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Tesla Shares Slip Into Correction After Disclosure Of Another Major Seller

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Tesla Shares Slip Into Correction After Disclosure Of Another Major Seller

Tesla Inc. Shares fell again on Wednesday after the electric vehicle maker announced that one of its largest shareholders had sold part of the shares, although the sale was actually just a rebalancing as the value of the stake actually increased.

What may upset investors is that this disclosure came the day after the company itself announced it would sell up to $ 5 billion in shares. Separately, although BofA Securities analyst John Murphy raised his price target, implying a nearly 30% gain from current levels, he did not recommend buying the stock.

Tesla TSLA Shares,
-6.15%
The stock fell 7.5% in active daytime trading, the largest one-day decline since May 1. The stock has dropped 12% since it closed at a record $ 498.32 on Monday, when the 5-to-1 split took effect.

Many on Wall Street call a 10% to 20% decline from a significant peak a correction, while a decline of 20% or more is defined as a bear market. A close below $ 448.49 would make the correction “official”, and a close at $ 398.56 or below would mean a bear market.

Meanwhile, since the beginning of the year, shares are still up fivefold (up 425%), while the S&P 500 SPX
+ 1.65%
added 10%.

Also read: Only 19% of Tesla analysts say they buy stocks while investors are “insatiable”.


“It is important to understand that the higher the upward spiral [Tesla’s] shares, cheaper capital becomes to finance growth, which is then rewarded by investors with a higher share price. ”


– BofA Securities analyst John Murphy

Tesla revealed in SC-13G / A filing with the Securities and Exchange Commission that the Scotland-based Baillie Gifford & Co. reduced its stake to 39.63 million shares, or 4.25%. As a result, the 112-year-old investment company will drop to fourth on the list of Tesla’s largest shareholders.

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Bailey Gifford previously disclosed 58.86 million shares as of June 30, or 6.32% of the outstanding shares, according to FactSet. This made Bailey the second-largest shareholder after 18.3% of shares held only by CEO Elon Musk.

Based on Tuesday’s closing price of $ 475.05, the approximately 19.23 million shares sold by Bailey Gifford would be valued at approximately $ 9.14 billion.

Bailey Gifford said she sold the shares in accordance with internal directives that limit the percentage of a portfolio that can be invested in a single share. report in The Wall Street Journal

As of June 30, Tesla Bailey’s stake was estimated at approximately $ 12.7 billion. As of Tuesday’s closing price, which was 120% higher than the June 30 closing price of $ 215.96, the value of the diminished share increased 48% to $ 18.8 billion.

Bailey said he remains optimistic about Tesla’s future and will buy shares again if sold, the WSJ said in a report.

Don’t buy stocks, even if they may rise 25%

BofA’s Murphy raised his target price for the stock to $ 550, implying a 25% gain from current levels, from $ 350, citing the logic of the electric car maker’s bulls that a rise in the share price generates a rise in the share price. Meanwhile, Murphy has reaffirmed the neutral rating he has had on the stock since Aug. 14, reflecting his skepticism about the company’s fundamentals and opportunities.

Murphy said that Tesla’s announcement of the stock sale on Tuesday confirmed his view that Tesla would take advantage of the rally to raise “cheap equity capital” to fund accelerated growth.

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“It is important to understand that the higher the upward spiral [Tesla’s] stocks go, cheaper capital becomes to fund growth, which is then rewarded by investors with a higher share price, ”Murphy wrote in a note to clients.

However, he warned that the opposite of this logic is also true: the lower the stock price, the lower it can fall.

Murphy said that it is this “self-fulfilling structure” that seems to explain the extreme movements of stocks, both upward and downward.

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Economy

Looking for a job. Five tips for a successful search

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Looking for a job.  Five tips for a successful search

PFinding a job can be a difficult and challenging process, but it’s important not to despair and stay active in your search. recruiting company Michael Page presents five tips that can be especially helpful for those just entering the labor market.

Volume note:

1. Know your strengths and areas for improvement

“Assess your previous experience (e.g. academic projects, volunteering, summer work, etc.). What skills have you acquired? What are your strengths and what do you need to improve? By asking yourself questions, you can determine what type of work is best for you. suits your skills, abilities and personality.”

2. Organization

“A successful job search requires organization. Plan your day by setting clear goals that will reflect various accomplishments in your job search (eg search, respond to opportunities, follow up on applications). Write down and organize all your statements (by job description, email attachments, or contacts made through social media). Also set deadlines to ensure the best possible follow-up. Don’t forget, a well-organized day can help keep you motivated.”

3. Ask for help

“We all need help at some point, so it’s important to use your connections when you’re looking for a job. Consider asking your former mentors for referrals or tapping into the networks of your parents, friends, or colleagues. You can also make requests. contacts in professional social networks aimed at recruiters or strategic people of the company in which he would like to work.

4. Invest in your online presence

“Social networks, job sites, forums: there are many online tools that make it easier to find a job. To increase the likelihood of being identified by recruiters, work on your resume so it’s optimized for the algorithms used by job sites and social media.

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Companies have been known to reject candidates because of their social media. Nowadays, managing your online presence is critical! Make sure your privacy settings are correct and that nothing you post online (such as your Facebook profile, public photos, etc.) can prevent a potential manager from considering you.”

5. Be motivated

“Motivation is the secret to success! Easier said than done, but try to keep a positive attitude throughout the job search process. Treat every rejection as an opportunity to improve and keep moving forward. On the day of the interview, highlight their personality and behavior. skills.”

Read also: Work? These are the most sought after areas in Portugal.

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Economy

ITA Airways may be partly in the hands of the Italian state railway

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ITA Airways may be partly in the hands of the Italian state railway


The Italian government is exploring new possibilities for the sale of ITA Airways, which could involve Lufthansa and the national rail company, Ferrovie dello Stato (FS). This is reported by the Italian newspaper Corriere della Sera. Earlier this month, the government announced it would resume talks with Lufthansa after inconclusive talks with a consortium formed by Air France-KLM, Delta Air Lines and Certares.

Lufthansa said last week through a spokesperson that it remains interested in the acquisition. The original partner of the German group, the sea carrier MSC, refused to negotiate.

With FS, the Italian government, along with Lufthansa, has a new takeover candidate for the airline. Reuters news agency reports that government documents show the government wants to sell 51 percent of ITA to Lufthansa for 250 million euros, with 29 percent to go to Ferrovie dello Stato, with the rest remaining in state hands.

With the partial acquisition, ITA FS will be able to use a combination of air and rail transport. Moreover, it already offers high-speed lines connecting the main cities of Italy, the Italian newspaper writes. Cooperation can facilitate the transition to both modes of transport.

Having FS as an airline partner was nothing new, as the state-owned railway was also a shareholder in the bankrupt Alitalia. The difference here is that if there is Lufthansa in the package (if these plans are confirmed), it is the Germans who should have control and will dictate the step of the company, which is unprofitable today.


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Economy

Tesla announces another recall of 80,000 vehicles, and some even have to be recalled

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Imagem Tesla recall

Tesla cars suffered this year a large number of requests for “collection”better known as the process revoke🇧🇷 Trouble again and 80,000 vehicles in China will be recalled. If many of recalls was an easy decision as it was over the air (OTA) it really obliges the owners to take the car to the workshop.

In fact, this year, many millions of Tesla electric vehicles received revoke for fixes.

Many of the reviews are related to issues resolved via OTA.

Whenever there is a safety issue, the NHTSA must issue a "safety recall", even if the car manufacturer does not have to physically recall any vehicles, leading to some confusion.

Once again last month, Tesla's "1 Million Vehicles" collection of vehicles generated a lot of news as the impact on drivers was almost negligible considering the update only changed via OTA the software that runs the car system. to work with windows.

These cases have prompted Tesla CEO Elon Musk to complain about the term "recall = collection" and how it is being used in the media against Tesla. Today The American company again announced new collections in China about 80,000 cars.

13,000 Tesla electric vehicles have seat belt problems

The recall includes 67,698 imported Model S and Model X vehicles with a battery-related software issue, according to Chinese authorities. Again, the fix is ​​a simple software update. Nonetheless, this time there is also a physical collection due to the problem with the seat belt in approximately 13,000 Model 3 vehicles: 2,736 imported and 10,127 made in China.

over 20 recalls there were many collections in 2022. However, Tesla is not the only automaker to be hit by major recalls this year. OUR Ford also just confirmed that it is recalling another half a million vehicles. due to fire hazards, and many car manufacturers have also recalled millions of vehicles this year.

In any case, the fact that the vast majority of calls from electric brand a quick fix with over-the-air (OTA) software updates — rather than taking cars back to the dealership like other car manufacturers — shows that Tesla's level of connectivity to its cars is a huge advantage in the industry.

The software update system (OTA) allows the buyer to fix many problems easily and conveniently, and for Tesla itself means big money savings.

See also  The European Central Bank raises interest rates for the first time in 11 years. Up 50 basis points - Economics
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