22 Apr

Tesla Tanks ~4% as Car Explosion Video Raises Concerns

WRITTEN BY Jitendra Parashar

Tesla

Tesla (TSLA) has underperformed the broader market and all mainstream automakers in 2019 so far. As of April 18, Tesla was trading with a 17.9% YTD loss as compared to 15.9% and 20.5% gains in the S&P 500 Index and the NASDAQ Composite Index. By comparison, other auto companies such as General Motors (GM), Ford (F), and Fiat Chrysler Automobiles (FCAU) have gone up by 20.5%, 24.8%, and 14.0% YTD, respectively.

Tesla Tanks ~4% as Car Explosion Video Raises Concerns

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Recent developments

On April 11, the Nikkei Asian Review reported, “Tesla and Panasonic are freezing plans to expand the capacity” of their Nevada-based Gigafactory, citing lower-than-expected demand of Tesla cars as one of the reasons. On April 13, Musk said in a tweet that “Tesla won’t spend money on more capacity until existing lines get closer to 35GWh theoretical,” apparently blaming Panasonic for not producing enough battery cells, constraining Tesla’s Model 3 production.

Nonetheless, Tesla stock rose by 2.1% in the week ended April 18 as investors remained hopeful of a settlement in a legal case where the SEC has requested a federal judge to hold Musk in contempt.

Car explosion video

Today at 10:58 AM EST, TSLA was down 3.8% for the day. Yesterday, a video posted on Chines social media platform Weibo showed a parked Tesla car “emit smoke and burst into flames seconds later,” Reuters reported. The report also added that Tesla is currently investigating the video and “supporting local authorities to establish the facts.”

The company is likely to hold the Tesla Autonomy Investor Day event later today at its headquarters.

Latest articles

German chip maker Infineon Technologies has reportedly raised 1.55 billion euros (~$1.74 billion) in capital by selling its shares to fund its acquisition of Cypress Semiconductor (CY). Infineon has sold ~113 million new shares at 13.70 euros each.

As of June 18, Dunkin’ Brands (DNKN) was trading at $80.07, an 8.9% rise since reporting its first-quarter earnings on May 2. Also, DNKN was trading at a premium of 29.8% from its 52-week low of $61.69 and a discount of 1.6% from its 52-week high of $81.40.

19 Jun

Are Lower Oil Prices Weighing on ExxonMobil Stock?

WRITTEN BY Maitali Ramkumar

ExxonMobil (XOM) stock has fallen 7.1% in the second quarter so far. Let's review ExxonMobil's stock performance in comparison to oil price changes and equity market movements in the quarter.

19 Jun

As Facebook Unveils Libra, MSFT and CRM Join a Blockchain Group

WRITTEN BY Mayur Sontakke, CFA, FRM

On June 18, Facebook (FB) launched Libra, its own cryptocurrency. On the same day, CoinDesk published another piece of blockchain news that didn’t receive as much fanfare as Facebook’s Libra news. Was the timing a coincidence? We think not.

Uber Technologies (UBER) has picked Melbourne as another test site for its flying taxi service known as UberAir. The Australian city is the first international test site Uber has chosen for its flying taxi service. The addition of Melbourne brings the number of test locations Uber has picked for its UberAir service to three.

Lyft (LYFT) and Uber Technologies (UBER) are pushing back against California legislation that would require them to recognize their drivers as employees rather than independent contractors. The legislation would require companies like Lyft to give their drivers the compensation and benefits spelled out under California’s employment regulations.

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