“Poor boi” – Jeff
Hey there carnivores,
Markets were up on Friday, thanks to coronavirus treatment hopes
And today we’re talking Elon climbing the ranks.
Jeff & Jason
“I’m the Oracle now”
“Warren Buffett is washed up.” – Dave Portnoy and Elon Musk.
Elon Musk rolled into the weekend as the seventh richest person in the world. Lon Corleone passed Warren Buffett after his net worth grew by $6.1B on Friday thanks to Tesla’s 11% stock surge, bringing the stock’s YTD gain to 269%.
I’ll repeat that again: Elon Musk is now richer than Warren Buffett and he made $6.1B in one day… *Looks at my latest paycheck… single tear rolls down cheek*
Elon’s net worth now stands at $70.5B, compared to Warren’s $69.2B. Maaan, he is one pathetic loser.
Here’s a coupon
All this good fortune has Elon feeling generous, apparently…
Tesla dropped the price of the Model Y by $3k. Less than 4 months after hitting the shelves, Tesla slashed the price of its crossover EV from $52.9k to something more reasonable… $49.9k.
You might remember that the company did beat Wall Streets’ Q2 estimate of 70k vehicle deliveries by 20k EVs, but is hoping that the price cut will pour gasoline (er, electricity?) on the fire and spark demand at a time when automakers are feeling the pinch as buyers hold off on car purchases.
This is the fourth price drop in six weeks, as the EV maker took $5k off the MSRP for the Model S and X and $2k off the Model 3.
The bottom line…
Investors seem to be chasing the EV dragon, hoping any car company that prefers electricity to gas can replicate Tesla’s unprecedented YTD gainz. I know from experience, man *looks at the three shares of Nikola in my Robinhood account*
Electric pickup truck company Rivian raised $2.5B via its latest round of funding, moving its estimated valuation to more than $8B. Soros Fund and Fidelity jumped on the bandwagon, while Amazon and BlackRock invested further.
Of course, the EV truck company doesn’t currently produce any vehicles, but it is looking to hit the streets with three new models in 2021… probably.
☑️ Once in a lifetime.
Brooks Brothers might be getting the loan it needs to reorganize during its bankruptcy, and perhaps make it out the other side. The loan, which is worth $80M, has an interest rate of zero, and no closing fees. Define: offer you can’t refuse.
The cash is being provided by a partnership between Authentic Brands and Simon Property group… who apparently don’t really know how loans work.
The markets took off on Friday on the news that Gilead’s remdesivir showed positive results in helping coronavirus patients recover. According to Gilead, patients in its most recent trial showed a 62% reduction in the risk of mortality, compared to standard care patients. Gilead shares climbed 2% on the news.
The Dow jumped 1.4% points, the S&P rose 1% while the Nasdaq climbed 0.6%, and hit another record on the backs of Amazon and Netflix. Two things in life are certain, death, and big tech stonks only going up.
☑️ On hold.
On Friday, DJT said that a Phase 2 trade deal with China is not in the works, citing deterioration of the relationship between Washington and Beijing. Gee, I wonder what might have sparked that?
The first phase of the trade deal has been in place since January 15th, and Donnie Deals had initially said that a phase 2 agreement might not get inked until after the November 3rd general election.
So far, China’s held up its end of the original deal, speeding up its imports of American farm goods, while the US has rolled back some of the tariffs it imposed on Chinese goods.
☑️ Stick to social.
Facebook may be banning all political ads in the days leading up to the aforementioned general election in the US. The move isn’t final just yet, but buzz around the water cooler and Mark Zuckerberg’s charging port are that it’s being seriously discussed. The ban would some sort of bumbling attempt to fight misleading ads which were, ahem, cause for concern in 2016.
Up until now, Facebook has stuck by its stance of not fact-checking political ads, drawing the ire of groups that believe the platform can be used to spread misinformation. Have you seen some of the sh*t people post on Facebook? Misinformation is an understatement.