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Next week FT Alphaville is filming a video for the FT on everyone’s favourite marmite electric car company: Tesla. This one FT Alphavillain will be answering user questions -- to the best of his ability ...
Elon Musk, CEO of Tesla Inc. (NASDAQ: TSLA ) has tweeted details about the gadgetry onboard its Cybertruck. What Happened In a Twitter conversation on Friday, the co-founder of Tesla talked about features ...
Tandem Diabetes fell overnight on weak sales while Moderna jumped on a coronavirus vaccine news. Earlier, Apple, AMD and the major indexes broke or tested key support on pandemic fears.
The National Transportation Safety Board will hold a public hearing on Tuesday to establish the probable cause of a fatal March 2018 Tesla Autopilot crash in California and will issue a series of safety recommendations, two people briefed on the matter said on Monday. The safety board is expected to issue recommendations to the National Highway Traffic Safety Administration (NHTSA), Tesla and a California transportation agency, the sources said. The NTSB issued recommendations after other Tesla Autopilot crashes and planned to reiterate some of the guidance.
(Bloomberg) -- If the source of any of the resilience in U.S. stocks this year has been retail investors fired up by zero-commission trading, markets are about to find out how sturdy that money is.The sell-off stands as the first major test for mom-and-pop investors who, emboldened by a brokerage price-war, have effectively doubled their trades in equities over the last several months. The surge in interest from a group notoriously known for chasing winners has helped fuel a rally in stocks from tech giants to small-caps.The shares they love, from Tesla Inc. to Plug Power Inc., are plunging now, with a Goldman Sachs Group Inc. basket of retail favorites falling the most in nine months.“A lot of that money does tend to be hot money,” said Alec Young, managing director of global markets research at FTSE Russell. “It’s very sensitive to near-term losses.”Global markets buckled Monday, pushing the S&P 500 down almost 5% from its record close five days ago, the bull market’s biggest interruption in six months. Concern about a possible pandemic drove investors out of risky assets and into bonds and gold.Goldman’s basket tracking the 50 most-popular stocks among individual investors fell 3.9%, the biggest retreat since last May. All but two declined as Tesla and Plug Power each sank more than 6%. It’s a decisive turnaround for retail investors, whose picks as tracked by Goldman had surged 13% in 2020 before this week. That’s almost four times as much as the S&P 500.Though impossible to prove, a case exists that individual investors streaming into the market have contributed to the relative buoyancy of equities at a time when fixed-income has sent much more dire signals. The stock market rally that fell apart Monday came against a backdrop of steadily falling yields in Treasury markets that are dominated by institutional traders.Others see a perfectly ordinary bull market occurring in stocks that requires no special influence or agency to drive it and are skeptical individuals have played an outsize role. If anything, it’s bonds, not stocks, that are being boosted by small investors.“A lot of what is happening with bonds has to do with demographics,” said Michael Antonelli, market strategist at Baird. “Baby Boomers are retiring, the world is starved for yields.” The equity market, on the other hand, “is really controlled by institutions. This up-and-down price action, that’s not retail money,” he said.The bull market, which turns 11 years old in two weeks, also predates the recent uptick in small-investor interest. At an all-time high last week, the S&P 500 traded at 19 times forecast earnings, the highest multiple since the dot-com era.Perhaps no other investor group than retail has a greater propensity to chase winners regardless of valuations and company fundamentals. Among retail’s darling stocks, 10 scored year-to-date gains exceeding 20%, including Plug Power, Tesla and Virgin Galactic. Yet only two made profits in 2019.While hardly the only ones to fall into love with megacap tech, their affection for Apple Inc., Amazon.com Inc., Facebook Inc. and Microsoft Corp. has likely contributed to a top-heavy market that some strategists have warned is becoming hard to sustain.It reminds Peter Cecchini of the retail over-involvement in the late 1990s that spelled the golden age of equities and foreshadowed the crash.“While retail involvement in and of itself is not always a sign of frothy markets, when that involvement generally appears to be based on a fear of missing out or otherwise uniformed decision-making, as now, then it is cautionary,” said Cecchini, chief global market strategist at Cantor Fitzgerald LP. “The coronavirus may help demonstrate how quickly it can all come unraveled when fundamentals disconnect from the narrative hype.”Retail money, indifferent participants for much of the 11-year bull market, just made an epic comeback, lured by brokerages slashing commission fees to zero and an equity rally that added $7.5 trillion in market values last year. Daily average trades at E*Trade Financial Corp. and TD Ameritrade Holding Corp. have almost doubled to all-time highs since last September, data compiled by Sundial Research showed.“History has shown that retail investors do respond to near-term volatility, so folks are rather fickle,” said Mike Skillman, chief executive officer of Cadence Capital Management. “If we see an increase in volatility in the next several weeks, flows into the market will slow down, if not reverse.”\--With assistance from Claire Ballentine.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.
Shares of Tesla Inc., heavily dependent on its China factory, fall more than 7% amid virus fears and a broad equity selloff.
(Bloomberg) -- The National Transportation Safety Board on Tuesday will convene its second hearing on a fatal crash involving Tesla Inc.’s automated driver-assist technology even though the pioneering automaker hasn’t filed formal responses to recommendations stemming from the first one more than two years ago.The NTSB in 2017 recommended that automakers including Tesla make their driver-assist systems more resilient to misuse by inattentive drivers, and limit the operation of those systems to only the driving for which they were designed.Automakers -- including Volkswagen AG, Nissan Motor Corp., BMW AG -- have told NTSB how their systems ensured driver engagement, which agency deemed acceptable responses. Tesla has had no formal correspondence with NTSB officials responsible for monitoring how safety recommendations are implemented, NTSB spokesman Chris O’Neil said.“It’s not the norm,” O’Neil said. “Most recommendation recipients respond in the prescribed 90-day window.”Tesla didn’t respond to a request for comment but has said it updated Autopilot in part to issue more frequent warnings to inattentive drivers.The role of Tesla’s automated driver-assist features known as Autopilot along with other factors including driver distraction and highway infrastructure will be examined at an NTSB meeting on Tuesday examining a March 2018 crash in Mountain View, California, that killed 38-year-old Apple Inc. engineer Walter Huang after his Tesla SUV slammed into a highway barrier while using Autopilot.The probe was marked by an unusually public display of tensions between the agency and Tesla Chief Executive Officer Elon Musk that peaked when the agency kicked Tesla off the probe after he released information about the crash despite prohibitions against such disclosures during an investigation.The hearing could hold lessons for the auto industry as automated driving features are becoming increasingly common on new vehicles. Several other automakers have also equipped their vehicles with technologies that can provide automated steering, accelerating and braking, and some have installed systems to ensure drivers pay attention. General Motors Co. and Subaru Corp. use infrared cameras to track head and eye movement, and Nissan last year said it would include a similar driver monitor in a system designed to offer hands-free driving on the highway.Tesla has said Autopilot makes drivers safer, pointing to internal data it releases quarterly that it says demonstrates that drivers crash less frequently while using it than while driving manually. The company stresses that drivers must remain attentive with their hands on the wheel while using Autopilot, which monitors by sensing steering wheel inputs by the driver.The company has said it has adjusted the the warnings drivers receive if their hands are off the wheel for too long, which federal investigators have faulted for being easy to sidestep.In 2017, the NTSB closed its first probe of a fatal crash linked to Autopilot by calling on companies to develop ways to better ensure drivers pay attention while using automated driving features that require human supervision. It also called on automakers to take steps to limit the use of automated driver-assist features to only the driving scenarios for which they’re designed.The recommendations stemmed from the agency’s probe of a 2016 crash in which former Navy SEAL Joshua Brown died after his Tesla Model S crashed into a commercial truck crossing the road in front of him on a Florida highway while using Autopilot. The agency cited an over-reliance on the car’s automation by Brown and a lack of built-in safeguards to prevent inattention as key factors that contributed crash.Last fall, the NTSB again cited inattention and Autopilot’s design in a January 2018 crash in which a Tesla driver rear-ended a parked fire truck on a freeway near Los Angeles. The agency said Autopilot’s design allowed the driver, who was uninjured in the crash, to stop paying attention to the road.After that crash, Tesla said it has updated Autopilot in part to issue more frequent warnings to inattentive drivers. The company has also been in regular contact with NTSB investigators and provided information about its systems to the agency, O’Neil said.“That doesn’t replace the need for formal responses to safety recommendations,” he said. “It’s a process designed to help us understand what they’re doing to implement those safety recommendations and what their progress toward them are, which may inform whether we feel other recommendations are necessary.”Records from the Mountain View investigation hint at several factors the NTSB could highlight during the meeting Tuesday. With Autopilot engaged and set to cruise at 75 miles per hour, Huang’s 2017 Tesla Model X sped up and slammed into a concrete barrier. Vehicle data showed neither the driver nor the vehicle’s automatic systems applied the brakes prior to impact, the NTSB has said.Huang had complained that Autopilot had repeatedly veered his vehicle toward the same spot during earlier trips on that same stretch of highway, according to the agency. Data taken from his Tesla’s computer confirmed that the situation had occurred at the same location four days before the fatal crash and once more several weeks earlier, records released by the NTSB show.The tip of the concrete lane divider struck by Huang’s Tesla was supposed to have been protected by a crash attenuator, a device attached to highway infrastructure to absorb impact forces like a car’s crumple zone. It was damaged 11 days earlier and hadn’t been repaired by the California Department of Transportation before Huang’s crash.Records reviewed by NTSB found Huang was playing a game on his Apple-provided mobile device before the collision, the agency said, citing data transmission records. However, the data couldn’t show how engaged he was with the game or whether he was holding the device with both hands at the time of the crash, the NTSB said.Crash investigators at the National Highway Traffic Safety Administration have opened 14 inquiries into Tesla crashes believed to involve Autopilot, plus 11 more involving other manufacturers with partial-automation systems.\--With assistance from Alan Levin.To contact the reporter on this story: Ryan Beene in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Jon Morgan at email@example.com, Elizabeth WassermanFor 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.
As Tesla Inc. (NASDAQ: TSLA) set a record for the company for vehicle deliveries, by selling 367,500 cars in 2019, the rise of Tesla's shares by almost 120% since the beginning of the year can be strongly associated to this record. The most attention that Tesla gets is due to its car segment. In the U.S, Tesla is offering job opportunities within solar operations.
Shares of Tesla Inc. tanked 6.4% in premarket trading Monday, as growing fears over the potential negative impacts from the global spread of COVID-19 triggered a broad-market selloff. In 2019, the electric vehicle maker derived $2.98 billion in revenue, or 12.1% of total revenue of $24.58 billion, from China, which is where the coronavirus outbreak is believed to have originated. The company also derived $12.65 billion in revenue from the U.S., $1.59 billion from the Netherlands, $1.20 billion from Norway and $6.16 billion from "other." Tesla's stock had closed Friday at $901.00, or 1.8% below the Feb. 19 record close of $917.42. Separately, shares of China-based EV maker Nio Inc. dropped 7.1%, and futures for the S&P 500 sank 2.7%.
(Bloomberg Opinion) -- Anyone paying attention to finance, markets and the economy doesn't have to look very hard to find complaints that we are on the cusp of a bubble of one type or another.Perhaps the area most often targeted by the bubble believers is tech. I was curious about just how widespread this belief is: “Tech bubble” has doubled on Google Trends this year alone; Google News generates more than 3.6 million hits for the phrase.(1)Defining a bubble isn't too hard and one will do as good as another. “A market phenomenon characterized by surges in asset prices to levels significantly above the fundamental value of that asset. Bubbles are often hard to detect in real time because there is disagreement over the fundamental value of the asset,” Nasdaq says. So let's turn to the pro-bubble argument: It has been a decade since the financial crisis and two decades since the dot-com implosion. That's enough time for people to have forgotten the trauma of that disaster. Since the Great Recession ended, there has been too much capital sloshing around, leading to excessive tech valuations. And not just in public equities, but in private markets, too. Unicorns and other SoftBank Vision Fund debacles have imploded, an early warning sign for publicly traded companies, the argument goes.Central banks have made the bubble worse, providing cheap capital that has artificially inflated profits. The bubble advocates also urge us not to overlook the impact of these low borrowing costs on the surge in share buybacks; reducing the total amount of a public company’s shares outstanding has the effect of making earnings per share look better.Then there are the anecdotes: Tesla’s stock has more than doubled in the past three months, and the company now has a market value of more than $165 billion -- higher than Volkswagen, General Motors and Ford combined. This is to say nothing of the companies valued at more than $1 trillion, such as Apple, Microsoft, Amazon and Google parent Alphabet. But let's also be generous and acknowledge that some things do look overvalued, whether it's Bitcoin (maybe), WeWork (obviously) or Tesla (I'm not getting in the middle of that one).But here's the thing: None of that is proof of a stock-market bubble. Let's look at some themes and issues to demonstrate why this is so:Business models: In the 1990s, the internet captivated the collective imagination of investors, too many of whom indiscriminately threw cash at anything with dot-com attached to it. The 2000 collapse taught investors that it took more than a high-concept idea to make a stock worth buying: growth and future cash flow matter a lot, too. The collapse of WeWork’s initial public offering last year brought this home once again. Investors realized that renting out office space short term while locking the company into long-term, expensive real-estate leases was a terrible business model. Public investors grasped this flaw -- something private investors seemingly failed to understand -- and the market worked the way it's supposed to. Revenue and earnings: Unlike the dot-coms of the '90, today's tech businesses are gigantic cash machines. Apple posted fourth-quarter revenue of $91.8 billion and net income of $22.2 billion. Without much fanfare, Microsoft's revenue grew 14% in the latest quarter, to $36.9 billion, while net income surged 38% to $11.6 billion. Alphabet, Amazon, Facebook all continue to mint revenues and profits. These companies also have accumulated hundreds of billions of dollars in cash. This is not the profitless tech boom of the 1990s.Sentiment: Maybe there is some excessive optimism. But that isn't the same as the full-blown delusion that bubbles produce. Talk of bubbles is offset by chatter about recession: Remember that less a year ago investors were anticipating a downturn and in the fourth quarter of 2018 major market indexes fell 20%, meeting the normal definition of a bear market, however brief. Meanwhile, the American Association of Individual Investors Bullish Readings index is 40.6, which is just a hair above the average reading of 39.5 for the past 25 years.Performance: Broad market performance is robust, but not crazy. Last’s year's 31% gain in the S&P 500 is misleading: most of that simply reflected the rebound from the 2018 fourth-quarter tumble cited above.So let's take a step back and consider the S&P 500 since 2015: It has had annual gains of 11.8%, for a total cumulative five-year return of 75%. Before fintwits howl “Now do the Nasdaq,” here it is: 17.6% annually and cumulative total returns of 125%. Fine, good, but not bubble material.Now compare those figures with the five years before the market peaked in March 2000: The Nasdaq generated annual returns of 60% and a five-year total return of 946% during that period, while the S&P 500 gained 25% annually and 211% for the five years. This is obvious, right?Sure, there are pockets of excessive optimism and foolishness in markets. There always are. But there also are lots of companies that are not participating in this bull-market rally. Those who were around in the 1990s know what a real bubble looks like: This isn't it.(1) Some recent examples:Barron’s:"Tesla’s Manic Rally Isn’t the Only Sign of a Market Bubble. What You Need to Know"CCN:"An Epic Stock Market Crash Is Looming, Analysts Warn"Yahoo:"The stock market is on steroids and it could end up like the dot com bubble"Barron’s (again): "Is the Fed Building Another Stock Bubble?"Bloomberg: “Mom and Pop Are On Epic Stock Buying Spree Fueled by Free Trades”To contact the author of this story: Barry Ritholtz at firstname.lastname@example.orgTo contact the editor responsible for this story: James Greiff at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”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.
Adam D’Angelo could have retired when he left Facebook at the age of 23. Instead, the social network’s former chief technology officer, who saw his Facebook stake soar in value to over $100m after the company’s 2012 initial public offering, enthusiastically threw himself into a career as a tech entrepreneur.
Tesla’s share price has almost tripled this year, and while electric cars remain the company’s most important product, it could actually become a real energy giant
Elon Musk was among those taking advantage of a share offering. A director bucked the selling trend at a biotech company as well. Tesla Inc (NYSE: TSLA) CEO Elon Musk took advantage of the recent secondary offering.
Toyota Motor and Volkswagen each sell 10m cars, give or take, every year. Tesla delivered about 367,500 in 2019. This is the takeaway from Nikkei Business Publications’ teardown of the Model 3, the most affordable car in the US carmaker’s all-electric line-up, starting at about $33,000.
(Bloomberg) -- Your sleek new Tesla Model S or electronic BMW has a distinctly 19th century feature that you may not be aware of, among its batteries. A company in Estonia wants to change that.Skeleton Technologies Group OU is working on supercapacitors, light-weight and long-life components that can distribute intensive bursts of power. These may help eliminate lead-acid batteries, a piece of technology invented in 1859 that still lurks under the hoods of Teslas in addition to the main lithium-ion power source.Supercapacitors have some way to go before they are widely adopted. There is still a gap with the popular lithium-ion units on how much energy they can store, Skeleton Chief Executive Officer Taavi Madiberk admits. Even so, the technology is promising for offering higher peak power output and reliability in extreme temperatures and Skeleton has already sold it to clients across the transport industry.“Sometimes people think that lead is a problem of the past because it relates to internal combustion engines but in practice all electric vehicles have 12-volt lead acid batteries,” Madiberk said. “We are working on a viable alternative to replace all lead acid batteries.“Musk’s PhDTesla Inc. Chief Executive Officer Elon Musk actually moved to Silicon Valley in the first place to do research on supercapacitors in his PhD studies at Stanford University, he wrote in a blog post in 2006. While Musk eventually dropped out from Stanford to start his new ventures, he hasn’t abandoned his bet on supercapacitors, also referred to as ultracapacitors.Tesla, also searching for a breakthrough for electric car batteries, bought Skeleton’s competitor Maxwell Technologies Inc. last year. Musk’s company, like other manufacturers, still uses the relatively cheap and recyclable lead-acid battery in addition to the lithium-ion unit.The sector is at a stage where the lithium-ion battery industry was around 1999, according to Madiberk, whose company also has a base in Germany. Back then, lithium-ion batteries cost over $5,000 per kilowatt hour, compared with under $200 now. Supercapacitors may similarly go from $5,000 to as low as $300, he said, without giving an exact timeline.The technology may be useful for some tasks such as regenerating energy from braking, perhaps in conjunction with a lithium-ion unit, said James Frith, an analyst at BloombergNEF who focuses on energy storage. However, it’s only one of a number of available routes for the industry.“There’s been a lot of interest in supercapacitors over the years,” Frith said. “The trouble is that lithium-ion batteries have been coming down in price quite rapidly.”To replace lead-acid batteries, Skeleton is cooperating with some major European carmakers, Madiberk said, without disclosing names. Its products reach an energy density -- a key measure of performance -- of 60 watt-hours per kilogram, exceeding regular lead-acid batteries. Their raw material, a patented graphene composite, provides cost advantages in the long term not just compared with lead-acid but also lithium-ion batteries, he said.Operating Profit“If you look at the supplies of cobalt, lithium, nickel, manganese, then sooner or later with electrification we see significant bottlenecks,” Madiberk said. “The issue with lead is, of course, it’s toxic: the manufacturing process is environmentally harmful.”In heavy transportation, Skeleton has supplied systems that recuperate the braking energy of trams made by Czech manufacturer Skoda Transportation AS and which reduce the fuel consumption of hybrid-electric buses made by the U.K.’s Wrights Group Ltd. Having signed orders totaling more than 150 million euros ($163 million) last year, the company targets revenue of 1 billion euros by 2025 when it sees its serviceable market reaching about 60 billion euros. It expects to reach a profit on the operating level by the end of next year.Aside from Tesla, Madiberk lists U.S.-based AVX Corp. and China State Railway Group as key competitors. The raw materials Skeleton uses have given it a competitive advantage over the bigger rivals, he said.The company’s products had the highest power and maximum peak current from five supercapacitor makers, including Maxwell and Ioxus Inc., in last year’s study by the U.S. Office of Naval Research.Supercapacitors may find their niches if the cost becomes competitive, said Frith, the analyst at BloombergNEF.“The heavy transportation applications probably is the best use case for supercapacitors,” Frith said. “There definitely is a lot of areas within the automotive market where they could find applications.”To contact the reporter on this story: Ott Ummelas in Tallinn at firstname.lastname@example.orgTo contact the editors responsible for this story: Andrea Dudik at email@example.com, Andras GergelyFor 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.
During the California gold rush, many miners went bankrupt. Most investors recognize that the gold rush is on in 5G and artificial intelligence. The picks and shovels for the present-day gold rushes are semiconductors.
Stocks of solar-power and other alternative-energy companies have rallied this year, with some on Wall Street saying that the boom can last this time around.
Do you believe the world will embrace a green path toward the future? If so, you might want to consider slapping a palladium position next to your Tesla shares in your portfolio, according to the investor behind the Market Ear blog.