Another week and another reason for Tesla value to slip. Tesla stock price fell by about 2.5% today after it was downplayed by a Needham analyst Rajvindra Gill, on the account of rising Tesla Model 3 cancellations and on profitability concerns that has plagued the company for ages.
“Based on our checks, refunds are outpacing deposits as cancellations accelerate,” noted Gill. “The reasons are varied: extended wait times, the expiration of the $7,500 credit, and unavailability of the $35k base model.” Tesla denied the allegations, saying that cancellations are not outpacing orders and that the waiting times depend on the vehicle’s configuration, which could range between one to three months. Tesla stopped taking reservations on Model 3 earlier this month and has now opened it up for anyone who is willing to pitch in a $2,500 deposit.
It needs to be noted that Tesla stocks took an inadvertent hit last week after its CEO Elon Musk called a Thai cave rescue member a “pedo”, after a heated exchange on Twitter. Tesla stocks fell by 3% after the incident.
Did you know?
The UK has the second largest dairy trade deficit in the world at 16%, amounting to over a billion pounds every year. 98% of its dairy imports come from mainland Europe, making the post-Brexit scenario extremely delicate for the country.
“Today, we use data extensively to plan, but the more real-time data we can get on the state of a package, the better visibility we can get about any exceptions in the network, helping us generate improved plans to manage the network as a whole.”
– Juan Perez, IT Chief at UPS, while talking about predictive analytics in supply chain networks
In other news:
Tariffs Are Poised to Wreck Christmas for Shipping Companies
Global traffic could be reduced by almost 1%, or as many as 1.8 million 20-foot containers, due to the intensifying trade dispute. (MH&L)
China Just Doubled Oil Shipments To North Korea
After the recent visits of North Korean leader Kim Jong-un to China, Beijing has almost doubled the volume of crude oil pipeline shipments to North Korea (Oilprice)
Start Up Develops Small Automated Grocery Distribution Centers
Takeoff Technologies is developing “micro fulfillment centers” – small, heavily automated grocery distribution facilities that could be located inside existing supermarkets and used to quickly assemble orders for delivery or customer pickup. (Food Logistics)
Carriers announce price rises as peak season looms and rates falter
Container shipping freight rates in the major east-west trades look set to decline next week, according to today’s Shanghai Containerised Freight Index (SCFI). (Loadstar)
Big truckers to provide 50,000 jobs over next five years, ATA pledges
Group to create `career opportunities’ to 10,000 people a year over 5-year period. (DC Velocity)
Just when the oil industry in the U.S. had believed it had a reprieve from the Trump trade war, the Permian basin has run against a wall with regard to pipeline capacity. The oil drilled out from West Texas is expected to go past the available capacity this year, which could force output growth to suddenly stall after a healthy situation over the last few years.
One of the problems with increasing capacity is that a crucial pipeline project which will ferry 585,000 bpd crude oil from the Permian basin to the Gulf Coast is facing a financial crunch, courtesy the 25% steel tariffs levied on imported steel. About 75% of all the steel used in the pipeline construction comes from outside the country, thus jeopardizing the completion of the project on time.
Plains All American, the company responsible for the construction had sent a request to the Trump administration looking for an exemption on the tariffs, which the government refused a few days back, creating a major setback to the project.
Hammer down everyone!
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