Tesla Can’t Deliver
Stocks continued to sneak higher Thursday amid a barrage of headlines speculating on a U.S.-China trade deal, today’s jobs report, and Trump’s potential nomination of Herman Cain to the Fed.
While the Nasdaq Composite slipped into the red, the Dow added more than 160 points and the S&P 500 eked out a small gain. In fact, the S&P has quietly put together an impressive winning streak as investors remain distracted by political noise. Yesterday’s green close helped the S&P notch its first six-day winning streak since February 2018, CNBC notes.
The second quarter is off to a strong start. But can the good vibes continue into the weekend? We’ll see…
First up: Are you still waiting on that Model 3 you ordered last year? Tesla says to cool your jets…
Tesla shares tanked double-digits early Thursday after first-quarter delivery numbers for the Model 3 came in suspiciously low.
Tesla delivered 31% fewer vehicles than the previous quarter, Bloomberg reports. According to a press release, the low numbers are due to issues with deliveries in new markets overseas. The release also noted that one giant factory in California is not conducive to worldwide deliveries.
Of course, Tesla isn’t worried (they’re never worried). On the other hand, analysts aren’t so optimistic, with some concluding that demand for the Model 3 may be lower than expected. That’s not hard to believe as the promised $35k Model 3 is borderline mythical at this point.
As of late Thursday, Elon Musk hadn’t made any comment on the low delivery numbers. Apparently, he has much more pressing matters requiring his full attention:
Telsa shareholders probably aren’t as enthused about giant, colorful squirrels this morning. Shares finished Thursday trade down more than 8%. That’s just a hair above the stock’s year-to-date lows.
It’s downright impossible to justify a Tesla trade on the long side at these levels…
Sticking with the market’s most controversial stocks, Facebook just can’t stay out of trouble
“Another day, another Facebook privacy scandal,” Recode exclaims.
This time around, a security firm reports approximately 540 million Facebook user records were left exposed on an Amazon cloud server.
“Security firm UpGuard said they discovered two unprotected data sets that exposed the names, passwords, comments, interests, and ‘Likes’ of hundreds of millions of users,” Recode reports. “The data was uploaded by third-party Facebook app developers: Mexican media company Cultura Colectiva and an app called At the Pool.”
Facebook says they fixed the issue once the company notified management about the breach. But that’s not stopping folks from piling on as Facebook continues to fumble the ball on security.
Fortunately for traders, Facebook stock doesn’t seem to mind the controversy at all. The stock closed at new 2019 highs yesterday despite the negative news.
Finally, we bid a sad farewell to Wall Street’s favorite unofficial uniform: the fleece vest.
Let’s observe a moment of silence for the Wall Street bros. Their days of strutting around the financial district in a branded vest might be ending.
Patagonia just announced it will only partner for logo wear with companies that adhere to an environmentally friendly mission moving forward, Bloomberg notes — although companies that are already established in the program can still get their allotted swag.
“Patagonia said it wants to add more companies that have the B Corp designation to its client list — businesses that meet certain environmental, social and transparency standards and are certified by a private organization,” Bloomberg reports.
In addition to financial and tech companies, Patagonia will also no longer provide embroidered logo vests to mining companies, religious institutions, and political organizations.
I have a feeling most Wall Street institutions will have a tough time convincing Patagonia that they’re committed to green living (unless we’re talking about cold, hard cash). These strict new rules make you wonder who will be left to buy these precious logo vests…
At least we know Patagonia will keep our nation’s wind farms warm (and stylish) next winter.