50,000 to hire a private investigator who looked into Unsworth. Attorneys for Unsworth said the investigator was offered a $10,000 bonus if he was able to confirm nefarious behavior -- which was never paid.Birchall worked at Morgan Stanley until 2016 and is the manager of Excession LLC, Musk’s family office.He took the stand after Musk.Birchall testified he hired James Howard, who later turned out to be a conman.After Howard came up with what later turned out to be fake dirt on Unsworth, such as that he had been visiting Thailand since the 1980s and that he met his wife when she was a teenager, Birchall, using the name James Brickhouse, told Howard to leak the information to media in the U.K.“I believed him to be a credible investigator,” Birchall told the jury. “I understood these things to be facts. I asked him to share facts.”Musk also enlisted help from a second investigator at the Palo Alto, California-based law firm Cooley LLP. Cooley didn’t respond to a request for comment.The case is Unsworth v. Musk, 18-cv-08048, U.S. District Court, Central District of California (Los Angeles).(Updates with Birchall testimony.)To contact the reporters on this story: Dana Hull in San Francisco at firstname.lastname@example.org;Edvard Pettersson in Los Angeles at email@example.com;Tom Metcalf in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Trudell at email@example.com, Joe Schneider, Peter BlumbergFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The British cave explorer suing Elon Musk testified on Wednesday he felt "branded a pedophile" by the billionaire entrepreneur, despite Musk's assertion that his "pedo guy" tweet at the heart of the defamation case was not meant to be taken literally. Vernon Unsworth, seeking unspecified damages in his lawsuit against Musk, took the witness stand on the second day of a trial stemming from their public squabble over last year's rescue of 12 boys and their soccer coach from a flooded cave in Thailand. Unsworth's appearance in a packed federal courtroom in Los Angeles came hours after Musk, the chief executive of electric carmaker Tesla Inc and founder of rocket company SpaceX, concluded two days of testimony seeking to minimize his tweets as offhand comments.
The electric-vehicle pioneer announced it earned a 5-star safety rating in every category for its Model X sport-utility vehicle in the U.S. and Europe.
Mayor Adrián Esper Cárdenas said the Cybertrucks will be used for police patrols and other services in the central Mexican city of 176,935 people. "I reserved 10 two-motor and five three-motor models," Cárdenas said during a press conference Nov. 29, according to Mexican news outlet El Imparcial. According to Tesla's website, the new truck will come in three versions: a single-motor Cybertruck starting at $39,000; a dual-motor model for $49,000; and a top-of-the-line three-motor variation for $69,900.
(Bloomberg) -- As it prepares its debut in the junk-bond market, Twitter Inc. is employing a strategy that looks downright quaint for a high-flying technology firm: making money.The social media company, which posted $856 million of free cash flow last year, can expect to be rewarded for its prudence. It garnered credit ratings in the top tier of high-yield and is marketing its $600 million deal at a yield of around 4.5%, more than a percentage point lower than average for speculative-grade debt.Its approach stands in contrast to companies like WeWork and Tesla Inc., both of which issued junk bonds while burning cash and have seen their notes underperform. Even Netflix Inc., which has become something of a bond-market darling after issuing billions of dollars of debt to help fund new programming, isn’t cash-flow positive.Twitter’s financial profile may not resemble some of its cash-burning peers, but it does emulate the kind of company investors have been most eager to lend to this year amid fears of a broad economic downturn. Jittery debt buyers have helped notes issued by the highest-quality junk borrowers return some 14%, outperforming riskier securities like CCC rated debt.“It’s an up-in-quality trade across all asset classes,” said John McClain, a high-yield portfolio manager at Diamond Hill Capital Management. “Nobody wants to be caught with their hand in the cookie jar. This is the cookie jar moment.”Twitter’s previous forays into debt markets have primarily been via convertible notes, a type of hybrid security that pays interest, like bonds, but can be exchanged for stock after a company’s shares rise above an agreed-upon price.Historically they’ve been popular with fast-growing technology companies that may lack the credit grades necessary to drum up support in traditional debt markets. Tesla was also a convertible issuer before it debuted in the junk-bond market.Unlike equity investors that typically prioritize a company’s growth, bondholders care most about getting paid back, and are therefore often wary of lending to cash-burning companies.Yet a relentless demand for higher yielding assets in recent years has allowed more and more money-losing firms to access debt financing, led by Netflix. The company has become a regular issuer in the U.S. and European markets, benefiting from investor confidence that it will ultimately become cash-flow positive as it pares back spending on new programming. That’s helped push the company’s debt above par.Newer technology issuers hoping to replicate Netflix’s approach have had varying levels of success. Tesla sold bonds in 2017 to ferocious demand, only to see the debt sink to as low as 81 cents on the dollar as investors fretted that the electric carmaker couldn’t find a sustained path to profitability. The notes have rallied to around 96 cents after the company posted two consecutive quarters of positive cash flow.Uber Technologies Inc. has fared better, having tapped the high-yield market twice despite failing to regularly post a profit. Both of those offerings trade around or above par. Meanwhile, WeWork has become something of a worst-case scenario for debt investors. Its $669 million of junk bonds trade at distressed levels after the company canceled its planned initial public offering and teetered on the brink of insolvency before accepting a bailout package from backer SoftBank Group Corp.Investors eyeing the Twitter deal have to assess whether the company can garner Netflix-like traction in the bond market, or if its short history of growth and positive cash flow could quickly reverse.Moody’s Investors Service analyst Neil Begley, who rated the deal the second-highest junk grade, said in a statement that the company has demonstrated “strong revenue growth and free cash flow generation,” but cautioned that “Twitter is small relative to its larger digital advertising and social networking competitors, and user engagement on social networks can be fickle.”Even some higher-rated, cash-generating technology companies have stumbled. Food delivery platform GrubHub Inc. sold a debut bond in June to enough demand that it increased the size of the offering. But since issuing the debt, it’s struggled to deal with slower growth amid fierce competition in the industry. S&P Global Ratings downgraded the notes in October, and they now trade at about 92 cents on the dollar, down from as high as 105 three months ago.“When you engage with the high-yield market, you have to have positive Ebitda and at least a path to cash flow breakeven to even have a discussion,” said John Yovanovic, global head of high-yield at PineBridge Investments, referring to the widely followed metric of earnings before interest, taxes, depreciation and amortization. “We’ll approach this one with the scars we learned from GrubHub of what could happen.”(Adds GrubHub bond-price comparison in penultimate paragraph)\--With assistance from Paula Seligson.To contact the reporters on this story: Claire Boston in New York at firstname.lastname@example.org;Molly Smith in New York at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, Boris Korby, Natalie HarrisonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
In space, no one can hear you scream about not having enough room to store your robots. But it’s still a problem. Until now. NASA and Tesla Inc (NASDAQ: TSLA ) CEO Elon Musk’s private space exploration ...