TSLA - Tesla, Inc.

NasdaqGS - NasdaqGS Real-time price. Currency in USD
799.91
-33.88 (-4.06%)
At close: 4:00PM EST

791.00 -8.91 (-1.11%)
After hours: 7:59PM EST

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Previous close833.79
Open849.00
Bid791.00 x 2200
Ask797.15 x 900
Day's range787.97 - 856.60
52-week range176.99 - 968.99
Volume17,070,298
Avg. volume16,973,457
Market cap147.495B
Beta (5Y monthly)0.56
PE ratio (TTM)N/A
EPS (TTM)-4.92
Earnings date21 Apr 2020 - 26 Apr 2020
Forward dividend & yieldN/A (N/A)
Ex-dividend dateN/A
1y target est502.00
  • Tesla’s Autopilot, Cell Phone Use Blamed in 2018 Fatal Crash
    Bloomberg

    Tesla’s Autopilot, Cell Phone Use Blamed in 2018 Fatal Crash

    (Bloomberg) -- U.S. crash investigators faulted Tesla Inc.’s Autopilot system and the driver’s distraction by a mobile device for a fatal accident in 2018 and called on Apple Inc. and other mobile phone makers to do more to keep motorists’ attention on the road.Tesla was heavily criticized for not doing enough to keep drivers from using its driver-assist function inappropriately. American regulators, which have guidelines but no firm rules for the emerging automated driving systems, were also attacked by the safety board.“It’s time to stop enabling drivers in any partially automated vehicle to pretend that they have driverless cars, because they don’t have driverless cars,” National Transportation Safety Board Chairman Robert Sumwalt said.The hearing was a searing critique of how Tesla and other carmakers have introduced new technologies that automate aspects of driving but still require constant human supervision, and of the National Highway Traffic Safety Administration’s light-touch approach to regulating the safety of those systems.Even though the Tesla SUV in the 2018 crash in northern California had previously veered toward a concrete barrier, the driver, an Apple employee, allowed the semi-autonomous system to essentially steer itself as it passed that same location and moved toward a highway barrier, the NTSB concluded. The driver failed to intervene because he was distracted, likely because he was playing a game on a mobile phone provided by his company, which lacked a policy prohibiting employees from using devices while driving, the NTSB found.The NTSB has for years issued warnings about distracted driving and its deadly toll on the roadways. During the hearing, it called on Apple and other mobile phone manufacturers to develop protections to prevent misuse of electronic devices behind the wheel as a default setting.The agency also urged the NHTSA to conduct a fresh evaluation of Autopilot and take enforcement action if necessary if the agency finds defects.“We urge Tesla to continue to work on improving their Autopilot technology and for NHTSA to fulfill its oversight responsibility to ensure that corrective action is taken when necessary,” Sumwalt said.The death of 38-year-old Apple engineer Walter Huang in March 2018 in Silicon Valley prompted the NTSB to issue its strongest findings to date on safety risks posed by automated driving systems and driver distraction by mobile devices.“Limitations within the Autopilot system caused the SUV to veer towards the area with a concrete barrier that it ultimately struck, which the driver didn’t attempt to stop due to distraction,” the board found.NTSB recommended that both mobile device manufacturers such as Apple, Google and Samsung Electronics Co., as well as employers more broadly, do more to combat distracted driving.Mobile phone manufacturers should lock out features on the devices as a default setting, rather than as an optional feature that must be activated manually, the NTSB said. Employers should adopt policies banning non-emergency mobile phone use by employees when behind the wheel.The NTSB posted a document on Monday in its public record on the crash showing Apple didn’t have a policy on distracted driving.“I checked around with various groups and we do not have a policy related to phone use and driving,” wrote an Apple representative in an email response to the NTSB, which was posted to the safety board’s public investigative files on Monday.An Apple spokesman said the company expects its employees to follow the law. Tesla didn’t respond to a request for comment but has said it has updated Autopilot in part to issue more frequent warnings to inattentive drivers and that its research shows drivers are safer using the system than not. Tesla has also repeatedly stressed that drivers must pay attention while using Autopilot.The combination of growing mobile device use in semi-autonomous cars, in which drivers can take their eyes off the road for long periods, is a combustible mix, said NTSB Vice Chairman Bruce Landsberg.“What this crash illustrates is not only do we have the old kind of distraction” Lansberg said. Partly-automated driving systems present “yet another kind, which is the automation complacency of the system almost kind of always works, except when it doesn’t.”NTSB board member Jennifer Homendy criticized the NHTSA for issuing a recent statement saying it was trying to limit regulations to make cars more affordable.“What we should not do is lower the bar on safety,” Homendy said. “That shouldn’t even be considered for an agency that has the word safety in its name.”NHTSA said in a statement it was aware of the NTSB’s report and would review it. It also said distracted driving remains a concern and that drivers of every motor vehicle available currently on sale are required to remain in control at all times.It is also conducting more than a dozen of its own investigations into Tesla crashes linked to its semi-autonomous system known as Autopilot. Tesla is one of the leading developers of automated driving technology.Warnings to DriverHuang’s Tesla struck the concrete highway barrier at about 70 miles (113 kilometers) per hour. His hands weren’t detected on the steering wheel for about one-third of the drive and the car twice issued automated warnings to him.A protective barrier on the highway designed to reduce the crash impact wasn’t in place, the NTSB found.In addition, Tesla and government agencies haven’t bothered to respond to NTSB’s recommendations related to an earlier, similar crash.Smartphone manufacturers and software developers have taken some steps to address distracted driving. Apple’s iPhone, for example, has a feature to block text message and other notifications when driving that a user can activate in the phone’s settings.“The challenge is that they’re all passive systems. They require you as the owner of the phone to take that action, and many won’t or don’t because they don’t have to,” said Kelly Nantel, vice president of roadway safety at the National Safety Council.While the safety board stopped short of concluding that NHTSA’s lack of actions were part of the cause of the crash, it found that the regulator hadn’t done enough to set safety standards and called its approach to semi-automated vehicles “misguided.”Separately, the NTSB is prepared to cite the highway-safety regulator’s actions in another fatal Tesla crash as a contributing factor.In a March 2019 crash in Delray Beach, Florida, a Tesla drove into the side of a truck without braking, killing the driver. The conclusions of the investigation haven’t been published, but were read by Homendy during Tuesday’s meeting.(Updates with details from hearing, beginning in the fourth paragraph)To contact the reporters on this story: Ryan Beene in Washington at rbeene@bloomberg.net;Alan Levin in Washington at alevin24@bloomberg.netTo contact the editors responsible for this story: Jon Morgan at jmorgan97@bloomberg.net, Elizabeth Wasserman, John HarneyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Jaguar Supplier ‘Paddling Like Hell’ to Support Slow-Selling EVs

    (Bloomberg) -- American Axle & Manufacturing Holdings Inc., a supplier that derives three quarters of its sales from trucks and SUVs, knows the times are a-changing for the auto industry: going electric is the way of the future.But almost all battery-powered models have been slow off the blocks, sales-wise. Take Jaguar’s I-Pace for example. American Axle supplies the electric drive system for the British brand’s debut plug-in crossover, but sales are running at roughly half of what the carmaker expected.“We’ve had to adjust our business accordingly,” American Axle Chief Executive Officer David Dauch said at an investor conference Tuesday. “That’s just a reflection of where electrification is, period. The Volt was that way, the Bolt was that way, the Leaf has been that way,” he said, referring to two Chevrolets and one Nissan model.“The only thing that’s really met its numbers,” Dauch said, “and it took some time to meet its number, was Tesla.”Dauch’s comments are an unusually candid assessment of the bind major auto suppliers find themselves in. With global vehicle demand already shrinking, they’re also being forced to support carmakers making an uncertain shift away from the tried-and-true internal combustion engine. So far, only Tesla Inc. and its Model 3 sedan has proved compelling enough to be bought in significant volumes.“We’re not here to argue electrification,” Dauch said during a Wolfe Research conference in New York. “We’re here to say that electrification is here, it’s only going to grow going forward.”Dauch, 55, took over as CEO from his father, Dick Dauch, in 2012, a year before the co-founder of the company died. Electric trucks, sport utility vehicles and crossovers pose the “biggest threat” to American Axle’s core business, David Dauch said. He specifically mentioned Rivian Automotive Inc., which raised almost $3 billion last year from investors including Amazon.com Inc. and Ford Motor Co. and plans to start selling R1T pickups and R1S SUVs late this year.“You’re seeing some of the lifestyle vehicles that are coming out or leisure vehicles that are coming out with the Rivians and the others,” Dauch said. “I acknowledge and applaud what they’re doing there. I think it’s great with the technology. I don’t see that cannibalizing the existing truck and SUV market today. I actually see it adding to that.”Workhorse trucks that are purpose-built for agriculture and construction work are going to continue to be around for some time, and they’ll primarily have internal combustion or gas-electric hybrid powertrains, Dauch said. While he sees American Axle continuing to benefit from demand for those big rigs, the company also is going to supply a high-performance luxury electric vehicle that he didn’t identify, plus a battery-powered model for Baojun, General Motors Co.’s budget brand in China.“I want us to have product offerings that are bookshelf technology and when the market and the customers are ready for that technology, we’re prepared to support that,” Dauch said. “We’re kind of like a duck on water, where we look calm on top of the water. But when we’re in the water, we’re paddling like hell.”To contact the reporter on this story: Craig Trudell in New York at ctrudell1@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Chester Dawson, Melinda GrenierFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Virgin Galactic Options Show Earnings May Push Shares to Record
    Bloomberg

    Virgin Galactic Options Show Earnings May Push Shares to Record

    (Bloomberg) -- Virgin Galactic Holdings Inc. options investors are anticipating a 23% move in the stock after the company’s fourth-quarter earnings report, with a tilt toward contracts betting on gains that would propel shares past last week’s record high.The stock has already more than tripled in 2020, trading around $35 on Tuesday afternoon, as institutional and retail investors alike pile in on the prospects of Richard Branson’s space transport company becoming profitable as an early entrant to a nascent industry. That enthusiasm is also evident in the options market, where daily volume has increased about 150% in the past four weeks.Options expiring Friday are leaning bullish. Among all of them, calls outnumber puts by a ratio of 1.12-to-1. A closer look at just those contracts with strike prices between $27 and $43, which make up the bulk of open interest, shows calls outnumber puts by 1.27-to-1.The earnings release due out after the close of trading Tuesday will be the second since Virgin Galactic Holdings Inc. acquired Virgin Galactic LLC for $1.3 billion in October. However, it will be the first accompanied by a conference call. Wall Street coverage is sparse, with only three analysts officially covering the stock. All of them have buy ratings, and their average price target is $19.Options expiring on Friday make up about 21% of the total open interest. Among all contracts on Virgin Galactic, the ratio of calls to puts is 1.75-to-1. Current implied volatility is elevated at 307%, which is more than 3 times the 90-day average of 89.To contact the reporter on this story: Gregory Calderone in New York at gcalderone7@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Richard Richtmyer, Brendan WalshFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • NIO Soars on China Government Deal Bernstein Calls a Bailout
    Bloomberg

    NIO Soars on China Government Deal Bernstein Calls a Bailout

    (Bloomberg) -- NIO Inc. reached a preliminary agreement to relocate its headquarters to another Chinese city in a deal that would raise much-needed cash. The electric-car maker’s shares surged.The framework pact with the municipal government of Hefei, where NIO’s main manufacturing hub is already located, is still subject to discussion. But in light of the partnership, the company said it plans to raise more than 10 billion yuan ($1.43 billion).NIO shares soared as much as 34% to $5.19 shortly after the open of regular trading Tuesday in New York. The stock had been slumping since early last year, as heavy spending on marketing and splashy showrooms failed to generate demand for its ES8 and ES6 electric sport utility vehicles. More recently, the company has had to contend with concerns about Tesla Inc. posing a greater competitive threat by starting local production near Shanghai.“We think the news puts speculation around NIO’s funding issues to bed -- at least in the foreseeable future,” said Robin Zhu, an analyst at Sanford C. Bernstein Ltd. who called the deal a bailout by the Hefei government and upgraded NIO to the equivalent of a hold.“We remain dubious over the company’s fundamental outlook, and remain concerned about Tesla competition,” Zhu wrote in a report. “But the existence of a government backstop means the ‘EV call option’ thesis for investing in NIO gains some credibility.”(Updates with regular trading in the third paragraph)\--With assistance from Chunying Zhang.To contact the reporter on this story: Craig Trudell in New York at ctrudell1@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Andrew Noël, Chester DawsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Tesla’s Followers Are Trying to Piggyback Off Elon Musk’s Sales Wins
    Bloomberg

    Tesla’s Followers Are Trying to Piggyback Off Elon Musk’s Sales Wins

    (Bloomberg) -- Tesla Inc. has been a trailblazer for direct-to-consumer sales, but the path for other electric-vehicle startups is still pretty thorny.Plug-in truck maker Rivian Automotive Inc., which aims to begin selling its R1T pickup and R1S SUV late this year without a franchised dealer network, had hoped to build its first store in Colorado, where Tesla has three. But almost a year after raising the idea with state legislators, it’s still lobbying them -- with EV enthusiasts and car dealers lining up to testify for and against.Rivian will instead open its first showrooms in California, which makes it easier for newcomers than most other states that have tough, decades-old franchise laws designed to protect car dealers.Tesla has spent years lobbying states to loosen these laws, which ban car manufacturers from owning or operating their own stores. Tesla, which sells cars at fixed prices online, now has showrooms or galleries –- spaces to display vehicles without technically selling them -- in 28 states. It did that largely by finding loopholes and negotiating deals limited to its own business.The Model 3 maker reached a settlement last month in the home state of General Motors Co. and Ford Motor Co. when a Michigan court effectively allowed Tesla to bypass laws preventing most auto manufacturers from selling directly to consumers.To pry open the door further, Rivian is waging a state-by-state campaign on behalf of its operations and those of others to come. The effort is led by Jim Chen, a former Tesla lobbyist who’s now vice president of public policy at the Michigan-based startup.“These laws were never intended to shut out competition between different brands,” Chen said by phone last month. “A manufacturer should freely be able to choose whether it wants to enter the franchise system or sell directly.”Dealers, of course, feel differently. They say cars aren’t suited for online-only sales and that franchise laws protect consumers. Tim Jackson, president of the Colorado Automobile Dealers Association and a vocal Tesla critic, helped kill Rivian’s proposal last year, which would have allowed any company solely making EVs to sell them in Colorado without dealers.“We don’t want to further broaden, or further make accessible the factory-to-consumer direct sales model,” Jackson said in an interview last month. “We prefer, of course, the franchise model.”Jackson was back at the legislature in Denver on Feb. 18 with a posse of dealers to thwart Rivian’s latest proposal, which would expand the carve-out to any car manufacturer with EVs to sell. The bill has survived in the state senate so far, in part with new language that addresses dealers’ fears by reiterating their exclusive rights to sell existing brands in specific geographic areas.One might think Colorado, which became the 10th state to adopt California’s electric-vehicle mandate last September, would be relatively friendly territory for Rivian. But even with bipartisan sponsorship and the backing of newly elected Democratic Governor Jared Polis, passage seems far from assured.With an onslaught of new electric models coming from automakers like Ford and Volkswagen AG, dealers worry that such exceptions could give all manufacturers free rein to compete directly against them.Traditional carmakers are already beginning to shake up their retail models to sell EVs. Volkswagen announced Feb. 19 it’s using a new approach in Germany for its ID family of electric cars. Dealers will receive a commission and bonus but will no longer negotiate price or arrange financing or insurance -- an important profit source.Other startups intend to follow Tesla’s lead. California-based Lucid Motors Inc. wants to sell its luxury electric sedan, the Air, through its own network of stores.Rivian, which raised nearly $3 billion last year from investors including Amazon.com Inc. and Ford, has also introduced bills in Washington, New York and Pennsylvania. At the same time, it plans to open stores in friendlier states including California, Florida, Massachusetts and Utah, Chen said. The first ones will open around Los Angeles and San Francisco in the next year.Like Tesla, Rivian will allow people to set up a test drive, configure, order online and take home delivery.It’s also planning a subscription service that will include finance and insurance, following the lead of Porsche and Volvo Cars, Chief Executive Officer R.J. Scaringe said in an interview last month. Volvo dealers in California last year petitioned state regulators to investigate the company’s Care by Volvo program, arguing it violates franchise laws.The plan to service cars is still a bit opaque, leaving Rivian open to criticism that it can’t provide adequate maintenance for its vehicles. But Chen told legislators at the hearing in Denver this month that Rivian plans to establish service centers and mobile service teams -- like Tesla does -- and that it may rely on its strategic investors for help with infrastructure to distribute auto parts.The automotive arm of privately held Cox Enterprises Inc., which owns a stable of auto businesses including Kelley Blue Book and Manheim auction services, put $350 million into Rivian in September. That’s raised the hackles of some dealers, who share data and buy ads and used cars from Cox.“We do business with Cox Automotive,” said Thom Buckley, a Colorado dealer who testified at the hearing. “I’m very concerned about doing business with a vendor who will compete with us.”\--With assistance from Ed Ludlow.To contact the reporter on this story: Gabrielle Coppola in New York at gcoppola@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Chester DawsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Financial Times

    Your questions on Tesla, answered

    Next week FT Alphaville is filming a video for the FT on everyone’s favourite marmite electric car company: Tesla. This one FT Alphavillain will be answering user questions -- to the best of his ability ...

  • Your Evening Briefing
    Bloomberg

    Your Evening Briefing

    (Bloomberg) -- Markets tanked on Monday, with the Dow Jones plummeting more than 1,000 points and the S&P 500 dropping the most since February 2018 as the coronavirus continues to spread. The pathogen presented itself as a global threat weeks ago, so why did the bottom fall out today? For millions of Chinese businesses, the impact may soon mean collapse unless someone comes to the rescue. Here are today’s top storiesDemocratic presidential front-runner Senator Bernie Sanders, who picked up 24 delegates in Nevada, and rival Michael Bloomberg are trading criticism ahead of Tuesday’s debate in South Carolina.The key to New York’s dreams of sustainable energy sources may rely on a mega-battery to the north.Audi halted production of its E-Tron SUV as traditional automakers struggle to boost electric cars and challenge Tesla.The U.S. Securities and Exchange Commission is investigating a non-profit that defaulted on $170 million of municipal bonds issued to finance the acquisition of low-income apartments in Chicago and its suburbs.The fight over a gas pipeline is paralyzing portions of Canada’s economy, Bloomberg Businessweek reports, part of the latest showdown between indigenous groups and the government.Convicted Ponzi scheme mastermind Bernie Madoff wants leniency. Ian Fisher raises questions about his bid for release in Bloomberg Opinion, citing the imprisonment of his own father when he had just weeks to live.What’s Joe Weisenthal thinking about? The Bloomberg news director said he’s beginning to warm to gold (despite all the conspiracy theorists) thanks in part to New York City jeweler Maksud Agadjani, who appeared in the movie “Uncut Gems.” He also appeared on the latest episode of the Odd Lots podcast. What you’ll need to know tomorrowHarvey Weinstein was convicted of rape. This is his future home. Why the era of big oil sands mining may be over. Supersized solar farms are taking over the world. Seattle tech workers make 56% more than NYC finance employees. Netflix says it will begin ranking the popularity of its shows. This top tech couple wants to sell a $13 million mountaintop home. Inside the seething boardroom drama that poisoned HQ Trivia.What you’ll want to see in Bloomberg GraphicsMapping the global spread of the coronavirus: The outbreak that started in Wuhan has put health authorities on high alert around the world. Renamed SARS-CoV-2, the coronavirus is thought to have originated in the food market of the central China metropolis. Outside mainland China, 34 deaths have been linked to it in Hong Kong, Japan, France, Italy, Taiwan, South Korea, Iran and the Philippines. Total deaths worldwide now exceed 2,600. To contact the author of this story: David Rovella in New York at drovella@bloomberg.netTo contact the editor responsible for this story: Joshua Petri at jpetri4@bloomberg.netFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • S&P 500’s 5% Rout Hammers Mom-and-Pop Investors Who’ve Piled In
    Bloomberg

    S&P 500’s 5% Rout Hammers Mom-and-Pop Investors Who’ve Piled In

    (Bloomberg) -- If the source of any of the resilience in U.S. stocks this year has been retail investors fired up by zero-commission trading, markets are about to find out how sturdy that money is.The sell-off stands as the first major test for mom-and-pop investors who, emboldened by a brokerage price-war, have effectively doubled their trades in equities over the last several months. The surge in interest from a group notoriously known for chasing winners has helped fuel a rally in stocks from tech giants to small-caps.The shares they love, from Tesla Inc. to Plug Power Inc., are plunging now, with a Goldman Sachs Group Inc. basket of retail favorites falling the most in nine months.“A lot of that money does tend to be hot money,” said Alec Young, managing director of global markets research at FTSE Russell. “It’s very sensitive to near-term losses.”Global markets buckled Monday, pushing the S&P 500 down almost 5% from its record close five days ago, the bull market’s biggest interruption in six months. Concern about a possible pandemic drove investors out of risky assets and into bonds and gold.Goldman’s basket tracking the 50 most-popular stocks among individual investors fell 3.9%, the biggest retreat since last May. All but two declined as Tesla and Plug Power each sank more than 6%. It’s a decisive turnaround for retail investors, whose picks as tracked by Goldman had surged 13% in 2020 before this week. That’s almost four times as much as the S&P 500.Though impossible to prove, a case exists that individual investors streaming into the market have contributed to the relative buoyancy of equities at a time when fixed-income has sent much more dire signals. The stock market rally that fell apart Monday came against a backdrop of steadily falling yields in Treasury markets that are dominated by institutional traders.Others see a perfectly ordinary bull market occurring in stocks that requires no special influence or agency to drive it and are skeptical individuals have played an outsize role. If anything, it’s bonds, not stocks, that are being boosted by small investors.“A lot of what is happening with bonds has to do with demographics,” said Michael Antonelli, market strategist at Baird. “Baby Boomers are retiring, the world is starved for yields.” The equity market, on the other hand, “is really controlled by institutions. This up-and-down price action, that’s not retail money,” he said.The bull market, which turns 11 years old in two weeks, also predates the recent uptick in small-investor interest. At an all-time high last week, the S&P 500 traded at 19 times forecast earnings, the highest multiple since the dot-com era.Perhaps no other investor group than retail has a greater propensity to chase winners regardless of valuations and company fundamentals. Among retail’s darling stocks, 10 scored year-to-date gains exceeding 20%, including Plug Power, Tesla and Virgin Galactic. Yet only two made profits in 2019.While hardly the only ones to fall into love with megacap tech, their affection for Apple Inc., Amazon.com Inc., Facebook Inc. and Microsoft Corp. has likely contributed to a top-heavy market that some strategists have warned is becoming hard to sustain.It reminds Peter Cecchini of the retail over-involvement in the late 1990s that spelled the golden age of equities and foreshadowed the crash.“While retail involvement in and of itself is not always a sign of frothy markets, when that involvement generally appears to be based on a fear of missing out or otherwise uniformed decision-making, as now, then it is cautionary,” said Cecchini, chief global market strategist at Cantor Fitzgerald LP. “The coronavirus may help demonstrate how quickly it can all come unraveled when fundamentals disconnect from the narrative hype.”Retail money, indifferent participants for much of the 11-year bull market, just made an epic comeback, lured by brokerages slashing commission fees to zero and an equity rally that added $7.5 trillion in market values last year. Daily average trades at E*Trade Financial Corp. and TD Ameritrade Holding Corp. have almost doubled to all-time highs since last September, data compiled by Sundial Research showed.“History has shown that retail investors do respond to near-term volatility, so folks are rather fickle,” said Mike Skillman, chief executive officer of Cadence Capital Management. “If we see an increase in volatility in the next several weeks, flows into the market will slow down, if not reverse.”\--With assistance from Claire Ballentine.To contact the reporters on this story: Lu Wang in New York at lwang8@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Chris Nagi, Richard RichtmyerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Stocks Drop Most Since February 2018; Havens Gain: Markets Wrap
    Bloomberg

    Stocks Drop Most Since February 2018; Havens Gain: Markets Wrap

    (Bloomberg) -- U.S. equities tumbled, with the S&P 500 dropping the most since February 2018, as authorities struggled to keep the coronavirus from spreading more widely outside China. Havens including Treasuries and gold surged.In a dramatic day across markets, these were some of the standout moves:All three main U.S. stock benchmarks slumped more than 3%. The Dow Jones Industrial Average and S&P erased all of their gains for the year. All 11 sectors of the S&P closed in the red.The FANG cohort of megacap tech shares that led the year’s rally plunged more than 4%. AMD Corp. led losses in chipmakers exposed to China, at one point sinking more than 10%. High-flyers Virgin Galactic and Tesla each fell more than 5%. Alpha Pro Tech, maker of protective clothing and masks, surged more than 25%.The Stoxx Europe 600 Index slid 3.8% on trading volumes well above average for the largest drop since 2016 as investors fled travel and luxury-goods shares. A gauge of credit risk on the region’s high-yield companies jumped.The yield on 10-year Treasuries approached the 2016 record low.South Korea’s benchmark dropped 3.9%, leading declines across Asia, though Japan’s markets were shut for a holiday.Spot gold approached $1,700, while Brent crude oil tumbled about 5%.The risk-off mood hardened as the epidemic spread to more than 30 countries, with South Korea reporting a jump in infections and Italy locking down an area of 50,000 people near Milan. Finance chiefs and central bankers from the largest economies warned this weekend that they saw the virus bringing downside risks to global growth.“Stock markets around the world are beginning to price in what bond markets have been telling us for weeks -- that global growth is likely to be impacted in a meaningful way due to fears of the coronavirus,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.Governments and companies are curbing travel and trade in an attempt to contain a novel pathogen that can be transmitted by people without symptoms. Today’s market moves follow on last week’s surge into havens after fresh warnings by companies over the potential impact of the virus on business and global supply chains. Adding to the anxiety Monday was China announcing an easing of the quarantine of Wuhan, only to retract the statement hours later.“Markets hate uncertainty and the coronavirus represents the most uncertain macro risk markets have faced in years,” said Alec Young, managing director of global markets research at FEST Russell. “Investors are also acutely aware that many misjudged the economic severity of the virus early on, making them more open to entertaining worst-case scenarios now.”Elsewhere, Italian bonds dropped on concern that the spread of the coronavirus may push the economy into a recession. The Australian dollar weakened to an 11-year low and the offshore yuan held most of last week’s decline. Bitcoin slumped.These are some key events coming up:Earnings keep rolling in from companies including: Home Depot Inc. on Tuesday; Peugeot SA on Wednesday; Baidu Inc., Best Buy Co. Inc., Occidental Petroleum Corp. and Dell Technologies Inc. on Thursday; and London Stock Exchange Group Plc on Friday.The Democratic presidential debate in South Carolina is on Tuesday.The Bank of Korea announces its policy decision on Thursday, with risks to the outlook growing amid a surge in coronavirus cases.U.S. jobless claims, GDP and durable goods data are out Thursday.Japan industrial production, jobs, and retail sales figures are due on Friday.These are the main moves in markets:To contact the reporters on this story: Vildana Hajric in New York at vhajric1@bloomberg.net;Claire Ballentine in New York at cballentine@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave LiedtkaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Tesla to Face Fresh Autopilot Scrutiny After Company Snubs NTSB

    (Bloomberg) -- The National Transportation Safety Board on Tuesday will convene its second hearing on a fatal crash involving Tesla Inc.’s automated driver-assist technology even though the pioneering automaker hasn’t filed formal responses to recommendations stemming from the first one more than two years ago.The NTSB in 2017 recommended that automakers including Tesla make their driver-assist systems more resilient to misuse by inattentive drivers, and limit the operation of those systems to only the driving for which they were designed.Automakers including Volkswagen AG, Nissan Motor Co. and BMW AG have told NTSB how their systems ensured driver engagement, which agency deemed acceptable responses. Tesla has had no formal correspondence with NTSB officials responsible for monitoring how safety recommendations are implemented, NTSB spokesman Chris O’Neil said.“It’s not the norm,” O’Neil said. “Most recommendation recipients respond in the prescribed 90-day window.”Tesla didn’t respond to a request for comment but has said it’s updated Autopilot in part to issue more frequent warnings to inattentive drivers.The role of Tesla’s automated driver-assist features known as Autopilot, along with other factors including driver distraction and highway infrastructure, will be examined at an NTSB meeting on Tuesday regarding a March 2018 crash in Mountain View, California, that killed 38-year-old Apple Inc. engineer Walter Huang after his Tesla SUV slammed into a highway barrier while using Autopilot.The probe was marked by an unusually public display of tensions between the agency and Tesla Chief Executive Officer Elon Musk that peaked when the agency kicked Tesla off the probe after the CEO released information about the crash despite prohibitions against such disclosures during an investigation.The hearing could hold lessons for the auto industry as automated driving features are becoming increasingly common on new vehicles. Several other automakers have also equipped their vehicles with technologies that can provide automated steering, accelerating and braking, and some have installed systems to ensure drivers pay attention. General Motors Co. and Subaru Corp. use infrared cameras to track head and eye movement, and Nissan last year said it would include a similar driver-monitoring in a system designed to offer hands-free driving on the highway.Tesla has said Autopilot makes drivers safer, pointing to internal data it releases quarterly that it says demonstrates that drivers crash less frequently while using it than while driving manually. The company says drivers must remain attentive with their hands on the wheel while using Autopilot, which monitors by sensing steering wheel inputs by the driver.The company has said it has adjusted the the warnings drivers receive if their hands are off the wheel for too long, which federal investigators have faulted for being easy to sidestep.In 2017, the NTSB closed its first probe of a fatal crash linked to Autopilot by calling on companies to develop ways to better ensure drivers pay attention while using automated driving features that require human supervision. It also called on automakers to take steps to limit the use of automated driver-assist features to only the driving scenarios for which they’re designed.The recommendations stemmed from the agency’s probe of a 2016 crash in which former Navy SEAL Joshua Brown died after his Tesla Model S crashed into a commercial truck crossing the road in front of him on a Florida highway while using Autopilot. The agency cited an over-reliance on the car’s automation by Brown and a lack of built-in safeguards to prevent inattention as key factors that contributed crash.Last fall, the NTSB again cited inattention and Autopilot’s design in a January 2018 crash in which a Tesla driver rear-ended a parked fire truck on a freeway near Los Angeles. The agency said Autopilot’s design allowed the driver, who was uninjured in the crash, to stop paying attention to the road.After that crash, Tesla said it has updated Autopilot in part to issue more frequent warnings to inattentive drivers. The company has also been in regular contact with NTSB investigators and provided information about its systems to the agency, O’Neil said.“That doesn’t replace the need for formal responses to safety recommendations,” he said. “It’s a process designed to help us understand what they’re doing to implement those safety recommendations and what their progress toward them are, which may inform whether we feel other recommendations are necessary.”Records from the Mountain View investigation hint at several factors the NTSB could highlight during the meeting Tuesday. With Autopilot engaged and set to cruise at 75 miles per hour, Huang’s 2017 Tesla Model X sped up and slammed into a concrete barrier. Vehicle data showed neither the driver nor the vehicle’s automatic systems applied the brakes prior to impact, the NTSB has said.Huang had complained that Autopilot had repeatedly veered his vehicle toward the same spot during earlier trips on that same stretch of highway, according to the agency. Data taken from his Tesla’s computer confirmed that the situation had occurred at the same location four days before the fatal crash and once more several weeks earlier, records released by the NTSB show.The tip of the concrete lane divider struck by Huang’s Tesla was supposed to have been protected by a crash attenuator, a device attached to highway infrastructure to absorb impact forces like a car’s crumple zone. It was damaged 11 days earlier and hadn’t been repaired by the California Department of Transportation before Huang’s crash.Records reviewed by NTSB found Huang was playing a game on his Apple-provided mobile device before the collision, the agency said, citing data transmission records. However, the data couldn’t show how engaged he was with the game or whether he was holding the device with both hands at the time of the crash, the NTSB said.Crash investigators at the National Highway Traffic Safety Administration have opened 14 inquiries into Tesla crashes believed to involve Autopilot, plus 11 more involving other manufacturers with partial-automation systems.\--With assistance from Alan Levin.To contact the reporter on this story: Ryan Beene in Washington at rbeene@bloomberg.netTo contact the editors responsible for this story: Jon Morgan at jmorgan97@bloomberg.net, Elizabeth WassermanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Stock-Market Bubble Fears Are Greatly Overblown
    Bloomberg

    Stock-Market Bubble Fears Are Greatly Overblown

    (Bloomberg Opinion) -- Anyone paying attention to finance, markets and the economy doesn't have to look very hard to find complaints that we are on the cusp of a bubble of one type or another.Perhaps the area most often targeted by the bubble believers is tech. I was curious about just how widespread this belief is: “Tech bubble” has doubled on Google Trends this year alone; Google News generates more than 3.6 million hits for the phrase.(1)Defining a bubble isn't too hard and one will do as good as another. “A market phenomenon characterized by surges in asset prices to levels significantly above the fundamental value of that asset. Bubbles are often hard to detect in real time because there is disagreement over the fundamental value of the asset,” Nasdaq says.  So let's turn to the pro-bubble argument: It has been a decade since the financial crisis and two decades since the dot-com implosion. That's enough time for people to have forgotten the trauma of that disaster. Since the Great Recession ended, there has been too much capital sloshing around, leading to excessive tech valuations. And not just in public equities, but in private markets, too. Unicorns and other SoftBank Vision Fund debacles have imploded, an early warning sign for publicly traded companies, the argument goes.Central banks have made the bubble worse, providing cheap capital that has artificially inflated profits. The bubble advocates also urge us not to overlook the impact of these low borrowing costs on the surge in share buybacks; reducing the total amount of a public company’s shares outstanding has the effect of making earnings per share look better.Then there are the anecdotes: Tesla’s stock has more than doubled in the past three months, and the company now has a market value of more than $165 billion -- higher than Volkswagen, General Motors and Ford combined. This is to say nothing of the companies valued at more than $1 trillion, such as Apple, Microsoft, Amazon and Google parent Alphabet. But let's also be generous and acknowledge that some things do look overvalued, whether it's Bitcoin (maybe), WeWork (obviously) or Tesla (I'm not getting in the middle of that one).But here's the thing: None of that is proof of a stock-market bubble. Let's look at some themes and issues to demonstrate why this is so:Business models: In the 1990s, the internet captivated the collective imagination of investors, too many of whom indiscriminately threw cash at anything with dot-com attached to it. The 2000 collapse taught investors that it took more than a high-concept idea to make a stock worth buying: growth and future cash flow matter a lot, too. The collapse of WeWork’s initial public offering last year brought this home once again. Investors realized that renting out office space short term while locking the company into long-term, expensive real-estate leases was a terrible business model. Public investors grasped this flaw -- something private investors seemingly failed to understand -- and the market worked the way it's supposed to. Revenue and earnings: Unlike the dot-coms of the '90, today's tech businesses are gigantic cash machines. Apple posted fourth-quarter revenue of $91.8 billion and net income of $22.2 billion. Without much fanfare, Microsoft's revenue grew 14% in the latest quarter, to $36.9 billion, while net income surged 38% to $11.6 billion. Alphabet, Amazon, Facebook all continue to mint revenues and profits. These companies also have accumulated hundreds of billions of dollars in cash. This is not the profitless tech boom of the 1990s.Sentiment: Maybe there is some excessive optimism. But that isn't the same as the full-blown delusion that bubbles produce. Talk of bubbles is offset by chatter about recession: Remember that less a year ago investors were anticipating a downturn and in the fourth quarter of 2018 major market indexes fell 20%, meeting the normal definition of a bear market, however brief. Meanwhile, the American Association of Individual Investors Bullish Readings index is 40.6, which is just a hair above the average reading of 39.5 for the past 25 years.Performance: Broad market performance is robust, but not crazy. Last’s year's 31% gain in the S&P 500 is misleading: most of that simply reflected the rebound from the 2018 fourth-quarter tumble cited above.So let's take a step back and consider the S&P 500 since 2015: It has had annual gains of 11.8%, for a total cumulative five-year return of 75%. Before fintwits howl “Now do the Nasdaq,” here it is: 17.6% annually and cumulative total returns of 125%. Fine, good, but not bubble material.Now compare those figures with the five years before the market peaked in March 2000: The Nasdaq generated annual returns of 60% and a five-year total return of 946% during that period, while the S&P 500 gained 25% annually and 211% for the five years. This is obvious, right?Sure, there are pockets of excessive optimism and foolishness in markets. There always are. But there also are lots of companies that are not participating in this bull-market rally. Those who were around in the 1990s know what a real bubble looks like: This isn't it.(1) Some recent examples:Barron’s:"Tesla’s Manic Rally Isn’t the Only Sign of a Market Bubble. What You Need to Know"CCN:"An Epic Stock Market Crash Is Looming, Analysts Warn"Yahoo:"The stock market is on steroids and it could end up like the dot com bubble"Barron’s (again): "Is the Fed Building Another Stock Bubble?"Bloomberg: “Mom and Pop Are On Epic Stock Buying Spree Fueled by Free Trades”To contact the author of this story: Barry Ritholtz at britholtz3@bloomberg.netTo contact the editor responsible for this story: James Greiff at jgreiff@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Brussels Edition: Time for a Schengen Shutdown?
    Bloomberg

    Brussels Edition: Time for a Schengen Shutdown?

    (Bloomberg) -- Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union. The EU moves from haggling over fractions of 0.1 percentage point of the bloc’s economic output to fire-walling against a surge in cases of the coronavirus in northern Italy. The mysterious pathogen disrupting global supply chains has now shut down the Venice Carnival and Milan fashion week. Limits to the Schengen zone of free travel are likely if Italian containment efforts fail, and Austria’s state railroad already halted train traffic from Italy across a key Alpine pass temporarily. We may learn more when the commissioners responsible for health and emergency-response coordination give a briefing today. What’s HappeningMideast Melange | Geopolitics bears no gifts for Europe either. Hardliners won Iran’s parliamentary elections by a landslide, in a repudiation of President Hassan Rouhani’s engagement with outside powers. The conflict in Libya is still raging, with Turkey taking casualties, while Ankara slides toward war over a crisis in the city of Idlib in Syria. Hammered in Hamburg | No Monday is complete without a touch of German turbulence. We’re due to get more clarity on Angela Merkel’s succession plan, a day after voters in Hamburg handed her Christian Democratic Union party its worst showing in the city state since World War II with just 11.2%. The Greens nearly doubled their support. Brexit Mandate | EU government envoys in Brussels will today seek to finalize a mandate for the Commission to negotiate the bloc’s post-Brexit ties with the U.K. The latest wording of the draft proposal requires the the U.K. to maintain “common high standards” with the EU “over time” in areas such as state aid and environmental protection.Inflation Perils | The recent jump in consumer prices in eastern Europe may be a harbinger of things to come in western economies that still have ultra-low interest rates more than a decade after the 2008 financial crisis. Here’s why you can only write off inflation at your peril.In Case You Missed ItBank Bosses | Europe’s biggest banks have been ditching their bosses, as restive boards look to bring in new blood to revive growth. Here’s a list of the main players in this game of musical chairs. At least one contestant bowed out. UniCredit boss Jean Pierre Mustier pulled out of the running to take the helm at HSBC.Bulgaria Backtracks | Bulgaria postponed a key part of its bid to adopt the euro and will advance only if its banks are ready and there’s a wide consensus among citizens. The delay is a setback for the country of 7 million, which has struggled to overcome being labeled as one of the poorest and most corrupt members of the EU.Climate Pressure | The U.S. gave into European pressure over environmental concerns, allowing the word “climate” into a joint communique at a G-20 meeting of finance ministers and central bankers. The same harmony, however, wasn’t found on the issue of a global tech tax, the source of U.S. ire against Europe and a possible trigger for further transatlantic trade fights.Super-capacitors | The power supply of your sleek new Tesla Model S or electric BMW has a distinctly 19th century feature that you may not be aware of. A company in Estonia wants to change that, Ott Ummelas reports from Tallinn. Nuclear Dilemma | France’s decision to shut its oldest nuclear reactor is stirring controversy about whether President Emmanuel Macron is making the right decisions to reduce fossil-fuel pollution and meet climate targets. Scaling back nuclear will probably result in natural gas getting a bigger foothold in what has historically been one of the cleanest power systems in the world.Chart of the DayEconomic activity grew faster than forecast in the euro region in February, even as first signs of the coronavirus’s effect became apparent. Eurozone activity accelerated at the fastest pace in six months, with services proving resilient as factories battled challenges such as supply-chain disruption from the virus outbreak.Today’s AgendaAll times CET.9:15 a.m. EU health chief Stella Kyriakides and Janez Lenarcic, commissioner for emergency response coordination, give a press conference on the EU’s response, preparedness and financial support to fight the Covid-19 outbreak 2:30 p.m. EU government envoys in Brussels discuss mandate for the Commission to negotiate post-Brexit ties with the U.K. A delegation of EU lawmakers visits Washington to meet their Congress counterparts, State and Treasury Department officials to address trade irritants A delegation of EU lawmakers visits Ankara for meetings with Turkish government representatives to discuss the latest developments in EU-Turkey relations A European Parliament delegation will travel to Washington and Boston to discuss EU-U.S. cooperation on data protection Germany’s Annegret Kramp-Karrenbauer to give update on the plan for her succession at the helm of the CDU party Former French Prime Minister Francois Fillon and his wife go on trial over allegations they reaped more than 1 million euros for a fake job Romania’s designated prime minister Ludovic Orban faces a confidence vote in Parliament Paris fashion week starts with coronavirus wreaking havocTo contact the authors of this story: Nikos Chrysoloras in Brussels at nchrysoloras@bloomberg.netViktoria Dendrinou in Brussels at vdendrinou@bloomberg.netTo contact the editor responsible for this story: Heather Harris at hharris5@bloomberg.net, Chris ReiterFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Financial Times

    US tech tycoons direct personal wealth to new frontiers

    Adam D’Angelo could have retired when he left Facebook at the age of 23. Instead, the social network’s former chief technology officer, who saw his Facebook stake soar in value to over $100m after the company’s 2012 initial public offering, enthusiastically threw himself into a career as a tech entrepreneur.

  • Is Tesla Really The Emerging ‘Energy King’?
    Oilprice.com

    Is Tesla Really The Emerging ‘Energy King’?

    Tesla’s share price has almost tripled this year, and while electric cars remain the company’s most important product, it could actually become a real energy giant

  • Financial Times

    Tesla electronics ‘years ahead’ of Toyota and VW

    Toyota Motor and Volkswagen each sell 10m cars, give or take, every year. Tesla delivered about 367,500 in 2019. This is the takeaway from Nikkei Business Publications’ teardown of the Model 3, the most affordable car in the US carmaker’s all-electric line-up, starting at about $33,000.

  • Tesla Rival Sets Out to Banish 160-Year-Old Lead Tech From Cars
    Bloomberg

    Tesla Rival Sets Out to Banish 160-Year-Old Lead Tech From Cars

    (Bloomberg) -- Your sleek new Tesla Model S or electronic BMW has a distinctly 19th century feature that you may not be aware of, among its batteries. A company in Estonia wants to change that.Skeleton Technologies Group OU is working on supercapacitors, light-weight and long-life components that can distribute intensive bursts of power. These may help eliminate lead-acid batteries, a piece of technology invented in 1859 that still lurks under the hoods of Teslas in addition to the main lithium-ion power source.Supercapacitors have some way to go before they are widely adopted. There is still a gap with the popular lithium-ion units on how much energy they can store, Skeleton Chief Executive Officer Taavi Madiberk admits. Even so, the technology is promising for offering higher peak power output and reliability in extreme temperatures and Skeleton has already sold it to clients across the transport industry.“Sometimes people think that lead is a problem of the past because it relates to internal combustion engines but in practice all electric vehicles have 12-volt lead acid batteries,” Madiberk said. “We are working on a viable alternative to replace all lead acid batteries.“Musk’s PhDTesla Inc. Chief Executive Officer Elon Musk actually moved to Silicon Valley in the first place to do research on supercapacitors in his PhD studies at Stanford University, he wrote in a blog post in 2006. While Musk eventually dropped out from Stanford to start his new ventures, he hasn’t abandoned his bet on supercapacitors, also referred to as ultracapacitors.Tesla, also searching for a breakthrough for electric car batteries, bought Skeleton’s competitor Maxwell Technologies Inc. last year. Musk’s company, like other manufacturers, still uses the relatively cheap and recyclable lead-acid battery in addition to the lithium-ion unit.The sector is at a stage where the lithium-ion battery industry was around 1999, according to Madiberk, whose company also has a base in Germany. Back then, lithium-ion batteries cost over $5,000 per kilowatt hour, compared with under $200 now. Supercapacitors may similarly go from $5,000 to as low as $300, he said, without giving an exact timeline.The technology may be useful for some tasks such as regenerating energy from braking, perhaps in conjunction with a lithium-ion unit, said James Frith, an analyst at BloombergNEF who focuses on energy storage. However, it’s only one of a number of available routes for the industry.“There’s been a lot of interest in supercapacitors over the years,” Frith said. “The trouble is that lithium-ion batteries have been coming down in price quite rapidly.”To replace lead-acid batteries, Skeleton is cooperating with some major European carmakers, Madiberk said, without disclosing names. Its products reach an energy density -- a key measure of performance -- of 60 watt-hours per kilogram, exceeding regular lead-acid batteries. Their raw material, a patented graphene composite, provides cost advantages in the long term not just compared with lead-acid but also lithium-ion batteries, he said.Operating Profit“If you look at the supplies of cobalt, lithium, nickel, manganese, then sooner or later with electrification we see significant bottlenecks,” Madiberk said. “The issue with lead is, of course, it’s toxic: the manufacturing process is environmentally harmful.”In heavy transportation, Skeleton has supplied systems that recuperate the braking energy of trams made by Czech manufacturer Skoda Transportation AS and which reduce the fuel consumption of hybrid-electric buses made by the U.K.’s Wrights Group Ltd. Having signed orders totaling more than 150 million euros ($163 million) last year, the company targets revenue of 1 billion euros by 2025 when it sees its serviceable market reaching about 60 billion euros. It expects to reach a profit on the operating level by the end of next year.Aside from Tesla, Madiberk lists U.S.-based AVX Corp. and China State Railway Group as key competitors. The raw materials Skeleton uses have given it a competitive advantage over the bigger rivals, he said.The company’s products had the highest power and maximum peak current from five supercapacitor makers, including Maxwell and Ioxus Inc., in last year’s study by the U.S. Office of Naval Research.Supercapacitors may find their niches if the cost becomes competitive, said Frith, the analyst at BloombergNEF.“The heavy transportation applications probably is the best use case for supercapacitors,” Frith said. “There definitely is a lot of areas within the automotive market where they could find applications.”To contact the reporter on this story: Ott Ummelas in Tallinn at oummelas@bloomberg.netTo contact the editors responsible for this story: Andrea Dudik at adudik@bloomberg.net, Andras GergelyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    U.S. Lifts Ban on Brazil Beef Imports After More Than Two Years

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world threatened by trade wars. Sign up here. The U.S. has reopened its doors to fresh beef from Brazil after a more than two-year ban, in a significant win for President Jair Bolsonaro ahead of a scheduled meeting with Donald Trump in March.“This is great news because it shows that the quality of Brazilian meat is recognized by such an important market like the American one,” Brazilian Agriculture Minister Tereza Cristina said in a video post Friday. “This is something we have been waiting for.”Brazil can now begin shipping raw meat from cattle slaughtered from Feb. 21, according to a letter sent by the Food Safety and Inspection Service to the Brazilian minister and seen by Bloomberg News. The decision was taken after Brazil “corrected the systemic issues that led to the suspension,” according to the letter.The U.S. suspended imports in 2017 after finding meat containing blood clots and lymph nodes. Brazil said the findings were abscesses stemming from a reaction to components of a vaccine against foot-and-mouth disease. After the U.S. measure, Brazil reduced the vaccine dose and changed the feed stock in an effort to overturn the ban. In October, the U.S. told Brazil it would keep the measure in place.The beef ban had fueled criticism against Bolsonaro, a Trump-admirer who has shifted from Brazil’s traditional balanced foreign policy in favor of a full alignment with the U.S. The suspension of meat imports prompted accusations that Brazil’s all-in bet on Trump wasn’t delivering real benefits.Bolsonaro will travel to the U.S. next month for the fourth time in a year with a pro-business agenda that will likely include a meeting with Trump, according to White House economic adviser Larry Kudlow. Brazil will also try to convince electric vehicle manufacturer Tesla Inc. to set up a plant in the South American country.To contact the reporter on this story: Samy Adghirni in Brasilia Newsroom at sadghirni@bloomberg.netTo contact the editors responsible for this story: Juan Pablo Spinetto at jspinetto@bloomberg.net, James Attwood, Robert JamesonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Brazil to Woo Tesla During Bolsonaro’s Trip to U.S. in March

    (Bloomberg) -- Brazil President Jair Bolsonaro will travel to the U.S. next month for the fourth time in a year with a pro-business agenda that includes trying to convince electric vehicle manufacturer Tesla Inc. to set up a plant in the South American country.Bolsonaro’s visit will be on March 7-10 and his plans include attending a business seminar in Miami, according to the presidency’s press office. On Twitter, Bolsonaro said his “extensive agenda” consists of the possibility of Tesla building a factory in Brazil, without providing further details. The Palo Alto, California-based company didn’t immediately reply a request for comment.Since taking office last year, Bolsonaro has revamped his nation’s foreign policy by pursuing closer ties with the U.S. and its allies while eschewing multilateralism. In a major win for the South American president ahead of his trip, the U.S. on Friday lifted a ban on fresh-beef imports from Brazil that had been in place since 2017. Other victories for Bolsonaro came when the administration of President Donald Trump announced plans to promote Brazil’s bid to join the Organisation for Economic Co-operation and Development and refrained from placing tariffs on Brazil’s steel.An encounter between Trump and Bolsonaro during his visit is almost a given, White House economic adviser Larry Kudlow told reporters in Washington on Friday.“I would almost certainly expect him to be meeting with President Trump, they are friends, looking forward to the bilateral,” he said.Nicknamed by some as “Trump of the Tropics,” Bolsonaro has made his admiration of his U.S. counterpart no secret. The Brazilian president has repeatedly forecast Trump will win re-election this year and has even gone as far as broadcasting himself watching the U.S. head of state’s speeches.Read more: Brazilian President Streams Himself Watching Trump’s Iran SpeechWhile in the U.S., Bolsonaro will also participate in the event “Brazil-U.S. Business Relations in Florida” organized by export agency Apex. More than 300 business executives are expected to attend the seminar, which will feature presentations on Brazil’s economic outlook, business climate and efforts to privatize billions of dollars in state-controlled assets.The Brazilian presidency’s press office wasn’t immediately able to confirm whether or not Bolsonaro will meet Trump during the March trip.(Updates with U.S. decision to lift ban on Brazil beef imports in 3d graph.)\--With assistance from Dana Hull and Samy Adghirni.To contact the reporters on this story: Simone Iglesias in Brasília at spiglesias@bloomberg.net;Josh Wingrove in Washington at jwingrove4@bloomberg.netTo contact the editors responsible for this story: Juan Pablo Spinetto at jspinetto@bloomberg.net, Matthew MalinowskiFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.