|Day's Range||43.80 - 45.85|
Tesla is fighting back against claims that all three models of its electric vehicles could unexpectedly accelerate without the driver taking action, saying a stock short-seller was behind the investigation. Yahoo Finance's On The Move panel discusses.
Tesla said on Monday there was no unintended acceleration in its vehicles, as it responded to a petition to a U.S. safety regulator to investigate and recall around 500,000 of the company's electric cars over the alleged defect. The petition urged the agency to recall all Tesla vehicles, the Model S, Model X and Model 3, produced beginning in 2013. It cited media reports of crashes attributed to unintended acceleration and complaints filed with NHTSA.
Whitney Tilson once wagered Tesla wouldn’t report a profitable quarter in 2019. He lost. The former hedge-fund manager early last year also predicted “the beginning of the end” for the stock, with a $100 price target by 2020. Also, a misfire. But he seems to know a strong bullish point-of-view when he sees one.
The benchmark S&P 500 slipped on Tuesday as worries about the fallout from a deadly virus outbreak in China and a gloomy growth outlook from the IMF prompted investors to lock in recent gains. With the virus spreading just ahead of the Chinese New Year holidays, the S&P 1500 airlines index fell 2.4%. Hotel and casino operators Las Vegas Sands Corp and Wynn Resorts Ltd, both of which have large operations in China, dropped about 5%.
(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.
GM Cruise will reportedly show off the first purpose-built self-driving vehicle at a San Francisco event. GM stock slipped.
Tesla’s comments came in response to a safety petition introduced by an investor, Brian Sparks, who is shorting Tesla stock.
In the latest installment of Barron’s annual investment Roundtable, five of our 10 panelists take their turn naming top investment picks—and some pans.
The major stock indexes slid from record highs Monday on new details in the China virus. Boeing, Roku and Tesla were key movers.
(Bloomberg) -- Tesla Inc.’s stock is soaring, and traditional auto manufacturers are staging glitzy presentations of new plug-in models. You’d think the electric-vehicle age was finally dawning.But so far, Tesla is the only car company looking likely to benefit in the coming years. Look at every other corner of the U.S. auto industry -- the world’s most valuable automaker, dealers, consumer surveys and market forecasts -- and a more ominous picture emerges.A top American executive for Toyota Motor Corp., whose market value is still more than double Tesla’s even after Elon Musk’s epic run, recently warned of electric-car catastrophe. Auto retailers caution growth will be slow, citing still-high battery costs and range constraints. And far more U.S. shoppers are willing to kick the tires on a hybrid than cars that only plug in.The cause for concern remains as EVs start to appear in showrooms in greater numbers. The models on the market will swell almost sevenfold to 121 models in the next half decade, from 18 now, according to LMC Automotive. But the researcher sees all those vehicles claiming just 5.5% of U.S. sales in 2025.“We’re going to see electrified Armageddon,” Bob Carter, Toyota’s executive vice president of North American sales, told reporters in December. “Supply is going to get ahead of true customer demand.”There is irony, of course, in Carter predicting an EV reckoning just as Tesla was wrapping up a record year. The dim view he holds is not unique among legacy automakers, which have spent more than a century building and selling cars that burn fossil fuel. But that cautious mindset is rooted in pragmatism -- profits remain elusive in the high-cost, high-price EV business.That’s why Toyota and other automakers have been reluctant to dive head-first into EVs until they’re closer to reaching price parity with internal combustion engine vehicles, which BloombergNEF predicts will happen around 2024.Tesla is being rewarded for not waiting: Its shares surged another 6% on Tuesday to $540.94, a new intraday record. The stock has doubled since Tesla reported a surprise third-quarter profit in October, bringing the company closer to a $100 billion market value.EV sales are expected to grow to be roughly the size of the shrinking mid-size car segment by mid-decade, to about 934,000 units, LMC says. But whereas the meager family sedan market will be split between just 13 models, the researcher expects there to be more than nine times as many EVs fighting for air.Thanks to its hot-selling Model 3 sedan, Tesla accounted for nearly eight-in-10 EV sales in America last year. By 2025, LMC sees Tesla offering seven models that will account for a quarter of segment sales. That would leave the 114 competing offerings from other automakers averaging annual sales of 6,145 per model, or about 118 units a week.“It’s tough to make a business out of that volume per EV,” said Jeff Schuster, senior vice president of forecasting at LMC. “Electric vehicles are the future. What’s in question is when that future will arrive and when it pays off? It’s a long road and there definitely could be some carnage along the way.”Automakers, fearing they’ll be left behind if they don’t accelerate their shift from the internal combustion engine, are going to great lengths to build buzz for new electric models.Ford staged a star-studded unveiling of its Mustang Mach-E in an airplane hangar a short stroll from SpaceX, Musk’s rocket company. Porsche debuted its Taycan using Niagara Falls, a Chinese wind farm and a German solar site as backdrops.But with the notable exception of the Model 3, consumers have not been charged up by the highly touted electric offerings already on the market.Sales of the Chevrolet Bolt sagged almost 9% last year and the Nissan Leaf slumped 16%, with neither cresting 17,000 units. Last month, Mercedes-Benz put off the U.S. debut of its first EV by a year after Jaguar and Audi struggled to sell their first electric offerings.So far, only Tesla and its billionaire chief executive officer have come up with an alluring amalgam of status and sex appeal.“Tesla has created the market by having a mystique,” said Art St. Cyr, the head of American auto operations for Honda Motor Co., pointing to Musk’s Model 3. “If Honda, Toyota, GM or Ford made that vehicle, we probably wouldn’t sell them in those numbers.”Honda, Ford and Toyota, which all have a history of selling hybrids, see them prevailing for the time being because mainstream buyers continue to suffer “range anxiety” -- the fear of being stranded by running out of juice in an EV.“People are not generally willing to pay more to be inconvenienced,” St. Cyr said.General Motors Co. is jumping more aggressively into EVs, with plans to field 20 models worldwide by 2023 and sell 1 million by 2026. It’s joining forces with South Korea’s LG Chem Ltd. to build a $2.3 billion battery factory in Lordstown, Ohio, where the car manufacturer stopped building gasoline-fueled Chevrolet Cruze compacts last year.“Customers aren’t interested in hybrids,” Mary Barra, GM’s CEO, said during an industry conference in November.But a study released by Deloitte this month found 27% of U.S. consumers are actively considering a hybrid, while just 8% are looking at pure electrics. Some 59% of Americans still want gasoline-powered cars, the highest of any country Deloitte surveyed globally.Government mandates have made China the world’s top market for EVs, and European regulators also are stimulating demand with incentives to help reach more stringent goals for reduced emissions.But in the U.S., where President Donald Trump has sought to ease car-pollution rules and fuel is cheap, consumers are in no hurry to ditch the gas pump. The Deloitte study found consumers in the U.S. are most concerned about a lack of charging stations.“The automotive ecosystem still has some work to do in terms of making EVs as easy and convenient as internal-combustion engines,” said Craig Giffi, Deloitte’s vice chairman.The onslaught of new EVs coming could actually help solve the problem. Until now, most EVs other than Tesla’s have been boring “compliance cars” aimed at meeting tougher regulations, said Greg Brannon, director of automotive engineering at AAA, which just conducted a survey that found 96% of EV owners would buy another because the experience was better than expected.“Most people are looking for a crossover utility vehicle these days,” Brannon said. “Now, we’re seeing some of those coming, and that’s what it’s going to take. It has to be something people want to drive and can get excited about.”The pickup segment, home to the three best-selling models in the U.S., is about to get jolt, too. Musk caused a sensation with the unveiling of the Cybertruck in November. Ford has an electric truck under development recently filmed towing 1 million pounds of loaded rail cars. And Amazon.com Inc.-backed Rivian Automotive Inc. plans to roll out its R1T starting late this year.But for all the hype about the chips automakers are pushing forward on the table, it’s unclear when or if their gamble will pay off.“Somebody’s got to buy these things,” said Toyota’s Carter. “There is a market. The question is: How big and when will it mature?”(Updates with Tesla shares in eighth paragraph)\--With assistance from David Welch, Gabrielle Coppola, Chester Dawson and Melinda Grenier.To contact the reporter on this story: Keith Naughton in Southfield, Michigan at email@example.comTo contact the editors responsible for this story: Craig Trudell at firstname.lastname@example.org, ;Dimitra Kessenides at email@example.com, Keith NaughtonFor 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's (TSLA) first European factory in Berlin to include an engineering and design center, which will be used to manufacture cars, batteries and powertrains.
Shares of Nio Inc. dropped 1.7% in active premarket trading Tuesday, putting them on track to snap a record-long eight-day winning streak. Volume was 680,000 shares just less than two hours before the open, enough to make the stock the most actively traded in the premarket. The China-based electric car maker's stock had rocketed 44% in eight days through Friday, the longest streak of gains since the stock went public on Sept. 13, 2018, and beating the seven-day win streak through Feb. 1, 2019, when the stock surged 20.6%. On Friday, the stock had climbed 6.9% after the company disclosed that its largest shareholder, Scotland-based investment manager Ballie Gifford & Co., had increased its stake to 13.13% of Nio's shares outstanding, up from 11.04% as of Feb. 5, 2019. Also helping to boost the stock this year were upbeat reports that Nio had secured about $1 billion in funding, upbeat December deliveries data and a surge in U.S. rival Tesla Inc. shares to record highs. Nio's stock has nearly tripled (up 176.3%) over the past three months through Friday, while Tesla shares have doubled (up 101.4%) and the S&P 500 has edged up 10.7%.
The new legislation retroactively resurrects and/or extends a bunch of individual and business federal income tax breaks, which we will call the extenders. As its name indicates, the Act also includes a bevy of federal tax relief provisions for disaster victims. The Tax Cuts and Jobs Act (TCJA) set the threshold for itemized medical expense deductions at 7.5% of adjusted gross income (AGI) for 2017 and 2018.
The mayor of China's commercial hub has instructed Shanghai's bureaucrats to undertake a change in their work culture, as he cites Tesla's US$2 billion Gigafactory in the city as proof that an investor-friendly attitude helps attract foreign investments.Officials in the local authority should behave like attendants at a retail store, rather than bureaucrats with power to approve projects, said Ying Yong, at the conclusion of the Shanghai legislative meeting."By improving the business environment, the local government departments are supposed to act as shop assistants to serve foreign investors," Ying said. "Authorities must not be arrogant and intimidating, but need to be responsive to foreign investors' requests."Shanghai's government is making fresh overtures to woo foreign investments and talent to spur the city's development, two decades after China became a member of the World Trade Organisation (WTO). The Chinese economy has expanded 11-fold in US dollar terms since 2000, but the rush by foreign investors has tapered off, amid complaints of red tape, unfair competition, operational barriers and the lack of intellectual property protection.Shanghai's Mayor Ying Yong, speaking during an April 22, 2019 meeting in Shanghai. Photo: SCMP alt=Shanghai's Mayor Ying Yong, speaking during an April 22, 2019 meeting in Shanghai. Photo: SCMPShanghai's gross domestic product, which expanded 6 per cent last year at the low end of the local government's target of between 6 per cent and 6.5 per cent, needs foreign capital to keep the city of 20 million residents growing at the current pace.After Beijing and Washington signed the phase one trade deal last week, Shanghai is determined to lure more foreign capital to increase its economic might worldwide, said Yin Ran, a Shanghai-based angel investor dealing with the manufacturing sector.Tesla vehicles on an assembly line at its Gigafactory in Shanghai on Tuesday, January 7, 2020. Photo: Xinhua via AP alt=Tesla vehicles on an assembly line at its Gigafactory in Shanghai on Tuesday, January 7, 2020. Photo: Xinhua via AP"As the local government draws foreign investment in a humble manner, global investors also expect China to remove other investment barriers to give them a full market access," he said. "They need to see more successful stories like Tesla."To reverse the decline and draw foreign investments to offset the slowest economic growth pace in three decades, China's government is going on a charm offensive to ease investors' concerns.The Shanghai authority in particular rolled out the red carpet for Tesla. The carmaker operates the first " and so far, sole " wholly foreign-owned assembly in China, while every other foreign carmaker from Ford Motor to Volkswagen needs a 50 per cent Chinese partner. The carmaker is also entitled to subsidies on its car prices, and had access to preferential loans from several Chinese state banks. The government also stepped in to cut red tape for the carmaker.Tesla's Gigafactory in Shanghai on December 2, 2019. Photo: Reuters alt=Tesla's Gigafactory in Shanghai on December 2, 2019. Photo: ReutersTesla said in late December that it would get up to 11.25 billion yuan (US$1.64 billion) of financing from four state-owned mainland lenders " China Construction Bank, Industrial and Commercial Bank of China, Agricultural Bank of China and Shanghai Pudong Development Bank " at rates that are below market-quoted rates published by the People's Bank of China.The 9 billion yuan loan carries an annualised interest rate of 0.7625 percentage point lower than the market-quoted rate published by the central bank, while the revolving loan of 2.25 billion yuan costs 0.425 percentage point below the market rate.With help of Shanghai authorities, Tesla's Gigafactory in Lingang delivered the first model to staff and customers within a year of breaking ground."Tesla's Gigafactory 3 took just one year to complete construction and [to] begin delivering the first batch of locally made cars to customers," Ying said during a press conference. "We hope to further improve our business environment and copy the 'Tesla model' to [be applied on] other foreign-invested projects."This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
The petition filed by an independent investor Brian Sparks, CNBC reported last week. Describing the preventative measures in Tesla vehicles, the statement noted that the independent position sensors in Models S, X, and 3, will cut off motor torque in case of any errors. If the brake and accelerator pedals are pressed at the same time, the brake will override the accelerator to avoid any accidents, according to Tesla.
(Bloomberg) -- Tesla Inc. fired back against a petition filed with U.S. regulators, saying in a blog post Monday that it’s “completely false and was brought by a Tesla short seller.”The National Highway Traffic Safety Administration is evaluating allegations that Tesla Inc. vehicles contain a defect that can cause sudden unintended acceleration, according to a notice posted on the agency’s website last week. The review was prompted by a petition asking the agency to open a defect investigation of some 500,000 Tesla vehicles over the alleged flaw. The petition cited 127 consumer complaints to the agency and claims of 110 crashes.The Palo Alto, California-based maker of electric vehicles said it investigates every incident where a driver “alleges to us that their vehicle accelerated contrary to their input.” In every case where Tesla had the vehicle’s data, it confirmed the car operated as designed, the carmaker said.“The car accelerates if, and only if, the driver told it to do so, and it slows or stops when the driver applies the brake,” Tesla said in the post.NHTSA, after a technical review, can either deny the petition or grant it and open a formal probe of the alleged issue. Any member of the public can petition NHTSA for a defect investigation, and many have been rejected by the agency.In October, NHTSA said it would evaluate a separate petition alleging that Tesla updated battery management software in response to a potential defect that could lead to fires.\--With assistance from Ryan Beene.To contact the reporter on this story: Dana Hull in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Trudell at email@example.com, Pierre Paulden, Jonathan RoederFor 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.