Elon Musk dumps more Tesla shares; goes against his word

This week, Elon Musk disclosed an additional $4B sale in Tesla shares, despite saying he was done selling — bringing his total liquidation to ~$36B in the past year. $TSLA has lost over half its value this year, and investors are having doubts. Will he continue selling his remaining ~14% of Tesla shares? That depends…

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Carvana’s money-losing vending machine is eating investors’ cash

Online car retailer Carvana (NYSE:CVNA) — a.k.a. the “vending machine for cars” — is in the hot seat. During COVID, it more than tripled to as high as $370 per share and was widely pushed by finfluencers. Last Friday, Carvana reported earnings that were way short of expectations — sending its stock tanking nearly 50%…

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Tesla Earnings: Did Elon Musk shoot himself in the foot?

Lots of chatter after Tesla’s earnings report. Investors are getting worried about Tesla after the release of their third-quarter financial results. But it was a record quarter, right? $21B in sales, with net income doubling to $3.3B. For most companies, this would have been impressive. But not for Tesla… There are extremely high expectations of…

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CarMax earnings send the auto market crashing

Earlier this year, we questioned whether a recession was priced into auto stocks yet. After all, who wants to buy a car in a recession, especially with rates rising so fast? We got the answer yesterday. Used car dealer CarMax (NYSE:KMX) reported earnings that missed analyst forecasts on nearly every metric. $KMX fell 25%, and…

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What’s underneath the Porsche IPO?

Porsche is going public on the German stock market today with an expected valuation of $68-$73B — separating from Volkswagen to trade as its own publicly traded company. It’s one of the worst times to go public with markets tanking and an unstable economy. But hey, it’s not our call. The bear case: Valuation, China…

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The Porsche IPO is plagued with conflicts of interest

Sports carmaker Porsche AG — currently owned by Volkswagen (VW) — is planning to go public on the Frankfurt Stock Exchange, expected at the end of September or the start of October. With an expected market value of up to $60-85B — this could become one of Europe’s largest IPOs. Bad blood: Porsche and Volkswagen…

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Tesla beats earnings, but investors should be worried about their falling margins

Tesla reported mixed earnings yesterday, which showed what analysts expected — the second quarter was going to be challenging for the top electric vehicle maker. $TSLA was little changed after reporting earnings. What’s the big deal? Many of Tesla’s problems were known beforehand: Tesla’s deliveries were impacted by the shutdown of its Shanghai production facility…

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Auto stocks had a rough 2022 start, and a recession has barely been factored in

…Is something you definitely won’t hear in the auto industry. Carmakers reported their second-quarter sales, and nearly all are struggling to produce enough cars. Blame it on parts shortages… U.S. car inventory levels in May would have only lasted half a month — compared to the historical levels of 2-3 months. Chip shortages led to…

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