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Tag: Alternative Fuel Vehicles

  • ‘I’m paycheck to paycheck.’ I make $350K a year, but have $88K in student loans, $170K in car loans and a mortgage I pay $4,500 a month on. Do I need professional help?

    ‘I’m paycheck to paycheck.’ I make $350K a year, but have $88K in student loans, $170K in car loans and a mortgage I pay $4,500 a month on. Do I need professional help?

    [ad_1]

    I’m the first of my generation to own a home and the first to earn this much annually and don’t want to mess this up. How, specifically, can a financial adviser help me?


    Getty Images

    Question: By the end of 2022, I will have made $350,000 before taxes as the sole breadwinner and head of household. This is a great starting point and I’m very aware how blessed we are to be in this position, but I’m always looking ahead on how to improve. I currently have $88K left in student loans (originally close to $150K) and very little credit card debt (less than $2K with more than $25K available). I have two auto loans totaling $170K for two electric vehicles at 5% interest.

    I’ve recently been offered a $200K HELOC at 9%, which would help me bring down some of my monthly payments and do some small home repairs and improvements, but I want to make the right moves. And I’ve also been presented with a few long-term real estate investment opportunities that are rental properties out of state and are currently bringing it 10-12% ROI.  But my biggest concern is that after taxes, 401(k) contributions, bills, savings and mortgage ($4,500), on paper I’m paycheck to paycheck. I’d like to use this HELOC to consolidate debt while also participating in some of these investment opportunities. I’m the first of my generation to own a home and the first to earn this much annually and don’t want to mess this up. How, specifically, can a financial adviser help me? (Looking for a new financial adviser too? This tool can help match you with an adviser who might meet your needs.)

    Answer: You have a few questions to tackle here, so let’s go one by one. The first being the HELOC. Yes, HELOCs can be a good way to consolidate debt, but the rate you’re being offered isn’t favorable, as average HELOC rates are a little over 6%. “I would ask if 9% is the best rate you can get, because it appears a bit high,” says Chris Chen, certified financial planner at Insight Financial Strategists. What’s more, “I would like you to consider the potential impact that our Fed policy and inflation are having on interest rates, as HELOCs usually have variable interest rates and we’re in an environment with rising rates. You may start at 9% and end up significantly higher,” says Chen. 

    What’s more, your student loans, car loans and mortgage are all likely less than 9%, so it’s not likely that consolidation via a HELOC would save you money. “You may want to start somewhere different, like the snowball method, where you focus on one loan, usually the smallest one, and direct all of your resources to pay off that loan while maintaining payments on the others,” says Chen. This method could work to finish off your student loans and maybe one of your car loans, to start with. 

    Have an issue with your financial adviser or have questions about hiring a new one? Email picks@marketwatch.com.

    As for those real estate investments, what do you really know about those returns? “With regards to real estate investments, I assume that the 10% to 12% ROI you speak of is the income that you would be getting from the investment. If so, that’s very high and often when you get a return that is significantly higher than the norm, there’s something else that makes the investment less desirable. Be careful,” says Chen. (Looking for a new financial adviser too? This tool can help match you with an adviser who might meet your needs.)

    Certified financial planner Kaleb Paddock says you may actually want to work with a money coach before you work with a financial adviser. Whereas a financial adviser assists with developing investment strategies and long-term financial plans, a money coach offers a more educational experience and focuses on shorter term goals for money management. “A money coach will help you with paying off all of your debts, maximize your cash flow and help you create systems and processes to direct your money proactively,” says Paddock. 

    While having a high income is great, there’s a concept called Parkinson’s Law, which essentially states that your spending will always rise to meet your income no matter how high that income rises, explains Paddock. “Working with a money coach will help you defeat Parkinson’s Law, eliminate your debt and then enable you to supercharge your investing and life planning with a financial adviser,” says Paddock.

    A financial adviser could help too, and Danielle Harrison, certified financial planner at Harrison Financial Planning, says to look for one who does comprehensive financial planning and can help you create a more holistic plan for your money. “They can assist you in the creation of both short and long-term goals and then help you by giving guidance on the financial decisions and opportunities you are presented with,” says Harrison.

    A financial adviser would also help you take a long-term approach to your money and help you create a spending plan where you don’t feel like you’re living paycheck to paycheck on a $350,000 salary. “Everyone has blind spots when it comes to their finances, so finding a competent financial partner can be invaluable,” says Harrison. (Looking for a new financial adviser too? This tool can help match you with an adviser who might meet your needs.)

    Have an issue with your financial adviser or have questions about hiring a new one? Email picks@marketwatch.com.

    *Questions edited for brevity and clarity.

    The advice, recommendations or rankings expressed in this article are those of MarketWatch Picks, and have not been reviewed or endorsed by our commercial partners.

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    December 3, 2022
  • XPeng stock rockets toward record rally as bulls brush off bad results, outlook

    XPeng stock rockets toward record rally as bulls brush off bad results, outlook

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    The U.S.-listed shares of China-based electric vehicle maker XPeng Inc. skyrocketed Wednesday, as investors cheered changes in China’s COVID policy while shrugging off weak third-quarter results and a downbeat outlook.

    The stock
    XPEV,
    +45.44%

    charged up 45.0% in midday trading, enough to pace all gainers on the New York Stock Exchange. It was also headed for the biggest one-day gain since going public in August 2020, surpassing the previous record advance of 33.9% on Nov. 23, 2020.

    The rally comes even after XPeng reported a wider-than-expected loss for the third-straight quarter, missed on revenue for the first time and said it expected fourth-quarter revenue to fall 40% to 44% from a year ago while the FactSet consensus called for just a 4.4 decline.

    Instead, investors seemed China appeared to move toward easing its zero-COVID policy, amid growing social unrest and a slowing economy. China’s government said Tuesday that it would renew its push to vaccinate the elderly, and said it would amend COVID control measures.

    XPeng’s stock rally also comes at a time when investor sentiment had soured. Earlier this week, Jefferies analyst Johnson Wan downgraded the EV maker, citing recent “missteps” by the company at a time that the “honeymoon stage” for EVs in China was coming to an end.

    In addition, short interest, or bearish bets on XPeng’s stock, was 5.7% of the public float, or freely tradable shares, based on the latest available exchange data. That compares with short interest as a percent of float for China-based rivals Nio Inc.
    NIO,
    +20.14%

    at 4.1% and Li Auto Inc.
    LI,
    +18.35%

    at 4.7%.

    For Tesla Inc.
    TSLA,
    +2.12%
    ,
    which generated $5.13 billion in revenue from China in its latest quarter, or about 24% of total revenue, short interest as a percent of float was 2.9%.

    XPeng’s stock has soared 60.7% in November but has still tumbled 41.7% over the past three months. In comparison, the Invesco Golden Dragon China exchange-traded fund
    PGJ,
    +8.98%

    has shed 11.7% the past three months while the S&P 500 index
    SPX,
    +0.62%

    has slipped 1.1%.

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    November 30, 2022
  • Tesla stock at two-year low, other EV-maker shares plunge as concerns simmer about China, oil futures

    Tesla stock at two-year low, other EV-maker shares plunge as concerns simmer about China, oil futures

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    Tesla Inc. shares on Monday were poised to end at a fresh two-year low, with shares of other electric-vehicle makers also underperforming the broader equity market as worries about China’s COVID-19 lockdowns re-emerged and oil futures prices dropped to their lowest level since January.

    Shares of Tesla
    TSLA,
    -6.84%

    extended their losing streak to a fourth session and were on track for their lowest close since Nov. 20, 2020, when they closed at $163.20. The stock was the 10th worst performer in the S&P 500 index
    SPX,
    -0.39%

    and fourth worst in the Nasdaq 100
    COMP,
    -1.09%

    — and the most active stock on both exchanges.

    American depositary shares of several China-based EV makers, including Nio Inc.
    NIO,
    -4.30%

    and XPeng Inc.
    XPEV,
    -5.67%
    ,
    also underperformed the broader market. In contrast, shares of General Motors Co.
    GM,
    -0.63%

    and Ford Motor Co.
    F,
    -0.29%

    merely edged lower.

    The energy sector was taking a broad beating as well, with the SPDR Energy Select Sector ETF
    XLE,
    -1.35%

    looking at a four-week low.

    Related: GM’s EV roadmap is ‘ambitious,’ but Wall Street doesn’t give it full credit just yet

    Tesla’s underperformance as compared with the broader indexes holds on a monthly and yearly basis as well. The stock is down more than 25% so far in November and 52% this year.

    If the trend continues, this would be the worst yearly performance for the stock on record.

    The S&P has lost about 17% year to date and has clawed back to a 2% gain so far in November.

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    November 21, 2022
  • The new Toyota Prius has a huge power boost and even better fuel efficiency | CNN Business

    The new Toyota Prius has a huge power boost and even better fuel efficiency | CNN Business

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    CNN
     — 

    Toyota unveiled an all-new version of its famous Prius hybrid car Wednesday just ahead of the Los Angeles Auto Show. It’s lower, longer and sleeker looking, with just less than a 10% improvement in the model’s vaunted fuel efficiency. Bigger gains come in terms of power and performance.

    The hybrid Prius, which produces electricity to recharge its own batteries while it drives, will produce up to 196 horsepower, 62% more than the current model’s 121 peak horsepower. It will also manage to get about 57 miles per gallon of gasoline, according to Toyota’s estimates, compared to 56 mpg in the 2022 model year Prius Eco L.

    As with the current Prius, the new version will be available with all-wheel-drive with a separate electric motor powering the back wheels.

    Toyota also revealed a new version of the plug-in hybrid Prius Prime. The Prime uses more powerful batteries that, in addition to being charged by the car itself, can also be charged through a plug. With its batteries fully charged, the new Prius Prime will go at least 50% farther without burning any gasoline as today’s Prius Prime does, according to Toyota. That means it should be capable of 37.5 miles or more of electric-only driving – compared 25 in today’s Prius Prime model – after which it will operate as a standard hybrid switching between gas and electric power. It will be able to produce up to 220 horsepower, 100 horsepower more than today’s Prius Prime.

    The roofline is two inches lower than the current model and the car is also an inch wider. More expensive Prius XLE models get bigger 19-inch wheels for a flashier look. Inside, the new Prius has a gauge screen in front of the driver, as in most cars, rather than in the middle of the dashboard as in past Prius models. There is a large center touchscreen, as well.

    The added power comes from new lithium-ion batteries as well as a slightly larger gas engine. The new battery pack is smaller and lighter than the ones used before but still more powerful, according to Toyota.

    When it first came to the United States as a 2001 model, the Prius – the name is Latin for “go before” – helped introduce America to the idea of fuel-efficient hybrid driving. The basic idea is that the car can be driven by electric motors sometimes, especially at lower speeds or when high power isn’t needed, allowing the gas engine to be used as efficiently as possible.

    The new Prius has a more convential-looking interior with a gauges in front of the driver instead of in the middle of the dashboard.

    The 2001 Prius got a combined 41 miles per gallon using modern EPA rating standards. (It was rated at 48 miles per gallon when it came out but the EPA used a more forgiving rating system at the time.) With its gas engine and electric motor, it managed just 70 horsepower. Both horsepower and efficiency improved over the subsequent four generations of the car. The Honda Insight hybrid was available in America a year before the Prius and got significantly better fuel economy, but the Prius was a more popular and practical car, and it became the standard bearer for hybrids.

    Toyota executives have insisted that hybrids, which are less expensive and easier to own than fully electric cars, provide a better opportunity than EVs to reduce global vehicle emissions. Almost every vehicle in Toyota’s line-up is now available with hybrid power. There are hybrid versions of the Corolla and Camry sedans and Highlander and Rav4 SUVs. Even the huge Tundra pickup and Sequoia SUV are available as hybrids, and the Sienna minivan is sold in the US only as a hybrid.

    While Toyota has introduced more hybrid models, Prius sales have gone from representing 9.5% of Toyota’s US sales ten years ago to just 1.4% now, according to data from Edmunds.com.

    Toyota also unveiled an electric SUV concept.

    Toyota has been seen as a laggard in fully electric cars. The automaker only recently introduced its first mainstream fully electric vehicle long after others like GM, Ford, and Volkswagen Group had been offering them. The Toyota BZ4X electric SUV was developed in cooperation with Subaru which sells an almost identical model. Shortly after it went on sale, though, the BZ4X had to be pulled from the market over safety concerns. It was found that the wheels could loosen and even fall off. That issue is now being fixed following months of investigation to find the root causes. Reuters has reported that Toyota is now rethinking its EV strategy.

    Along with the Prius, Toyota also unveiled the Toyota BZ Compact SUV concept. Toyota has said it plans to one day offer 30 different purely electric vehicle and to be carbon neutral by 2050 with a mix of electric and “alternative fuel” models.

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    November 16, 2022
  • Are in-wheel motors the future of electric cars? | CNN Business

    Are in-wheel motors the future of electric cars? | CNN Business

    [ad_1]


    London
    CNN Business
     — 

    In 1900, Ferdinand Porsche and Ludwig Lohner unveiled an electric car with battery-powered motors attached to its front wheels. It was seen as a sensation, but the technology never took off as petrol cars accelerated to world domination.

    More than a century later, in-wheel motors are making a comeback. Mounted in the rim of an electric vehicle’s wheels, the motors increase efficiency by delivering power directly to where it’s needed most.

    “In-wheel motors are a game changer,” says Luka Ambrozic, chief commercial officer of Slovenian company Elaphe Propulsion Technologies, one of the leading developers of the technology. They offer the “ultimate freedom of design,” he says, giving vehicle manufacturers the opportunity “to build better and smarter cars.”

    By packing everything into the wheels, there’s no need for other components like a gearbox or a drive shaft which usually transfers power from the onboard motor to the wheels.

    This makes the car lighter, Ambrozic tells CNN Business, and it saves energy by reducing the distance the power has to travel. It also frees up space in the vehicle and allows the manufacturer to make the car more aerodynamic. A more aerodynamic vehicle in turn needs less power, which can mean smaller batteries and lighter vehicles, he adds.

    Elaphe, which was founded in 2006 by Gorazd Lampič and quantum physicist Andrej Detela, has designed in-wheel motors for a range of electric vehicles. The Lightyear 0, notable for curved solar panels built into its roof, is equipped with motors co-developed by Elaphe’s in each of its wheels. Lightyear says the car will go into production this year and will have the most efficient production powertrain in the world.


    Aptera Motors, another company that develops solar electric vehicles, has enlisted Elaphe to supply in-wheel motors for its lightweight three-wheeler design, although production is yet to begin. And Lordstown Motors is using Elaphe’s hub motors for its new Endurance line of electric pickup trucks, which it says give the truck genuine four-wheel drive. Commercial production of the pickup truck began in September.

    These examples show that in-wheel motors can be used for both lightweight and heavy-duty applications, says Ambrozic, although the designs must be tweaked for each purpose. “It’s not about having a one-size-fits-all motor,” he says.

    But some industry experts believe in-wheel motors may have limited uptake in mainstream markets. James Edmondson, a senior technology analyst specializing in electric vehicles for market research firm IDTechEx, notes that most big car manufacturers have based their EV platforms on onboard motors. Introducing in-wheel technology would require a complete redesign of the system. “If you have to start from scratch and build up your vehicle from the ground up, it’s a huge investment,” he says.

    All four wheels of the Lordstown Endurance pickup truck are equipped with Elaphe's technology.

    Manufacturers are also concerned about durability and suspension, says Edmondson. In-wheel motors are far more exposed to the elements as well as impacts and vibrations from the road. The motors also make wheels heavier, which can reduce ride comfort, although Edmondson notes this could be compensated for by the weight saved elsewhere on the vehicle.

    According to a 2021 report from research firm Markets and Markets, the demand for in-wheel motors is expected to rise in line with the growth of electric vehicle sales, reaching a value of more than $4 billion by 2026, up from $800 million in 2021.

    The report notes that as electric vehicles become more popular, automakers are looking towards in-wheel motors for their space-saving abilities and improved power efficiency.

    Another major player is Protean Electric, which was acquired by British electric vehicle maker Bedeo in 2021. This year, the company announced a new partnership with Dongfeng Motor Corporation Tehnical Center, a Chinese state-owned automobile manufacturer.

    Elaphe is also eyeing up China for expansion. It plans to scale up its output to more than 100,000 in-wheel motors a year in Slovenia by next year, before launching production in both the United States and China.

    “Now is the time for commercial expansion and production expansion,” says Ambrozic. “We want to be a step ahead of the market to make sure we are ready when the opportunities are right.”

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    October 26, 2022
  • Tesla Stock Could Rebound in 3 Months. Here’s What it Would Take.

    Tesla Stock Could Rebound in 3 Months. Here’s What it Would Take.

    [ad_1]

    Elon Musk says that


    Tesla


    could someday be worth more than


    Apple


    and Saudi Aramco, combined. First, it needs to get through the next few months.

    Before Tesla (ticker: TSLA) reported third-quarter earnings this past week, investors had been hoping they would allay concerns that had been growing since the company released second-quarter numbers three months earlier. They did no such thing. While earnings topped expectations, third-quarter deliveries, sales, and profit margins all fell short of Street projections. Tesla shares slumped 6.7% following the release, putting them down 22% since the end of September, their second-worst start to a quarter since the first few weeks of 2016.

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    October 21, 2022
  • Why BMW really decided to make batteries in the US | CNN Business

    Why BMW really decided to make batteries in the US | CNN Business

    [ad_1]



    CNN
     — 

    BMW recently announced a $1.7 billion investment to help prepare its huge Spartanburg, South Carolina, factory to produce electric cars and SUVs. That sum included $700 million for the construction of a battery manufacturing plant nearby.

    Spartanburg is BMW’s largest factory anywhere in the world. It employs 11,000 people and produces 40,000 SUVs a year, only 40% of which are sold in North America. The rest are exported to 120 other countries.

    It’s one of a number of such announcements in recent months and years as automakers gear up to start producing more electric vehicles. Mercedes, Hyundai, Honda, and others have also announced battery plant construction projects in recent months. BMW’s announcement came after the passage of the Biden administration’s Inflation Reduction Act, which limits tax incentives for electric vehicles to those with largely US-based battery manufacturing and raw materials supplies.

    The rules allow consumer tax credits only for electric vehicles that meet increasingly strict goals for US-based manufacturing of the vehicles themselves, as well as their batteries. They also require US sourcing for battery raw materials and they place caps on the cost of the vehicles and the income of the buyers. Buyers can get full tax credits only if they, and the vehicles, meet the requirements.

    But that sort of regulation had no impact on BMW’s decision to locate battery production in South Carolina, BMW chairman Oliver Zipse said in an interview with CNN Business. Simple logistics were a far more important factor.

    “You will not fly hundred of kilograms of batteries around the world or put them on a ship,” he said. “You’re not going to do it. You’ll localize anyway.”

    Not only were the IRA’s rules pushing American manufacturing unneeded, said Zipse, they also risk negative repercussions for the very American jobs they’re designed to protect, he said.

    The IRA provides no benefit for vehicles, regardless of how “American made” they are, if they aren’t sold inside the US. More importantly, though, protectionist regulations attempting to wall off American-made vehicles for American buyers can spark retaliation, endangering valuable export business, said Zipse.

    “You can never make a regulation without looking at the consequences from other regulators,” he said. “And I only warn that we get a tit-for-tat regulation.”

    And, simply, as a practical matter, it’s difficult to wall off automaker’s supply chains in the way the IRA would seem to demand, Zipse said.

    “The assumption that you can incentivize an industry which is completely from A to Z inside one region in the world, in such a complex industry, like the car industry is a wrong assumption,” he said.

    Zipse also warned of the possible unintended consequences of regulations, like those in some US states and in Europe, that ban sales of non-zero-emission vehicles after a certain date. For one thing, it could mean overall industry sales will decline.

    “We do not believe that this one drivetrain will make up the complete market of today’s size,” he said.

    Not all consumers will be able to have electric vehicle chargers at home, Zipse said, so many could decide, instead, to keep their gasoline cars longer or buy used gas-powered cars.

    Some automakers, like BMW competitors General Motors and Mercedes-Benz, are apparently not worried about that possibility of shrinking sales and have announced plans to go all-electric by a set future date. BMW has never said publicly that it intends to make only electric vehicles after any certain time.

    Unlike some automakers, such as GM and Volkswagen, that make electric vehicles on distinct engineering platforms entirely different from their gasoline cars, BMW engineers its vehicles so they can be produced as electric, plug-in hybrid, or purely gasoline-powered. BMW executives tout this sort of flexibility to respond to market demands for different types of vehicles.

    Instead, he said, regulators should impose gradually more stringent emissions restrictions while leaving it up to automakers how best to reach those targets, as regulators have done in the past. To date, that approach has not halted increasing global warming.

    Zipse insisted that BMW can manage whatever regulators decide, however.

    “We can easily ramp them up,” Zipse said of increasing regulatory demand for electric vehicles. “All our factories are qualified for building EVs. We have a flexible approach.”

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    October 20, 2022
  • Elon Musk teases massive Tesla stock buyback as CFO trims forecast for annual deliveries and stock falls

    Elon Musk teases massive Tesla stock buyback as CFO trims forecast for annual deliveries and stock falls

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    Tesla Inc. Chief Executive Elon Musk suggested the electric-vehicle maker could repurchase up to $10 billion worth of its stock Wednesday, as shares declined following a third-quarter revenue miss and his CFO brought down delivery expectations for the full year.

    Some Tesla
    TSLA,
    +0.84%

    investors have been agitating for a stock buyback after multiple stock splits and the company losing more than a third of its market capitalization in 2022, and Musk said in an earnings conference call that Tesla’s board has discussed a buyback in the range of $5 billion to $10 billion.

    “We debated the buyback idea extensively at board level. The board generally thinks that it makes sense to do a buyback, we want to work through the right process to do a buyback, but it is something possible for us to do a buyback on the order of $5 [billion] to $10 billion even in a downside scenario next year, given next year is very difficult,” he said, adding that it “is obviously pending board review and approval.”

    “So it’s likely that we will do some meaningful buyback,” he concluded.

    The statement did not immediately move Tesla’s stock, as it was followed closely by a forecast revision from Chief Financial Officer Zachary Kirkhorn, who said, “We do expect to be just under 50% growth [for deliveries] due to an increase in the cars in transit at the end of the year.”

    Tesla delivered a record number of cars in the third quarter, but still missed analysts’ expectations and made it more difficult to hit executives’ target for the year of an increase of more than 50% in vehicle deliveries. Kirkhorn said that the company will increase production of cars by 50%, “although we are tracking supply-chain risks which are beyond our control.”

    Shares declined more than 6% following the car company’s earnings report. Tesla reported third-quarter earnings of $3.29 billion, or 95 cents a share, on sales of $21.45 billion, up from $13.76 billion a year ago. After adjusting for stock-based compensation, the electric-vehicle manufacturer reported earnings of $1.05 a share, up from 62 cents a share a year ago.

    Analysts on average were expecting adjusted earnings of $1 a share on sales of $21.98 billion, according to FactSet. Tesla shares declined about 5% in after-hours trading immediately following the release of the results, after closing with a 0.8% increase to $222.04 in the regular trading session.

    Tesla shares have fallen more than 37% so far this year, a harder descent than the 22% decline of the S&P 500 index
    SPX,
    -0.67%
    ,
    after years of outsize gains. Pundits have put forth a variety of reasons for the downturn, including increasing competition in the EV market, negative press around Tesla’s full-self-driving claims and actual performance, and Musk’s attention being diverted to his attempt to acquire Twitter Inc.
    TWTR,
    +0.10%
    .

    Don’t miss: Market share for electric vehicles expected to roughly double

    None of that cowed Musk, however. He predicted that Tesla would be worth as much as the two most valuable companies in the world, Apple Inc.
    AAPL,
    +0.08%

    and Saudi Arabian Oil Co.
    2222,
    +0.42%
    ,
    combined. Both companies have market capitalizations topping $2 trillion.

    “Now I am of the opinion that we can far exceed Apple’s current market,” Musk said on the call, after referencing a previous prediction that Tesla would reach Apple’s then-record market cap. “In fact, I see a potential path for Tesla to be worth more than Apple and Saudi Aramco combined. That doesn’t mean it will happen or that it will be easy, in fact it will be very difficult, require a lot of work, very creative new products, expansion and always good luck. But for the first time I’m seeing, I see a way for Tesla to be, let’s say roughly twice the value of Saudi Aramco.”

    In a preview of the report Tuesday, Wedbush Securities analyst Daniel Ives said that “the Street is starting to worry that the bloom is coming off the rose in the Tesla story with delivery shortfalls front and center.”

    “Between logistical issues in China, supply-chain problems, FSD black-eye moments, the Musk Twitter fiasco and EV competition increasing across the board, there is growing pressure on Musk & Co. to prove themselves,” Ives wrote.

    Tesla’s automotive gross margin, which declined in the second quarter despite price increases that Musk called “embarrassing,” were the same sequentially at 27.9%. Operating margin increased both sequentially and year-over-year, however, to 17.2% from 14.6% both in the third quarter a year ago and the previous quarter.

    Earnings preview: Do record Tesla deliveries mask a demand problem?

    In their communications with investors on Wednesday, Tesla executives disclosed that they will change the process for one of their most challenging tasks of late — transporting cars — in hopes of bringing costs down.

    “We are reaching such significant delivery volumes in the final weeks of each quarter that transportation capacity is becoming expensive and difficult to secure. As a result, we began transitioning to a smoother delivery pace, leading to more vehicles in transit at the end of the quarter,” the company’s shareholder deck reads. “We expect that smoothing our outbound logistics throughout the quarter will improve cost per vehicle.”

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    October 19, 2022
  • A Tesla stock plunge could destroy ‘zombie stocks’ such as GameStop and Peloton, warns equity research firm New Constructs

    A Tesla stock plunge could destroy ‘zombie stocks’ such as GameStop and Peloton, warns equity research firm New Constructs

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    Tesla shares could decline dramatically — and that could mean disaster for a number of stocks that have already seen deep share-price cuts, according to equity research firm New Constructs.

    The research firm, which uses machine learning and natural language processing to parse corporate filings and model economic earnings, called the stocks in danger “zombie stocks,” and defined them as companies with poor business models that are burning cash at an alarming rate and are at risk of seeing their stock decline to $0 per share.

    The research firm estimates there could be some 300 zombie companies across the marketplace.

    “The Federal Reserve’s aggressive rate hikes so far in 2022 have ended the era of free money and exposed a worrisome dynamic throughout capital markets: zombie stocks,” wrote New Constructs CEO David Trainer, in a note.

    See Now: Tesla earnings are coming, but do record deliveries mask a demand problem?

    New Constructs does not define Tesla Inc.
    TSLA,
    +7.01%

    as a “zombie stock,” citing CEO Elon Musk’s ability to raise capital, but does see the electric car manufacturer as a bellwether for the sector. “It shares many of the common characteristics of a zombie stock, such as an outrageous valuation and high cash burn,” wrote Trainer. “We believe Tesla’s unrelenting share price rise over the past three years – where investors completely ignored company fundamentals – inspired the birth of many of today’s zombie stocks.” 

    Tesla reports its third-quarter results after the closing bell on Oct. 19.

    The company’s stock was trading around $220 on Monday, an increase of over 1,000% compared to three years ago. But Trainer feels that Tesla is at risk of falling more than 80% to $25 a share.

    Tesla’s Optimus bot: ‘High school science project’ or robotics game changer?

    Tesla’s stock has fallen 37.6% in 2022, outpacing the S&P 500 Index’s
    SPX,
    +2.65%

    decline of 22.7%.

    “Its valuation remains nosebleed high because the cash flow expectations baked into the stock price are unreasonably optimistic,” Trainer wrote. “Our message to investors is to take profits in Tesla and avoid zombie stocks at all costs.”

    New Constructs recently added cloud-based communication company RingCentral Inc.
    RNG,
    +6.49%

    to its list of “zombie” stocks. Other companies on the list are Freshpet Inc.
    FRPT,
    -2.03%
    ,
     Peloton Interactive Inc.
    PTON,
    +7.04%
    ,
     Carvana Co.
    CVNA,
    +6.30%
    ,
     Snap Inc.
    SNAP,
    +6.01%
    ,
     Beyond Meat Inc.
    BYND,
    +0.64%
    ,
     Rivian Automotive Inc.
    RIVN,
    +6.93%
    ,
     DoorDash Inc.
    DASH,
    +6.15%
    ,
     Shake Shack Inc.
    SHAK,
    +4.01%
    ,
     Chewy Inc.
    CHWY,
    +10.76%
    ,
     Uber Technologies Inc.
    UBER,
    +4.98%
    ,
     Robinhood Markets Inc.
    HOOD,
    +3.24%
    ,
     Tilray Brands Inc.
    TLRY,
    +7.32%
    ,
     Affirm Holdings Inc.
    AFRM,
    +6.72%
    ,
     SunRun Inc.
    RUN,
    +1.70%
    ,
     Blue Apron Holdings Inc.
    APRN,
    +3.26%
    ,
     and meme stocks AMC Entertainment Holdings Inc. 
    AMC,
    +6.00%

    and GameStop Corp.
    GME,
    +5.40%
    .

    See Now: RingCentral added to ‘zombie’ stocks list by equity research firm New Constructs

    “Investors are now fed up with these kinds of companies, especially amid this year’s stock market volatility,” wrote New Constructs’ Trainer. “If investors start to give up on Tesla and take profits on the stock, which is up over 1,000% over the past three years, that spells terrible news for all of the other zombie stocks that don’t have the cash-raising luxury that Tesla has.”  

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    October 17, 2022
  • This industry could be worth $180 billion by 2040. Citigroup offers four stock names to play it, and a few more to think about.

    This industry could be worth $180 billion by 2040. Citigroup offers four stock names to play it, and a few more to think about.

    [ad_1]

    Investors are bracing for some choppiness on Wall Street, with oil prices falling as growth worries rattle around the globe. That’s as the clock ticks down to CPI and the start of a earnings season later this week, and in the backdrop a war is intensifying in Europe.

    Tough times don’t last, but tough investors do right? Maybe, hopefully. In any case, focusing on the distant future might offer some comfort right now.

    And that’s where we’re headed with our call of the day from Citigroup, whose strategists have stock ideas to play what they expect will be one of the ten fastest-growing markets through 2040.

    They are talking about the global fuel cell industry, a direct play on the green energy debate, and “reaching the part that batteries cannot.”

    “Fuel cells enable both de-carbonization and energy resilience, and we see them as crucial in harder-to-abate sectors like commercial vehicles and marine,” a Citi team led by research analyst Martin Wilkie told clients in a note on Tuesday.

    Their base case sees this market reaching 50 gigawatts (GW) and $40 billion by 2030, offering a compound average growth rate of more than 35% in dollar terms, with further acceleration to 500GW/$180 billion by 2040.

    They admit they’re on the bullish side with these projections, and note fuel cell stocks are on average down around 70% since their January 2021 peaks . 

    “The fuel cell equity story has had false starts before, but we see the impetus from emissions policy as well as announced hydrogen plans as creating attractive opportunities,” said the Citi analysts, highlighting policies such as the U.S. Inflation Reduction Act, which aims at beefing up renewable energy and a recent EU move to offer more green-energy research and development subsidies.

    While passenger cars were a big source of demand for the growing fuel cell market in 2021, they don’t think it can be a big competitor to battery electric. However, stationary power, such as distributed and backup power generation and heavy-duty transport, think commercial vehicles, off-road and later marine are set to become key fuel-cell markets.

    U.K.-based Ceres Power
    CWR,
    -1.69%
    ,
    Plug Power
    PLUG,
    -0.25%
    ,
    Belgium’s Umicore
    UMI,
    -1.69%
    ,
    and Japan’s Toyota
    7203,
    -0.96%

    TM,
    -0.73%

    are Citi’s buy-rated stocks with high exposure to the fuel-cell theme.

    Other names they mention, include Daimler Truck
    DTG,
    +1.32%

    and Volvo
    VOLV.B,
    +0.21%

    VOLV.A,
    +0.12%
    ,
    which are working with Germany’s Traton
    8TRA,
    -2.09%

    on a joint venture called Cellcentric that aims to develop that technology for trucks, with a production goal of 2025. Others are outsourcing fuel-cell tech, such as Italy’s Iveco Group
    IVG,
    +0.10%
    ,
    which has teamed up with South Korea’s Hyundai
    005380,
    -4.27%
    ,
    and U.S.-based Paccar
    PCAR,
    +0.23%

    with Toyota
    TM,
    -0.73%
    .

    The markets

    Stock futures
    ES00,
    -0.38%

    YM00,
    -0.22%

    NQ00,
    -0.46%

    have pared some losses, while bond yields
    TMUBMUSD10Y,
    3.927%

    TMUBMUSD02Y,
    4.307%

    are mixed, and the dollar
    DXY,
    -0.14%

    has turned lower. Oil prices
    CL.1,
    -1.42%

    are also pressure.

    The buzz

    Shares of the world’s biggest chip maker, TSMC
    2330,
    -8.33%
    ,
    fell 8% in Taiwan
    Y9999,
    -4.35%
    ,
    where stocks dropped more than 4% following new limits by the U.S. imposed on exports of semiconductors and chip-making equipment to China.

    The Bank of England made the second move this week to calm jittery markets, saying Tuesday it will expand its bond purchases to index-linked U.K. bond. But the program still ends Friday, something the pensions fund industry wants to see extended. Those yields
    TMBMKGB-10Y,
    4.448%

    TMBMKGB-30Y,
    4.718%
    ,
    meanwhile, continue to creep higher.

    The National Federation of Independent Business small-business index showed confidence rising in September, but inflation a nagging problem. At noon Eastern we’ll hear from Cleveland Fed President Loretta Mester.

    Subscription-based private aviation company Flexjet plans to go public through a merger with SPAC Horizon Acquisition
    HZON,

    valuing it at $3.1 billion.

    The U.S.’s third-biggest railroad union will be back at the negotiating table with employers on Tuesday, after rejecting a deal and raising the possibility of crippling strikes.

    The Kremlin’s war hawks were thrilled at the devastating strikes across Ukraine on Monday. Now they want more. G-7 leaders are holding an emergency meeting to discuss the ramping up of the war.

    Amazon’s
    AMZN,
    -0.78%

    second Prime-Day like event kicks off Tuesday.

    Best of the web

    U.K. spy chief says Russians are starting to realize the cost of Putin’s war in Ukraine

    India’s biodegradable bags are in demand, and reviving its industry

    We are not at peace. The world needs to get ready for more sabotage

    One of the greatest transfers of intergenerational wealth is coming, says head of TIAA

    The chart

    This graphic by Visual Capitalist’s Truman Du, shows Disney’s
    DIS,
    -2.06%

    streaming empire — Disney+, Hulu, ESPN+ — is “giving Netflix
    NFLX,
    +2.33%

    a run for its money.”


    Visual Capitalist, Disney, Netflix quarterly reports

    The tickers

    These were the top searched tickers on MarketWatch as of 6 a.m. Eastern Time:

    Ticker

    Security name

    TSLA,
    -0.05%
    Tesla

    GME,
    -1.38%
    GameStop

    AMC,
    -2.76%
    AMC Entertainment Holdings

    AAPL,
    +0.24%
    Apple

    NIO,
    -3.49%
    NIO

    BBBY,
    -2.21%
    Bed Bath & Beyond

    APE,
    -6.53%
    AMC Entertainment Holdings preferred shares

    NVDA,
    -3.36%
    Nvidia

    TWTR,
    +2.40%
    Twitter

    AMD,
    -1.08%
    Advanced Micro Devices

    Random reads

    Everyone hail to this 2,560-pound pumpkin.

    “Where’s Tony gone?” Supply-chain woes hit (shudder) Frosted Flakes.

    Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern.

    Listen to the Best New Ideas in Money podcast with MarketWatch reporter Charles Passy and economist Stephanie Kelton.

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    October 11, 2022
  • Ford stock is now a ‘sell’ at UBS as an oversupply problem looms

    Ford stock is now a ‘sell’ at UBS as an oversupply problem looms

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    Shares of Ford Motor Co. were hit hard Monday by UBS analyst Patrick Hummel’s recommendation that investors sell, as the auto industry is facing a worrisome U-turn from undersupply to oversupply.

    Hummel also cut his ratings on several other global auto makers, including General Motors Co.
    GM,
    -5.59%
    ,
    saying that as a recession concerns grow, “demand destruction is no longer a vague risk.”

    In addition to all of the data suggesting the economy is slowing, Hummel said growing U.S. dealer inventories, weak used-car pricing, used-car dealer profit warnings and signs indicating deteriorating orders and shorter delivery times make him more cautious on the overall auto industry.

    Don’t miss: CarMax stock suffered biggest selloff since the year 2000, as inflation, low consumer confidence lead to big profit miss.

    “We think it will only take 3-6 months for the auto industry to end up in oversupply, which will put an abrupt end to a 3-year phase of unprecedented OEM [original equipment manufacturer] pricing power and margins,” Hummel wrote in a note to clients.

    As part of his negative industry outlook, he cut his rating on Ford
    F,
    -7.38%

    to sell from neutral and his stock price target to $10 from $13, with the new target implying about 11% downside from current levels.

    Ford’s stock sank 7.6% in morning trading. It was trading up just 0.6% month to date, after plunging 26.5% in September to suffer its worst monthly performance since it plummeted 30.6% during pandemic-stricken March 2020.

    Hummel noted that Ford has already warned about having more vehicles in inventory than expected, and above payments to suppliers running about $1 billion higher than projected, so he sees little margin left for negative surprises in terms of fourth-quarter deliveries and supply costs.

    Hummel cut his 2023 adjusted earnings-per-share estimate by 61% to 52 cents a share, to reflect a $6.5 billion drop in price and sales mix. The compares with the current 2023 FactSet EPS consensus of $1.87.

    “This sounds very negative, but Ford gains $19 billion in price alone since the beginning of 2020,” Hummel wrote.

    Also read: Ford again raises price of F-150 Lightning electric pickup.

    Read more: Ford September sales fall as drop in trucks offsets near tripling in EVs.

    Meanwhile, GM’s stock dove 6.9% in morning trading toward a three-month low, and shares have shed 2.5% so far this month after tumbling 16% last month.

    Hummel downgraded GM to neutral from buy, and dropped his price target by 32%, to $38 from $56.

    The rating remains above Ford’s, because unlike its rival, Hummel noted that GM has had “no hiccups” in its third-quarter production schedule and therefore a “solid” quarterly report is expected. However, the downgrade reflects the fact that GM is “not immune” to a downturn in the industry.

    Separately, Hummel also cut his stock-price target on Tesla Inc.
    TSLA,
    -0.16%

    to $350 from $367, saying that following a third-quarter volume report that was below expectations, it will be “more challenging” for the electric-vehicle maker to meet its 2022 delivery growth target.

    However, Hummel reiterated his buy rating on Tesla, as he believes the EV maker is best positioned to use pricing as the tool to fill its factories.

    “Overall, the recession outlook should result in moderately lower margins for Tesla than previously expected, but we’re highly confident that by keeping the top line [revenue] momentum, Tesla will even widen the gap vs. competitors in terms of profitability,” Hummel wrote.

    Ford’s stock has fallen 3% over the past three months, while GM shares have lost 3.1% and Tesla’s stock has dropped 11.8%. In comparison, the S&P 500 index
    SPX,
    -1.08%

    has declined 7.5% the past three months.

    Among other auto makers, he also downgraded both Renault SA
    RNO,
    +2.41%

    RNLSY,
    +1.17%

    and Volkswagen AG
    VOW,
    -3.29%

    to neutral from buy. He also downgraded auto parts makers Continental AG
    CON,
    +0.10%

    and Faurecia SE
    EO,
    -3.77%

    FURCF,
    -3.67%

    to neutral from buy.

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    October 10, 2022
  • Rivian Recalling Nearly All of Its Vehicles

    Rivian Recalling Nearly All of Its Vehicles

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    Rivian Automotive is recalling nearly all of its vehicles to address a potential problem that could cause customers to lose steering control, the company said Friday.

    The electric truck and SUV maker said the recall was made after it discovered a fastener connecting the upper control arm and steering knuckle may have been improperly installed. In rare cases, the problem could lead to a loss of steering control, the company said.

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    October 7, 2022
  • Tesla’s Deliveries Missed the Mark. Why Analysts Aren’t Worried.

    Tesla’s Deliveries Missed the Mark. Why Analysts Aren’t Worried.

    [ad_1]



    Tesla


    stock dropped on Monday after the electric-vehicle company disclosed delivery figures that fell short of Wall Street forecasts, but at least some analysts see reason for optimism.

    On Sunday,


    Tesla


    (ticker: TSLA) reported that it delivered 343,830 cars and produced 365,923 in the third quarter. The deliveries were a jump compared with the 254,695 vehicles


    Tesla


    handed over to customers in the second quarter, but still below Wall Street estimates. The company said that deliveries have historically been skewed toward the end of each quarter, and that as “production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks.”

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    October 3, 2022
  • These 20 stocks in the S&P 500 tumbled between 20% and 30% in September

    These 20 stocks in the S&P 500 tumbled between 20% and 30% in September

    [ad_1]

    Stocks declined again on Friday, closing out September with large losses across the board as the rally from the June lows partway through August faded into memory.

    The S&P 500
    SPX,
    -1.51%

    fell 1.5% on Friday. The benchmark index slumped 9.3% for September, leading to a 2022 loss of 24.8%. The Dow Jones Industrial Average
    DJIA,
    -1.71%

    gave up 1.7% on Friday, for a September decline of 8.8%. The Dow has now fallen 20.9% for 2022. The Nasdaq Composite Index
    COMP,
    -1.51%

    pulled back 1.5% on Friday for a September drop of 10.5% and a year-to-date plunge of 32.4%. (All price changes in this article exclude dividends.)

    Below is a list of stocks in the S&P 500 that fell the most during September.

    It was the worst September performance for U.S. stocks since 2008, according to Dow Jones Market Data. William Watts looked back to see what poor performance during September may portend for October.

    Real estate leads the sector bloodbath

    All sectors of the S&P 500 were down during September, including five that fell by double digits:

    S&P 500 sector

    Sept. 30 price change

    September price change

    2022 price change

    Real Estate

    1.0%

    -13.6%

    -30.4%

    Communication Services

    -1.7%

    -12.2%

    -39.4%

    Information Technology

    -1.9%

    -12.0%

    -31.9%

    Utilities

    -2.0%

    -11.5%

    -8.6%

    Industrials

    -1.3%

    -10.6%

    -21.7%

    Energy

    -0.9%

    -9.7%

    30.7%

    Materials

    -0.3%

    -9.6%

    -24.9%

    Consumer Staples

    -1.8%

    -8.3%

    -13.5%

    Consumer Discretionary

    -1.8%

    -8.1%

    -30.3%

    Financials

    -1.1%

    -7.9%

    -22.4%

    Health Care

    -1.4%

    -2.7%

    -14.1%

    S&P 500

    -1.5%

    -9.3%

    -24.8%

    Source: FactSet

    Worst performers in the S&P 500 in September
    Company

    Ticker

    Sept. 30 price change

    September price change

    2022 price change

    Decline from 52-week intraday high

    Date of 52-week intraday high

    FedEx Corp.

    FDX,
    -2.52%
    -2.5%

    -29.6%

    -42.6%

    -44.4%

    01/05/2022

    V.F. Corp.

    VFC,
    -2.73%
    -2.7%

    -27.8%

    -59.2%

    -62.1%

    11/16/2021

    Lumen Technologies Inc.

    LUMN,
    -1.36%
    -1.4%

    -26.9%

    -42.0%

    -49.8%

    11/05/2021

    Ford Motor Co.

    F,
    -2.35%
    -2.4%

    -26.5%

    -46.1%

    -56.7%

    01/13/2022

    Charter Communications Inc. Class A

    CHTR,
    -2.96%
    -3.0%

    -26.5%

    -53.5%

    -59.8%

    10/07/2021

    Adobe Inc.

    ADBE,
    -1.10%
    -1.1%

    -26.3%

    -51.5%

    -60.7%

    11/22/2021

    Carnival Corp.

    CCL,
    -23.25%
    -23.3%

    -25.7%

    -65.1%

    -73.5%

    10/01/2021

    CarMax Inc.

    KMX,
    +1.32%
    1.3%

    -25.4%

    -49.3%

    -57.7%

    11/08/2021

    Advanced Micro Devices Inc.

    AMD,
    -1.22%
    -1.2%

    -25.3%

    -56.0%

    -61.5%

    11/30/2021

    Caesars Entertainment Inc.

    CZR,
    -0.49%
    -0.5%

    -25.2%

    -65.5%

    -73.1%

    10/01/2021

    Boeing Co.

    BA,
    -3.39%
    -3.4%

    -24.4%

    -39.9%

    -48.2%

    11/15/2021

    WestRock Co.

    WRK,
    -1.56%
    -1.6%

    -23.9%

    -30.4%

    -43.6%

    05/05/2022

    International Paper Co.

    IP,
    -1.22%
    -1.2%

    -23.8%

    -32.5%

    -44.0%

    10/13/2021

    Western Digital Corp.

    WDC,
    +1.15%
    1.1%

    -23.0%

    -50.1%

    -53.1%

    01/05/2022

    Newell Brands Inc.

    NWL,
    -0.57%
    -0.6%

    -22.2%

    -36.4%

    -47.5%

    02/16/2022

    Eastman Chemical Co.

    EMN,
    +0.34%
    0.3%

    -21.9%

    -41.2%

    -45.1%

    01/19/2022

    Nike Inc. Class B

    NKE,
    -12.81%
    -12.8%

    -21.9%

    -50.1%

    -53.6%

    11/05/2021

    Seagate Technology Holdings PLC

    STX,
    -2.11%
    -2.1%

    -20.5%

    -52.9%

    -54.8%

    01/05/2022

    PVH Corp.

    PVH,
    -3.55%
    -3.6%

    -20.4%

    -58.0%

    -64.3%

    11/05/2021

    Dish Network Corp. Class A

    DISH,
    -2.19%
    -2.2%

    -20.3%

    -57.4%

    -70.1%

    10/04/2021

    Source: FactSet

    Click on the tickers for more about each company, including developments that led to their share-price declines.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.

    FedEx Corp.
    FDX,
    -2.52%

    tops the list because of investors’ harsh reaction to the company’s sales and profit warning on Sept. 16. Claudia Assis and Greg Robb explained the implications of FedEx’s warning for the broad economy.

    Shares of Carnival Corp.
    CCL,
    -23.25%

    fell 23% on Friday (for a September decline of 26%) after the cruise giant again reported sales and earnings below what analysts had expected, even though it reported increasing its capacity usage to 92%.

    Nike Inc.
    NKE,
    -12.81%

    was down 13% on Friday for a September decline of 22%, after the company warned that discounting to clear inventory would continue to affect its earnings performance. Here’s how analysts reacted.

    Adobe Inc.
    ADBE,
    -1.10%

    made the list because of investors’ doubt about its dilutive $20 billion deal to acquire Figma.

    The bulk of CarMax’s
    KMX,
    +1.32%

    drop for the month came on Sept. 29, after the used-car dealer missed sales and earnings estimates and indicated that consumers were beginning to resist high prices.

    Don’t miss: Dividend yields on preferred stocks have soared. This is how to pick the best ones for your portfolio.

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    September 30, 2022
  • Weekend reads: What to expect now for home prices, stocks and bonds

    Weekend reads: What to expect now for home prices, stocks and bonds

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    This week Freddie Mac said the average interest rate on a 30-year mortgage loan in the U.S. had climbed to 6.70% from 6.29% the week before and 6.02% two weeks ago. The average rate a year ago was 3.01%.

    Would-be sellers who have low-rate mortgage loans are reluctant if it means they need to take out a new loan to fund their next home. Would-be buyers are forced out of the market, as the monthly principal and interest payment for a new 30-year loan, based on Freddie Mac’s figures, has increased 53% from a year ago.

    Home-sale contracts are being canceled at a record pace in some areas.

    But these factors could lead to a buyer’s market in 2023 if prices plunge. Here are the areas economists expect to see the largest home price declines.

    The strong dollar and the stock market

    Khaled Desouki/Agence France-Presse/Getty Images

    The dollar has strengthened as the Federal Reserve has taken the lead among central banks in raising interest rates. This is reverberating across the world, making it more costly for countries to make interest payments on dollar-denominated debt and increasing the cost of any commodity traded in dollars.

    The rising dollar lowers prices on imported goods for Americans and can also lower their international travel costs. But Michael Wilson, Morgan Stanley’s chief equity strategist, warns that earnings for the S&P 500
    SPX,
    -1.51%

    would decline as a direct result of the strong dollar and called the current foreign-exchange backdrop an “untenable situation” for the stock market.

    On the other hand: Companies are trying to blame weak earnings on the strong U.S. dollar, but that’s a lame excuse

    This is what happens when bearish sentiment runs high

    Michael Brush interviews David Baron, co-manager of the Baron Focused Growth Fund
    BFGFX,
    -0.76%
    ,
    who describes opportunities cropping up as institutional investors dump stocks. He also explains his winning long-term strategy, which has included a very long-term investment in Tesla Inc.
    TSLA,
    -1.10%
    .

    A a positive sign for the stock market: These 12 stocks have seen strong insider buying

    Time to buy bonds?

    When interest rates rise, bond prices fall. But it also means that if you have money to put to work, bond yields have become much more attractive.

    Khuram Chaudhry, a European equity quantitative strategist at JPMorgan in London, makes the case for buying bonds now.

    What about preferred stocks?

    Getty Images/iStockphoto

    Preferred stocks feature stated dividend yields and prices that move the same way bond prices do. That means prices for many issues are now heavily discounted to face value and that current yields are much higher than they were at the end of 2021. Here’s an in-depth guide on how to research preferred stocks and make your own selections.

    Related: 22 dividend stocks screened for quality and safety

    The problem with macro market projections

    Stanley Druckenmiller predicted a “hard landing” in 2023 for the U.S. economy while speaking at CNBC’s Delivering Alpha Investor Summit on Sept. 28.


    Bloomberg

    Stanley Druckenmiller predicted a U.S. recession in 2023 as a result of monetary policy tightening by the Federal Reserve. That may not be much of a stretch, considering that the U.S. economy contracted during the first half of 2022, according to revised GDP figures from the Bureau of Economic Analysis.

    But investors should be careful — macro forecasts often turn out to be incorrect, Mark Hulbert warns.

    More on stocks: It’s the worst September for stocks since 2008. What that means for October.

    Recessions and your retirement plans

    Getty Images

    Alessandra Malito has advice on how retirees and people planning for retirement can prepare for tough economic times.

    Also: Reset your retirement calculator now for today’s bleaker stock markets and make sure you’re still on track

    Investors tremble and a central bank scrambles

    The Bank of England’s headquarters.


    Agence France-Presse/Getty Images

    After the new U.K. government of Prime Minister Liz Truss announced a massive tax cut along with a new spending program to help counter rising fuel costs and new borrowing, the pound hit a new low against the dollar on Sept. 26 as investors and money managers panicked and sold-off U.K. government bonds. Steve Goldstein explains how and why the Bank of England came tot the rescue.

    A closer look at reverse mortgages

    Getty Images/iStockphoto

    Beth Pinsker digs deeply to explain how to use a reverse mortgage as a financial planning tool.

    Poking a little fun at Elon Musk

    Getty Images

    After Tesla CEO Elon Musk said the upcoming Cybertruck would be sufficiently waterproof to “serve briefly as a boat,” the San Francisco Bay Ferry offered this advice to patrons.

    Want more from MarketWatch? Sign up for this and other newsletters, and get the latest news, personal finance and investing advice.

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    September 30, 2022
  • EPA preparing to release strict vehicle emissions rules | CNN Politics

    EPA preparing to release strict vehicle emissions rules | CNN Politics

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    CNN
     — 

    The US Environmental Protection Agency is preparing to release strict new proposed federal emissions standards for light-duty vehicles that, if implemented, would move the US car market decisively toward electric vehicles over the next decade.

    The EPA is considering emissions standards that could make up to two-thirds of new passenger vehicles sold in the US electric by 2032, according to a source familiar with the proposal.

    If implemented, the new greenhouse gas performance standards would start for light-duty vehicles that are model year 2027 and gradually increase through model year 2032.

    By 2032, the rules would ensure that 64% to 67% of all new-car sales in the US would be electric vehicles, according to the source.

    The EPA’s proposal, which was first reported by The New York Times, comes after California air regulators voted last year to ban the sale of new gasoline-powered cars by 2035 and set interim targets to phase these cars out.

    EPA spokesperson Tim Carroll did not comment on the specifics of the proposal but said the agency is working on developing new standards “to accelerate the transition to a zero-emissions transportation future, protecting people and the planet,” as directed by a previous executive order from President Joe Biden.

    “Once the interagency review process is completed, the proposals will be signed, published in the Federal Register, and made available for public review and comment,” Carroll said.

    The new rules could come as soon as Wednesday.

    The EPA proposal is a monumental step toward zero-emissions vehicles, coming as the US tries to keep up with other countries racing toward EV adoption, one expert told CNN.

    “I believe it’s pretty doable,” said Margo Oge, chair of the International Council on Clean Transportation and a former Obama EPA official. “The industry is there. Europe is ahead of the US, China is ahead of Europe, and these companies are global companies.”

    Oge noted that in the US, California is already proposing 70% new zero-emissions vehicle sales by 2030 and other states are planning to adopt California’s rules – meaning much of the US car industry will be transitioning ahead of any proposed federal rule.

    Still, the EPA’s proposal takes a different approach from California’s policy. Whereas California is mandating car companies sell a certain percentage of electric vehicles, the EPA would gradually raise greenhouse gas emissions standards to increasingly stringent levels from 2027 to 2032, pushing the industry toward electric vehicles to meet those high standards.

    The EPA rule would ensure that the rest of the country and the US car industry would follow California’s lead, Oge said.

    Biden has made electrifying the cars that Americans drive a key part of his climate goals. In 2021, the president set a new target that half of all vehicles sold in the US by 2030 would be battery electric, fuel-cell electric or plug-in hybrid.

    The US Treasury Department is set to release rules for new federal electric vehicle tax credits on April 18. While these tax credits are complex and could take time for consumers to take full advantage of, experts hope they will help accelerate the transition to EVs in the US.

    “Given the industry, the [Inflation Reduction Act] and what companies are doing globally, I just don’t see this number as being out of reach,” Oge said.

    The proposed EPA rules will go through a lengthy public comment process and could be changed before they are finalized.

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    April 12, 2021
  • Accelerating the EV revolution whether you like it or not | CNN Politics

    Accelerating the EV revolution whether you like it or not | CNN Politics

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    A version of this story appears in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.



    CNN
     — 

    The Environmental Protection Agency proposed a plan to remake the way car-obsessed Americans live, using public safety rules to accelerate the shift from internal combustion to electric vehicles.

    Just a fraction of the current auto market is EVs, but under standards announced by the EPA Wednesday, up to two-thirds of new vehicles sold in the US would be zero-emission or plug-in hybrid within a decade.

    The rules, which are not yet final, would use authority under the Clean Air Act to force auto companies to cut pollution and slash vehicle emissions by more than half. They would phase in with model year 2027 vehicles and be fully implemented by 2032. Read CNN’s full report.

    While ambitious, the goals are not unprecedented. They put the federal government on track to catch up with state governments, led by California, that want to stop allowing the sale of internal combustion vehicles by 2035. Read this report from CNN Business about why that’s not as crazy as it seems.

    There is a very big legal question mark looming behind California’s action and the EPA’s effort, which still has a public comment and revision period.

    The current Supreme Court, dominated by conservative justices, has already shown its scorn for EPA rulemaking and its indifference to addressing climate change. Last year, the court nixed the Biden administration’s plan to curb emissions from existing power plants.

    I asked CNN climate reporter Ella Nilsen for her takeaways from the EPA announcement. She offered these key points:

    ► The standards are ambitious, but doable

    If enacted, the newly proposed EPA emissions standards would be one of the Biden administration’s most aggressive climate-change policies yet – moving the US auto market decisively toward electric vehicles in the next decade.

    However, multiple experts said the standards are doable, and even lag slightly behind the California standards, which will completely phase out the sale of gas-powered cars by 2035 to usher in electric vehicles. The US is also following countries including the EU and China, which are moving more aggressively toward electric vehicles.

    ► Charging infrastructure and consumer incentives could be tricky

    This new proposed rule won’t happen overnight; it would be gradually phased in over the next decade. At the same time, the US needs to build up a network of electric charging stations in addition to the ubiquitous gas station. Federal officials have also talked about needing to incentivize more Americans to buy EVs by bringing the cost down, with federal tax credits.

    However, the new $7,500 tax credits (passed last year by Democrats in the Inflation Reduction Act) are incredibly complex due to manufacturing requirements. The credits could actually shrink the eligible number of cars that qualify (however, leased vehicles have more leeway under the new system). Regardless, it will take years for the EV infrastructure, incentives and supply to fall into place to make electric vehicles available to most Americans.

    ► This is a big deal for US climate policy

    This rule will impact the US economy, but it’s also major climate policy. The proposed EPA tailpipe standards would cut planet-warming pollution from US cars in half. Combined with the agency’s medium and heavy-duty vehicles standard, the proposals could cut nearly 10 billion tons of CO2 emissions by 2055.

    Given Americans’ reliance on cars, transportation is a big part of overall US emissions – it accounts for nearly 30% of all greenhouse gas emissions in the US, according to the EPA. Cutting down on tailpipe pollution from gas-powered cars and trucks is a big part of decarbonizing the US.

    While the federal government and key states are all in on moving toward EVs, and auto companies are spending big to get competitive in the market, Americans generally are not yet completely embracing the idea.

    Just 4% of Americans currently own an EV, and a scant 12% are seriously considering buying one, according to a Gallup poll released Wednesday. Less than half, 43%, say they would consider buying an EV in the future, and a sizable 41% are completely closed off to the idea.

    The expected partisan breakdown applies to those figures. Most of the interest in EVs is among Democrats. Most of the staunch opposition is among Republicans. Younger Americans and those making $100,000 and above are also more interested in buying an EV in the future.

    There are also key regional disparities. In the West, where states are already working to phase in EVs, only 28% say they would not buy an EV. Compare that to half of Southerners who would not consider buying an EV.

    A majority of the country is skeptical that EVs will even have an effect on the climate, according to the poll, with 61% saying EVs will help address climate change only a little or not at all.

    In a separate AP-NORC poll released this week, the most-cited major reasons for not wanting to purchase an EV – out of eight offered in the poll – were expense (60% said they cost too much) and convenience (50% said there aren’t enough charging stations available).

    Access and affordability should be addressed as inventory increases, writes CNN’s Peter Valdes-Dapena, who covers the auto industry. A decade from now, charging should be quicker and easier, EV ranges should be longer and prices should be at or below the cost of an internal combustion vehicle. Read his full report.

    Rather than fighting the rules, as the fossil fuel industry is sure to do, the auto industry is already investing heavily in EVs, responding to tougher regulation already imposed around the world and by California, which moved to ban the sale of new gas and diesel powered vehicles by 2035.

    California actually took the lead on pushing for EVs in the years when the Trump administration was dialing back on federal climate policy. Other states, like Oregon, Washington and Minnesota, have tied their standards to California’s.

    Valdes-Dapena notes that car companies with loyal customer bases are slowly making the switch. He writes:

    Currently, Toyota offers only one electric model in the United States, the BZ4X SUV, but more are planned. Honda, another Japanese brand with a loyal following, offers no EVs currently but the company is gearing up factories in Ohio to build future EV models. Honda expects to offer its first EV next year. General Motors also has a number of EV models coming in the next year or two.

    He also notes that GM has pledged to sell only electric passenger vehicles by 2035.

    And no, this does not mean internal combustion vehicles will be banned. They will still make up the vast majority of vehicles on the road in a decade even if this rule is finalized and withstands challenges in court. But it would represent a tectonic shift.

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    April 12, 2021
  • Uber is funding an e-bike trade-in program to curb battery fires | CNN Business

    Uber is funding an e-bike trade-in program to curb battery fires | CNN Business

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    CNN
     — 

    Uber is funding a new program that aims to get electric bikes with dangerous non-certified lithium-ion batteries off New York City streets.

    The company said on Wednesday it will soon allow the thousands of New York City delivery workers who use e-bikes the ability to trade-in their bikes for newer, safer models.

    The news follows a string of fires caused by lithium-ion batteries, which have been known to overheat when charging and cause massive explosions.

    Earlier this week, the New York City police department said an e-bike’s lithium-ion battery was behind a fatal two-alarm fire in Queens. The FDNY’s Chief fire marshal John Hodgens said it was the 59th fire in the city this year caused by a lithium-ion battery.

    Part of the issue is that not all lithium-ion batteries are created equal. UL-certified electric bikes and scooters come from reputable retailers and undergo extensive battery safety tests. But other online marketplaces, which some delivery workers may have turned to for more affordable options in the absence of company-provided options or subsidies, often make it hard to tell the origin of these products and the quality of their batteries.

    To get more UL-certified e-bikes on roads, Uber is now partnering with e-bike company Zoomo to offer credit to delivery workers willing to swap their existing e-bikes for ones with higher-quality batteries. It will also offer rent-to-own pricing models and priority access to repairs and services.

    Uber is also piloting a trade-in program with The Equitable Commute Project, a non-profit, to provide discounted UL-certified e-bikes in exchange for a “noncompliant device.”

    “Delivery workers should not have to choose between making a living and safety,” said Josh Gold, Uber’s senior director for public policy, in a statement. “By providing discounts and exchange opportunities for new UL certified e-bikes and certified lithium-ion batteries, the expensive price tag that too often acts as a blocker to safety should no longer have to be a concern.”

    Steve Kerber, vice president and executive director of UL’s Fire Safety Research Institute, previously told CNN the number of lithium-ion battery-based fires is growing with enormous frequency both in the United States and internationally, particularly when it comes to e-bikes and e-scooters. That’s due to an uptick in purchases of these products during the pandemic.

    “People started to get overcharged for them and turned to manufacturers which happened to have lower quality control with the battery systems,” Kerber said. “The quality manufacturers are not having issues.”

    Despite the concerns, lithium-ion batteries continue to be prevalent in today’s most popular gadgets, from smartphones and laptops to e-bikes and scooters. Some tech companies point to their abilities to charge faster, last longer and pack more power into a lighter package.

    But Dylan Khoo, an analyst at tech intelligence firm ABI Research, previously told CNN that electric bikes and scooters use batteries which can be around 50 times larger than the one in a smartphone. “So when a fire does happen, it’s much more dangerous,” Khoo said.

    All lithium-ion batteries use flammable materials, and incidents are likely the result of “thermal runaway,” a chain reaction which can lead to a fire or catastrophic explosion, according to Khoo.

    “This process can be triggered by a battery overheating, being punctured, or an electrical fault like a short circuit,” Khoo said. “In cases where fires occur spontaneously while charging, it is likely due to manufacturing defects.”

    Anyone with a lithium-ion battery should follow proper charging and battery usage guidelines, such as keeping them in a cool, dry place, and not leave it charging for too long or while you’re asleep. Batteries should also be routinely inspected to make sure there is no cracking, bulging or leaking, and people should always use the charger that came with the device or use one from a reputable supplier, according to researchers at the University of Michigan.

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    April 12, 2021
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