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Wall Street Bashes Elon Musk’s ‘Twilight Zone Act’ in Tesla’s Meltdown

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By CCN: Everyone is running out of patience with Elon Musk and his antics as the CEO of Tesla. Following the company’s spectacularly disappointing earnings report, Goldman Sachs and Wedbush downgraded Tesla’s stock on Thursday.

The downgrades weren’t a surprise given the dismal numbers Tesla reported. However, the scathing lashing given out by the Wedbush analyst did take some aback.

THE RESEARCH NOTE THAT COULD MAKE HISTORY

Clearly frustrated with Musk, Wedbush analyst Daniel Ives’ note to investors was part venting, mostly true, and should be a scream to Musk to get it together.

“In our 20 years of covering tech stocks on the Street we view this quarter as one of top debacles we have ever seen while Musk & Co. in an episode out of the Twilight Zone act as if demand and profitability will magically return to the Tesla story.”

The analyst went on to describe a “demand story at Tesla” that is evolving. Unfortunately, the company has not been able to adjust.

“We no longer can look investors in the eye and recommend buying this stock at current levels until Tesla starts to take its medicine and focus on reality around demand issues which is the core focus of investors.”

With that said, the firm lowered its rating to neutral from outperform. It smashed the price target to $275 from $365. While it had been comfortable with its price targets, this last quarter was too much.

TESLA’S FUNNY MATH

Goldman Sachs cut its price target to $200 from $210. It maintained its sell rating.

In its note, Goldman Sachs analyst David Tamberrino raised concerns about the Tesla’s guidance numbers.

“Ultimately, we believe the company’s ‘if we build it, they will come’ mantra likely requires incremental incentives (or some form of this) in order to entice incremental sales – which also will weigh on gross margins.”

Tesla stock

Tesla’s stock has shed 19% year-to-date. | Source: Yahoo Finance

WORST QUARTER EVER

Tesla reported a loss of $702 million in the quarter. Its loss per share was $2.90, which was far more than the $0.69 analysts had expected.

 

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Elon Musk Ports Epic’s Unreal Engine to Install Fornite in Your Tesla

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By CCN: Worried Telsa CEO Elon Musk wasn’t packing his cars with enough feature? The tech pioneer wants you to be able to play top video game titles in his vehicles. Tesla is definitely porting over Unity and Epic’s Unreal Engine, that Fortnite and Rocket League, run on. Musk also tweeted Microsoft and Roblox to see if they want to be involved too.

 

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Kik’s CEO: Firm Spends $5 million after SEC Negotiations

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  • SEC announced that the sale might have violated U.S. security law.
  • Livingston does not plan on suing SEC, yet he seeks clear guidance from it. 

Kik’s CEO reported that the company had spent $5 million after its engagement with the U.S. Securities and Exchange Commission (SEC). The regulator claims that it was an unregistered securities sale.

Founded by a Canadian entrepreneur Ted Livingston in 2010, Kik is a messaging app that garnered $98 million in an initial coin offering (ICO) at the end of 2017. Later, SEC announced that the sale may have violated U.S. security law and that SEC staff would suggest bringing an enforcement action against the company. Livingston reported on Thursday that his firm and the regulator have been in talks since late 2017. He said:

“We’ve spent a lot of money on this, over $5 million. We’ve spent a lot of time on this, we’ve spent the last 18 months traveling to Washington.”

SEC had filed a formal letter known as the Wells notice in November 2018 to which Kik replied that the company highlighted a clause in existing law that says currencies are not securities. Livingston said:

“In the last month alone, over a million people earned kin from 40 different apps, from 40 different companies. Over a quarter million people used kin, making it the most-used cryptocurrency in the world, and they’re not even willing to say that’s not a security.”

Livingston said he does want to work with the SEC, however, he said, “We want to find a win-win with you, we understand the tough position you’re in, but at the same time innovation needs to move forward.”

Regulatory uncertainty may be holding back the U.S. cryptocurrency industry.

 

source:fxstreet

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ConsenSys CEO Predicts Trump Re-Election, Facebook Breakup and Crypto Revival

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It was 2047, not 2019, in ConsenSys CEO Joseph Lubin’s keynote address Saturday in Red Hook, Brooklyn.

To close out the 2019 Ethereal Summit in Brooklyn, he foresaw a future where assets had all been tokenized, the web was completely decentralized and networks organized around topical interests had become roughly as important to human life as nation states.

Notably, Lubin predicted President Donald Trump would win a second term in 2020.

He foresaw those following four years as marking a downturn in American civilization, marked by an increase in radical divisions and even hate crimes. The turnaround would only arrive, he predicted, when Facebook, “finally admitting its role in global radicalism,” broke itself into “Facebook Media” (the news feed) and “Open Book,” a decentralized social web that any startup could tap into.

In Lubin’s vision, most of the progress since 2019 can be linked back one way or another to ConsenSys, despite a 2018 that ended with broad layoffs and challenges in spinning out incubated startups.

Lubin foresaw a medium-term future where, as he put it from his 2047 perch, “Liberal democracy was on its death bed.”

Despite doubts about ethereum’s potential to change how data is shared, he particularly foresaw a new era in more sustainable, more valuable journalism. “Platforms like Civil triggered the recovery of the journalism industry, especially local journalism,” Lubin said.

Civil is a ConsenSys-supported project aiming to bring distributed verification and micropayments to the media industry.

He continued, “Divorcing news delivery from the influence of advertising dollars was the breakthrough that drove the turnaround of western democracies.”

Lubin described a decentralized era in which “ethics with respect to the truth, ethics with regard to the nature of facts” took hold, as opposed to our backwards era, in which “presenting balanced viewpoints and fostering critical thinking was anathema.”

By 2047 – with a decentralized open platform where former web giants had come to embrace a distributed ethos – “We are all as a society able to engage in direct democratic decision-making,” Lubin said.

“The dream has been made real and we are all in it,” the Lubin of 2047 said. He told the crowd:

“These days we don’t hear people talking about changing the world, just like we don’t hear people talking about breathing or walking. It’s just what we do.

 

source:coindesk

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