Today we are watching…
1. Tesla (#tesla)
Elon Musk is vowing to uproot Tesla from its Californian headquarters and rebase in Nevada. It’s always a red flag when companies relocate to Nevada. The state has terrible investor protections, so this move will be all about trust. Elon wants to leave California because the state insists his business is not “essential.” He refuses to keep it closed, having done his homework on coronavirus, and reached his own conclusions regarding its seriousness. This was announced in a tweet, but where there’s smoke, there’s fire. We don’t know what the relocation costs would be, but it can’t be cheap?
2. Booking Holdings (#prln)
Glenn Fogel is the chief executive of holiday providing giant, Booking, and he’s got some inside information to share about the coronavirus hit to tourism. There was a 51% drop in first-quarter gross travel bookings, and he reckons “a full recovery is going to take years.” It’s good practice as head of a public company to under promise and over deliver. He’ll try to prove himself wrong by commencing deep cleaning at hotels, and by pitching the advantages of traveling when attractions are quiet. He knows, ultimately, however, that the day a vaccine is announced, his stock will soar.