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Today we are watching…
1. Teslaย (#tesla)
Elon Musk is looking for a plot of land to start building a Cybertruck factory. Heโs not even got that far, and yet thousands of โcustomersโ have put down โdepositsโ and millions of investors are pricing trucking domination into Teslaโs shares. Muskโs expansion plans seem to be taking him to Nashville, Tennessee, first, because itโs already a hub of auto manufacturing, and second, because of state incentives. Production of the wild-looking Cybertruck is slated to commence in 2021, and investors need it to be as efficient and cost-effective as possible. Thatโs the only way Tesla ever turns a profit.
2. Boeing (#boeing)
Oof, thatโs oneโs going to hurt in the morning! Boeing just took a scarcely believable 16% hit to its stock price. The commercial plane-maker got in touch with banks last week to draw a huge line of credit, the goal to get some cash on the balance sheet to offset losses from both forgone 737 MAX production, and flailing demand for the rest of its fleet as the travel industry freezes up. Yesterday, it drew a maximum $13.8 billion, spooking investors. If market conditions worsen over the next two years, the drawn sum can be used to cover overheads. However, the money will have to be paid back eventually. Who knows when the next plane-making boom will come?