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Morgan Stanley Warns Tesla Is Facing Bankruptcy
(a bit disingenuous coming from the place that is being sued by Lfyt investors but no matter.)
On Wednesday, Morgan Stanley held an investor call for clients, led by analyst Adam Jonas, supposedly due to feedback after the company's note yesterday, which saw the investment bank lower its "bear case" target to on the company to just $10 per share. This came, ironically enough, just weeks after the company helped Tesla perform a $2.4 billion financing.
To us, nothing smells more like another potential downgrade than letting "select" investors on a call that wasn't supposed to be for media or for the public. Yet we get the funny feeling that the media - and the public - are going to hear all about the call and discuss it widely for days, if not weeks, to come.
Adam Jonas opened the call by talking about how optimistic 2018 looked - the company was generating cash and Elon Musk was saying they don't need to raise cash. Demand was robust and all was right with the world, at the time. Then, 2019 happened… and somehow everything went to hell overnight.
because YOU lied about production numbers and cannot keep your mouth shut-your fault.
He also mentioned that the company's debt was only now a burden, since the growth story has dried up. Even Jonas is seemingly unable to ignore the fact that the bond market is pricing the company's 2025 bonds at 82 cents on the dollar: "No one really cares about debt; no one cares about the CDS as long as you're growing. When questions are calling into your growth these numbers start start to be noticed," he said, sounding exasperated.
Jonas then went on to talk about the company's 5 year CDS prices: "Nevertheless, the CDS on Tesla I believe the five-year CDS this morning was 673 basis points. That compares to Ford Motor Company at around 200." While the implications are clear, the price implies a 46% probability of default in 5 years.
Demand was the first domino, Jonas said, echoing what he put in his note on Tuesday. Additionally, at about 6 minutes in on the call, Jonas talked about the lackluster interest in the Model Y: "Excitement level is really low. There's not much we know about the product."
As a result, the bank's range of price targets for Tesla is easily one of the funniest charts encountered this year.
See cap #2
He then reminded the Musk collective of the importance of demand, or lack thereof, saying it is "at the heart of the problem" and adding that the company may have over-saturated the market outside of China:
We believe Tesla may have over-saturated the retail market for BEV sedans outside of China. Tapping into new demand could require aggressively expanding into: 1) the Chinese domestic market, 2) lower-priced SUVs, 3) and logistics/mobility fleets. Tesla is a large and highly vertically integrated company, capacitized to build between 500k and 1 million units annually. In our opinion, Tesla has grown too big relative to near-term demand, putting great strain on the fundamentals.
If that wasn't enough, Jonas also slammed the "departure of key executives, price discounting, and extraordinary cost-cutting efforts add to the narrative of a company facing real potential stress."
Inc. magazine's entrepreneur of the year indeeed-faggot.
https://www.zerohedge.com/news/2019-05-22/distressed-credit-and-restructuring-story-morgan-stanley-warns-tesla-facing
Sauce for cap#3
https://www.secform4.com/insider-trading/1318605.htm
it would be funnier if you could spell…just sayin'
>Harriet Tubman $20 bill delayed until 2028
so did they already print up a bunch of them like they did with the new $100 bill in 2007 and then had to delay it-only releasing it several year's later?
The Fed Has a $110 Billion Problem with New Benjamins
A significant production problem with new high-tech $100 bills has caused government printers to shut down production of the new notes and to quarantine more than one billion of the bills in huge vaults in Fort Worth, Texas and Washington, DC, CNBC has learned.
rest at link
https://www.cnbc.com/id/40521684
sounds fucky coming from him
US Market Report
Volumes
DOW
Volume 238,679,183
Avg. Volume 297,331,451
NAS
Volume 1,686,783,393
Avg. Volume 2,214,094,193
Twatter shorts burned today.
SP500
Volume 1,754,469,231
Avg. Volume 3,533,145,483
()and bold are additions and edited for content.
Fed Minutes fail to fend off the selling pressure as the POTUS cranks up the pressure on China
Chinese stocks were lower overnight (but ChiNext remain green on the week?).
waiting for the announcement they are printing-they are imo.
European markets were mixed with Germany modestly higher against weakness in the periphery.
US markets tumbled on the day with Trannies tanking worst… Another weak close took The S&P red on the week and Dow very modestly higher.
Today was the 7th day in a row of the opening-ramp.
PANIC
We noticed that the machines kept wanting to lift Nasdaq futures back to the scene of the crime last night when NYT headlines reported the HIKvision blacklist…but each one failed.
Afterhours trading is VERY thin and can be manipulated very easily.
"Most Shorted" stocks tumbled today (so get yourself ready for a squeeze tomorrow?)
except TWATTER-go figure.
Tesla bonds and stocks tumbled further on the day (with default odds now near 50%).
with VW coming and gunning for it it's time for this company to admit defeat.
Treasury yields tumbled on the day, pushing 30Y (outperforming) back to unch on the week
see cap#3-mmmmkay!
10Y Yields dropped back below 2.40% again today.
lowering the discount rate at last meeting not such a good idea eh FOMC?
The yield curve extended its flattening trend after FOMC Minutes.
The Dollar is pinging around like a penny stock this week, but bounced very modestly higher after the hawkish tone from the Minutes.
Cable just keeps falling as rumors of May's demise rise.
really trying to push that down imo.
WTI almost tested a $60 handle intraday.
see cap#4-this is good for us.
And global money supply support is disappearing.
https://www.zerohedge.com/news/2019-05-22/stocks-bond-yields-tumble-trade-turmoil-sparks-breakdown-boom-bust-barometer
https://www.marketwatch.com/investing/bond/tmubmusd30y?countrycode=bx
https://www.dailyfx.com/crude-oil
https://finance.yahoo.com/quote/%5EIXIC?p=^IXIC
https://ticdata.treasury.gov/Publish/mfh.txt
you have to match price you want with what is offered on the "book". So as to say you just can't put in an order for X amount of shares for any price. You have to see what is being offered and at what price. There are no partial fills in those sessions. So you see what is offered and you bid for that specific amount (price) and lot (share) size or ya don't get it.
Not so during regular hours where if you put in a market order and they just fill it openly.
Does that help?
think he was let out of them.It's such a huge mkt-many times larger than equity's That is like turning an aircraft carrier around-you need cooperation of the issuer to do this on that scale. China is fucked as if they even find a buyer-doubtful- it will just devalue what they continue or are forced to hold. POTUS got'em by the curly's and they know it
chek'em trips
hope that answered your question anon
the lien the EU put on us is worth 14q.