Tesla shares sink as Musk's sales push by price cuts hurts margins
Tesla Inc's shares sank more than 6.8% (7.20% or $13.00 as of nao) on Thursday and dragged down other automakers after Chief Executive Elon Musk signaled the electric-vehicle maker will keep cutting prices to drum up demand even after taking a big hit to margins. The stock was trading at $168.25, with at least 15 analysts lowering their price targets on Tesla. The company was set to lose around $50 billion in market value, if losses hold. "Facing a volatile macroeconomic backdrop and weakening demand, Tesla continues to prioritize units over near-term profits," said analysts at Canaccord Genuity. Tesla's gross margins fell to a more than two-year low in the first quarter and missed market estimates, after the company kicked off a price war in January to defend its dominance in the U.S. and make inroads in China, its second-largest market. Musk suggested more such moves ahead, saying the company that has cut slashed prices six times so far this year will put sales growth ahead of profit in a weak economy. That spooked investors, who dumped automakers from Europe to the United States on fears that margins will be sacrificed for maintaining share in a market that is slowing this year due to economic uncertainty. "Long-term we believe this (Tesla's price cuts) is the right strategy and leverages their cost leadership position. However, this does not come without pain as we now believe margins will get worse before they get better," RBC analyst Tom Narayan said. U.S. automakers ranging from Ford Motor Co to startups such as Lucid Group Inc fell between 3.3% and 4.4%. France-based Renault SA whose finance chief said the company will not drastically cut prices on its EVs amid Tesla's downward "spiral", was down 7.6%, while Germany's Volkswagen fell 3.5%.
https://www.reuters.com/business/autos-transportation/tesla-shares-sink-musk-signals-more-price-cuts-ahead-2023-04-20/
https://finance.yahoo.com/quote/TSLA
Toyota and VW will eat his lunch-it will take some time but inevitable
calm yer tits.
it was posted to SpaceX launch that was in Texas and those in FL
You always need something to complain about doncha?
NAR: Existing-Home Sales Decreased to 4.44 million SAAR in March (YoY -22%)
Existing-home sales edged lower in March, according to the National Association of Realtors®. Month-over-month sales declined in three out of four major U.S. regions, while sales in the Northeast remained steady. All regions posted year-over-year decreases. Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – fell 2.4% from February to a seasonally adjusted annual rate of 4.44 million in March. Year-over-year, sales waned 22.0% (down from 5.69 million in March 2022).
…
Total housing inventory registered at the end of March was 980,000 units, up 1.0% from February and 5.4% from one year ago (930,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, unchanged from February but up from 2.0 months in March 2022. Sales in March (4.44 million SAAR) were down 2.4% from the previous month and were 22.0% below the March 2022 sales rate.
According to the NAR, inventory increased to 0.98 million in March from 0.97 million in February.
Headline inventory is not seasonally adjusted, and inventory usually decreases to the seasonal lows in December and January, and peaks in mid-to-late summer. This was below the consensus forecast.
https://www.calculatedriskblog.com/2023/04/nar-existing-home-sales-decreased-to.html
Cap#2 shows nationwide inventory for existing homes and Cap#3 is YoY- Inventory was up 5.4% year-over-year (blue) in March compared to March 2022. Months of supply (red) was unchanged at 2.6 months in March from 2.6 months in February.
>>18720215 pb MBA: Mortgage Applications Decreased in Weekly Survey
PlaneFag CONUS activity
Pretty light so far-that NASA AC returned to Houston-Ellington Field after monitoring Fake X splosion >>18724160 pb
C101 US Coast Guard G5 NE from Greensboro, N.C. depart (and roundies) back to Reagan National Airport
RCH3219 C-17 heading to Patrick SFB from Dover AFB depart
11-3016 USAFSOC 'Special Ops' C-146 Wolfhound NW from Liberia Costa Rica and it arrived from Eglin AFB depart yesterday
PAT262 Beech Super King Air SW from bangor, ME depart with PAT009 NE from Davison Army Airfield and heading to Grton Airport NH PAT099 C-12V Huron departing west from same
BOXER29 C-40C doing roundies at Atlantic City Int'l-did same at Greensoboro yesterday
Egyptian AF SUBTT Falcon7X departed Wichita, KS (maintenance facility here)
GTMO842 Beech Super King Air heading to Ft. Lauderdale
Brazil AF FAB2901 A330 departed JBA after arriving on 0418
Lavrov was in Brazil on Tuesday to meet with Lula who was in China last week….
Brazil's Lula meets Lavrov after accusing US of 'encouraging' Ukraine war
https://www.france24.com/en/americas/20230418-brazil-s-lula-meets-lavrov-after-accusing-us-of-encouraging-ukraine-war
Legal marijuana growers along the West Coast struggle with oversupply, seek interstate sales
Cannabis regulators want the Biden administration to approve trade among states that have legalized the drug. The email went out to legal cannabis growers around Washington state. Another of their colleagues had gone under. "Liquidation sale," it said. Attached was a spreadsheet of items for sale: LED grow lights for $500 apiece. Rotary evaporators for hash oil, $10,000.
Across the Columbia River in Oregon, where the state’s top marijuana regulator recently warned of an "existential crisis" in the industry, it’s an open secret some licensed growers have funneled product to the out-of-state black market just to stay afloat. California’s "Apple store of weed," MedMen, is teetering with millions in unpaid bills, while the Canadian cannabis company Curaleaf has shuttered cultivation operations in California, Oregon and Colorado.
Along the West Coast, producers face what many call the failed economics of legal pot. There is vast supply, thanks to great growing conditions and a wealth of expertise, but any surplus remains trapped within each state’s borders due to the federal ban on marijuana. Prices have plunged and producers have struggled.
"I’m at rock bottom," said Jeremy Moberg, who owns CannaSol Farms in Washington and, like many growers, complains that the state’s 37% cannabis tax leaves virtually no profit margin.
No one expects Congress to help out by legalizing the drug nationwide. Instead, some are pinning their hopes, however faint, on President Joe Biden’s administration approving marijuana trade among states that have regulated it.
That would allow the West Coast — with its favorable climate and cheap, clean hydropower for indoor growing — to supply the rest of the country, they argue.
In Senate testimony last month, Attorney General Merrick Garland said the Justice Department will soon announce a new marijuana policy. Drug policy experts say they do not expect it to go as far as permitting interstate commerce. Nevertheless, lawmakers in Washington last week approved a "trigger bill" — modeled after ones already passed in Oregon and California — that will allow the governor to enter into interstate cannabis agreements should the feds allow it.
Twenty-one states have now legalized the recreational use of cannabis by adults.
https://www.foxbusiness.com/markets/legal-marijuana-growers-west-coast-struggle-oversupply-seek-interstate-sales
yep member the weed tours when CO approved it
It's like Starbucks in CA as soon as it became non-med use (license) and that was totally abused
>>18724099 pb
PlaneFag Europe Med Update-P-8 NW of Kaliningrad-Russian AF back to Moscow from Crimea mebby
AE6892 US Navy P-8 Poseidon over southern Baltic Sea just NW of Kaliningrad
Russian AF 71543 Antonov An-148 heading back to Chkalovsky AB-Moscow about 6 hours between the northern and southern traces so could have gone to Crimea area for short stop or just east
Swedish AF SVF653 G5 NE from Prishtina, Kosovo ground stop of about 4.5h and Sarajevo depart after an overnight
United States announced: It is known what they expect from Belgrade and Pristina
USA expects Belgrade and Pristina to fulfill everything agreed upon in the previous negotiations, including the formation of Community of Serbian Municipalities. This was announced by the State Department, commenting on the implementation of the Ohrid Agreement so far.
https://www.b92.net/eng/news/politics.php?yyyy=2023&mm=04&dd=19&nav_id=115806
Swiss AF SUI032 heading Bern from Tallinn, Estonia and SUI006 Falcon 900 on ground at same from RAF Northolt depart and stop of about 8h
Spanish AF AME4510 A310 back to Madrid after NB Rota stop-arrived from Jordan earlier
Buffett effect: Overseas investors buy over $7bn in Japan stocks in week
Financier's remarks, easing bank turmoil spurs highest net purchases in 9 years. Overseas investors bought a net 1.05 trillion yen ($7.83 billion) in Japanese stocks during the five trading sessions through April 14 as billionaire investor Warren Buffett signaled his confidence in the market.
In an interview with Nikkei on April 11, Buffett said that his Berkshire Hathaway had increased its stake in five leading Japanese trading houses. He said he intends to add to his investments in Japan.
The comments helped fuel greater interest in Japanese equities. The latest weekly tally was the largest since November 2013, when quantitative and qualitative easing by the Bank of Japan weakened the yen, spurring hopes for a recovery among Japanese corporations.
This marked the third week in a row of net purchases by overseas investors, with more unwinding their short positions as turmoil in the U.S. and European banking sectors settles down. Overseas investors bought a net 1.73 trillion yen in Japanese equities over the entire period.
They have also turned net buyers on a year-to-date basis, by more than 170 billion yen.
"Long-term investors are snapping up cash equities, partly thanks to moves by the Tokyo Stock Exchange," said Takayuki Ishibashi, a vice president at Goldman Sachs Japan. The TSE is urging listed companies with price-book ratios under 1 which mean that they are trading below their book value to bolster capital efficiency. "Investors overseas often tell me that they see the Japanese economy to be more stable, given rising interest rates and inflation in the U.S. and Europe," said Kei Okamura, a portfolio manager on the Japanese-equities team at Neuberger Berman. The asset management firm upgraded its view on Japan from "neutral" to "overweight" on valuations in its latest asset allocation strategy, published Tuesday. Okamura also attributed the growing purchases partly to Buffett's bullish outlook on Japan.
https://asia.nikkei.com/Business/Markets/Buffett-effect-Overseas-investors-buy-over-7bn-in-Japan-stocks-in-week
BH been buying up the Japanese trading houses since about mid-2020 and it was Sumitomo-Misui that led the AT1 bond sales announced on Tuesday-see below
>The purchases started at $6B of these: Mitsubishi Corp., Mitsui & Co., Itochu Corp., Marubeni and Sumitomo
from Tuesday
>>18717863 pb $1 Billion Sale Marks First Major Bank’s AT1 Bond Offer Since Credit Suisse Wipeout
>Blackstone is in talks to help regional banks with lending
I bet they are…having had to gate it's REITS since last year-cap
and they have $30B "waiting"
from April 17
Blackstone’s Real Estate Co-Head Reveals How It Will Spend New $30B Fund
https://www.bisnow.com/london/news/capital-markets/blackstones-real-estate-co-head-reveals-how-it-will-spend-new-30b-fund-118542