Tesla slashes prices in the US and the UK

Edward Anderson on April 10, 2023

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Tesla: The financial downturn has had an influence on every element of business and has caused companies to take complicated decisions.

While the majority of businesses have been using layoffs to reduce expenses, Tesla is adopting a different strategy.

Instead, the maker of electric vehicles is lowering costs in the US and Europe.

The news

Tesla is a business that creates and produces solar goods, energy storage devices, and electric vehicles (EVs).

Elon Musk founded the company in 2003 with the goal of accelerating the switch to renewable energy globally.

Its EVs are highly renowned for their powerful, long-range, and eye-catching designs.

The Model S, Model 3, Model X, and Model Y are some of the most well-known Tesla vehicles.

Tesla not only makes commercial cars but also provides electric powertrain systems and parts to other automakers.

On the company’s website on Thursday, a discount was touted.

Sales

Teslas have been doing well on the market.

The company’s earnings have been steadily rising, with notably strong growth in recent years.

Global Tesla vehicle deliveries surpassed 5 million in 2020.

Since 2018, the Model 3 has been the most popular electric vehicle in every country.

It is Tesla’s most inexpensive vehicle.

Additionally, Tesla has seen exceptional sales in China and Europe.

The company also hopes to increase manufacturing and sales in new regions in the near future.

Overall, Tesla’s sales performance has been strong, solidifying its position as a dominant player in the electric vehicle industry.

However, dropping US costs may make it easier for the business to obtain more federal EV tax credits and boost both local and global sales.

The Model 3 and Model Y are presently discounted in the following European countries:

Austria
France
Germany
The Netherlands
Norway
Switzerland
The UK

The models

Depending on the vehicle’s configuration, Tesla in Germany reportedly reduced the price of the Model 3 and Model Y by anywhere between 1% to over 17%.

In terms of popularity in Germany in December 2022, the Model Y trailed the Model 3.

In Germany, Volkswagen and its well-known EV, the ID.4, were overthrown by the American EV behemoth.

Volkswagen’s entry-level electric vehicle, the ID.3, is comparable to the Model 3 (at its reduced price).

According to TroyTeslike, an independent EV industry analyst, the cost of a brand-new Tesla Model 3 has decreased by 6% to 14% in the US.

Depending on the configuration, the price of Model Y decreased by roughly 19%.

The Model Y is a sport utility vehicle or crossover, while the Model 3 is Tesla’s entry-level sedan.

The more premium Model S sedan and the Model X SUV with falcon wings are now more affordable in the US.

Tax credits

Electric cars may be eligible for tax incentives in the US depending on its form factor, category, efficiency, mileage range, and manufacturer’s suggested retail price.

In order to give manufacturers the chance to qualify for a $7,500 clean car tax credit, the US government postponed until March the introduction of new regulations governing the acquisition of raw materials and battery components.

As a result, EV manufacturers can continue to purchase essential parts and supplies from global suppliers and also be eligible for EV subsidies.

The final automobile assembly of EVs is exempt from requirement under the existing interim legislation for individuals who are eligible for government incentives.

Discounts

Due to the current reductions, EV manufacturers will benefit from tax benefits both now and down the road.

This could annoy consumers who committed to paying more money to get new Tesla cars before the end of 2022.

After promising to accept deliveries at higher prices until the end of 2022, Tesla upset many Chinese customers by lowering the pricing of the Model 3 and Model Y.

According to Reuters, some consumers apparently protested and sought refunds.

However, Tesla is still standing.

Last month, the business offered a $7,500 discount on the Model 3 and Model Y to entice consumers to take delivery of their vehicles just before the end of the fourth quarter.

The manufacturers would also offer free Supercharging for 10,000 miles if US customers accepted.

Operations

Even with the discounts, the company reported that 439,701 vehicles were made and 405,278 vehicles were delivered in the fourth quarter.

The corporation anticipated a 50% increase in annual car deliveries; but, in the fourth quarter, both analyst forecasts and the annual goals were missed.

In Fremont, California, Tesla is now running its first assembly facility in the US.

Additionally, it has a brand-new facility in Gruenheide, Germany, a manufacturing facility abroad in Shanghai, and a brand-new factory in Austin, Texas.

Reference:

Tesla cuts prices in the US and Europe to stoke sales after lackluster year-end deliveries

Electric vehicles improve in sales for 2022

Leah Cooper on January 16, 2023

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Electric vehicles:Electric vehicles have become more popular than ever before, and manufacturers besides Tesla are becoming more recognized.

Matt Degen, an editor at Cox Automotive, a website and company devoted to cars, described the situation best.

“It’s not your eyes tricking you,” highlighted Degen.

“For the longest time, the majority of the EVs on the road were Teslas, and they still get the lion’s share of sales.”

“But they’re now hardly the only game in town.”

The numbers

5.6% of the automobiles sold in 2021, according to Kelley Blue Book, were electric vehicles.

Two years ago, only 1.4% of EVs were sold.

Norway was referenced by BloombergNEF expert Corey Cantor in connection to the performance within the global markets.

The 5% market share underlined a crucial turning point for greater adoption.

dBloombergNEF added that markets like China and Europe experience similar changes.

Although plug-in hybrids were listed among the “electric vehicles” by Bloomberg, battery-power vehicles account for the majority of them.

A norm

5% can seem like a little amount, but it could signal the beginning of something becoming common.

For instance, according to Cox Automotive, Hyundai’s overall US market share and the market share for electric vehicles are comparable.

Purchasing a Hyundai doesn’t feel out of the ordinary, and the same is true for electric cars.

However, the main obstacle to buying an electric vehicle is the convenience.

“I think now the demand is definitely there,” said Cantor.

“It’s just been more a supply side of automakers not being able to ship enough.”

Supply & demand

The distribution of parts has been a problem for the entire year 2022 in the global car industry, which has hindered production for a range of vehicles.

The unexpected popularity of a few electric vehicle models caught the manufacturers off guard.

As an example, the 2021 Mustang Mach-E was the first electric vehicle to compete with Tesla sales.

Since then, Ford has had trouble keeping up with demand.

According to Darren Palmer, vice president of electric vehicle initiatives at Ford, every Mach-Es produced by the company was made in response to a specific customer order.

“We could sell it out at least two or three times over,” said Palmer.

“We have held back from launching more global markets because we’re completely sold out.”

The F-150 Lightning is a later version of the F-series pickup truck made by Ford.

The factory where the Lightning is made in Michigan is also being expanded by the manufacturer.

Variety

The selection of electric vehicles on the market has also been expanding.

Eleven electric vehicle models sold more than 1,000 units in 2019, claims Kelley Blue Book.

This year, there were 26 different models.

Hyundai and Kia launched new models for the Hyundai Ioniq 5 and the Kia EV6 even though they already sold electric vehicles.

The R1S SUV and R1T truck were released by Rivian.

General Motors also observed an increase in sales after the Bolt EV and Bolt EUC were brought to the market after a battery fire recall.

The market currently provides electric cars from the premium manufacturers listed below:

Audi
BMW
Genesis
Mercedes
Volvo

“There’s different segments, there’s different price levels,” said Matt Degen.

“It’s not just having to spend $50,000 or $100,000 on an EV anymore.”

According to Tony Quiroga, editor-in-chief of Car and Driver, cheaper electric vehicles have become better as a result of longer driving ranges and faster charging periods.

Additionally winning the 2022 Car and Driver Electric Vehicle of the Year award was the Hyundai Ioniq 5 ($41,000 starting MSRP).

“It’ll go from 10% to 80% on a fast charger in 18 minutes,” said Tony Quiroga. “Which is something that only the luxury brands were doing.”

Inflation Reduction Act

Despite the availability of a wider choice of electric vehicles, it is predicted that EV sales will rise as production problems are resolved.

However, several questions remain unsolved.

According to Jessica Caldwell, industry analyst for Edmunds.com, gas prices may have something to do with the rise in interest for electric vehicles earlier this year.

The recent steep drop in gas prices may make consumers think twice about purchasing electric vehicles next year.

The consequences of the Inflation Reduction Act, meanwhile, remain undetermined.

The terms under which electric vehicles might be eligible for consumer tax credits were changed by the act, which was passed this year.

Furthermore, it establishes a limit on the car’s price based on the buyer’s income.

A few requirements also support indigenous production of the batteries that power electric vehicles.

The question isn’t how many electric vehicles will be eligible, says Corey Cantor, but rather which one.

“So, if a Tesla Model 3 and the Chevy Bolt, and the Tesla Model Y, and a Ford Mach-E and an F-150 Lightning all qualify, those are high volume vehicles,” said Cantor.

Due to their popularity and high sales, incentives may lead to an increase in the sale of electric vehicles.

Reference:

Electric vehicle sales hit a tipping point in 2022

Tesla and Apple face major China headwinds

Jason Robinson on January 10, 2023

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Tesla: Apple and Tesla, two of the leading US tech firms, are currently experiencing problems with their stock values.

Because the two firms are facing significant challenges in China, investors are concerned.

Apple’s stock decreased by more than 3% as concerns about the iPhone lineup for the December quarter increased.

Tesla, however, saw a 12% drop on Tuesday when the company reported that deliveries missed the mark of analyst expectations.

China’s influence

Challenges in China may factor in the two tech giants’ stock values declining.

The country contributes 17% of Apple’s sales and 23% of Tesla’s income, making it a big market for both companies.

Daniel Ives of Wedbush Securities, offered his opinion on the companies’ issues.

“China is the heart and lungs of both demand and supply for both Apple and Tesla.”

“The biggest worry for the Street is that the China economy and consumer are reining in spending, and this is an ominous sign.”

He continued:

“In 2022, the worry was supply chain issues and zero Covid-related issues, 2023 is the demand worry and this has cast a major overhang on both Apple and Tesla, which heavily relied on the Chinese consumer.”

Tesla delivery

The share price of Tesla decreased as a result of the delay in vehicle deliveries.

Deliveries of cars fell short of expectations in the fourth quarter, falling to 405,278 from 427,000.

Both the supply chain and Chinese demand were factors in the drop.

During the entirety of 2022, Covid interruptions impacted Tesla’s Shanghai Gigafactory.

However, analysts have also voiced concerns about Chinese consumer demand.

“Tesla will point to supply disruptions and lockdowns as the main problem in China in 2022,” said Bill Russo, the CEO of Shanghai-based Automobility.

“While these are real headwinds, it cannot hide the fact that demand has softened for a variety of reasons, and their order backlog is 70% smaller than it was prior to the Shanghai lockdown.”

Shanghai saw lockdowns in the latter weeks of March 2022 as the authorities sought to contain an outbreak of Covid.

Headwinds

Investors are concerned that Tesla may reduce pricing to draw customers, which puts pressure on margins.

In October, Tesla lowered the price of the Model 3 and Model Y in China, returning to the 2022 pricing company had previously established.

Another obstacle for Tesla in China is the escalating domestic competition from companies like Nio and Li Auto.

Additionally, this year will see the launch of new models from domestic rivals at lower pricing.

“Tesla’s models have been in the market for a while and are not as fresh to the Chinese consumer as other alternatives,” offered Russo.

“What we are learning is, EV product life cycles are short as they are shopped for their technology features.”

“Buying an older EV is like buying last year’s smartphone,” he continued.”

“They need new or refreshed models to reignite the market. Just pricing lower can damage their brand in the long run.”

iPhone factory problems

Investors are anticipating Apple’s fiscal first-quarter results, which will probably include the December holiday season.

The largest iPhone manufacturer in China, Zhengzhou, experienced a Covid incident in October.

Foxconn, the factory’s owner, placed restrictions.

By November, there had been numerous employee walkouts due to a salary dispute.

Foxconn tried to entice them back with incentives.

Since then, things have become more stable.

Additionally, according to Reuters, the factory was almost running at full capacity on Tuesday.

The incident exposed Apple’s reliance on China for iPhone production.

According to the tech titans, the facility was reportedly operating at significantly lower capacity due to the Covid ban.

Fears

According to Evercore ISI analysts, Apple had a $5 to $8 billion sales imbalance in the quarter ending in December.

However, according to Refinitiv’s estimate, the company may report a 1% yearly decline in revenue in the December quarter.

Investors who expected the iPhone 14 to do well have also expressed concern.

However, Apple is facing more than just supply chain issues.

China has modified its zero-Covid policy to reopen its economy.

But, widespread Covid-19 outbreaks in the country could affect iPhone demand.

IDC research manager Will Wong offered his opinion on the matter and stated:

“The key challenge is expected to be on the demand side, especially since resilient high-end consumers may have started to shift their spending to travel while some may have shifted their focus to medical supplies.”

“The shift in spending will pose a key challenge in the short term.”

Reference:

China risks loom over US tech giants Tesla and Apple as share prices plunge

Tax credit for EVs in 2023 leads to confusion

Leah Cooper on January 10, 2023

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Tax credit: In 2023, which is just a few days away, several electric vehicle models from General Motors and Tesla may be eligible for tax credits.

This year, some EVs weren’t eligible for tax credits worth $7,500.

Despite the fact that the change is good, the eligibility might only last a short while.

Limitations imposed by the August Inflation Reduction Act are to blame for the ongoing eligibility.

The Treasury Department announced this week that the Act’s restrictions on newly created tax credits would not immediately go into effect.

As a result, the regulations will be temporarily more flexible in the first few months of 2023 and allow larger tax credits on more EVs.

The rules

According to the US Treasury Department, the limitations on the new tax credits have been postponed until at least March 2023.

The new restriction refers to both the location of the battery pack’s manufacturing and the sources of its minerals.

It also revealed proposed rules that would implement the demands.

According to the terms of the law, the reductions in tax credits will start as soon as the “proposed guidance” is published.

After a three-month period, vehicles may qualify for larger tax credits.

For instance, General Motors claimed that if the full restrictions are in place, their electric vehicles will only qualify for a $3,750 tax benefit.

The company’s vehicles won’t become eligible for the $7,500 tax credit for two to three years.

Downside

The restrictions have a disadvantage in that they will make the regulations ambiguous despite the buying opportunities they would bring in early 2023.

Consumer Reports senior policy analyst Chris Harto expressed his desire for more clarity as opposed to more confusion.

“It seems like things just seem to get more confusing each time they say something,” said Harto.

The proposed tax laws are meant to incentivize automakers to produce their electric vehicles (and their parts) in the US or other countries with which they have trade agreements.

They also make sure that wealthy Americans who buy luxury cars don’t get tax credits.

The most recent announcement undoubtedly benefits customers because it temporarily increases the amount of tax credit money that is available.

Qualifications

The slanted tax credit for early 2023 is one of the Act’s numerous unclear components.

The Chevrolet cars Bolt EV and EUV are now eligible for tax credits for the next year according to revised EV tax credit standards.

Despite having been constructed in North America, they were previously ineligible.

General Motors and Tesla exceeded the 200,000 electric vehicle sales limit for any company under the prior tax credit regulations.

The new regulations, which are connected to the Inflation Reduction Act, will lift the cap.

However, not every customer or electric vehicle will be eligible for credits despite the change.

For instance, there will be pricing restrictions in addition to the requirement for North American production.

A vehicle’s pricing cannot be more than $55,000, while an SUV’s sticker price cannot be more than $80,000.

As a result, at their current prices, the majority of Tesla models (including the Model X SUV, Model S sedan, and Model 3) will not be eligible for tax credits.

Starting in 2023, the Mercedes EQS SUV, which is currently eligible for tax benefits since it is made in the US, would no longer qualify.

“It shuffles the deck as to who’s eligible, and then the deck will get shuffled again when this guidance comes out [in March],” said Chris Harto.

“And it makes a giant mess for consumers, and automakers, and dealers.”

Buyers

Due to the limitations on tax credits, buyers are not allowed to flip.

This suggests that the car must be purchased by the end user.

People who buy cars with the intention of reselling them are not eligible for the credit.

Additionally, there are restrictions on the buyer’s income.

The maximum “modified adjusted gross income” for buyers is $300,000 for a couple filing jointly, $150,000 for an individual, or $225,000 for the head of household.

The restrictions will make it impossible for buyers of high-end electric vehicles to receive tax credits.

According to Andrew Koblenz of the National Automobile Dealers Association, the best thing purchasers can do is find out if the vehicle they are thinking of buying is qualified for the tax credit.

Similar-looking SUVs bought from the same dealer might not be qualified for the same level of credit due to the fact that some models are produced in numerous factories.

“It’s a great time to be shopping,” said Koblenz.

“It’s great that there will be more vehicles eligible now, but you’ve still got to make sure the one you’re interested in is eligible.”

“You need to ask your dealer and your manufacturer that question, and you’ve got to make sure that you qualify too.”

Reference:

Tax credit confusion could create a rush for electric vehicles in early 2023

The Federal Reserve influences 2022 stock market, Thursday market movement

Leah Cooper on December 26, 2022

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The Federal Reserve: After more than a century, the Federal Reserve has long been recognized as a significant player in the stock market.

Through the 2000s, the central bank adopted unconventional policy measures, such as large-scale asset purchases and forward guidance, which boosted the institution’s reputation.

The policy tools

The Federal Reserve makes large-scale asset acquisitions due to emergency government debt and mortgage-backed securities purchases.

On the other hand, forward guidance refers to the Federal Reserve’s public statements on the direction its monetary policies will take.

The guideline includes the expected federal funds’ interest rate target before a policy change.

Inflation and economic landscape

Central bankers advised the populace to prepare for more difficult economic times as they faced inflation in 2022.

The attempts, according to experts, contributed to the decrease in the price of the S&P 500.

Professor of economics at Notre Dame University and former Federal Reserve economist Jeffrey Campbell said the following:

“I think they know they gambled and lost, and that they have to do something serious in order to get inflation back under control.”

“I fear that they took a gamble that inflation wasn’t too real a thing at the beginning of 2021.”

In 2022, the Federal Reserve raised interest rates seven times in response to inflation that was stronger than predicted.

The effects of higher rates may be felt by publicly traded companies, especially growth shares in the technology industry.

Cautious warnings

Since April 2022, the Federal Reserve’s asset portfolio has decreased by more than $336 billion.

According to experts, the cumulative effect of economic tightening is still unknown.

On Wall Street, there is a lot of hope that the central bank would change its mind and decrease interest rates.

At the same time, many financial gurus are advising caution.

Victoria Green, founding partner and chief investment officer of G Squared Wealth Management, stated the following:

“If you have somebody that has a thumb on the scale or has a decided advantage about what’s going to happen, whether we think good things or bad things are going to happen, it’s best not to fight that policy.”

Experts claim that central bank policy is just one piece of the puzzle.

Investor sentiment and “black swan” events have a significant impact on the direction of the market.

John Weinberg, a former policy adviser for the research department of the Federal Reserve Bank of Richmond, stated:

“Sure, don’t fight the Fed, but… don’t believe too much that the Fed is all powerful.”

Stock movement

Numerous businesses produced headlines on Thursday with their stock movement during the trading session around lunch.

Airline

Airline shares fell due to the Thursday announcement of multiple flight cancellations.

Due to a harsh winter storm, the US American and United stocks fell 3.6% and 1.9%, respectively.

Both Delta and Southwest saw drops of 2% and 3%.

AMC Entertainment

The company’s shares dropped 7.4% after it proposed a reverse stock split to lower its debt and announced a new $110 million capital raise.

Its preferred stock shares increased by more than 75%.

CarMax

Following the most recent quarter’s earnings, the auto retailer’s stock value decreased by 3.7%, and revenue fell short of Wall Street projections.

CarMax generated 24 cents per share on $6.51 billion in sales instead of the analysts’ forecast of 70 cents per share on $7.29 billion in sales.

Micron Technology

Due to the dismal earnings and revenue for the quarter, the company’s shares decreased by 3.4%.

The revenue was attributed to a drop in demand, which is expected to last until 2023.

Additionally, Micron announced a 10% staff decrease for the future year.

Advanced Micro Devices and Nvidia’s respective other semiconductor stocks declined by 7% and 5.6%, respectively.

Marvell Technology lost more than 4%.

MillerKnoll

After reporting earnings and revenue for the second quarter of fiscal 2023 that beat forecasts, MillerKnoll saw a jump of more than 14%.

The corporation claims it reduced annualized costs by $30 to $35 million.

Even if just somewhat in the third quarter, these savings would be realized in the fourth.

Mirati Therapeutics

Shares of the pharmaceutical company increased by more than 5% after the Food and Drug Administration named its colorectal cancer treatment a “breakthrough therapy.”

Tesla

On Thursday, the company’s stock fell by roughly 9%.

The Tesla website claims that a $7,500 discount was offered on the Model 3 and Model Y automobiles that will be sent to the US before the end of the year.

The cars also include a free supercharge that is good for 10,000 miles.

TuSimple

After the stock lost more than 11% of its value, TuSimple announced it would remove 25% of its workforce.

The announcement would impact over 350 employees at the self-driving truck startup.

Tyson Foods

The manufacturer of meat and poultry closed the day with unchanged stock prices after The Wall Street Journal reported that the company intended to lay off hundreds of employees in 2019.

Tyson Foods’ corporate offices will consolidate in 2023.

Under Armour

On Thursday, the athlete wear company’s share price dropped by more than 2.3%.

Additionally, the business revealed that Stephanie Linnartz of Marriott International would become CEO next year.

References:

How the Federal Reserve affected 2022’s stock market

Stocks making the biggest moves midday: AMC Entertainment, Tesla, Micron, Under Armour and more

Elon Musk highlights macroeconomic factors for Tesla shares decline

Jason Robinson on December 21, 2022

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Elon Musk: On Tuesday, shares of Tesla, the top producer of electric vehicles, fell 8% and hit a new 52-week low.

Elon Musk, the CEO, attributed the decline to macroeconomic factors.

The news

Tuesday’s market performance was mixed as Tesla shares slid to a 52-week low and finished at approximately $138 per share, down 8%.

Elon Musk tried to attribute the problem to macroeconomic factors.

Ross Gerber, a longtime backer of Tesla, tweeted:

“Tesla stock price now reflects the value of having no CEO. Great job tesla BOD – time for a shake up. $tsla.”

Gerber launched an unofficial campaign to convince Tesla’s stockholders to ratify his appointment to the board of directors.

“As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are not guaranteed,” Musk replied.

“People will increasingly move their money out of stocks into cash, thus causing stocks to drop.”

Stock

Since Musk said earlier this year that he would buy Twitter, Tesla’s stock has fallen more than those of other well-known manufacturers.

Tesla shares have dropped 59% since April compared to 26% and 12% for Ford and GM, respectively.

The S&P 500 is down 14% as well.

Distractions

Elon Musk, according to Ross Gerber, has been preoccupied.

He mentioned the issues that the new CEO and owner of Twitter had been causing with his social media site.

Late in October, Musk used a leveraged buyout to acquire Twitter.

As CEO of SpaceX, a large defense contractor, he also spends his time between those roles.

Twitter acquisition

Elon Musk sold his Tesla stock, including one, for $3.6 billion earlier in December to obtain money to buy Twitter.

In an effort to “save” the company last month, he laid off more than half the workers after selling his Tesla for billions of shares.

Then he made a number of modifications to the products and the policies, which he ultimately undid.

After layoffs, Musk called an all-hands meeting to motivate the remaining Twitter employees.

He sold Tesla stock, estimated to be worth $3.95 billion, at the start of November.

Musk also sold 19.5 million more Tesla shares, according to a filing sent to the Securities and Exchange Commission.

In April, Musk sold Tesla shares worth over $8 billion, and in August, he sold stock worth over $7 billion.

The CEO of Tesla extended an invitation to employees from previous companies he co-founded to join the Twitter team, as well as to supporters, friends, and autopilot engineers.

Tesla’s challenges

Since late October, Elon Musk has been focusing on his “Chief Twit” position.

Tesla has been offering discounts and incentives to sell automobiles in China, where the company has a sizable production site in Shanghai.

Additionally, the company has pushed to improve productivity in recently built facilities in Brandenburg, Germany, and Austin, Texas.

Additionally, despite Europe’s growing energy prices, Tesla continues to experience supply chain problems in the automotive industry.

The scenario in Europe may reduce drivers’ interest in electric automobiles.

Price targets

Due to the issues the company is now having, Mizuho Securities and Evercore ISI decreased their projections for the price of Tesla on Tuesday.

Analysts at Mizuho Securities warned of “potential weakness in Tesla sales as macro headwinds and a weaker consumer could drive lower demand for higher-priced EVs.”

The company, however, is upbeat about Tesla’s future and cites the following factors as potential boosters of rising domestic demand:

New Tesla factories could provide a competitive advantage
New electric vehicle tax credits in the United States

Early in 2023, China’s EV credits start to run out.

As a result, the group has a buy rating and a $285 price objective on Tesla’s shares.

Tesla shares

Joshua White, an assistant professor at Vanderbilt University and a former economist for the US Securities and Exchange Commission, said:

“Only some of the drop in Tesla’s value can be blamed on interest rates. Twitter overhanging is one important component. China is another huge component.”

“We still don’t know if China will be open all the way, and we see there is supply and demand pressure here in light of the increase in Covid cases and disruption.”

White asserts that Elon Musk likely lost shareholders’ confidence in April when he said he didn’t sell any extra Tesla shares.

Musk persisted nonetheless, raising billions of dollars by selling more shares.

“He seems to sell equity in really large blocks, say ‘I’m done and I’m not selling anymore.’ But talk is cheap,” continued White.

“He says that and then sells more shares. So the more you say that and investors think he’s probably not done? The less confident they will be that the price is going to bounce back.”

References:

Elon Musk tries to explain why Tesla shares are tanking

Elon Musk tells Twitter staff he sold Tesla stock to save the social network

Elon Musk sells giant chunk of Tesla shares again

Leah Cooper on December 19, 2022

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Elon Musk is highly known for a number of things, but he is best known for his role as CEO of the renowned electric car firm Tesla.

Just recently, Musk sold more than 22 million shares of Musk’s company for a total of about $3.6 billion.

The details were disclosed in a financial document that was made available to the public on Wednesday night.

According to paperwork submitted to the Securities and Exchange Commission, the transactions happened this week between Monday and Wednesday.

Tesla

Before taking over the well-known social media network Twitter, Elon Musk had his hands full with Tesla and SpaceX.

On April 29, he tweeted the following to let his fans know about some changes to the electric vehicle manufacturer’s stock:

“No further TSLA sales planned after today.”

According to VerityData, a company that performs financial analysis, Musk has already sold 94,202,321 shares in 2022.

With a share price of $234.46 on average, pre-tax profits came to about $22.93 billion.

Sales

Ben Silverman, the research director of VerityData, said:

“Musk’s prior sales going back to November 2021 were expertly timed, so Tesla shareholders need to pay attention to Musk’s actions and not his words – or lack thereof when it comes to his recent selling.”

But Elon Musk persevered in trying to sell off some of his Tesla holdings.

After deciding to pay $44 billion for Twitter, the CEO resolved to sell a significant portion of his shares.

Musk bought Twitter in late October.

Wealth

This week, Elon Musk lost his title as the wealthiest person in the world.

The CEO of the luxury goods firm LVMH, Bernard Arnault, has reportedly become the richest person in the world, according to Forbes and Bloomberg.

According to Refinitiv, a source of financial market statistics, he still holds the highest position in Tesla, with a 13.4% holding.

Musk said in November that he had sold 19.5 million Tesla shares for a total of $3.95 billion, only days after taking over Twitter.

The worth of the Tesla CEO has climbed to $174 billion, and Arnault’s wealth has increased to almost $191 billion.

Stock

Despite having a well-known brand in the sector, Tesla’s stock performance in 2022 was among the poorest among the most illustrious automakers and IT companies.

Investors worry that Musk’s acquisition of Twitter has taken up the majority of his time.

On Wednesday, the value of Tesla shares, which are traded on the New York Nasdaq index, closed under $500 billion.

The shares last experienced a similar decline in 2020.

Last year, Tesla’s worth was astoundingly above $1 trillion, but it has subsequently decreased in recent months.

Twitter

Elon Musk completed seizing control of Twitter in October.

His focus and efforts are now solely on the social media platform.

By selling shares of Tesla, Musk was able to raise billions of dollars for the acquisition of Twitter.

The shares decreased as a result of the transactions.

The Twitter agreement was finally finalized after some back and forth between the firm and the CEO of Tesla.

Musk attempted to renege on the agreement during that time before deciding to purchase shares of his own company instead.

Some claim that Tesla’s stock price dropped as a result of the takeover’s distraction.

Investors are also concerned that there may be less demand for the company’s electric automobiles because of the weak economy.

Rising borrowing costs have discouraged customers and other companies from adding more electric vehicles to their lineups.

In addition to the problems already highlighted, Tesla has experienced issues with model autopilot, regulatory inquiries into crashes, and recalls.

Other notes

All of 2022 has seen a decline in Tesla stock.

However, things significantly altered after Elon Musk took over as Twitter’s CEO.

On Wednesday, Tesla stock decreased 2.6% to close at $156.80.

As a result, the company’s market capitalization dropped to $495 billion.

As of Wednesday’s close, Tesla stock has also dropped by 55% year to date.

References:

Elon Musk sells another huge chunk of Tesla shares

Elon Musk sells $3.6 bn of shares in electric car maker Tesla

Twitter Blue is $3 more for iPhone users

Jason Robinson on December 19, 2022

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With an emphasis on the Twitter Blue subscription service, Elon Musk and Twitter have been collaborating to improve the organization’s revenue model.

On Monday, the social media company revealed a new iteration of Twitter Blue.

Last month, Elon Musk halted and postponed the launch, which prompted the upgrade.

Apple service

For web users, Twitter Blue is $8 per month; however, Apple customers are in for a shock since the subscription costs them $11.

There is an additional $3 fee for iOS users who purchase the subscription through the Apple App Store.

The price rise is a result of Elon Musk, the new owner, lately expressing his displeasure with the tech giant’s 30% decline in digital revenue generated by applications.

The cut

Musk began criticizing Apple in November over its decreased Twitter advertising expenditures and its 30% decline in digital sales due to applications.

Tesla’s CEO added that Apple has threatened to remove Twitter from the App Store.

Musk said that he was “going to war” in a later deleted tweet.

Additionally, he suggested he would design his own brand of cellphones from the ground up.

Apple’s reactions

Apple CEO Tim Cook remained silent on Musk’s activities despite numerous provocations.

From a commercial standpoint, Twitter is just another app, and the major tech company doesn’t make much money from its in-app transactions.

Government intervention

Republicans JD Vance, the next senator from Ohio, and Florida Governor Ron DeSantis advised Musk on how to pressure Apple.

DeSantis stated that Congress should investigate Apple’s use of monopoly power if it carried out its threat to fire Twitter.

“You also hear reports Apple is threatening to remove Twitter from the App Store because Elon Musk is actually opening it up for free speech,” said DeSantis.

“And [Musk] is restoring a lot of accounts that were unfairly and illegitimately suspended for putting out accurate information about Covid.”

“If Apple responds to that by nuking them from the app store, I think that would be a huge, huge mistake, and it would be a really raw exercise of monopolistic power.”

On the other hand, JD Vance expressed similar views and said:

“This would be the most raw exercise of monopoly power in a century, and no civilized country should allow it.”

Previous pullouts

The digital behemoths will likely delist Twitter’s app from the App Store if Apple stops collecting platform fees.

Fortnite launched a feature to the iPhone app in 2020 that allowed players to purchase in-game cash from Epic Games directly, lessening Apple’s typical 30% cut of purchases.

Apple took Fortnite off the App Store the same day.

Later, Apple prevailed in a court battle with the other party.

An appeal, however, is still ongoing.

Musk wants to generate more revenue through Twitter subscriptions rather than through adverts.

Twitter is cutting costs while carrying a sizable debt, which reduces Apple’s advertising, a significant challenge.

The subscription

Twitter announced on Saturday that users with verified phone numbers would see a blue checkmark when an account is reviewed and approved.

Subscribers to the Blue service will have access to exclusive features and services, such as tweet editing.

Twitter also promised users the following:

Fewer ads on their timeline
The option to post longer videos
Priority in replies and mentions

The relaunch includes a feature that enables companies to get a gold checkmark.

To avoid impersonations, governments will also have a gray checkmark.

Users can modify their username, display name, and profile photo, according to Twitter.

But if they did, their blue check would be forfeited until their account was again examined.

Elon Musk also disclosed that there would be other functionalities.

Early launch

An early version of Twitter Blue went live in November.

After some users started mimicking companies, the government, and prominent people, Musk promptly shut down the service.

One account tweeted that insulin was free while posing as the pharmaceutical company Eli Lily.

As a result of the false assertion, the company’s stock price fell sharply.

The same issue also plagued the website of the pharmaceutical business AbbVie.

It was once more delayed despite Musk’s assurances that the service would resume on November 29.

Musk

The CEO of Tesla and SpaceX paid $44 billion in October to purchase the social media site.

He has concentrated on Twitter Blue since taking over to replace advertising revenue.

The “huge lever” and the power of the people would be provided by the new verification mechanism, according to Musk.

Before his acquisition, Musk was a vociferous opponent of Twitter’s prior verification process since it favored users like:

Politicians
Executives
Members of the press
Organizations

Other social networking sites operated by Meta, like Facebook and Instagram, utilize similar verification mechanisms.

Users who were verified under Twitter’s previous strategy are now regarded as legacy verified accounts that “may not be notable” due to the debut of the new service.

Elon Musk announced Monday that all legacy blue checks would soon be destroyed.

“The way in which they were given out was corrupt and nonsensical,” said Musk.

References:

Twitter Blue relaunches, now costs $11 per month if you subscribe from an iPhone

Elon Musk may be luring Apple into a fight with Republicans

Elon Musk briefly slipped to second wealthiest man

Nicholas Alexander on December 12, 2022

…

Elon Musk has long been known as the wealthiest man on earth, running the likes of Tesla, SpaceX and, most recently, Twitter.

However, his prestigious title could be transferred to another person, as happened recently.

The metric

On Wednesday, Elon Musk briefly slipped to second place on Forbes’ list of “real-time billionaires.”

The CEO of Twitter, SpaceX, and Tesla sat just behind Bernard Arnault for a moment.

On the same level as Musk, Arnault is the CEO of the French luxury brand LVMH.

He is also the creator of luxury products Hennessy Cognac and Louis Vuitton.

However, Forbes estimates Elon Musk’s net worth at $184.9 billion, which is higher than Arnault, who stands at $184.7 billion.

“The two men’s fortunes are nearly the same – separated by just $200 million,” Forbes noted.

“So it won’t be surprising if they continue to flip flop in Forbes’ rankings of the world’s wealthiest.”

The drop

Forbes explained that thanks to the flat shares of LVMH, Bernard Arnault has risen in the rankings.

Meanwhile, Elon Musk witnessed a dramatic drop in Tesla’s stock price, down 56% in 2022.

Musk’s strategy of appealing with friendliness to right-wing influencers on Twitter could also affect Tesla’s stock.

The Tesla CEO’s net worth peaked at $320 billion last November, according to Forbes.

Stocks and shares

Elon Musk had to sell more than $4 billion worth of Tesla stock to fund his $44 billion Twitter buyout.

However, the social media company is facing issues like layoffs, and advertisers are wary of Twitter’s management.

Additionally, Musk sold $14.5 billion worth of Tesla stock earlier this year when he announced his deal to buy the social media platform.

Estimating Elon Musk’s net worth will not be easy.

Most of his money is tied up in his private businesses, including:

Rocket and internet firm SpaceX
Tunneling outfit The Boring Company
Neuralink is a company dedicated to installing computer chips in people’s brains

Competition

Despite his losses, Elon Musk still ranks above others on the Forbes list.

Indian billionaire Gautam Adani took third place with a net worth of $134.8 billion.

Meanwhile, Amazon founder Jeff Bezos is now worth about $111.3 billion.

Elon Musk tops the Bloomberg Billionaires Index with a net worth of $179 billion.

Bernard Arnault, with $165 billion, follows him.

However, according to Bloomberg calculations, Musk has already lost $13 billion.

The list is updated daily after the market closes.

Reference:

Elon Musk is on the verge of losing his world’s richest person title

Elon Musk to find new source of revenue for Twitter

Leah Cooper on November 21, 2022

Elon Musk has made significant changes to the popular social media platform Twitter since buying the company last week.

After removing top executives from the company, Musk is now focusing on revenue from the platform.

Twitter Blue

As Twitter’s new CEO, Musk shared his intention to make the social media platform less reliant on advertising for revenue.

In particular, he is thinking of Twitter’s premium service, Twitter Blue.

Twitter Blue is currently available in four countries for $4.99 monthly.

According to Musk, he plans to increase the price to $8.

The most significant change, however, is that Twitter Blue will have a blue tick next to the user’s handle.

The blue checkmark is often seen on verified profiles, most of which belong to organizations, athletes, celebrities and internet celebrities.

Elon Musk’s plan serves to answer claims that the service would cost $20.

Changes

Tesla’s founder and CEO revealed his monetary plan in tweets.

Elon Musk talked about the current system, describing it as “bull****.”

He plans to offer the verification service to users who are willing to spend money every month.

The subscription service prioritizes interactions, comments and mentions for payers.

It also doubles as a method to combat spam.

Benefits of the service

Users who pay for the service can post longer videos and audio.

Additionally, Elon Musk says the change will see half of the ads that other users see.

Meanwhile, publishers who want to work with the social media platform will get a paywall bypass.

Another key feature that users who pay for Twitter Blue get is the ability to edit their own tweets finally.

For now, it is only enabled for Blue users.

However, according to Casey Newton of Platform, it will soon be free for everyone.

The arrival of the new update is a question of if and when, and upon arrival, users can write a secondary tag.

Secondary tags are currently exclusive to high-profile politicians.

Reference:

Musk to increase Twitter Blue subscription to $8, verified checkmarks will be secondary

The news

Sales

The models

Tax credits

Discounts

Operations

The numbers

A norm

Supply & demand

Variety

Inflation Reduction Act

China’s influence

Tesla delivery

Headwinds

iPhone factory problems

Fears

The rules

Downside

Qualifications

Buyers

The policy tools

Inflation and economic landscape

Cautious warnings

Stock movement

Airline

AMC Entertainment

CarMax

Micron Technology

MillerKnoll

Mirati Therapeutics

Tesla

TuSimple

Tyson Foods

Under Armour

The news

Stock

Distractions

Twitter acquisition

Tesla’s challenges

Price targets

Tesla shares

Tesla

Sales

Wealth

Stock

Twitter

Other notes

Apple service

The cut

Apple’s reactions

Government intervention

Previous pullouts

The subscription

Early launch

Musk

The metric

The drop

Stocks and shares

Competition

Twitter Blue

Changes

Benefits of the service

© 2023 The Chicago Journal. All Rights Reserved

© 2023 The Chicago Journal.
All Rights Reserved