A Musk-ular quarter [skynesher/E+ via Getty Images]
The downside of living in an exclusive gated community: It’s harder to escape when rodents the size of St. Bernards invade. The world’s largest rodent is loving the manicured lawns.
The market-tracking S&P 500 index closed at a fresh record yesterday, as investors digested another round of earnings. Snap stock plunged 22% after quarterly sales missed expectations, while WeWork shares jumped on their first day of trading — two years after its botched IPO.
Trump’s back... with a SPAC? Former President Trump wants to take on Big Tech and “create a rival to the liberal media” with his own biz: Trump Media & Technology Group. ICYMI: Trump’s still barred from Twitter, Facebook, and YouTube. Yesterday, Trump’s company said it was going public by merging with Digital World Acquisition Corp. (aka DWAC), a special purpose acquisition company (aka SPAC — or blank check company).
The Trump hype machine… Trump has used his name to promote other businesses, like his casinos, hotels, and Trump University. But his biz record is financially and legally questionable. His only previous public company, Trump Hotels & Casino Resorts, lost money every year until it went bankrupt (one of his six bankruptcies). And the Trump Org and its CFO were recently charged with 15 felony counts, including tax evasion.
SPACs attract big names… Companies that go public via a SPAC sometimes face less oversight than those that IPO, which can help raise cash more quickly — especially when there’s a big name behind them. Other celebs like Shaq, Serena Williams, and Jay-Z have launched their own SPACs. Meanwhile, the SEC warned this year that it’s “never a good idea to invest in a SPAC just because someone famous sponsors or invests in it.”
Elon(g) profit streak… nine quarters long, to be exact. Tesla notched another sales and delivery record last quarter. Despite supply-chain crunches and a global chip shortage, Tesla has been resilient compared to other carmakers, and still plans to boost deliveries by 50% each year.
A Muskular effort... Tesla wasn’t immune to supply struggles: Its gig factories still aren’t operating at full capacity, which means longer delivery times and slower product rollouts (new Cybertruck ETA: 2023). Still, Tesla owns multiple stages of its own supply chain (it’s “vertically integrated”). Think: Tesla makes the machine that makes the Tesla. That's made it more resilient during the pandemic than many other carmakers.
Sometimes fewer products can mean more profits… especially during a global supply shortage. Legacy car manufacturers like GM and Ford produce numerous models on a larger scale. Meanwhile, Tesla and Chinese EV rival Nio offer just a handful, relying on a leaner supply chain to meet demand. Like Tesla, Nio also posted record deliveries last quarter, partly thanks to China’s investment in domestic production.
Authors of this Snacks own: Bitcoin, and shares of Walmart, Snap, GM, Amazon, and Tesla