|Day's Range||8.50 - 8.50|
Elon Musk is not one to mince words, but he may have just lost a potential customer because of a cutting tweet. Gates and Brownlee have met before, and the idea was to have Gates discuss some of what the Bill & Melinda Gates Foundation has planned for this year, which marks the 20th anniversary of the organization. Unsurprisingly, the conversation touched on climate change and in pretty short order sustainable transportation, with Brownlee bringing up Tesla and asking if, when "premium" electric cars grow more affordable, they'll also become more ubiquitous.
Tesla and SpaceX CEO Elon Musk is once again sounding a warning note regarding the development of artificial intelligence. Musk was responding to a new MIT Technology Review profile of OpenAI, an organization founded in 2015 by Musk, along with Sam Altman, Ilya Sutskever, Greg Brockman, Wojciech Zaremba and John Schulman.
(Bloomberg) -- Tesla Inc.’s potential success in energy generation and storage will be the next big thing to fuel the rally that’s already pushed the stock to more than $858, analysts at Piper Sandler Cos. said as they increased their price target by more than 27%.Piper raised its target to $928 from $729, making it the most bullish among forecasters tracked by Bloomberg. The stock has more than doubled in the past four months and closed at $858.40 on Tuesday, near the record $887.06 reached earlier this month.“It’s easy to forget that TSLA sells batteries and solar power products; after all, the segment was only 6% of sales in 2019,” analysts Alexander Potter and Winnie Dong wrote in a Feb. 18 note. “But management says that the solar+storage business will one day rival the Automotive segment, and if this is true, then investors will eventually need to pay attention.”In order to gauge Tesla’s chances of success in generating and storing solar power, the analysts recently installed a solar-based system to use for charging a Model X and the results have been “illuminating” so far, they wrote in the note. Piper’s new price estimate implies an 8.1% advance from the last close.The development comes after the brokerage raised its target in January, saying Tesla’s growth potential in China meant the stock was undervalued. With a price estimate of $827, Zacks Investment Research has the second-highest target, according to data compiled by Bloomberg.The electric-car maker started delivering its China-built Model 3 sedans to local customers last month, a year after its first factory outside the U.S. broke ground. Last year, Tesla delivered a record 367,500 vehicles globally.\--With assistance from Dana Hull.To contact the reporter on this story: Lianting Tu in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Chris Nagi at email@example.com, Margo Towie, Cecile VannucciFor 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) -- Outside the German town of Arnstadt, workers for China’s Contemporary Amperex Technology Co. Ltd. (CATL) are hustling to build Europe’s biggest electric-car battery plant.The site, which covers an area equivalent to about 100 football fields, previously housed one of the continent’s largest solar-panel factories. During a visit in October, wooden crates filled with surplus equipment were stacked up outside the metal-clad structure to make way for car-battery-making equipment. Roaring bulldozers swarmed a nearby lot to prep for construction of a new building.The $2 billion project—one of about a half dozen battery factories under construction in Germany alone—worries European policymakers, who are desperate to ensure their auto industry doesn’t lose competitiveness in the transition to electric vehicles. EV sales in Europe are expected to jump to 7.7 million in 2030 from just under half a million in 2019, according to forecasts from BloombergNEF. Those vehicles will mainly be powered by batteries from Asian manufacturers like CATL, unless European companies fight back and build a local supply chain.EVs and clean transportation are at the heart of the European Union’s Green Deal, a more than €1 trillion ($1.1 trillion) European Commission policy initiative aimed at making the EU carbon neutral by 2050. The plan includes replacing large power plants with smaller, more local, renewable energy sources while eliminating combustion engines in buses, cars, and trucks. After betting on dirty diesel for too long, European politicians and the heads of Volkswagen, Daimler, and BMW are vowing to build a greener supply chain for all of those vehicles.“If we let China own the battery, then we lose out on the centerpiece of electric cars,” says German Deputy Economy Minister Thomas Bareiss. “I’m not sure that’s the best approach for our auto industry.”Europe has only a patchwork of small battery players. The biggest chunk of the value of a European-made electric car belongs to Asia—China, Korea, and Japan account for more than 80% of the world’s EV battery production, and companies such as CATL, LG Chem, and Samsung SDI control Europe’s biggest battery factories.To change that, the European Commission set up the Battery Alliance initiative. In December it approved €3.2 billion in aid for projects approved or currently under way at 17 companies, including BASF, BMW, and Fortum. The measure is meant to encourage greater investment in factories by these and other European companies.National governments are also committing large sums to battery efforts, especially in Germany. In early February its economy minister, Peter Altmaier, announced a €5 billion project for battery cells in Germany and France. Altmaier has been a leading proponent of developing a local battery sector. The goal, as he sees it, is to build “the best and most sustainable batteries in Germany and Europe.” There is no other option, he has said, if its carmakers are to succeed.European players, including Belgian materials technology company Umicore N.V. and German chemical company BASF SE, make battery materials from catalysts to cathodes. But there is little mining of key ingredients like lithium, and no capacity to turn those resources into high quality vehicle batteries. A desire to bring lithium and other materials closer to the production line is partly driving the efforts. “Lithium hydroxide doesn’t travel well,” say Andreas Scherer of AMG Advanced Metallurgical Group NV. “It doesn’t like to sit in a bag in the belly of a ship for six weeks—that’s bad for quality.”Stringent environmental rules and community opposition to more mines could slow the momentum. Land owners and environmental groups fear the resulting emissions and pollution. Finland’s Keliber Oy in November postponed its planned initial public offering and the construction of a lithium mine on appeals against its environmental permit.Some countries are pushing ahead. Support from the European Commission to mine battery metals—and the potential riches—motivated Dietrich Wanke to trade a career in Australian mining for the green hills of the Lavant valley in Wolfsberg, Austria. Wanke is the Chief Executive Officer of European Lithium, a startup mining company that aims to become a supplier of raw material for batteries. It operates from an abandoned test tunnel in Austria, where government geologists looking for uranium in the 1980s found lithium instead.“We won’t be able to produce the absolute cheapest material. It is clearly a commodity mined in Europe, according to European laws and environmental standards,” Wanke says. “It must be seen as a unique product, contributing to the reduction in carbon dioxide emissions in Europe.”The Wolfsberg project is traditional hard-rock mining, with the ensuing environmental consequences. Another startup, or junior, miner, Vulcan Energy Resources Ltd., claims it will produce the material with no CO₂ emissions by adding lithium-extraction facilities to existing geothermal power plants feeding on underground reservoirs in southern Germany. The method is similar to what Warren Buffett’s Berkshire Hathaway Inc. is researching in California’s Salton Sea. “By 2028, forecasters see Europe alone needing more lithium than is being produced in the entire world today,” says Vulcan Energy’s managing director, Francis Wedin. Still, the efforts now could be too little, too late. “European manufacturers have dragged their feet,” says Jose Lazuen, senior automotive practice analyst at Roskill. “Asian producers started taking positions in Europe two or three years ago, because they knew Europeans would need batteries.”While others are talking, the Chinese are busy building out capacity in Arnstadt for what’s shaping up to be another clean energy fight. The battleground is a former solar panel factory where two previous German owners failed to compete against low-price competition from China. As Germany’s deputy economy minister, Bareiss, says, “It’s about staying in the game and playing a role in a critical technology.”\--With assistance from Ewa Krukowska and Birgit Jennen.To contact the authors of this story: Laura Millan Lombrana in Madrid at firstname.lastname@example.orgChris Reiter in Berlin at email@example.comRichard Weiss in Frankfurt at firstname.lastname@example.orgTo contact the editor responsible for this story: Dimitra Kessenides at email@example.comFor 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.
Apple stock tumbled nearly 2% after the company warned investors it wouldn’t meet quarterly financial guidance because factories in China were coming back online—after the Lunar New Year holiday—slower than expected.
Among the U.S. hardware companies Bernstein’s Toni Sacconaghi follows, the most exposed are PC makers Dell Technologies and HP Inc.
The Dow Jones sold off Tuesday after Apple warned that its revenue may be lower than expected due to the China coronavirus outbreak. Tesla stock rises 7.5%.
Renaissance Technologies, added more than 3 million shares of Tesla to its holdings in the fourth quarter of last year, as the electric-vehicle maker’s shares catapulted higher, according to public filings.
Tesla has plenty of competition these days, but the electric automaker now has one more metric to show why it is a market leader.The company's flagship sedan, the Model S, can now boast 390 miles of range before requiring a recharge, a 17-mile improvement over its predecessor. The announcement comes on the heels of months of chatter from founder Elon Musk hinting that a new version of the vehicle would boast longer range.The new Long Range Plus model comes with more than the raw ability to go the distance, too. A dual-motor all-wheel-drive system helps this Model S grip the road as it accelerates from 0-60 in 3.7 seconds before reaching a top speed of 155 miles per hour.> Tesla Model S estimated EPA range is now above 390 miles or ~630 km https://t.co/sNFzIkuJpC> > -- Elon Musk (@elonmusk) February 15, 2020 And the Model S isn't the only vehicle in the Tesla lineup to see improvements. "All S/X cars made in recent months have actually been above stated EPA range," Musk said in a tweet. "Will be unlocked soon for free via software update." When a customer asked how the improvement came about, Musk answered: "Many small hardware improvements throughout the car that have been introduced gradually over past several months."The automaker has the ability to offer performance upgrades via software upgrades if the foundation hardware is already in place, as is the case here. Musk did not, however, specific a time frame for when customers could expect to see these improvements "unlocked."News of the boosted Model S range is just the latest in a string of headline-grabbing positive news for the California-based marque. Earlier this year, Tesla became the first US automaker to pass the $100 billion valuation mark. The enormous figure means that the company is now worth more than Ford and General Motors combined. And Musk, for his part, is set to receive a $50 billion payout. Not a bad way to start the electric revolution.More from Robb Report * EV Supercar? This Souped-Up Tesla Model 3 Is as Fast as a McLaren F1 * Porsche's Taycan Charges to Full Capacity an Hour Faster Than the Tesla Model S * Tesla Hit Its Highest-Ever Stock Price Last Week. So Why Did Investors Decide to Sell?
(Bloomberg) -- A seven-day surge in Virgin Galactic Holdings Inc. has lifted the stock four times above its level in December. Gains are snowballing, options traders are piling in, chatrooms are lighting up. It’s all starting to look similar to another space-age growth stock’s recent run.Though the company is just a fraction of Tesla Inc. in terms of market value, the frenzy around its shares is similar. The average increase in Virgin’s share price has totaled more than 9% since last Monday, and double-digit rallies have been propagating.Virgin Galactic options activity has kept pace with the stock’s meteoric push, and may even be fueling it. As of 2:20 pm in New York Tuesday, call volume exceeded 360,000 contracts, which dwarfs the previous record set on Friday.The notional value of calls that changed hands topped $1 billion with several hours still left in the trading day Tuesday. The company came into the session with a market capitalization just over $6 billion. For reference, the notional value of call options traded averaged about 0.5% of its market value during the final five sessions of 2019 and first five of this year.Derivatives that can extract even more gains from Virgin Galactic have become a favorite among retail investors, judging by activity on message boards like r/wallstreetbets. When a fresh option is written, a dealer who sells it will typically hedge their exposure by buying a certain amount of the stock so as not to accumulate a short position, and will tend to buy more shares in the event of a continued rally. Some traders have seized onto this dynamic as evidence that their options-buying activity is sufficient to perpetuate a rally in the underlying stock.The recent activity is reminiscent of the euphoria that overtook trading in Tesla just a few weeks ago when FOMO trading in the electric-car manufacturer overtook Google searches. While Virgin Galactic has yet to reach that level of retail excitement, more than 91 million shares traded hands on Tuesday. That’s the most since the company’s September 2017 public offering, more than 27-times the average volume, and dwarfs the activity seen in Tesla.Even with the stock’s parabolic rise, bears have continued to pile in with more than 30% of shares available for trading currently sold short, according to data compiled by S3 Partners. Bets that Richard Branson’s space-tourism company company goes bust stand in stark contrast to the market’s recent realization that wagering against Elon Musk and Tesla hasn’t panned out. Roughly 15% of Tesla shares available for trading are currently short, the lowest level in at least a year, data from S3 show.Morgan Stanley analyst Adam Jonas offered a warning to investors chasing the rally that recent gains appear “to be driven by forces beyond fundamental factors.” Branson’s Virgin Galactic and Musk’s SpaceX as well as Blue Origin, Jeff Bezos’s rocket company, are racing to make space tourism a reality.To contact the reporters on this story: Luke Kawa in New York at firstname.lastname@example.org;Bailey Lipschultz in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, 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. shot back above $850 Tuesday before paring gains, after Bernstein analyst Toni Sacconaghi nearly doubled his price target, saying he didn’t see any negative catalysts on the horizon for a stock that wasn’t especially expensive.
“I’ve lived here for five years, and it was pretty much like actually being in my apartment,” she said of the virtual-tour experience. Few sectors have escaped the impact of the epidemic, which has brought China’s economy to a standstill. Within China’s property market, a number of popular apps offer everything you’d need to find and buy a house — search functions with easy-to-use selection criteria such as location, price and unit type; realistic virtual-tour experiences; the ability to chat with agents and sellers; a section showing how “hot” properties are with real-time updates on how many people have viewed units; and even mortgage services.
Virgin Galactic Holdings Inc shares surged 24% on Tuesday, extending a rally since early December to over 400% and evoking a warning from an analyst who likes the space tourism company but warns it has become overbought. Shares of the company backed by billionaire Richard Branson have taken off in popularity among individual investors in recent sessions, nearly displacing Tesla Inc , another favorite among non-professional investors. Virgin Galactic was the third most traded stock on Fidelity's online brokerage in recent sessions, with two thirds of clients buying shares, rather than selling.
Tesla Inc's (NASDAQ: TSLA) core computing technology, which will allow autonomous operation, is "far ahead" of other carmakers' computing, according to a "tear-down" of the vehicle and review by Nikkei Asian Review. The company deconstructed the Tesla Model 3, the company's $33,000 all-electric car, and said its integrated central control unit, or "full self-driving computer," sets the car apart from any on the market.
Apple's coronavirus warning. Tesla's continued climb. Walmart's quarterly earnings results. And why Applied Materials, Inc. (AMAT) is a Zacks Rank 1 (Strong Buy) stock right now...
(Bloomberg) -- Tesla Inc.’s financing arrangements in China may be the subject of the Securities and Exchange Commission inquiry that the electric-car maker disclosed last week, according to analysts at Evercore ISI.The financing Tesla lined up from local banks last year may have allowed the carmaker to delay recognition of capital expenditures, Chris McNally, who rates Tesla shares the equivalent of a sell, said in a Feb. 14 report. The Evercore analyst said the arrangements also probably help explain how Tesla spent just $1.3 billion on capex last year, a little over half its budget for as much as $2.5 billion.“It’s possible that TSLA’s Shanghai factory and extremely limited capex may be what the SEC is looking into,” McNally wrote. Representatives for Tesla didn’t immediately respond to requests for comment, and Judy Burns, an SEC spokeswoman, declined to comment.Tesla disclosed in a regulatory filing last week that the SEC sent the company a subpoena on Dec. 4 seeking information on “certain financial data and contracts including Tesla’s regular financing arrangements.” In the same filing, the company said that much of the investment in its factory near Shanghai “has been and is expected to continue to be provided through local debt financing.”Tesla disclosed in December that it had lined up 11.25 billion yuan ($1.6 billion) in financing from local banks for the plant, which started producing Model 3 sedans late last year.“We are supplementing such financing with limited direct capital expenditures by us, at a lower cost per unit of production capacity than that of Model 3 production at the Fremont factory,” Tesla said last week in its 10-K, referring to its higher-cost assembly plant in California.After two straight quarterly profits, several analysts who have remained skeptical of Tesla’s earnings power have said the company will have to increase expenditures to follow through on Chief Executive Officer Elon Musk’s plans for new products and additional factories. The company plans to roll out the new Model Y crossover this quarter, start production of its Semi model this year and open a new plant near Berlin next year. It also has Cybertruck and Roadster models in development.\--With assistance from Matt Robinson.To contact the reporter on this story: Gabrielle Coppola in New York at email@example.comTo contact the editors responsible for this story: Craig Trudell at firstname.lastname@example.org, Chester DawsonFor 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.
Gates discussed his new ride last week with YouTube influencer Marques Brownlee. “Certainly Tesla, if you had to name one company that’s helped drive that, it’s them,” Gates said, before telling Brownlee that he bought a “very, very cool” Taycan, which comes with a price tag deep in six-figure territory.
U.S. stocks dropped on Tuesday after a surprise sales warning from tech bellwether Apple highlighted the impact of the coronavirus outbreak on global supply chains. The news also sent Apple suppliers, including Qualcomm Inc , Broadcom Inc, Qorvo Inc and Skyworks Solutions Inc, lower by 1.8% to 2.3%.