Wealth moves from the impatient to the patient....
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What the heck is with this old chit... Common dude... You are SpotOff with this crap...
Tesla Beats Q3 Earnings Estimates, On Pace For Profitable Year
4:43 pm, October 21, 2020
Portfolios: First Watchlist
Tickers: $TSLA
The premier electric vehicle maker reported record vehicle deliveries, profitability and free cash flow in the third quarter.
What Happened: Tesla Inc (NASDAQ: $TSLA) reported third-quarter revenue of $8.77 billion, a year-over-year increase of 39%. The total from the company came in higher than estimates of $8.26 billion. Automotive revenue was $7.6 billion.
“This was achieved mainly through substantial growth in vehicle deliveries as well as growth in other parts of the business," the company said in the release.
Tesla reported earnings per share of 76 cents for the third quarter, which was higher than the consensus estimate of 56 cents.
Tesla reported non-GAAP Net income of $874 million, excluding stock-based compensation. GAAP net income was $331 million in the third quarter.
The company's operating margin was 9.2%, up from 4.1% in the same quarter last year.
Why It’s Important: Tesla remains on track to produce and deliver its goal of 500,000 vehicles in the current fiscal year.
“We are increasingly focused on our next phase of growth," the company said. "Our most recent capacity expansion investments are now stabilizing with Model 3 in Shanghai achieving its designed production rate and Model Y in Fremont expected to reach capacity-level production soon.”
The average selling price declined slightly in the third quarter as consumers shifted to the more affordable Model 3 and Model Y.
The energy business was a positive with Powerwall demand remaining strong and growing. Many solar business customers are including a Powerwall with installation according to the company.
“We continue to believe that the energy business will ultimately be as large as our vehicle business.”
The energy business saw quarterly revenue of over $1.1 billion in the third quarter.
Solar deployments more than doubled quarter-over-quarter to 57 MW. Solar roof installations almost tripled sequentially. The company recently demonstrated a 1.5-day solar roof install.
What's Next: The profitability of the company remains a key for possible inclusion in the S&P 500. The high stock-based compensation came from the 2018 compensation plan for CEO Elon Musk. Tesla said $290 million was triggered under that plan due to the company’s high market capitalization and probable operational metric milestones.
Shares of Tesla closed Wednesday at $422.57. In after-hours trading, shares of Tesla are up 3% to $434.02.
Tesla shares are up over 400% in 2020. Shares hit a 52-week high of $502.49 in September.
How Large Option Traders Are Playing Tesla Ahead Of Q3 Earnings
2:31 pm, October 21, 2020
Portfolios: First Watchlist
Tickers: $TSLA $GM $GOOG $GOOGL
Tesla Inc (NASDAQ: $TSLA) were up 2.1% on Wednesday and are now up 737% in the past year ahead of the company’s third-quarter earnings report on Wednesday afternoon.
While some large option traders are speculating Tesla’s third-quarter numbers can’t possibly live up to expectations, others are betting Tesla’s fairytale 2020 will continue through the end of the year.
The Tesla Trades: On Wednesday morning, Benzinga Pro subscribers received 18 alerts related to unusually large Tesla option trades. Here are the largest:
At 10:29 a.m. ET, a trader bought 405 Tesla call options with a $520 strike price expiring Dec. 18. The contracts were purchased near the ask price at $21 and represented an $850,500 bullish bet.
At 11:24 a.m. ET, a trader sold 300 Tesla put options with a $300 strike price expiring on July 16, 2021. The contracts were sold at the bid price of $34,201 and represented a $1.02 million bullish bet.
At 11:41 a.m. ET, a trader sold 308 Tesla put options with a $427.50 strike price expiring on Friday. The contracts were sold near the bid price at $15.099 and represented a $469,700 bullish bet.
At 12:30 p.m. ET, a trader sold 2,000 Tesla put options with a $240 strike price expiring on Jan. 15. The contracts were sold at the bid price of $3.30 and represented a $660,000 bullish bet.
Of the 18 total large Tesla option trades on Wednesday morning, 10 represented calls purchased at or near the ask or puts sold at or near the bid, trades typically seen as bullish. Eight trades were calls sold at the near the bid or puts purchases at or near the ask, trades typically seen as bearish. The four largest trades of the day were all bullish.
Why It's Important: Even traders who stick exclusively to stocks often monitor option market activity closely for unusually large trades. Given the relative complexity of the options market, large options traders are typically considered to be more sophisticated than the average stock trader. Many of these large options traders are wealthy individuals or institutions who may have unique information or theses related to the underlying stock.
Unfortunately, stock traders often use the options market to hedge against their larger stock positions, and there’s no surefire way to determine if an options trade is a standalone position or a hedge. In this case, given the relatively large size of the largest Tesla option trades, there’s certainly a possibility they could be an institutional hedge on a large position in Tesla stock.
Tesla Earnings Beat Coming? Wednesday’s big option trades comes after Tesla reported a record 139,300 vehicle deliveries in the third quarter, up 53.6% compared to the second quarter. That number exceeded analyst estimates of 137,000 vehicles.
Analysts are expecting Tesla to report third-quarter EPS of 56 cents on revenue of $8.26 billion, up 31% from a year ago. Tesla bulls highlight the fact that growth of any kind is impressive given the difficult 2020 environment, while bears point out that Tesla’s 700%-plus increase in market cap isn’t exactly in-line with a 30% increase in revenue.
On Tuesday, CEO Elon Musk said on Twitter the company is rolling out a beta version of its full self-driving software in a “slow” and “cautious” manner, starting with a limited number of people who are “expert careful drivers.”
Tesla’s rollout comes after Alphabet, Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Waymo announced earlier this month its fully autonomous robotaxi services are now available to the public in the Phoenix area. General Motors Company (NYSE: GM) also announced it was granted regulatory approval to begin testing its fully autonomous vehicles on public roads in San Francisco before the end of 2020.
Benzinga’s Take: The majority of the large option trades on Wednesday morning were bullish, including the largest four trades of the day. The largest call purchase has a break-even price of $541, suggesting about 25.5% upside for the stock in the next two months.
Which US Auto Stock Will Grow The Most By 2025?
8:35 am, October 21, 2020
Portfolios: First Watchlist
Tickers: NKLA TSLA WKHS F FCAU FUV GM
Every week, Benzinga conducts a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios via stocks, options and forex trading.
This week we asked over 400 Benzinga investors and traders which American automaker stock they believe will grow the most by 2025.
The Best American Auto Stock
Over the next five years, which stock will have the largest percentage gain?
General Motors (NYSE: GM)
Fiat Chrysler (NYSE: FCAU)
Ford (NYSE: F)
Tesla (NASDAQ: TSLA)
Nikola (NASDAQ: NKLA)
Workhorse (NASDAQ: WKHS)
Arcimoto (NASDAQ: FUV)
Overwhelmingly, 53.9% of traders and investors believe Tesla’s price per share over the next five years will grow the most relative to its American automaker counterparts.
Benzinga recently reported that Tesla produced 82,727 vehicles in the second quarter — a decrease of 20% sequentially and 5% year-over-year — and delivered 90,891.
Even considering production halts during the ongoing coronavirus pandemic, Tesla told investors it has the capacity to top 500,000 vehicle deliveries in 2020.
Although Tesla is known for a unique online car-buying experience, recent news broke regarding a change in an elimination of Tesla’s return policy.
When buying a Tesla, customers used to be able to return the car for a full refund — no questions asked — within seven days or 1,000 miles, whichever came first. This return policy is longer in place.
After Tesla, 15.8% of investors told us Workhorse would gain the most.
Workhorse is on a mission to manufacture drone-integrated electric vehicles to provide last-mile delivery services nationwide. Last week, we reported that Workhorse shares were trading higher after the American EV maker received $200 million in convertible note financing.
Workhorse has made a bid to supply USPS with electric delivery vehicles.
The bottom three for this week’s report: traders and investors didn’t see nearly as much upside ahead for General Motors (7.2%), Arcimoto (2.4%) and Chrysler (1.2%).
At the time of publication, the American auto stock trading at the highest price per share is Tesla at $432.03 per share. Arcimoto is trading the lowest of the seven stocks at $6.30 per share.
Full results:
Tesla: 53.9%
Workhorse: 15.8%
Ford: 10.3%
Nikola: 9.3%
General Motors: 7.2%
Arcimoto: 2.4%
Chrysler: 1.2%.
That is an amazing car, but not a $NIO... I would love to drive one of those though...
On Wednesday after the close, Tesla Inc (NASDAQ: $TSLA) is scheduled to pop the hood to give investors a look at its performance during the third quarter, which was a wild ride for the electric car maker’s shares.
$NIO Would be nice to get a good squeeze on up into the $30's. And the way she is trading, we may just get that...
Nio, Peloton Among Analyst's Top Short Squeeze Candidates
12:45 pm, October 20, 2020
Portfolios: First Watchlist
Tickers: $NIO AVLR DDOG ETSY MELI NET PTON TWLO WORK ZM
One of the most powerful tradable market events is a short squeeze, so traders are always on the lookout for the next short squeeze candidate. S3 Partners analyst Ihor Dusaniwsky just released a list of potential short squeeze stocks based on their high borrow rates and large mark-to-market losses for short sellers.
A stock borrow fee is the percentage of a stock’s value that brokers charge short sellers to borrow the stock. If the supply of shares to borrow gets low, borrow fees tend to rise.
“In my analysis I am looking at stocks with over $100 million of total short interest to include only stocks where the short covering from a squeeze can materially affect stock prices,” Dusaniwsky said.
When a stock’s borrow fees spike, it applies pressure to short sellers to choose between closing out their positions or letting fees eat into any potential gains.
Short Squeeze Candidates: Here’s a look at the 10 large-cap stocks with at least $100 million in short interest that have endured the largest short seller mark-to-market losses over the past month, according to S3 Partners. Month-to-date losses are included for each stock:
Cloudflare Inc (NYSE: NET), -52.3%
Nio Inc - ADR (NYSE: NIO), -38.2%
Peloton Interactive Inc (NASDAQ: PTON), -48%
Zoom Video Communications Inc (NASDAQ: ZM), -23.1%
Datadog Inc (NASDAQ: DDOG), -25.5%
Twilio Inc (NYSE: TWLO), -36.7%
Avalara Inc (NYSE: AVLR), -28.1%
Slack Technologies Inc (NYSE: WORK), -24.7%
Mercadolibre Inc (NASDAQ: MELI), -20.3%
Etsy Inc (NASDAQ: ETSY), -30.9%
Benzinga’s Take: Short squeezes are extremely unpredictable, and a rise in short seller losses is not a definitive indication that a squeeze is coming. However, the combination of high short interest and rising short seller losses makes these 10 stocks worthy of being at the top of any short squeeze watchlist.
$NIO ... I have Nov 20 calls in both Nio and Tesla... We'll see how I do. Counting on good numbers for both companies.
I know, I should have added too... $NIO
Tesla's Earnings Outlook
10:12 am, October 20, 2020
Portfolios: First Watchlist
Tickers: $TSLA
On Wednesday, October 21, Tesla (NASDAQ: $TSLA) will release its latest earnings report. Benzinga's outlook for Tesla is included in the following report.
What Are Earnings, Net Income and Earnings Per Share]?
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings and Revenue
Analysts predict Tesla will report earnings of $0.56 per share on revenue of $8.26 billion. Tesla earnings in the same period a year ago was $1.86 per share. Quarterly sales came in at $6.30 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of its revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates," and these consensus estimates can have a significant effect on a company's performance when it releases earnings.
The analyst consensus estimate would represent a 69.89% decrease in the company's earnings. Revenue would be up 31.05% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.11 -0.36 1.72 -0.42
EPS Actual 2.18 1.14 2.14 1.86
Revenue Estimate 5.23 B 5.90 B 7.02 B 6.34 B
Revenue Actual 6.04 B 5.99 B 7.38 B 6.30 B
Stock Performance
Shares of Tesla were trading at $430.83 as of October 19. Over the last 52-week period, shares are up 737.84%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Tesla is scheduled to hold the call at 17:30:00 ET and can be accessed here: https://ir.tesla.com/
Investors Wondering Whether Tesla Can Deliver Half A Million Vehicles This Year, Earnings Ahead
11:22 am, October 20, 2020
Portfolios: First Watchlist
Tickers: $NKLA $TSLA $GM
On Wednesday after the close, Tesla Inc (NASDAQ: $TSLA) is scheduled to pop the hood to give investors a look at its performance during the third quarter, which was a wild ride for the electric car maker’s shares.
One question is whether TSLA can report a profit for the fifth quarter in a row.
Last time around the company handily beat expectations, posting positive earnings per share when analysts had expected a loss. For Wednesday’s report, a consensus of analysts is expecting earnings of $0.56 per share on revenue of $8.26 billion.
Can TSLA Deliver 500,000 Vehicles This Year?
In addition to seeing whether TSLA’s results will top expectations again, TSLA investors are likely to be looking for additional clues as to whether the electric vehicle maker is on track to deliver 500,000 vehicles this year. In January, it said deliveries should “comfortably exceed” that milestone.
Earlier this month, the company said it delivered a record 139,300 vehicles during the third quarter, bringing its total for the first nine months of the year to 318,350.
A few days after the latest numbers were released, industry blog Tesmanian reported that CEO Elon Musk told TSLA employees in an email that the company has a chance to make 500,000 vehicles this year, depending on how things go during the fourth quarter. While production numbers are different than delivery figures, producing 500,000 vehicles in a year wouldn’t be too shabby either.
Deliveries of Model 3s made in China have helped boost Tesla’s delivery figures. Investors will also likely want an update on the ramp up at Tesla’s Shanghai factory, where construction is ongoing on its Model Y line and deliveries are expected to begin next year.
A Stock Split, A Battery Event, And An Overall Volatile Quarter
On Aug. 11, the company announced a 5-for-1 stock split, and shares went on a tear (see chart below). Retail investors often use stock splits as trading opportunities, accessing popular names that may have gotten too expensive pre-split. But sometimes buying interest cools off a little post-split, and some analysts were warning that Tesla’s shares might have been approaching overheated territory.
After the split, shares retreated. There was pressure from broader selling in tech-related names in early September. News of a planned General Motors Company (NYSE: GM) partnership with auto-tech newbie Nikola Corporation (NASDAQ: NKLA) as it ramps up its foray into electric- and hydrogen-powered cars also weighed on TSLA, as did news that TSLA didn’t get included in the S&P 500 Index (SPX), despite meeting the eligibility requirement of four consecutive quarters of profitability by generally-acceptable accounting principles (GAAP). Such an inclusion would have meant that a lot of index funds would have to buy shares so their holdings match the index components and weightings.
The company’s shares began moving higher once again, but then got hammered after the company’s Battery Day event. Even though investors seemed to be underwhelmed, Tesla still appeared to be taking steps in the right direction. At the event, Musk said battery costs would come down by half over the next several years and said the company could produce a $25,000 car on par or slightly better than a comparable gasoline car in three years.
While other competitors are expanding in the electric vehicle market, batteries remain the linchpin, and it seems that Tesla has a solid position on that front.
TSLA Earnings And Options Activity
Tesla is expected to report earnings after the close Wednesday, October 21. Third-party analysts are eyeing a consensus earnings estimate of $0.56 per share, on revenue of $8.26 billion—about 31% higher than quarterly revenue from a year ago.
The options market has priced in an expected share price move of 6.8% in either direction around the earnings release, according to the Market Maker Move™ indicator on the thinkorswim® platform.
Looking at the Oct 23 options expiration, puts have been active at the 400, 410, and 420 strikes, but higher concentrations have been seen to the upside, with heavy call volume at the 450 and 500 strikes. The implied volatility sits at the 29th percentile as of Tuesday morning.
Note: Call options represent the right, but not the obligation, to buy the underlying security at a predetermined price over a set period of time. Put options represent the right, but not the obligation, to sell the underlying security at a predetermined price over a set period of time.
TD Ameritrade® commentary for educational purposes only. Member SIPC. Options involve risks and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options.
Tomorrow after market closes....
Big shorts covering and making some $$$$ before earnings comes out??? Nobody wants to get caught with their shorts down after earnings, as Elon has been producing very well during this crazy year, and Texas is coming on line.
The last time we had this many red days was in March when the market crashed for 7 days.
If we get good numbers and good forward projection we should be fine. Those are just my nutty thoughts though...
$TSLA
Tesla Begins Exporting China-Made Model 3s To Europe
5:06 pm, October 19, 2020
Portfolios: First Watchlist
Tickers: $TSLA
Last month, it was rumored that Tesla Inc (NASDAQ: $TSLA) would begin exporting made-in-China Model 3 sedans to Singapore, Australia, New Zealand and parts of Europe.
This was in contrast to Elon Musk's original statements that made-in-China vehicles would only be sold in the greater China region.
Tesla has begun exporting Shanghai-made Model 3s to more than 10 European countries that include Germany, Italy, Switzerland and France, Tesmanian reported Monday, citing Grace Tao, the vice president of Tesla China.
Benzinga's Take: This is interesting timing, considering that Gigafactory Berlin is rapidly approaching a point where it will be able to start hiring workers and building its own European cars. Tesla often produces more vehicles than it can sell, and if it can reduce shipping and delivery times, it will help the company in its push for a record-breaking fourth quarter.
Very Nice... Hold um tight... $NIO
Tesla Analyst Raises Price Target To $500 Ahead Of Q3 Print
With Tesla Inc scheduled to report third-quarter results Wednesday, an analyst at Wedbush is optimistic that the electric vehicle giant will outperform expectations.
The Tesla Analyst: Daniel Ives maintained a Neutral rating on Tesla shares and increased the price target from $475 to $500.
The Tesla Thesis: The focus is likely to be on Tesla's level of third-quarter profitability and the unit growth trajectory into the fourth quarter, Ives said in a Monday note.
The company is poised to report a bottom-line beat, helped by manufacturing efficiency and shining Giga3 success in China, the analyst said.
Full-year deliveries are on track to hit the company's guidance of 500,000, as Tesla navigated the unprecedented COVID-19 backdrop, he said.
"We believe with a strong 4Q that Tesla will be on a pace to hit the 500k threshold as pent up China demand and pockets of strength within Europe remains the linchpin to the demand resurgence that Musk & Co. have seen over the past few quarters," Ives said
With China expected to account for over 40% of Tesla's global sales potentially by early 2022, Tesla's profitability profile will improve, as Model 3s sold in China have higher margins, the analyst said.
Along with more leverage on the horizon out of Giga 3, more price cuts both in the U.S. and China could stimulate demand further, he said.
"Steady profitability after years of red ink has been the 'hearts and lungs' to the bull thesis on the Street and a key ingredient in the stock's performance this year."
The overall EV market is still in the early days of playing out globally, according to Wedbush.
Tesla is in a formidable position to maintain its leadership position despite competitors coming from every angle globally, Ives said.
TSLA Price Action: Tesla shares were down 0.49% at $437.53 at last check Monday.
$NIO I agree, new base area... looks like bounces between $27 and up to $30... Test a new high this week. If Tesla's numbers are good, this should move up with it... If not, it may dive with it... I'm betting on good numbers. Bought calls in both $NIO and Tesla...
Should make a few $$$$...
Tesla Accounts For Majority Of EV Sales In South Korea This Year: Report
10:18 pm, October 18, 2020
Portfolios: First Watchlist
Tickers: $TSLA BMWYY GELYF GM HYMTF VWAGY
Tesla Inc (NASDAQ: $TSLA) has registered substantial growth in South Korea this year due to increasing demand for electric vehicles in the country, Yonhap News Agency reported Monday (Seoul time).
What Happened: The Elon Musk-led automaker sold 10,518 vehicles in the country between January and September — making up for 79.6% of electric vehicle sales in the country, according to industry data reported by Yonhap.
In September, Tesla sold 2,056 vehicles, accounting for 91% of all South Korean EV sales in the month.
Tesla sells Model 3, Model S, and Model X vehicles in South Korea priced at $44,000, $102,600, and $108,900 respectively, noted Yonhap.
Customers of the lower-priced models can reportedly avail of subsidies to the tune of $7,200 from the central and $9,000 from the provincial governments.
Why It Matters: This month, it was reported that Tesla is the only automaker that saw sales growth in Germany, beating its domestic and international rivals like Bayerische Motoren Werke AG (OTC: BMWYY) and Volkswagen AG (OTC: VWAGY).
South Korea-based automaker giant Hyundai Motor Co (OTC: HYMTF) could prove to be a major competitor to Tesla, with its dedicated “Ioniq” brand of battery EVs — unveiled in August.
Local battery maker LG Chem Ltd, which counts Tesla among its clients, emerged as the lead supplier of batteries for EVs in the first half of 2020.
Price Action: Tesla shares closed almost 2% lower at $439.67 on Friday and fell 0.33% in the after-hours session.
Tesla Getting Closer To Building New Factory In Indonesia
7:31 am, October 19, 2020
Portfolios: First Watchlist
Tickers: $TSLA
Earlier this month, Reuters reported on a rumor of Tesla Inc (NASDAQ: $TSLA) in talks to build a new factory in Central Java, Indonesia. Now it looks like talks are progressing, as Tesla gets closer to building the factory.
A story from CNBC Indonesia reports Elon Musk is exploring the construction of a battery factory in Indonesia.
Tesla is being directed to build its factory in the industrial area of ??Batang, Central Java, and the company may be receiving support from the government. Minister of Industry Agus Gumiwang confirmed Tesla's plan and said Tesla would be directed to build a factory in Batang.
Benzinga's Take: As Tesla grows, it will need to produce many more batteries, as that is currently the company's main bottleneck in vehicle production. Indonesia is known for its high nickel production and resources, and could make a great place for Tesla to manufacture a mass amount of batteries.
Geographically, it would be an ideal place to produce batteries to supply the Asian and Australian markets, which are expected to grow quickly.
I don't know, I haven't been following HMI that closely....
$NIO... Yep, there is big boys loading this...
$TSLA is just keeps growing with cheaper costs and more profits $$$$
Very cool article...
$TSLA As soon as Berlin and Texas is online, this will go $700+.... my thoughts anyways... maybe higher!
China-Made Tesla Model Y Could Reach 360K Units Annually: Research Report
11:35 am, October 15, 2020
Portfolios: First Watchlist
Tickers: $TSLA
The Tesla Inc (NASDAQ: $TSLA) Model Y was released this year, earlier than Tesla projected.
We also recently learned the seven-seater version will start deliveries in December, even though Tesla's website listed 2021 availability.
Now a new report from Tianfeng Securities is predicting Tesla will lower the price of the Model Y in China when it starts production and deliveries in the country, according to the website Seek Device.
Tianfeng is forecasting a price of 275,000 yuan ($41,000) vs. the current price of $49,990 in the U.S.
Tesla recently reduced the price of the Model 3 in China after introducing a new battery, which led to sales teams being overwhelmed with orders.
Tianfeng Securities is also predicting that after the start of mass production in China, Model Y monthly sales could reach 30,000 units — and annual sales are expected to reach 360,000 units.
Benzinga's Take: Tesla's Gigafactory Shanghai has been instrumental in the company's explosive growth.
Tesla set a new delivery record in the third quarter of 2020, and a big part of that was due to China deliveries. As Tesla continues building factories in Berlin and Texas, we can expect Tesla's growth to continue to explode.
$NIO This is being bought up big... Lunch time lull right now for the market...
3 ETFs For Nio Exposure
11:15 am, October 15, 2020
Portfolios: First Watchlist
Tickers: $NIO $TSLA $HAIL $KGRN $QCLN
There was a time when many investors in the U.S. thought electric vehicle stocks beyond Tesla Inc (NASDAQ: TSLA) just weren't worth the trouble. That conversation is being dramatically altered this year and China's Nio Ltd. (NYSE: $NIO).
Once left for dead and viewed as a speculative, low-priced name, Nio is experiencing an epic renaissance in 2020. On Wednesday, shares of the electric vehicle maker surged 22.57% on volume that was more than triple the daily average after JPMorgan dubbed the name an attractive long-term play on China's booming EV market.
Of course, the rising tide provided Nio stock is of assistance to exchange-traded funds, which were once afterthoughts in relation to this name. Due to the automobile maker's improved financial position, credibility and share price appreciation, it's an increasingly prominent member in some ETFs.
To be precise, 63 ETFs have Nio exposure, according to ETF Research Center (ETFRC) data. Here's a trio that represents the pick of that litter.
KraneShares MSCI China Environment ETF (KGRN)
It helps to be the “Nio ETF” and that's what the KraneShares MSCI China Environment Index ETF (NYSE: KGRN) is. This unheralded fund allocates 8.71% of its weight to Nio, making the stock the ETF's largest holding and KGRN the biggest ETF holder of the stock. That's working in the fund's favor this year as KGRN is higher by 84.42%.
KGRN follows the MSCI China IMI Environment 10/40 Index, which is based on five themes: Alternative Energy, Sustainable Water, Green Building, Pollution Prevention and Energy Efficiency. Home to 44 stocks, KGRN also stands as one of the best ways to access Chinese EV makers via the ETF wrapper.
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN)
The First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ: QCLN) is no Nio slouch. The Chinese company is the largest holding in the First Trust fund at 7.82%. That's 165 basis points more than QCLN devotes to Tesla. Those two names account for essentially all of QCLN's automobile exposure.
However, there's much more to the fund as it has 10 industry exposures, including a combined 39% weight to renewable energy and semiconductor stocks. Bottom line: Nio is a contributor, but QCLN's diversity across a hot industry is the primary reason the ETF more than doubled this year.
SPDR S&P Kensho Smart Mobility ETF (HAIL)
The SPDR S&P Kensho Smart Mobility ETF (NYSE: HAIL) is also a player in the Nio ETF conversation as the stock is the fund's largest holding at 6.48%. Additionally, HAIL is well-positioned as an alternative to dedicated electric vehicle ETFs as related names, Nio included, combine for almost 21% of the fund's roster.
HAIL is the most diverse of the funds mentioned with exposure to 17 industries. It's up 36% this year.
Nothing...
Ummm.... you have no idea what you talking about... Nio is up and moving higher. $TSLA will be back up as soon as the market turns around... Pretty simple!
$NIO Over 80 million in volume... Yah people want this up in the 30s...
$NIO looking very nice this morning against this red market... She going higher because people want this higher... Follow the $$$$$
Now that is funny... $NIO
$TSLA Going to be lots of volatility in the next few months, but that's nothing new here. Doubt she is going any lower without more market crash, which could come at any time with all the virus crap and no stimulus...
Have a great day!
Why Goldman Sachs Is Raising Its Tesla Price Target
4:21 pm, October 14, 2020
Portfolios: First Watchlist
Tickers: $TSLA
After record setting deliveries in the last quarter, all eyes are on the Tesla Inc (NASDAQ: $TSLA) third-quarter earnings scheduled for Oct. 21.
Goldman Sachs raised its price target for Tesla on Tuesday in anticipation of a strong third quarter for the automotive industry.
The Tesla Analyst: Mark Delaney maintained a Neutral rating on Tesla and bumped the price target from $400 to $450.
The Tesla Takeaways: Goldman Sachs sees electric vehicle adoption, margins and market share all increasing, Delaney said in a note.
Several other automakers received higher price targets from Goldman, and the analyst said companies with higher auto exposure could have strong earnings reports based on recent industry data.
Auto sales are approaching pre-COVID-19 levels, and China retail sales were up 7% in September, he said.
Upcoming Tesla Catalysts: Tesla is set to report third-quarter earnings Oct. 21.
The company also recently announced a new type of vehicle battery that's expected to reduce costs will increasing vehicle range and safety.
Tesla is building multiple new auto manufacturing facilities in Berlin, Germany and Austin, Texas.
Tesla is expected to begin ramping up production of the Tesla Semi soon, as well as begin deliveries of the highly anticipated Cybertruck in late 2021.
TSLA Price Action: Tesla shares were up 3.28% at $461.30 at the close Wednesday.
A 7-Seater Tesla Model Y Is Coming Soon, Musk Says
6:28 pm, October 14, 2020
Portfolios: First Watchlist
Tickers: $TSLA
When Tesla Inc (NASDAQ: $TSLA) announced the Model Y, it came in several versions, including a seven-seater and a standard range version.
Since then, the standard range version has been canceled — leaving doubts that the seven-seat option would ever come.
It remains listed on Tesla's website as "available in 2021."
But now it seems it will be available early, just as the Model Y itself was released earlier than expected.
The seven-seat Model Y will begin production in November, with the first deliveries in early December, CEO Elon Musk said in a tweet Wednesday.
It's still unknown how exactly the third row will fit in the Model Y.
Starting production on 7 seater next month, initial deliveries early December
— Elon Musk (@elonmusk) October 14, 2020
Benzinga's Take: It seems this is a new Tesla and new Elon Musk. Rather than missing deadlines and delivering late, the company is under-promising and over-delivering.
Could this mean Tesla's 4680 battery cells are actually closer than three years away? Perhaps the Cybertruck will be available before the end of 2021.
Only time will tell, but if recent trends continue, Tesla customers may be happy with early deliveries of future products.
$TSLA ... Why do people suffer the follies of the foolish? ... Unless foolish follies is what one likes...
Nikola Lock-Up Expiration Could Be A Ticking Timebomb
2:20 pm, October 14, 2020
Portfolios: First Watchlist
Tickers: $NKLA
Nikola Corporation (NASDAQ: $NKLA) shares have stabilized somewhat in the past two weeks following a major September swoon.
A Hindenburg Research report accusing Nikola of being “an intricate fraud built on dozens of lies” and the resignation of chairman Trevor Milton triggered the sell-off, but Nikola investors may soon face another major hurdle in the stock’s lock-up expiration.
What Is Lock-Up Expiration? One of the ways companies keep volatility in check during the weeks and months following a new stock's IPO or initial listing is by setting lock-up periods for company insiders.
A lock-up period is a period typically ranging from between three months and a year during which insider and institutional investors are restricted from dumping potentially billions of dollars worth of shares into the market.
Once the lock-up period expires, however, all bets are off. That’s why lock-up expiration dates can be days on which stocks like Nikola experience heavy selling pressure.
Why It’s Important: Lock-up expiration dates are often volatile enough without the stock being accused of fraud. Nikola’s lock-up expiration is Nov. 30, and the company has been on the offensive to try to convince investors that its company holds true value and prevent a massive exodus of insider investors once the lock-up period ends.
Former hedge fund manager Whitney Tilson is skeptical of the electric truck maker's efforts at last week’s virtual Mission Hydrogen conference.
“Translation: ‘Can we put enough lipstick on this pig to lure enough gullible individual investors into this stock to prop up the price enough for insiders to dump their shares?’” Tilson wrote this week.
Benzinga’s Take: If insiders bail on Nikola in droves on Nov. 30, there may be no way to recover the companies reputation or its stock price.
Nikola trades around $24.38 at publication. The stock has a year-to-date range of $79.73 and $10.32 per share.
$TSLA lunch time dip...
Why Ron Baron Is Holding His Tesla Shares Despite 400% Gain In 2020
11:15 am, October 14, 2020
Portfolios: First Watchlist
Tickers: $TSLA
Billionaire investor Ron Baron expected his initial investment in Tesla Inc (NASDAQ: $TSLA) to generate a return of 20 times — and he said Wednesday that he's halfway to the goal.
What Happened: Baron's investment firm Baron Capital owns more than 7.3 million shares of Tesla at an average split-adjusted price of $43.07.
Since then, Baron Capital has seen its investment grow by a factor of 10, but there is much more upside ahead, he said on CNBC's "Squawk Box."
Baron always assumed Tesla's valuation would rise to at least $1 trillion and as high as $2 trillion, he said.
The company's momentum, including expectations for vehicle sales to grow by 50% annually in the coming years, implies the upper end of the valuation range is justified, he said.
The path toward a $2-trillion valuation is a testament to Tesla CEO Elon Musk's "sheer willpower" to build a viable business, Baron said. Musk now oversees 50,000 employees and production facilities in the U.S., China, and Germany, with more to come "continuously" over the next 10 years.
Why It's Important: Tesla's stock has been going "up and down like a yo-yo" over the years, Baron said, adding that he's unworried by volatility.
As a long-term investor in the business, he said near-term fluctuations in the stock are something that can't be controlled.
What's Next: Baron's math makes the case for Tesla's annual revenue to come in at anywhere from $500 million to $800 million within 10 years on cars alone, he said.
"We made 10 times so far, three to five times to come in the next 10 years," he said. "Two more doubles, maybe three more doubles in 10 years. That's what the expectation is."
TSLA Price Action: Tesla shares were trading 2.89% higher at $459.58 at last check Wednesday.
It is high, but Tesla is more than EV cars.... The Energy division alone is worth billions going forward and just going to get bigger... $TSLA