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Tesla shares rise on Citi upgrade, Musk talk of a new factory in Asia

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Tesla Inc. CEO Elon Musk attends the World Artificial Intelligence Conference (WAIC) on August 29, 2019 in Shanghai, China.

Aly Song | Reuters

Tesla Shares rose nearly 8% on Wednesday after hitting a 52-week low a day earlier. The rally followed an upgrade by analysts at Citi and a tip from Tesla’s CEO Elon Musk that South Korea is a top candidate for a new factory the company plans to build in Asia.

The recovery is a respite for Tesla investors, who have seen the value of their holdings fall by about half this year amid a broader market slump and a reallocation of risky assets.

“We believe the year-to-date pullback has offset the short-term risk/reward trade-off,” Citi analysts wrote. raise their rating for the stock to neutral. “To get bullish from here, we’d like to gain additional confidence in the average selling price/auto gross margin bridge (including tracking near-term data points in China and Europe) and FSD progress.”

FSD refers to what the company calls its full self-driving capability. Tesla sells driver assistance systems, including the standard Autopilot installed in all of its new vehicles and a premium FSD option. In the US, Tesla’s FSD is currently $12,000 upfront or $199 per month on a subscription basis. The company doesn’t say what percentage of users choose this option or how many unsubscribe.

Musk has been promising Tesla investors and customers since 2016 that his company will be able to convert its cars into self-driving vehicles that can act as robotaxis. However, it has yet to be delivered. Drivers using Tesla’s Autopilot, Enhanced Autopilot, FSD and FSD Beta systems should be alert to the road ahead, with their hands on the wheel and ready to take over the driving task at all times.

Alongside the Citi note, Musk spoke to South Korean President Yoon Suk-yeol on Wednesday and expressed optimism that a new Tesla factory will eventually open in the Asian country.

The extended sell-off that preceded Wednesday’s rally comes as Musk’s attention was mostly focused on Twitter, which he acquired for $44 billion last month.

Some falls in Tesla shares followed massive stock sales by Musk as he partially liquidated to fund the Twitter deal. Musk earlier this month sold another $3.95 billion in Tesla shares and told Twitter staff that he was doing this to save the social media company.

Musk quickly implemented mass layoffs, firing executives and streamlining key platform functions. In response, many advertisers paused spending on Twitter campaigns indefinitely civil rights activist have called for more boycotts until Musk’s team proves they can handle hate speech and other harmful content on Twitter.

Some Tesla analysts and investors fear potential spillovers to the electric car company. Adam Jonas, an analyst at Morgan Stanley, wrote in a report on Wednesday that the Twitter situation could impact consumer demand for Tesla, as well as trade deals, government relations and “capital markets support.” The company still recommends buying Tesla shares and has a price target of $330.

The stock was trading at nearly $183 late afternoon on Wednesday.

Leo Koguan, one of the companies largest single shareholders, and other investors have asked for a massive share buyback by Tesla. In a petition shared on Change.org, Tesla bull and influencer Alexandra Merz said a quick buyback would allow Tesla “to capitalize on what is currently a very undervalued stock price” and “act before the 1% tax on share buybacks on June 1 . effective January , 2023.”

Musk has said he’s willing to buy back Tesla pending board approval. Last month, when announcing the company’s third-quarter results, Musk said Tesla is likely to make a “meaningful buyback” next year, potentially ranging from $5 billion to $10 billion.

CLOCK: Tesla upgraded by Citi

Tesla has been upgraded to neutral at Citi

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Latest LIVE: 18.95% voter turnout recorded till 11 am in Gujarat polls

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The first phase of the survey for the in Gujarat started at 8 am today. People were seen queuing outside the polling stations, waiting for their turn to cast their ballots. At this stage, 89 seats will be voted on. That hopes to return to power for the seventh straight year while his main rival attempts to invade the saffron-dominated state. has had reduced visibility during the election campaign.

Maintaining its place as the world’s leading recipient of remittances, from India will send home a record $100 billion in 2022 despite global headwinds such as rising prices. In its latest Migration and Development Letter, the World Bank said remittance flows to India will increase by 12 percent, ahead of inflows from China, Mexico and the Philippines.

India today assumes the presidency of the G-20 grouping, the leading forum for international economic cooperation. Around 100 monuments, including UNESCO World Heritage sites, bearing the G-20 logo will be illuminated for seven days from December 1-7 to celebrate the occasion. Monuments include the Shankaracharya Temple in Srinagar, the Red Fort in Delhi and the Great Living Chola Temple in Thanjavur. During its presidency, India will host 200 meetings in all nations.

The first phase of the survey for the in Gujarat started at 8 am today. People were seen queuing outside the polling stations, waiting for their turn to cast their ballot. At this stage, 89 seats will be voted on. That hopes to return to power for the seventh straight year while his main rival attempts to invade the saffron-dominated state. had reduced visibility during the election campaign.

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Delta to Raise Sky Club Membership Prices, Restrict Access

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Delta Air Lines is increasing membership and entry fees for access to its Sky Club airport lounges to “maintain a premium experience,” the airline announced Wednesday. The changes come after a year with a “record number of visits,” which Delta said left customers queuing at some airports trying to get into clubs that had reached capacity.

The changes follow as well Delta’s announcement in October that some Medallion qualifying dollar thresholds for elite tiers will increase for 2024 status; and the airline’s new time limit for Sky Club access – three hours before scheduled departure time – which began June 1st. Connection customers do not have this time limit. Delta 360 loyalty members and customers with a lifetime club membership are also exempt, according to the airline.

Sky Club access changes in detail

Effective January 1, 2023, Delta is increasing membership fees and restricting the purchase of annual club memberships to only Diamond, Platinum, Gold and Silver Medallion members of its SkyMiles loyalty program. The single annual membership fee increases to $695 or 69,500 miles instead of $545 or 54,500 miles, and the annual executive membership fee increases to $1,495 or 149,500 miles instead of $845 or 84,500 miles.

The airline is also increasing the entry fee for guests of Sky Club members from $39 or 3,900 miles to $50 or 5,000 miles effective February 2, 2023. The same new fee applies to guests of American Express cardholders with access to the club.

When utilizing the airline’s Choice Benefits option for Executive Membership, those who achieve Diamond status for Medallion Year 2024 and beyond must utilize all three of their benefit choices as opposed to the current two. According to Delta, individual memberships and credit card guest passes will no longer be offered through Choice Benefits for Medallion Year 2024 and beyond beginning February 1, 2023 for Medallion Year 2023.

Additionally, Delta Sky Club members flying on Basic Economy tickets will not be admitted unless they have a benefit through an eligible American Express card that allows access beginning February 2, 2023. In addition, Diamond, Platinum and Gold members flying internationally in Main Cabin or Delta Comfort Plus will no longer be eligible for Sky Club access effective February 2, 2023 unless accessed via another access method. Access is reserved for Tier Members flying internationally in Delta Premium Select or Delta One cabins.

The airline said there are no changes to Delta Sky Club eligibility for Delta 360 members, Elite Plus members on other SkyTeam airlines, Delta and SkyTeam Elite Plus members traveling in cabins on Delta Premium Select and Delta One or Partner airlines fly, or for all customers in Delta One or partner equivalent cabin.

“We do not take these actions lightly, and it is important that we take these steps to invest in the customers who invest in us,” a Delta spokesman said in a statement. “Our number one priority is to provide our members with a premium experience, so we must balance the popularity of the Delta Sky Club experience with the premium atmosphere and service that we hold dear. We’ve made significant investments in the Delta Sky Club experience at our major airports, and when travelers return to the skies, we’re excited to see so many customers enjoying our club offerings.”

New Services

In fact, beginning mid-December, Delta will be rolling out the ability to check Sky Club availability in Atlanta and Detroit on the Fly Delta app for customers who have the latest app version, to help soften the news’ impact. Clubs will offer four occupancy levels ranging from underutilized to extremely utilized. The airline plans to expand this offer to all Delta Sky Clubs in the first half of 2023.

Additionally, after testing Sky Club’s priority admission in Atlanta over the summer, Delta plans to establish a dedicated admission lane for the airline’s frequent flyers at high-capacity clubs. Diamond and Delta 360 members, as well as Delta One customers, get expedited entry when the clubs are full, according to the airline.

Delta also highlighted its recently opened and upcoming new and expanded clubs, including new clubs in Los Angeles, New York’s LaGuardia Airport and Chicago’s O’Hare International Airport. Nearest club locations include:

  • Kansas City Airport which will open next February
  • A new G-Concourse club in Minneapolis-St. Paul is scheduled to open in April
  • A new Sky Club in Terminal 4 at John F. Kennedy International Airport in June
  • An expansion of the Fort Lauderdale location in September
  • A new lounge in Boston’s E Hall is currently planned for late summer
  • A move to Terminal A at Newark Liberty International Airport in the fall or winter of 202
  • A club expansion in Miami in December
  • A winter 2023 renovation of the Atlanta E-Concourse Club

online feedback

People took to LinkedIn and Twitter to share Delta’s announcement. It seemed mostly one-sided, with dissatisfied customers.

Some predicted that Delta’s competitors would follow suit. That remains to be seen. American Airlines has changes in the works for its AAdvantage loyalty program, which the airline says will be announced in early 2023, but there’s no indication if lounge access will be affected. United Airlines also hasn’t said anything yet about lounge benefit program changes.

TIED TOGETHER: Delta raises some status thresholds and expands benefits

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Sam Bankman-Fried on prospect of prison: This isn’t the time and place to think about that

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The disgraced founder of crypto exchange FTX, which went bust aCentre County Reporter looting client funds, says he’s not particularly focused on criminal risks he may be facing at the moment. His remarks came during a widely watched interview at a New York Times DealBook conference.

“There will be a time and a place to reflect on myself and my own future. But I don’t think it is. Look, I’ve had a bad month,” Sam Bankman-Fried responded to a question from host Andrew Ross Sorkin about whether he was concerned about criminal liability for his actions.

The comments sparked laughter from audiences and raised eyebrows on social media, where many were surprised Bankman-Fried even agreed to the live interview. Those at the center of potentially criminal scandals usually heed lawyers’ advice to remain calm lest they provide compromising information to prosecutors.

“They’re not at all,” Bankman-Fried replied when asked if attorneys were telling him to speak out. “I have a duty to explain what happened … I don’t see what is achieved by just sitting cooped up in a room and pretending the outside world doesn’t exist.”

Legal observers have suggested that Bankman-Fried’s conduct at FTX could amount to wire fraud, a federal law that can carry a 20-year prison sentence. For the time being, he has not been charged with any criminal charges and is presumed innocent.

Sam Bankman-Fried, dressed in a black t-shirt and appearing practically from the Bahamas, apologized for FTX’s collapse, which has leCentre County Report it owing money to more than a million customers and creditors. But he denied attempting to commit fraud.

“[I] not even knowingly mixed. I was frankly surprised at how big Alameda’s position was, which indicates another failure on my part. I wasn’t trying to mix funds,” he said, referring to his hedge fund, which drew funds from the FTX exchange when it ran into financial difficulties earlier in the year.

On several occasions during the interview, Bankman-Fried apologized to investors for the FTX debacle but didn’t seem to acknowledge that he had done anything morally wrong.

“Ultimately, I had a duty to investors, to the world. I didn’t do that well. I made a lot of mistakes. There are things I would give anything to do again. I wasn’t trying to cheat on anyone … There are things I wish I had done differently,” he said.

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