Click here: The Weekly Beacon – November 11 2022
We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.
Feel free to send in your pictures of lighthouses to be featured in our weekly commentary.
This weeks issue: Tesla Stock, Tesla and Twitter, Leverage, Loans, Twitter Buy Out, Elon, Facebook, Meta Platforms, Laying Off Staff, Work from Home in Technology, Twitter Earnings, Twitter Pay for Verification, Gold Price, Technical Stock Analysis, Cryptocurrencies, Crypto Exchange, Crypto Detonates, FTX Exchange, Bankruptcy, Binance, Ontario Teacher Pension Plan, Tom Brady, Tiger Global Management, Alternative Assets, Bitcoin Collapses, Crypto Crash, Gold vs. Virtual Goal, Maps, China vs. U.S., Global Trade, Global Reliance, U.S. Midterms, Red Trickle, Florida, Split Congress.
52 Week Low
With Elon Musk taking over Twitter suffocating most business channels, many might have not realized something big happened to Musk this week. His baby and where most of his wealth is tied up reached a 52-week low. No, not Twitter, or Tesla.
We knew Tesla was overvalued and have stated for a long time that our investors should not invest in Tesla, especially after the post-Covid-19 run-up. The stock trades at massive multiples and sell-side analysts justify it with massive growth numbers on an annual basis paired with low terminal rates. Well, both of those seem unlikely as inputs in their models, interest rates have spiked in 2022, and Tesla has quietly struggled to sell more. Many Tesla fanboys think they will be the only major market player in an EV world and seem extremely delusional. Earlier in the year, an online user went viral as he was trying to sell his Tesla as his battery needed replacement (the original battery had permanently died). He could not afford to replace the battery so he decided to sell the car (as is), the only issue he could not access the ownership papers as they were inside his dead car. Now, we did not verify this instance but either way, it is funny to think about.