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Tesla selloff puts at risk its $1 trillion club membership

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November 10, 2021

By Sruthi Shankar and Subrat Patnaik

(Reuters) – Tesla Inc shares fell for the fourth straight session on Wednesday, putting at risk the electric-car maker’s position in the $1 trillion club after top boss Elon Musk polled Twitter users about selling 10% of his stake.

Shares fell as low as 3.5% to $987.31 in volatile early trading, briefly pushing its market value below the $1 trillion mark.

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The company has lost nearly $200 billion since Monday following Musk’s poll, more than General Motors and Ford Motor combined market capitalization.

The world’s most valuable carmaker entered the elite trillion-dollar club last month after landing its biggest-ever order from rental car company Hertz for 100,000 Tesla vehicles.

The selloff was spurred by Musk’s poll over the weekend asking his Twitter followers if he should sell 10% of his stake in Tesla. Nearly 58% of them backed a sale.

Investors are keeping a close watch on Tesla filings with the U.S. Securities and Exchange Commission (SEC) for any clues on the share-sale plans. The SEC rules give companies four working days to report major events.

Analysts at research firm Vanda Research warned there could be a bigger pullback based on call options activity in the stock.

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Call options allow an investor to bet on gains in the share price without necessarily owning the underlying stock. Both retail and institutional investors have loaded up on Tesla call options, with open interest concentrated in Nov. 12 and Nov. 19 expiries, they said.

INSIDERS SELL NEARLY $1 BILLION IN STOCK

Four former and current Tesla board members, including Musk’s brother Kimbal Musk, filed to sell nearly $1 billion worth of shares late last month, according to filings and market data.

“A CEO asking his followers if he should sell a large number of shares is never going to reflect well in the share price. Doing so a day after his brother has sold a large number just compounds investor fears,” said Craig Erlam, market analyst at Oanda.

“That said, we need to take Musk with a pinch of salt and investors may quickly view this as a dip buying opportunity.”

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Despite the selloff, the stock is still up nearly 45% for the year after hitting a series of record highs in an eye-watering rally that catapulted the company into the trillion-dollar club.

(Reporting by Sruthi Shankar and Subrat Patnaik, additional reporting by Medha Singh and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D’Silva and Arun Koyyur)

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Business

Canada’s Shopify records Black Friday sales up 21%

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November 27, 2021

(Reuters) – Canadian e-commerce company Shopify Inc recorded worldwide sales of nearly $2.9 billion on Black Friday, an increase of about 21% in comparison to last year, the company said Saturday.

New York, London and Los Angeles were among the top-selling cities, the company said, while apparel and accessories was the top-selling product category.

Shopify also said it funded 23,000+ tonnes of carbon removal to counteract emissions from the delivery of every order placed on its platform on Black Friday.

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(Reporting by Aakriti Bhalla in Bengaluru; Editing by Nick Zieminski)

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Xiaomi to open car plant in Beijing with annual output of 300,000 vehicles – Beijing govt

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November 27, 2021

SHANGHAI (Reuters) – Chinese smartphone giant Xiaomi Corp will build a plant that can produce 300,000 vehicles annually in Beijing for its electric vehicle unit, authorities in the capital said on Saturday.

The plant will be constructed in two phases and Xiaomi will also built its auto unit’s headquarters, sales and research offices in the Beijing Economic and Technological Development Zone, the government-backed economic development agency Beijing E-Town said on its official WeChat account.

Beijing E-Town said it anticipated the plant reaching mass production in 2024, a goal announced by Xiaomi’s Chief Executive Lei Jun in October.

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In March, Xiaomi said it would commit to investing $10 billion in a new electric car division over 10 years. The company completed the business registration of its EV unit in late August.

The company has been opening thousands of stores to spur domestic sales growth for its smartphone business but eventually intends to use these shops as a channel for its plans to sell electric vehicles.

(Reporting by Brenda Goh; Editing by William Mallard)

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Eni sells Snam 49.9% stake in Algeria gas pipelines for 385 million euros

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November 27, 2021

MILAN (Reuters) -Italian energy group Eni has agreed to sell gas group Snam 49.9% of its stake in strategic pipelines carrying Algerian gas into Italy for 385 million euros ($436 million), the two companies said on Saturday.

The pipelines will be jointly controlled by the two companies, they said in a joint statement.

Italy imports more than 90% of its overall gas needs and Algerian gas currently accounts for around 30% of flows.

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“This transaction allows us to free up new resources to be used on our energy transition path,” Eni Chief Executive Claudio Descalzi said.

Eni is working on spinning off a series of oil and gas operations into new joint ventures to help reduce debt and fund its shift to low-carbon energy.

Snam, which owns a 20% stake in the TAP pipeline that carries Azeri gas into Italy, makes most of its money from managing Italy’s gas transport grid.

It has pledged to spend more on new green business lines such as hydrogen and, like other gas grid operators in Europe, is upgrading its gas network to be hydrogen ready.

“In the future, North Africa could also become a hub for producing solar energy and green hydrogen,” Snam CEO Marco Alvera said.

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The pipeline companies involved in the deal posted net income of around 90 million euros in 2020.

($1 = 0.8836 euros)

(Reporting by Stephen Jewkes, editing by Giselda Vagnoni)

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