There’s no question about it: inflation is not transitory. The latest Consumer Price Index revealed prices of everything except food and energy went up 4.6%, the quickest spike since August 1991. The CPI also showed a 6.2% surge from October last year. U.S. consumers are feeling the hike in energy prices—oil is at nearly $82 a barrel, and electricity bills are at the highest they’ve been since 2009. Meanwhile, more automobile companies are joining the race to give Elon Musk a run for his money. The latest to enter the fray of Tesla rivals is the electric-vehicle startup Rivian, which debuted in trading today with the highest Initial Price Offer since 2014, starting at $78. The company’s valuation has already beaten Ford and General Motors. Jared Dillian, the editor of The Daily Dirtnap, joins Ash Bennington to discuss all of this and more. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3n2nIxm
House Passes Infrastructure Bill and Twitter Votes for Musk to Sell Tesla Stock
The House passed a $1 trillion bipartisan infrastructure bill on Friday to revamp the country’s transportation, utilities, and broadband structures. Meanwhile, despite Friday’s positive news of the October jobs report, U.S. treasury bonds still fell. This happened after the Fed’s announcement earlier last week to begin tapering bond purchases by $15 billion a month. On Twitter, Elon Musk shared a poll asking people to vote on whether he should sell 10% of his Tesla stock. Nearly 60% of those who participated in the poll voted yes, prompting Elon Musk to offload some stock to help pay his giant tax bill. Real Vision’s Petr Pinkhasov and Weston Nakamura host economist & trader Samuel Rines for a triple treat on today’s Daily Briefing to discuss the infrastructure bill, U.S. treasury bonds, and Tesla stock. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3oakS8T
“Tesla,” according to Gordon Johnson, “is the Blackberry of electric vehicles.” And Johnson believes people are finally starting to notice. In this interview with Mike Green, the founder and CEO of GLJ Research lays out his case against Tesla and other speculative stocks, arguing that endless Federal Reserve money-printing and a lack of regulatory oversight have inflated an “everything bubble” that will end with a big collapse. Johnson notes that fundamentals and stock-picking will soon matter again because the Fed is serious about bringing down inflation. And the inevitable recession will weed out companies that shouldn’t be in business. In a fiery conversation, Green and Johnson ultimately agree on the major problems plaguing the U.S. economy and the stock market. But they disagree on how we got to this point and what’s needed to fix it. As Green notes, disagreement is part of what makes a market. And none of us really knows what’s going to happen. Recorded on July 1, 2022.
Elon Musk Sells $5 Billion in Tesla Stock as Competitors Put on the Pressure
Elon Musk sells over 4.5 million Tesla shares this week after posting a poll on Twitter about whether he should unload a tenth of his stake in the company and spurring controversy about taxation of the ultra-wealthy. Meanwhile, Rivian’s IPO, one of the US’s largest since Facebook, lifts off with an almost $88 billion valuation at market close on Wednesday. The IPO’s positive reception by investors spilled over into other EV stocks such as Nio and Fisker. Autonomous vehicle startup Aurora also had made its trading debut last week, the first AV company to go public, after the closure of its merger with a SPAC. With Tesla’s rivals cranking up the heat, Tommy Thornton, founder of Hedge Fund Telemetry, discusses his forward outlook for this burgeoning and increasingly competitive industry and for Tesla. Thornton also touches on gold, retail, and Chinese tech. Interviewed by Maggie Lake. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3C7kJb6
Analyzing the U.S.-Canadian Dollar, European Lockdowns, Tesla's Stock, & Musk's Twitter Tantrum
Dave Floyd, founder of Aspen Trading, joins Maggie Lake to talk about the U.S. dollar against the Canadian dollar, Austria’s enforcement on a lockdown on the unvaccinated, and why Boris Johnson, who until now has been resistant to more lockdowns, warns that one may soon be possible given the struggling NHS. Floyd discusses the implications of these European lockdowns on supply chains and the market. Floyd also analyzes Tesla’s stock and why Musk got into a Twitter brawl with U.S. Senator Bernie Sanders over the weekend when Bernie tweeted about the rich paying their fair share of taxes. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3ouTmD5