Premature Acceleration

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What's going on?

Tesla showed off its latest car the Model S Plaid at a flashy event late last week, and its fast. Really fast. Like, this has never happened to Tesla. Honest.

What does this mean?

Investors have known about the Model S Plaid for a while, but this was a chance for Tesla to really show off its performance. And it was worth showing off: the car can go from nought to 60 in under two seconds faster than modern F1 cars and has an estimated range of 390 miles. And since that pushes electric vehicle performance even further forward, Teslas innovations should bring the rest of the industry along for the ride.

Why should I care?

For markets: Teslas back, baby.
Tesla sells far more of its cheaper models than its expensive ones, but the latter make a big difference to the companys profitability. That might be why Tesla announced itd be upping the Model S Plaids mooted $120,000 price tag by $10,000. And considering its expecting to sell 1,000 a week next quarter, that translates to an annualized revenue rate that is, if you applied the data across a whole year of almost $7 billion. Thats especially significant when you remember that Teslas forecasted revenue for the year is $50 billion, and it could help reverse its stocks bad run of form: its underperformed US stocks by 25% in 2021.

Zooming out: Bitcoin cant catch a break.
Tesla recently dealt bitcoin a blow by announcing itd no longer accept it as payment, and the OG cryptocurrency suffered another setback late last week: an influential regulator proposed classifying bitcoin as the riskiest of assets for banks to hold. The good news is that the proposal acknowledges banks can hold bitcoin, but the bad news is that itd force them to have a potentially prohibitive amount of cash as backup: one dollar for every dollars worth of bitcoin.

Originally posted as part of the Finimize daily email.

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