ANALYSIS: Why Saudi Arabia Could Take Tesla Off The Stock Market
On Aug. 7, Elon Musk sent shockwaves through Wall Street when the billionaire tweeted his plans of taking Tesla [TSLA] private at $420 a share.
The tweet got Musk in some serious hot water with the SEC—subpoenas, investigations and all sorts of legal shit. Namely because a tweet like that moves the market.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
The tweet caused an immediate takeoff on the company’s stock price, jumping 11% before trading was briefly halted. A Fox Business report says that the investigation is now “formal.”
All that aside, what is this “funding secured” Musk is talking about? Is he really taking it private? In his defense, Big E—an active, unfiltered Tweeter—is simply sharing his thoughts on his personal Twitter, right?
But looks like there could actually be some truth to it.
Investor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote. https://t.co/bIH4Td5fED
— Elon Musk (@elonmusk) August 7, 2018
According to Forbes, Saudi Arabia’s sovereign fund (PIF) has approached Musk numerous times since early 2017 to acquire a stake in Tesla.
So why is Saudi Arabia interested in Tesla?
At first glance, the idea of an oil kingdom teaming up with a Silicon Valley entrepreneur who wants to build electric cars might seem strange, but a large part of this ties back to Saudi Arabia’s Vision 2030 program.
This plan aims to wean the oil-rich country from depending heavily on income from fossil fuels and instead diversify into infrastructure projects, tech, tourism and trade.
(Oh, the plot thickens!)
So naturally, an investment in Tesla looks like the perfect hedge for the Saudi endowment, considering it already owns 5% of Tesla. PIF might look at taking Tesla private once the company is cleared by the SEC of any wrongdoing.
Related: Why Going Private Is The ‘Best Path Forward’ For Tesla
Tesla’s struggling (with profitability)
Tesla’s losses have mounted over the last few years and some experts are predicting bankruptcy.
On the performance side, Tesla’s earnings per share (EPS) have declined from -$1.25 in 2015 to -$1.36 in 2016 and -$8.74 in 2017.
Although Tesla’s earnings are expected to “increase” to -$5.91 in 2018 and -$4.19 in 2019, the company is far from achieving profitability.
Tesla has faced multiple challenges to achieve production targets for the Model 3.
In June 2018, Elon Musk said Tesla was on track to produce 5,000 Model 3 units per week by the end of Q2. An ambitious goal they’d set and made. But only barely, due to hiccups in production.
“We were huge idiots and didn’t know what were doing,” Musk told Bloomberg in July 13 interview.
Investors are still hopeful
Musk has accepted that it’s difficult to be a manufacturer in the automobile segment. Despite the ongoing cash-flow problems, Tesla’s expected to hit 73% YOY revenue growth in fiscal 2018.
Estimated 2018 revenues could go as high as $20.36B.
Tesla’s latest earnings also cheered many investors. The automaker burned less cash than expected, with cash outflows coming in at $739M—significantly lower than the expected $889M.
‘Bullish on Tesla’
Analysts expect company revenue to surge to $28.2B (38% growth) in 2019 and $33.9B in 2020 (21%).
For investors, Tesla shares have performed over the years: They were up 45% in 2014, 9.6% in 2015, -10% in 2016, before rebounding 45% in 2017.
The stock is up just 3% in 2018, however. But the tale is far from over.
To be continued, WealthLABBERs…
Airbnb Experiences: 5 Easy Ways To Make Extra Cash Today
Airbnb Experiences: 5 Easy Ways To Make Extra Cash Today
Airbnb is a great way to earn money by renting out your home or apartment.
However, did you know that you can also make money by offering experiences on Airbnb? Here are five easy ways to make extra cash today by creating and offering Airbnb experiences.
1. Offer a food tour
If you love food, why not share your passion with others? Create a food tour experience in your city, showcasing the best local cuisine. You can offer a walking tour or a bike tour, and include stops at local markets, restaurants, and cafes. This is a great way to meet new people and earn money at the same time.
2. Teach a skill or hobby
Do you have a skill or hobby that you’re passionate about? Share your knowledge with others by offering an experience on Airbnb. You can teach anything from photography to cooking to yoga. People are always looking for new experiences, and they’re willing to pay for them.
3. Host a cultural event
If you come from a different culture, why not share it with others? Host a cultural event, such as a traditional dance, music, or art class. This is a great way to showcase your culture and make some extra cash.
4. Offer a nature experience
If you live in a beautiful area, offer a nature experience on Airbnb. You can offer a hiking tour, a kayaking trip, or a birdwatching tour. People love to get out into nature, and they’re willing to pay for it.
5. Host a wellness retreat
If you’re passionate about wellness, why not host a retreat? You can offer yoga classes, meditation sessions, and healthy meals. This is a great way to help people relax and recharge, while earning some extra cash.
In conclusion, offering experiences on Airbnb is a great way to make some extra cash. With these five easy ideas, you can get started today.
For more ideas and tips on how to make money, check out this Airbnb guide inside our academy.
10 Tips for Making More Money with Your Airbnb Listing
If you’re an Airbnb host looking to increase your revenue, there are several strategies you can implement to make your listing more appealing to potential guests.
Here are 10 tips for making more money with your Airbnb listing:
- Set competitive pricing: Research the prices of similar listings in your area to ensure you’re offering a competitive rate. Consider lowering your prices during slow seasons or offering discounts for longer stays.
- Offer extra amenities: Providing extra amenities, such as a pool, hot tub, or complimentary breakfast, can make your listing more attractive to guests and justify a higher price.
- Invest in high-quality photos: High-quality photos of your space can make a big difference in how many bookings you receive. Consider hiring a professional photographer to capture the best aspects of your listing.
- Keep your listing up to date: Make sure your listing accurately reflects the current state of your property. Update your photos, descriptions, and amenities regularly to keep your listing relevant and appealing.
- Respond promptly to inquiries: Quick responses to guest inquiries can lead to more bookings and positive reviews. Make sure to check your messages frequently and respond as soon as possible.
- Provide excellent customer service: Going above and beyond for your guests can lead to positive reviews and repeat bookings. Make sure to communicate clearly and address any issues promptly.
- Offer local recommendations: Providing guests with recommendations for local restaurants, attractions, and activities can enhance their experience and justify a higher price for your listing.
- Allow instant bookings: Allowing guests to book instantly can make your listing more appealing to those who need to book at the last minute. However, make sure to set clear guidelines for instant bookings to avoid any issues.
- Offer discounts for repeat guests: Offering discounts to guests who have stayed with you in the past can encourage repeat bookings and increase your revenue over time.
- Keep your space clean and well-maintained: A clean and well-maintained space can lead to positive reviews and repeat bookings. Make sure to keep your space clean and address any maintenance issues promptly.
Implementing these 10 tips can help you make more money with your Airbnb listing and improve your overall hosting experience. Happy hosting!
How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀
I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.
I’m interviewing a tax expert about how real estate investors avoid paying taxes in perpetuity—AND how everyday citizens can do the same thing.
(Real estate—our TEMPLE I and TEMPLE II projects included—has a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)
There’s the 1031 exchange, of course, which I’ve shared with you guys before.
Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREE—as long as said property is worth the same or more.
But there’s ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.
So I thought I’d share it with you guys. 💎
You can check it out here.
Let me know what you think. 😎
PS: In our next update, I’m going to break down how real estate moguls get paid from their properties…tax free. 👀
PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.
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