Elon Musk’s Elan

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Much has been written about Carson Block, the volatile and sometimes poisonous short seller who runs Muddy Waters Capital. Now, Block writes some rare words of his own.

Block sent its clients its first shareholder letter since starting a hedge fund in 2015. In the letter obtained by DealBook from a source familiar with the fund, Block, a longtime critic of Tesla’s CEO Elon Musk, said his company was opposed to its multi-year bet. The electric car maker had been sent to “heaven” with no plans to revive it.

Block said he had drawn disdain for Musk’s “narcissism” and fueled the belief that Tesla’s business would collapse. But Block added that he underestimated Musk’s ability to raise large amounts of capital, reinvent himself and attract shareholders.

“Market value, glitz, Elon’s élan is still there.” Block wrote while explaining why his bets against Tesla were lost.

“Tesla shorts, Tesla’s GM, Ford, VW etc. “It’s focused on the lack of scale to compete with EVs,” he said. “They are right that the lack of scale will be the death of Tesla. But they were looking at the wrong scale. Tesla isn’t here because it has scale in terms of production base or unit sales. It has scale because capital base”said Tesla’s $700 billion market cap. Added:

One might look at Tesla’s market value and think it’s fragile – this fact will shatter it. That said, Tesla should be able to raise billions of dollars before the upper reaches the lower scale – and keep in mind that Tesla equity increases tend to boost the stock. (These “dumb money” investors actually knew from the start that it was the scale of the capital base that mattered.)

Negative publicity about short sellers during the meme stock rally cost hedge funds, He wrote the block. His firm’s most recent fund, launched in February, raised only $30 million, or less than half of what he expected, as “the carnage scared off some investors.” However, the fund is up about 11 percent since it started, at a time when the market was booming when conditions were not favorable for outspoken short sellers.

Regulators have been adjusted to allow a coronavirus vaccine booster shot. NS expected move It will expand the emergency use of Pfizer-BioNTech and Moderna vaccines by the FDA for people with compromised immune systems. comes as a new study found that the two-dose regimens of the vaccines were somewhat less effective against the Delta variant responsible for the supposed increase. breakthrough infections.

Southwest warns of the Delta variant’s impact on reservations. The airline said yesterday no longer expected to profit in the current quarter, a throwback to what he and other airlines said a few weeks ago business was booming.

Signs are emerging that inflation may be moderate. NS latest data showed that prices are rising much faster than before the pandemic, but month-to-month gains are starting to cool. Yet the cost of cars, vacations and other things continued to rise sharply. And the price of a latte may jump soonAt the same time, the supply of coffee beans dries up due to supply chain bottlenecks and extreme weather conditions.

Reddit is currently worth more than $10 billion. Online discussion forum Raised $410 million With a significantly higher valuation than six months ago when it was valued at $6 billion in a new round of funding led by Fidelity. The new money gives the site, which has more than 50 million daily visitors, more time to decide when to go public, its CEO told The Times.

China is doubling the reins on big business. state of the government five-year plan It seeks to tighten technology, national security, and regulation of monopolies. As the crackdown targets Chinese companies with US listings, its CEO Hong Kong stock market announced A record number of companies applied for the public offering in the city.

The day after Senate Democrats pass their election “big, brave” Vice President Kamala Harris’ $3.5 trillion budget plan brings business leaders to the White House to build support for childcare, one of the plan’s pillars, a White House official told DealBook.

The budget aimed at transforming social policy in America is still far from official and the difficulties of passing it became clear Moderate Democrat Senator Joe Manchin said he had “serious concerns” about spending too much.

Harris is expected to highlight at the meeting that affordable care is a concern for families and businesses alike, DealBook heard.

The invite list includes a wide variety of business leaders, such as Nathan Blecharczyk, co-founder and chief strategy officer at Airbnb; Mark Breitbard, CEO of the Gap brand; Jenna Johnson, president of Patagonia; Josh Silverman, CEO of Etsy; Brad Smith, president of Microsoft; Hamdi Ulukaya, CEO of Chobani; and Seventh Generation CEO Alison Whritenour.

What the White House wants: The Biden administration’s agenda on childcare includes expanding the increased tax credit available to parents. As part of the American Recovery Planwhat researchers say can reduce child poverty by 45 percent. It also calls for the various forms of paid leave to be extended to a total of 12 weeks per year for parent, family care and medical leave, as well as three days of mourning per year.

Childcare has become a major business issue, It became more urgent when there were 2.5 million women left the workforce since the beginning of the pandemic. Companies that are currently having difficulty filling open positions, struggled to bring them back. The share of women in paid jobs is now lowest level since 1986.

USA single member Member of the OECD rich countries club with no statutory paid leave for new parents. Nearly 300 business leaders today from companies like Salesforce and Spotify calls for federal paid family leave. In a letter, they said that paid leave “leads to better retention, personal health and better morale, which contributes to greater stability and viability for our businesses and ultimately helps our bottom line.”


— James Patterson, thriller writer unexpected collaboration with country music star Dolly Parton. In a blockbuster deal from Little, Brown, they are working together on a novel to be released in March, along with a new album of songs inspired by the book.


Announcing a $6.6 billion merger with Reid Hoffman’s SPAC in February, electric air taxi company Joby began trading as a public company yesterday. (HE took one of his planes to the NYSE On this occasion.) The firm is just one of a number of flying taxi companies announcing deals with SPACs, which include Archer, Lilium and Vertical Aerospace.

DealBook spoke to Joby’s chairman of the board, Paul Sciarra, and CEO, JoeBen Bevirt, about their journey to public markets and what lies ahead.

About the lessons learned from the SPAC process:

“If you’re talking about a company that has moved from a brand new category that people are unfamiliar with, and a brand new category that’s just going public, there’s a lot of work to be done on educating people,” Sciarra said.

Because SPAC’s share price was trading below the bid price when the merger with Joby went to shareholder vote last week, more than 60 percent of investors opted to buy back their shares, leaving a smaller amount of cash for Joby to use when the deal was struck. Sealed. (Salvation is increasing in the SPAC world.)

“There were definitely refunds in the transaction,” Sciarra said. “But that’s okay, right? We wanted to make sure we have investors who are excited to join this company’s journey in the future.” Despite the redemptions, Joby raised more than $1 billion in foreign investment in the deal, along with SPAC provided by Uber and others, whose shares rose more than 30 percent on the first trading day.

What’s next for flying taxis:

Joby seeks FAA regulatory approval and partnership With a parking lot operator to build a network of “vertiports” in New York, Los Angeles and elsewhere. “We’re exploring the most valuable takeoff and landing sites we can build,” Bevirt said.

He added that another “critical” factor for companies like Joby, which plans to have five-seater air taxis fly over big cities, is noise: Bevirt recently added that posted a video Measuring the decibel levels of its aircraft on takeoff compares favorably with helicopters, the company’s main competition, he said.

Opportunities

  • Email marketer and ubiquitous podcast advertiser Mailchimp is reportedly investigating $10 billion in sales. (Bloomberg)

  • Chesapeake Energy, the shale gas pioneer that filed for bankruptcy protection last year, is buying natural gas producer Vine for $2.2 billion. (FT)

  • DoorDash was in talks to acquire Instacart, but the deal to merge the two food delivery companies fell through. (Information)

Policy

  • Senator Rand Paul announced that his wife bought a stake in Gilead Sciences, which makes drugs to treat Covid, in February 2020. The filing was 16 months late. (WaPo)

  • Regulators in California approved a plan that would require solar panels and battery storage to be installed in many new commercial and residential buildings. (NYT)

  • In Poland, a TV station owned by Discovery could lose its license after the country’s Parliament passed a controversial media law. (NYT)

  • A Senate bill could significantly loosen Apple and Google’s control over developers who use the tech giants’ app stores. (Anger)

pandemic measures

  • McDonald’s has delayed the return-to-office date to October and said it will require US-based office workers to be vaccinated and wear masks in most settings. (NYT)

  • The New York Stock Exchange said that anyone entering its famous trading floor will soon want to be fully vaccinated. (CNBC)

  • Amtrak employees by November to be vaccinatedor get weekly coronavirus tests. California initiated a similar task for all teachers in public and private schools. (Bloomberg, NYT)

best of the rest

  • “MacKenzie Scott’s Money Bombs Are One-Handed Reshaping America” (Bloomberg)

  • Bill Ackman’s failed SPAC deal hit millennials hard. (Institutional investor)

  • The case of “dog diaper” masks at a McDonald’s franchise in California has settled. (NYT)

  • Facebook is recreating its ads to track less information about users. (anger)

  • An Empire State Building-sized asteroid may have close contact with Earth – but not until the 2100s. (NYT)

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