Texas Wants Tesla
By Wed, Jul 15, 2020
Hey Scoopers,
All we need is a Covid-19 vaccine, and the news on Tuesday indicated that we might get our wish sometimes soon. — More on that in the “Overall Market” section.
Beyond the overall market, the solar industry is hot again, and the banking industry is in trouble. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, Texas Wants Tesla. — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: All three indices were back in the green. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price is holding still in its place, figuratively and compared to its volatile past.
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All We Need Is A Vaccine
After a tough Monday, the market went back to its merry ways. The news of a possible vaccine by Moderna (Ticker: MRNA) brought hope and excitement back to the market. The market continued into the after-hours, and the stock futures jumped up after hearing that Moderna will be starting the last stage of the human trial in July.
The Sun Industry Is Hot, Again
So, what happened?
Shares of Vivint (Ticker: VSLR) were up more than 13% on Tuesday. The company is being acquired and merged with its larger competitor Sunrun (Ticker: RUN). The excitement about the acquisition heightened when analysts from KeyBanc Capital Markets raised their price target for the combined company. KeyBanc analysts believe the company would gain more than 20% share of the residential solar energy market, and that’s enough for the duo to perform well and for the stock to rally. The solar energy market is heating up once more after a period of lukewarm return and slower-than-expected growth.
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Banks Are Having A Tough Time
So, what happened?
Shares of Wells Fargo (Ticker: WFC) were down almost 5% on Tuesday. The company announced its latest quarterly earnings report, and the news was no good. The company used to have an 8%+ dividend yield. That yield summed up to $0.51 per share, and it’s now down to $0.10 per share. The economic impact of COVID-19 is tough on banks. They have to set aside a chunk of money for the potential loan and credit losses. Wells Fargo is increasing its allowance for credit losses of $8.4 billion. This is not unexpected, and an indicator of what’s expected from other banks in the coming days.
Texas Wants Tesla
So what happened?
Anyone watching Tesla’s (Ticker: TSLA) story knows that the company is blessed with a constant stream of good news and story, and some small interruption of lower than expected actual performance. While we are all waiting for the company to announce its quarterly earnings on July 22nd, some good news was announced. Texas wants Tesla and is willing to give it large enough tax breaks if it builds a new plant near Austin. After hitting the $1,794.99 all-time-high, the price has dropped to $1,560. However, for the “Tesla Bulls,” any news is good and they are ready to celebrate. Let’s see what happens today (Wednesday) as investors react to the Austin tax-break potential.
Do you own Tesla shares? Let us know your take on the stock. Our email address is members@tradestocks.com.
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
