Founder & CEO Bond Angle, LLC, Bond Angle, LLC

Vicki Bryan

Founder & CEO Bond Angle, LLC

Bond Angle, LLC

Insightful commentary and analysis on bond markets and market movers, including financial, economic, and industry catalysts and management shenanigans. 

High yield market investment research

Credit

For years now, <a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a> and its ardent fans haven’t worried that none of its businesses are profitable because it has sold billions of dollars in energy emissions credits to offset its rivers of red ink (see my latest report on this, <a href="https://www.smartkarma.com/insights/tesla-goes-to-record-extremes-to-create-q1-profits" target="_blank" data-smartkarma-citation="insights:50821" rel="noopener">Tesla Goes to Record Extremes To Create Q1 "Profits"</a> on 4/28/21).They dismissed concerns that every penny of cash it has ever banked came from selling said energy credits on top of selling billions in stock to said fans and borrowing even more in debt.Pull these pesky threads and everything can unravel quickly, as I long have warned (for example, in <a href="https://www.smartkarma.com/insights/tesla-the-sky-s-the-limit-until" target="_blank" data-smartkarma-citation="insights:47414" rel="noopener">Tesla: The Sky's The Limit...Until</a> on 1/28/21).Sure enough, <a href="https://www.smartkarma.com/entities/stellantis-nv" target="_blank" data-smartkarma-citation="entities:798:1" rel="noopener">Stellantis NV (STLA US)</a> told reporters this week that it <a href="https://europe.autonews.com/environmentemissions/stellantis-hit-emissions-target-without-teslas-help-ceo-tavares-says?utm_source=dlvr.it&amp;utm_medium=twitter" target="_blank" rel="noopener">expects to meet European emissions standards on its own</a> this year without buying any more credits from Tesla.That creates a big problem for Tesla because lucrative energy credit sales to Stellantis have been the primary source of all of Tesla’s manufactured “profits” since Q2 2019, which created:<ul>
<li>the basis for Tesla’s recent addition to the S&amp;P 500 Index</li>
<li>and its mythological equity valuation</li>
<li>and its ability to sell stock at grossly inflated prices</li>
<li>and its artificially inflated credit rating which lets it borrow with impunity at cheap rates.</li>
</ul>

For years now, Tesla Motors (TSLA US) and its ardent fans haven’t worried that none of its businesses are profitable because it has sold billions of dollars in energy emissions credits to offset its rivers of red ink (see my latest report on this, Tesla Goes to Record Extremes To Create Q1 "Profits" on 4/28/21).They dismissed concerns that every penny of cash it has ever banked came from selling said energy credits on top of selling billions in stock to said fans and borrowing even more in debt.Pull these pesky threads and everything can unravel quickly, as I long have warned (for example, in Tesla: The Sky's The Limit...Until on 1/28/21).Sure enough, Stellantis NV (STLA US) told reporters this week that it expects to meet European emissions standards on its own this year without buying any more credits from Tesla.That creates a big problem for Tesla because lucrative energy credit sales to Stellantis have been the primary source of all of Tesla’s manufactured “profits” since Q2 2019, which created:
the basis for Tesla’s recent addition to the S&amp;P 500 Index
and its mythological equity valuation
and its ability to sell stock at grossly inflated prices
and its artificially inflated credit rating which lets it borrow with impunity at cheap rates.


<a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a> doesn’t want you to worry that it needed a record $518 million in energy credit sales plus a surprising $101 million in <a href="https://www.smartkarma.com/entities/bitcoin-usd" target="_blank" data-smartkarma-citation="entities:25895:1" rel="noopener">Bitcoin (XBTUSD CURNCY)</a>gains to generate the record net “profit” of $438 million it <a href="https://tesla-cdn.thron.com/static/R3GJMT_TSLA_Q1_2021_Update_5KJWZA.pdf?xseo=&amp;response-content-disposition=inline%3Bfilename%3D%22TSLA-Q1-2021-Update.pdf%22" target="_blank" rel="noopener">reported for the first quarter</a> versus the similarly enhanced $16 million reported last year.Otherwise you might notice that core operations actually lost nearly $200 million despite a 109% increase in deliveries to a record 184,877 versus last year. This loss was little better, and revenue was lower, versus Tesla’s disappointing fourth quarter results as I discussed in <a href="https://www.smartkarma.com/insights/tesla-on-no-you-didn-t" target="_blank" data-smartkarma-citation="insights:47527" rel="noopener">Tesla: Oh No You Didn’t</a> on 1/28/21. First quarter revenue slumped sequentially despite higher deliveries as profitability plunged on rising operating costs plus further severe price cuts still necessary to encourage sales.While Tesla had reason to worry since most of the total deliveries reported didn’t materialize until the final weeks of the quarter, it’s also easy to surmise that Tesla used its creative profit-making strategy to make sure CEO Elon Musk could snag another <a href="https://www.reuters.com/article/tesla-results-options-idUSL1N2MJ2RE" target="_blank" rel="noopener">$11 billion in vested stock options</a>.It’s all about priorities.

Tesla Motors (TSLA US) doesn’t want you to worry that it needed a record $518 million in energy credit sales plus a surprising $101 million in Bitcoin (XBTUSD CURNCY)gains to generate the record net “profit” of $438 million it reported for the first quarter versus the similarly enhanced $16 million reported last year.Otherwise you might notice that core operations actually lost nearly $200 million despite a 109% increase in deliveries to a record 184,877 versus last year. This loss was little better, and revenue was lower, versus Tesla’s disappointing fourth quarter results as I discussed in Tesla: Oh No You Didn’t on 1/28/21. First quarter revenue slumped sequentially despite higher deliveries as profitability plunged on rising operating costs plus further severe price cuts still necessary to encourage sales.While Tesla had reason to worry since most of the total deliveries reported didn’t materialize until the final weeks of the quarter, it’s also easy to surmise that Tesla used its creative profit-making strategy to make sure CEO Elon Musk could snag another $11 billion in vested stock options.It’s all about priorities.

Tesla Goes to Record Extremes To Create Q1 "Profits"

Founder & Chief Market Strategist - SAV Markets, SAV Markets

Shyam Devani

Founder & Chief Market Strategist - SAV Markets

Technical Analysis

Bitcoin has been trending above its 55 day moving average since October 2020Amazingly in that short space of time we had rallied some 480%However over the past 24 hours, we have taken out that 55 day moving average and have continued lower - what next?

Bitcoin has been trending above its 55 day moving average since October 2020Amazingly in that short space of time we had rallied some 480%However over the past 24 hours, we have taken out that 55 day moving average and have continued lower - what next?

<a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a> stock is tumbling, again, and its overpriced bonds are frozen in the headlights with nowhere to go but down.
The reason given for this latest rout is that Tesla needed to shut down production for two weeksdue to supply chain disruptions in parts and supplies caused by the severe winter storm which swept much of the country in recent weeks.
Except when the stock plunged CEO Elon Musk opened the plant back up after just two days.
Which suggests that Tesla can make all the cars its needs. It just doesn't need as many as it hoped to mean faltering demand.

Tesla Motors (TSLA US) stock is tumbling, again, and its overpriced bonds are frozen in the headlights with nowhere to go but down.
The reason given for this latest rout is that Tesla needed to shut down production for two weeksdue to supply chain disruptions in parts and supplies caused by the severe winter storm which swept much of the country in recent weeks.
Except when the stock plunged CEO Elon Musk opened the plant back up after just two days.
Which suggests that Tesla can make all the cars its needs. It just doesn't need as many as it hoped to mean faltering demand.

Rates Strategist, Bondcritic

Sumit Gupta

Rates Strategist

Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

FX & Rates

<ul>
<li>Digital currencies are gaining regulators' attention. Bank of England Governor Mark Carney’s speech at the Jackson Hole Symposium is one acknowledgement of a need for a new economic order where virtual currencies could provide a solution.</li>
<li>Digital currencies help overcome the zero lower bound problem which interest rate markets face today, in our view. Though this requires the phasing out of cash, it is easier said than done. The development of the e-Krona in Sweden offers an interesting case study.</li>
<li>With the introduction of the People’s Bank of China (PBoC) digital currency, we expect the debate between privately-owned and central bank-owned digital currencies to gain steam. In our view, central banks will have to overcome the baggage of traditional finance to make a meaningful dent in the digital currency space, which is not easy. On the other hand, there is no known mechanism to control private crypto currency inflation.</li>
<li>The world is looking for a new monetary order. Virtual currencies are likely to find a way in there, we believe. </li>
</ul>


Digital currencies are gaining regulators' attention. Bank of England Governor Mark Carney’s speech at the Jackson Hole Symposium is one acknowledgement of a need for a new economic order where virtual currencies could provide a solution.
Digital currencies help overcome the zero lower bound problem which interest rate markets face today, in our view. Though this requires the phasing out of cash, it is easier said than done. The development of the e-Krona in Sweden offers an interesting case study.
With the introduction of the People’s Bank of China (PBoC) digital currency, we expect the debate between privately-owned and central bank-owned digital currencies to gain steam. In our view, central banks will have to overcome the baggage of traditional finance to make a meaningful dent in the digital currency space, which is not easy. On the other hand, there is no known mechanism to control private crypto currency inflation.
The world is looking for a new monetary order. Virtual currencies are likely to find a way in there, we believe. 


The Growing Weight of Digital Currencies in Mainstream Finance

United States

Virtual currencies are decentralized, math-based digital assets in which transactions can be performed cryptographically without the need for a central issuing authority. The first specification and proof of concept of Bitcoin, the first widely used virtual currency, was published in 2009 based on a paper published pseudonymously by Satoshi Nakamoto.

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Bitcoin (XBTUSD CURNCY)

Tesla: So Long, Free Money

Stellantis says it will stop buying billions of dollars in energy credits from Tesla, leaving a giant hole in Tesla's "profit" potential and...

Vicki Bryan

Tesla Goes to Record Extremes To Create Q1 "Profits"

Tesla needed a whopping 46% increase in energy credit sales and sizable gains from selling recently bought Bitcoin to produce Q1 "profit"—and an...

Vicki Bryan

A BIT of COIN Flip

The break lower on Bitcoin over the past 24 hours through key levels now reveals a picture that can only be described as 'worrying' in the short term

Shyam Devani

Tesla Is Falling and It Can't Get Up

Tesla stock is tumbling and its overpriced bonds are frozen in the headlights with nowhere to go but down. Deliveries are sputtering, and Elon's...

Vicki Bryan

The Growing Weight of Digital Currencies in Mainstream Finance

Digital currencies are gaining regulators' attention. Bank of England Governor Mark Carney’s speech at the Jackson Hole Symposium is one...

Bondcritic

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tesla: So Long, Free Money

Stellantis says it will stop buying billions of dollars in energy credits from Tesla, leaving a giant hole in Tesla's "profit" potential and...

Vicki Bryan

Tesla Goes to Record Extremes To Create Q1 "Profits"

Tesla needed a whopping 46% increase in energy credit sales *and* sizable gains from selling recently bought Bitcoin to produce Q1 "profit"—and an...

Vicki Bryan

A BIT of COIN Flip

The break lower on Bitcoin over the past 24 hours through key levels now reveals a picture that can only be described as 'worrying' in the short term

Shyam Devani

Tesla Is Falling and It Can't Get Up

Tesla stock is tumbling and its overpriced bonds are frozen in the headlights with nowhere to go but down. Deliveries are sputtering, and Elon's...

Vicki Bryan

The Growing Weight of Digital Currencies in Mainstream Finance

Digital currencies are gaining regulators' attention. Bank of England Governor Mark Carney’s speech at the Jackson Hole Symposium is one...

Bondcritic

Tesla needed a whopping 46% increase in energy credit sales and sizable gains from selling recently bought Bitcoin to produce Q1 "profit"—and an...