On April 10th 2017, Tesla market cap surpassed General Motors for the first time in history. In mid-June, Tesla was valued more than $11bn above GM... but that has all gone now.
As The FT reports, Tesla bulls were delivered a few setbacks this week, which overshadowed news that its eagerly anticipated mass market Model 3 will launch at the end of the month.
The bulls got pretty much everything they could have hoped for - big inventory draws in all products and record high product demand - however, it appears it took the machines a little longer to read down the report and spot the fact that production soared to new cycle highs... and WTI/RBOB prices are tumbling...
Authored by David Stockman via The Daily Reckoning,
Back in the 1950s when GM had 50% of the auto market they always said that, “As General Motors goes, so goes the nation.”
In a time of suffocating, crushing market complacency (which has made the lives of financial analysts so boring, they have even quantified what complacency is), a pet hobby that has emerged within the financial community is to find new possible sources of underappreciated systemic risk. One such attempt comes from BMO's Mark Steele today, who notes that aside from the pressure that the short to medium end of the curve is dishing out as Central Banks turn hawkish, "the market dishes out some of its own early signals of a more important nature."
Benjamin Brafman, attorney for former Turing Pharmaceuticals CEO Martin Shkreli has based Shkreli's defense on the notion that, while his client may have misled investors in hedge funds and pharmaceutical companies that he controlled, most of them made money thanks to Shkreli's business acument and investing prowess.