Tesla stock has been slightly up these past two weeks but not because of earning reports or Elon Musk ginning up support on Twitter. Instead Tesla has benefitted from the algorithms that fund managers use to insure they have a sufficiently diversified portfolio. Generally, if the Dow is up, Tesla has been up and vice versa.
However, Tesla has hit another bump in the rode.
Tesla and Uber both had requests for tariff relief rejected by U.S. trade officials, a decision that will force the companies to pay a 25% tariff or seek new suppliers.
Reuters was the first to report the decision by the office of the U.S. Trade Representatives. TechCrunch previously reported on the Trump administration’s refusal to exempt the “brain” of Tesla’s Autopilot technology from punitive import tariffs.
Last year, the Trump administration imposed 25% tariffs on a range of imports, including electronics, to try to reduce the U.S. trade deficit with China. Tesla and Uber are among the U.S. companies that have requested relief on those tariffs.
Tesla warned that higher tariffs on the “brain of the vehicle” could cause economic harm to the company.
As stated here before, Musk’s fortunes have been bleak since Trump was elected. Trump has shutoff many of the taxpayer subsidies that Musk needed because he can’t compete in an open and free market. Republicans don’t tend to tamper with the market by subsidizing unproven alternatives to things that work while Democrats have the hubris to pick winners and losers (Solyndra and Tesla) claiming for political and economic reasons that “Green” is good despite any evidence that it is factual.
But there’s even more bad news for Elon and his posse.
One such stock that you may want to consider dropping is Tesla, Inc.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen two estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from a loss of $1.14 a share a month ago to its current level of a loss of $1.32.
Also, for the current quarter, Tesla has seen two downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 70 cents a share from a loss of 64 cents over the past 30 days.
I’m not ready to declare Tesla dead yet but the disconnect between their perceived value and actual value is still way out of line. Barring anything else, look for a significant drop when the 90-day monster makes its appearance in July. The “tell” is when Musk goes on Twitter in mid-July to divert your attention from the impending bad news. So far we have had the flamethrower, leaf blower, underwater submarine car, and pickup truck.
Elon Musk with Tesla Flamethrower
Elon has plans for submarine better than the one driven by James Bond Disclaimer: Playboy model extra, some assembly required
Can the Tesla motorcycle be far behind?
Last year’s Tesla Model M motorcycle
Oh, wait, Elon had that last year. What will this guy think of next? He wants you to look at the new shiny thing in his hand not dollars and common sense.
I keep telling the editorial staff here at ReallyRight that the 2020 election will be American Values (i.e. Donald Trump) versus California Values (everyone else).
This is true not only culturally, socially, and politically but also because in their attempt to be relevant, California Democrats have moved our jungle primary to Super Tuesday, the earliest allowed date in March 2020. Thus giving a hyper-Liberal an early advantage in the delegate count towards their nomination.
Per an article at World Net Daily, yesterday Rush Limbaugh also seized upon this idea.
But talk-radio host Rush Limbaugh believes Donald Trump, a Republican, needs to make a bid for those votes.
“I’m talking actually making a play for people out there. Go to California and make your case. Go to California and explain your philosophy, your policies, your heart. Go to California. People out there are not hearing it. California may as well have boundaries around it where outside news doesn’t get in there, other than things like this show,” he said Wednesday.
“And not to win California. This is an unreasonable expectation. It would be great icing on the cake if Trump could actually win California for the Republicans. There just aren’t the Republican votes to do that right now. At the same time, it makes no sense to write off the state. Somebody like Trump could go there and make the case that the people of the state of California never hear made anymore, because it’s a one-party state and a different way of life as an option is really never presented,” he said.
It would be fun to see Trump campaign here, even just a little; plus it would bleed the Dems of a bunch of money just to shore-up their base. Democrats just don’t understand how toxic any ideas labeled as “California” are in the rest of the country.
If Trump defines the race as America versus California, he will sweep states in ‘flyover country” and give Democrats a much deserved black eye in the process.
Georgia has decided to break with conventional wisdom and dare to support the weakest among us and all hell has broken loose on the other side. Many media companies that find it too difficult (bureaucratic and expensive) to work in Liberal meccas like California and New York are spending big money in the Peach State to create content. Now these folks are threatening to pull-out of Georgia and other states that take a stand for life. First out of the gate was Netflix; followed by Disney et al.
Nearly half a dozen major media companies have joined Netflix in reconsidering their hundreds of millions of dollars in investments in states where so-called heartbeat bills have either been passed or are already in effect.
Netflix was the first Hollywood studio to publicly take a stand on the polarizing issue, when chief content officer Ted Sarandos said Tuesday that the company would consider pulling movie and television productions from Georgia if the state implements a controversial abortion ban, Variety reported.
Walt Disney Co. followed Wednesday night and by Thursday, NBCUniversal, WarnerMedia, Sony Pictures, CBS and its Showtime division had each issued statements saying states’ anti-abortion laws would affect the studios’ decision-making when it comes to selecting locations for production.
Other states are in the crosshairs of these liberal leaning corporations for daring to support life but please note that one player is conspicuous in their absence. Where is CNN? You know, the Liberal news network headquartered in Atlanta Georgia.
CNN has made no public statements on the topic of moving but their supporters have noticed and purport to speak for them. The following quote is from a California Democrat and Presidential hopeful telling CNN what they should do.
Rep. Eric Swalwell on Sunday said he supports the kind of economic boycott that private businesses are threatening in Georgia if a new abortion law goes into effect and suggested at a CNN town hall on Sunday that the television network might have to leave the state as well.
Meanwhile, the big studios that huffed and puffed in the article above are moderating their stance.
To be clear, each company’s statement includes the same set of caveats. None of the corporations has actually committed to boycotting Georgia, but only to reconsider their work there. Plus, they’ve only said they will potentially take action if the law survives what are expected to be significant court challenges.
It’s a far cry from the full-on boycott some activists have demanded. Yet, the various statements represent a notable shift, or at least a breaking of the silence.
Folks, I think the movie studios should take a page from Laura Ingraham’s Shut Up & Sing. Quit worrying about social issues or you risk the wrath of the other half of the country that disagrees with you.
I’m not going to cancel Netflix and Hulu yet but if they go forward with their threat then I’m pulling my money from their companies. Getting rid of Comcast as my ISP is more problematic but once 5G is deployed, I may not need them anymore. I may not be signing a bunch of online petitions about this but I will surely vote with my wallet if this posturing is turned into action.
The Chief explores another socialist step in the cradle-to-grave care provided by the almighty state of California.
In case you missed it, a new retirement program goes live in California starting July 1st. This plan was put in place because the state wants businesses who don’t offer a retirement plan to be forced to offer them. It’s very easy to enroll, actually you are automatically enrolled, unless you opt out. Starting next year, any business with over 100 employees is required to enroll, the following year, the employee number drops to 50, then by 2022, the employee threshold drops to 5.
Details on the actual program are tough to glean, so I called the Employment Development Department (EDD) and they could not answer my questions. Seriously if you want bruises on your brain by all means call them. The State Treasurer’s Office (STO) did provide some color, but not any direct answers. In fairness I totally threw him off his game, after he called me back and said a long spiel which sounded like Latin or some other generally accepted language in California. When he came up for a breath, I told him, “Sir, this is an Arby’s.” He was shaken. I continued to dig for answers, to which this guy either 1) didn’t know or 2) would get back to me about.
From what I could find out online, it looks like if you do nothing that you “opt in” resulting in 5% of your paycheck being remitted to the State and deposited in this retirement plan. The 5% increases by 1% each year until you reach 8%. Anyone can “opt out” or “opt back in” anytime. Such fluid policies seem like a strange hybrid model and an HR nightmare for a small business. If you opt in and don’t put an income level in the program it defaults to 30k a year, so if you make less than that you will be “feeling the Bern” on your paycheck. Something tells me that the paperwork won’t get corrected quickly nor will they “refund” the overage. Account changes are made with the state via internet or snail mail not your HR person so how does this state program communicate with employer to coordinate withholding amounts remain correct?
The account is an after-tax investment i.e. Roth IRA. It appears you have the choice of a mutual fund or a money market fund to deposit your money into. Investing in a money market fund makes little to no sense as they only provide about 1% interest a year. Fees run about 1% a year as well effectively destroying and rate of return on that account. The whole thing reeks of being a Ponzi scheme……
Well, actually it is.
The program was started with a loan (interest to be paid back) from both the SEIU and the CTA, two of the most powerful unions in California.
Two large public employee unions, the California Teachers and the SEIU, each contributed $100,000. Public employee unions played a major role in a national drive to create state-run savings plans for the private sector.
Public unions think improving private-sector retirement can help counter pressure to cut government pensions or, following the corporate trend, switch to 401(k)-style individual investment plans that create no long-term debt for employers.
The nine-member CalSavers board has looked at a public union-backed “pooled IRA” that could gradually, by diverting some of the investment yield in good years, build a reserve large enough to replace some of the losses in a bad year.
So, the “savers” will have to pay a fee to participate and must be enrolled automatically, or employers will be fined $750 per employee. So now an employer must complete all applicable forms for a new hire, and have them complete this paperwork? This is unfair. No wonder businesses are fleeing the state. Think of the food service industry or a minimum wage jobs where they turnover employees constantly. Another curve ball here, what if the employee doesn’t have a bank account and receives a paper check? What if the employee gets terminated and you fail to let “CalSavers” know? Do the deductions continue? Those fees are ridiculous and are literally just redistributing wealth to current retirees. For example, Vanguard offers accounts for literally a fraction of the fees. The “redistribution” I speak of is just a new way to keep current pension retirees happy. Keep this in mind, older folks (social security/pension recipient) vote in very large numbers, and it would spell the end for many a political career should said pension check bounce. Make no mistake about it, the SEIU and CTA could care less about any non-union member, they want their own taken care of first, and everyone else is a sucker and they are out of luck.
How would this plan even be enforced? The Treasurer’s Office representative said the state has a data base on all eligible business…. where? Even the Secretary of State’s Office can’t possibly have every business on record! Even if they did, how can they screen based on how many employees you have? Is their info really up to the minute? How can that be verified? This would be a nightmare to enforce!
Which parlays into my next point, the real point of this program is to create a brand-new layer of government workers, and a separate group of folks 100% dependent on government. While this may just be a pilot program initially, it will eventually expand to include 7.5 million workers in California… Why is what you may ask?
Low income citizens will opt out of said program (think about it $13 an hour with 8% of pretax paycheck deducted) doesn’t leave much room for food each month. Actually, it amounts to a salary cut…with rising fuel, food and housing costs retirement won’t be an option.
As a result, they will want to lure people like me into this scheme. If you earn around 80k that’s $6,400 a year that goes under state run control each year. By opting out and staying at Vanguard they lose out on that “revenue.” Trust us folks, there is a plan for this, and eventually I will be forced into the account or assessed a penalty for opting out.
As I consider this, I can think of many other questions. What if you leave the state while still working age? Can you roll it into another private account? Or is it heavily penalized and forced to remain in CA? I feel this will become a defined benefit scheme similar to current pension funds used by our state workers, where they are “funded” until they aren’t anymore and the last ones in are wiped out. What makes me skeptical is that the program was known as “Secure Choice retirement investing” prior to a name change. Is it just me or is using the word “secure” in regards to retirement plans just inviting a major lawsuit?
In addition, how does shareholder voting work? Obviously, these funds are going to hold a bunch of companies (more on this in a minute) and as a shareholder you have a right to vote but I don’t see this being allowed. Is Big Brother casting shareholder votes on my behalf so they can steer the market in a way more in line with their political ideology? What companies are being invested in? Something tells me Phillip Morris, Raytheon, Pepsico and other “sin/bad for you companies” will be passed over. Want to take bets Tesla, and other “green” startups will be preferred? Politics over investment return is part of the governing documents of this scheme.
ESG/Socially Responsible Investments: Responsible social, environmental, and governance investing is an issue important to some Participants, and an Investment Option reflecting that belief should be offered.
I noticed a bond fund is available, I assume any state with policies/laws we don’t agree with here in CA will be passed over in favor of CA junk bonds! This is just a new way to put a hand on the scale to get a desired outcome, no question it bothers some in this state Tesla is literally going up in smoke. Or is this a way to load up on company stock and push for policy changes? If this program goes the way of MYRA at the federal level what happens to the government workers? I have a feeling they won’t be laid off just folded into an existing bureaucracy.
Worst of all workers will be screwed. You will find yourself laid off and working the same job as an independent contractor or a “temporary staffing worker.” All in the name of your employer avoiding this new program.
While the CRA and Koch Brothers may be glad to hear this prediction, it’s sad for the rest of us. Why? Because Republicans have failed in their duty to defend and uphold the Constitution while the Democrats never believed in the Constitution to start with. Democrats view the Constitution as an obstacle to overcome (or thwart) to get what they want. No news with that claim.
Koch Brothers promise to support Democrats in 2020 elections
Basically, my prediction is just simple math. Democrats allow illegal aliens to vote and ditto for felons (see Florida, Virginia, California). Anyone they can create into a group dependent on them gets the franchise. Also they have no problem with letting people vote more than once and even beyond the grave. In short, any and all means they can use to game the system to get the outcome they want are allowed.
Only a national voter I.D. program that is part of a comprehensive voter reform and integrity program could change this from happening but the Republicans failed to do this when they controlled Congress so I think that ship sailed. There is an outside chance to do this in 2020 if they retake the House but I wouldn’t bet the farm on it.
We live in a country where there are millions more voters than people and the ruling party in these states likes it that way. And if by some miracle we should prevail at the ballot box they then go to their buddies in the courts to get an injunction to stop what they don’t like.
Also, the indoctrination of our youth via government schools is creating dependency on government programs and solutions, a trend which is unfavorable for freedom as well.
Folks the Republic is over and nothing but divine intervention can fix that fact. You can call it oligarchy or rule by elites, but the idea of rags-to-riches as described years ago by Horatio Alger and more recently by Rush Limbaugh is a world of opportunity that is going the way of the T-Rex and coal powered trains.
The old saying that “as California goes, so goes the nation” is proving more true that we’d like to believe. The question is not “if” but “when”. The only alternative left for “flyover country” is exit the republic. Me? I’d rather cling to my guns and religion than be led by these “leaders.”
Like him or hate him, Donald Trump is the last Republican President we will ever have. I hope I’m proven wrong but sadly I see no evidence to contradict this assertion.
Here are a few supporting links for my prediction:
Photo above Heyzel Obando with husband Tony Joiner Folks The Chief has no reservations about calling you out when you harm your squaw. Sadly today is such a day.
Happy Sunday, I guess. I was greeted with a reader email saying the University of Florida was back in the news, as former Safety (didn’t keep her safe) Tony Joiner was arrested for the murder of his wife today.
Earl Tony Joiner
Joiner played at Florida from 2004-2007. He was captain of the team that featured Aaron Hernandez. Joiner, I guess you could call him alumni, is charged with the death of his wife; who died…guess this, in 2016! In addition, it wasn’t until 2 months after her death the police ruled it a homicide…I guess some things take longer in Florida since they cancelled CSI Miami. Then again, this state tried to cry voter fraud regarding “hanging chads” and other shenanigans. He murdered her on Valentine’s Day; a day most couples are looking to celebrate as one, not looking to be killed by someone.
Joiner, who won a national championship at Florida and was a distinguished member, made a fatal mistake! When you’re a disciple of now deceased (thank god) piece of human excrement Aaron Hernandez, you need to clean the scene of the crime! Have a fall guy! Did you learn nothing at Florida?
Aaron Hernandez — murderer
Joiner was a standout safety for the Gators from 2004-07 under former head coach Urban Meyer. He served as a team captain during his senior season.
Joiner is the second player from the 2007 Gators team to be charged with murder, following Aaron Hernandez’s conviction.
I understand you likely never found the inside of a classroom there but still, be a good disciple! Maybe you missed a chapter in the book, but now you’re caught. When reached for comment, Joiner said “dindu nuffin” so I guess let’s release him. I hear nothing from Black Lives Matter on this…so I guess his wife (who is black by the way) didn’t matter either? You are literal scum Joiner; your mug shot proves it. Don’t drop the soap, you worthless scum! Real men don’t kill women.
However, congrats on finding a new daddy in jail, trust me it’ll happen. I hope you like jailhouse oatmeal, and if you’re, lucky you can get some food from the commissary. Depending on the jail you may even have an ocean view. No word yet on whether you are kicked out of Aaron Hernandez church, but I guarantee Urban “Oscar” Meyer your former coach is disappointed you didn’t learn what he taught you.
Before you ask, get your mind out of the gutter. Ariana’s is the name of a family owned Mediterranean food joint, located on Center Parkway near United Artist theatres. It’s very similar to Sal’s which we tried about 3 weeks ago. Seems Johnnie is on a Mediterranean kick. Everyone loves a little competition, and Johnnie knew he had to check this joint out.
Ariana Gyros & Kabobs 8785 Center Pkwy Ste B160, Sacramento
Ambiance: Again, it’s a kind of fast casual vibe, you order at the counter, they also sell spices by the jar…kinda cool touch. They have a sign saying they prefer cash, understandable, but it gives off a non-sales tax paying vibe as no receipt was given even when requested. They recently re-decorated the place and it looked great. Nice Greek/Afghan feel with pleasant booths, tables, and they had a refrigerated unit holding extra sauces and spices that was self-serve. I felt welcomed and the place had a nice crowd for lunch. 4.2/5.
Menu: Pretty much verbatim of Sal’s: gyros, kabob plate, bowls, great selection. Oh, prices were cheaper than Sal’s. I went with a spicy chicken gyro bowl.
Ariana spicy chicken gyro bowl
As seen in the photo it had a generous portion of chicken, basmati rice, lettuce, onion, tomato, cucumber, and homemade tzatziki sauce on it, served in a porcelain bowl. Wow, what a bowl, ton of food under $10. The spice was right on point, it was the definition of awesome. 4.7/5 (Blogger note: a new discovered item revealed later.)
Overall: Can’t go wrong here. Ariana’s is a family owned joint, well kept, great food. I was going to go 4.5 overall. But then I got hit with this dump. Another customer asked what spices they used to spice the “spicy” chicken……they said Frank’s Redhot. Yeah like this very bottle that I keep in my very Anglo kitchen.
Frank’s Redhot photo from Johnnie’s Anglo kitchen
So, you have no legitimate spices? I have to wonder if the homemade Tzatziki is from a bottle too? The rice? The lettuce? Get outta here, you frauds! No wonder the kitchen is hidden and serving sizes are plentiful! 0.0/5
Take a lap! No one pulls the wool over Johnnie Does…. Why do you serve up fraud food!
Johnnie Does
Editor’s Note: I’ve never seen Johnnie so down on a restaurant, ever the ones driven out of business by his reviews. (Yes, that really happened.) Apparently, the Redhot in question is not the candy sold in my youth nor the busty Irish girl in the other high school math class, but the offending item is an off the shelf sauce from his local Walmart. Johnnie, my friend, you did say this was a family restaurant and you’re mad they use family ingredients? Have you considered that you were stepping out to try to spice up your life and then learned that the spice you really needed and desired was at home all along?
Did we do it again or did we do it again! We said in this very space on a couple occasions that San Francisco could be a buyer of Pacific Bankrupt Gas & Electric’s assets, well the city has hired a prominent investment banker from Jefferies LLC to assist in exploring buying the assets. When you hired a firm like Jefferies you are very serious. The fee’s charged by this prestigious firm are so high a credit card company would be jealous.
Jefferies LLC consultant team tackling options on buying PG&E assets
While nothing is final, I would say the assets the City wants are as good as sold since PG&E needs cash to pay off its fire liabilities in both the Bay Area and “Paradise”.
The San Francisco Public Utilities Commission said on Tuesday it has hired an adviser to explore the potential acquisition of PG&E Corp’s distribution assets, sending shares of the power company up 2.6% at $18.37.
San Francisco has hired Jefferies LLC as buy-side financial adviser, the utilities commission’s Press Secretary Will Reisman told Reuters in an e-mail statement.
In some ways this makes sense. The City can keep the rates cheap as it won’t have to subsidize rural areas. The lines are almost entirely underground so fire liability is essentially nil. The City desires to be greenhouse gas free in the near future, so I guess it reduces fossil fuel reliance.
Bloggers note: What fossil fuel plants are left here? However the burning question is how will they generate power? In a post Enron era would you really want to rely on an out of area producer? A jilted PG&E who you bought the assets on the cheap from? Sun? Water? Wind? Waves? Biomass?
Green energy production, the future of San Francisco
I guess being able to sell the masses on lower rates and “transparency” makes sense in some ways but I don’t see the end game here. Additionally as discussed here, the infrastructure is very old, outdated and more saliently what exactly does the City think its purchasing? Wires and pipes underground are very easy to maintain, you just ignore them until there is an issue, but how old are these pipes and wires and are we sure we know where they are buried? What if the “big one” finally happens? Is this really the liability I would want to take on as a city? Well I suppose if you want lower rates.
I guess Rahm Emanuel was onto something when he said, “Never let a good crisis go to waste”, but I just don’t see this penciling out.
Rahm Emanuel
In a way I feel bad for the ratepayers in San Francisco. While SMUD may not be perfect, I wouldn’t want any PG&E assets within a 90 mile radius of my house.
Former Vice President Joseph R. Biden Jr., who has shunned today’s Democratic Party orthodoxy on issues from crime to compromising with Republicans, again broke with his party’s base and many of his campaign rivals on Wednesday when his campaign confirmed that he still backs the Hyde Amendment, a measure that prohibits the use of federal funds for abortion with exceptions for cases involving rape, incest and when the life of the mother is in danger.
Former Vice President Joe Biden reversed his position on the Hyde Amendment Thursday after facing intense backlash from within his own party.
NBC News correspondent Mike Memoli noted the reversal, tweeting, “NEWS: Biden says that in an environment where women’s health is under assault especially in GOP-led states, he ‘can no longer support an amendment’ that cuts off funding, as in Hyde.”
The last paragraph on Biden’s recanting of the Hyde Amendment is a classic study in Orwellian doublespeak.
A number of Democrats had criticized Biden for his support of the amendment, claiming that recent bans and added restrictions in a number of states had turned the Hyde Amendment into a de facto attack on the rights of poor and minority women.
Hey Joe, who is poorer, weaker, more vulnerable, and a real minority?
Folks another white Democrat just came out for killing poor and minority children thru all nine months of pregnancy.It’s sad but it’s what Joe has to do if he want the votes of poor and minority Democrats living on the plantation.The mystery is why the sheep keep voting in lockstep for the wolves. I guess the wolves keep the sheep better fed.
A bust of Winston Churchill was given to President Lyndon Johnson in 1965. It was placed in the Oval Office of the White House until Barry Obama had it removed. When President Trump was elected, Churchill was welcomed back into the President’s office.
Churchill bust on display in Trump White House
The Washington Post has a sympathetic explanation of the details which you can read here.
Trump likes Churchill (which in my opinion is a good deal). On his visit “across the pond” this week, Trump was gifted with a Churchill styled hat.
Winston Churchill ~1940
Donald Trump tried on a personalized version of Winston Churchill’s signature hat when he was given it as a gift during a talk show appearance on his UK state visit.
Piers Morgan, host of the ITV network’s “Good Morning Britain” show, interviewed the US president in the Churchill War Rooms, where the late British prime minister famously directed World War II.
“This is where Britain’s greatest leader fought the war, and he used to wear these famous hats from the hat maker Lock. We’ve had one made for you,” Morgan said as he handed Trump the hat which was monogrammed with his initials, DJT.
Trump, while wearing the hat said:
“I think Winston looked much better with it,” he said.
Oh, Morgan is a friend of Trump. That Trump regards anybody in the media as a friend is the biggest surprise to in this whole incident.
Morgan, a past winner of Trump’s show “The Celebrity Apprentice,” has a close relationship with the president. He was the only journalist to be granted a TV interview with Trump on his state visit to the UK.
Donald Trump with Piers Morgan (June 2019)
My conclusion is that people don’t like it because Trump did it, not because it’s bad to have a Churchill hat.
