Organizers claimed that nearly 2 million Hong Kong protesters took to the streets Sunday in a rally to demand the city's top official resign a day after she suspended — but...China Politicsread more
Heavy rains caused unprecedented delays in planting this year and contributed to record floods across the central United States.Agricultureread more
Stocks in Asia traded mixed on Monday as investors await a U.S. Federal Reserve meeting set to happen later in the week stateside.Asia Marketsread more
Although Cook did not mention companies by name, his commencement speech in Silicon Valley's backyard mentioned data breaches, privacy violations, and even made reference to...Technologyread more
In the survey, 66% of Democratic primary voters say they'd be enthusiastic or comfortable about Biden as their nominee to take on President Trump in the 2020 election. Just...Politicsread more
U.S. ambassador to Israel David Friedman called the gesture a "birthday present" to Trump, who turned 73 on Friday.Politicsread more
The outlook for Germany's economy and political stability are more uncertain than ever, writes Michael Ivanovitch.World Economyread more
Hong Kong democracy activist Joshua Wong walked free from prison on Monday after serving nearly five weeks for contempt of court, pledging to join a mass protest movement...China Politicsread more
The agreement, which is on the framework for the plan of adjustment, provide for more than a 60% average haircut for all $35 billion, a 36% haircut on pre-2012 general...Bondsread more
Target's registers were down on Saturday for several hours preventing customers from checking out.Retailread more
The newspaper wrote that Goldman's executive are hoping CEO David Solomon's changes to a firm that historically thrived in investment banking and trading will boost its...US Marketsread more
Shares of Tesla fell 10 percent on Friday after the company announced layoffs, but the electric-car maker is still in the lead position on a technology that is taking over the world, said an early Tesla board member.
Tesla's Friday announcement that it will cut 7 percent of its workforce is a sign CEO Elon Musk is taking steps to "right-size" the company and prepare it for the future, said former Tesla board member Steve Westly.
" He is moving faster than anybody else, going global faster than anybody else, and today, Tesla is essentially the iPhone of the electric-car market," said Westly, a California politician and venture capitalist who was an early investor in the company.
While other premium automakers have now jumped into the electric-car market, they were caught "with their shorts down when the tide went out," and Tesla now has a large lead in that market, Westly said. The company also posted a surprise profit in the third quarter, and Musk has said he expects Tesla to be cash-flow positive and profitable going forward.
"They've won the North American premium market race," he said. "The challenge now is to win the mass market, to go international. I think he is preparing the company to do that. I wouldn't bet against him."
However, not everyone agrees with Westly's assessment.
Tesla's fourth-quarter update indicated that more than 75 percent of new Model 3 orders came from new customers rather than the existing reservations list. Almost all of those new orders were for mid- and high-price variants of the sedan, said Rajvindra Gill, an analyst for Needham.
Gill estimates that about 90 percent of the 420,000 reservations on that list built up the last couple of years are customers who wanted the still-unreleased standard battery version of the vehicle, which is $35,000.
The issue is that as the $7,500 federal tax credit for electric vehicles continues to wind down, Tesla could start to see customers cancel reservations in the first and second quarter if the company cannot make the planned $35,000 base model quickly enough.
The other issue is that Tesla's profitable quarter depended in part on selling the more expensive versions of the Model 3, which should make up a smaller piece of the total if Tesla begins producing the cheaper version.
"So I think there's a lot of risk to the name given the level of valuation we see in this name, given the level of debt the company has, and given the level of competition that will be entering the market this year and next year," Gill said.