Top Tesla analyst Jonas takes a few guesses at what the big announcement on Thursday will be – CNBC

Widely followed analyst Adam Jonas took some guesses at what the big announcement from Tesla will be on Thursday afternoon.

changed his Twitter display name to “Elon Tusk” and promised his electric car maker would have “news” at 5 p.m. ET Thursday.

The company is due to repay a $920 million convertible bond on Friday as Tesla keeps piling up debt while ramping up production of its popular Model 3 sedan. An analyst report on Thursday said Tesla is lining up about $2 billion in loans to build its factory in Shanghai.

Jonas said Tesla “may be fundamentally overvalued,” but he kept his equal-weight rating and noted that the stock is trading just above his $238 target.

Shares of Tesla are up 0.6 percent in midday trading Thursday.

If the announcement is about a strategic partnership, Jonas said, it could “help share the burden of future expenses, improve access to capital, and potentially ‘attach’ Tesla’s network of data capturing machines to a mega-platform/software layer.”

— With reporting by
Michael Bloom
.

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Elon ‘Tusk’? Tesla CEO changes Twitter handle, says there will be news on Thursday – MarketWatch

Tesla Inc. Chief Executive Elon Musk changed his Twitter handle overnight and told his 25 million followers there will be Tesla news on Thursday, without elaborating further.

Musk’s handle is currently “Elon Tusk,” and next to it there’s an elephant emoji.

Some Tesla news

— Elon Tusk 🐘 (@elonmusk) February 27, 2019

Thursday 2pm

— Elon Tusk 🐘 (@elonmusk) February 27, 2019

California

— Elon Tusk 🐘 (@elonmusk) February 27, 2019

Tesla

TSLA, +4.70%

 shares rose Wednesday, with Wall Street shrugging off the impending news as well as Musk’s latest controversy with the Securities and Exchange Commission.

Tesla did not immediately respond to a request for comment about Musk’s latest announcement.

Read more: Wall Street keeps the faith on Tesla despite Musk, SEC tiff

Musk is, of course, no stranger to Twitter controversies. On Monday, the regulator asked a judge to hold Musk in contempt over a tweet about the Silicon Valley car maker’s production goals. Musk has until March 11 to tell the court why he shouldn’t be held in contempt.

Related: Citron’s Andrew Left sells out of China’s Tesla rival Nio

The settlement stems from Musk’s going-private tweets last year, when Musk said he had “funding secured” to take Tesla private. As part of the agreement, Musk and Tesla agreed to have oversight over the CEO’s tweets that could contain material information to Tesla’s shareholders.

Tesla shares have lost 11% in the past 12 months, contrasting with gains around 1.4% for the S&P 500 index.

SPX, -0.16%

 

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Fiat Chrysler announces plan to invest $4.5 billion in Michigan plants, create 6,500 new jobs – WDIV ClickOnDetroit

DETROIT – Fiat Chrysler announced Tuesday that the company is planning to build a new assembly plant in Detroit and invest $4.5 billion into five of its existing Michigan plants.

The proposed projects would create nearly 6,500 new jobs and meet growing demand for its Jeep and Ram brands, FCA officials said.

The move includes the planned production of two new Jeep white space products and electrified models, FCA officials announced.

Tuesday’s announcement is the latest step in a realignment that FCA began in 2016. As customer demand shifted toward SUVs and trucks, the company discontinued car production and retooled plants in Michigan, Illinois and Ohio to expand the Jeep and Ram brands.

“Three years ago, FCA set a course to grow our profitability based on the strength of the Jeep and Ram brands by realigning our U.S. manufacturing operations,” said Mike Manley, CEO of FCA N.V. “Today’s announcement represents the next step in that strategy. It allows Jeep to enter two white space segments that offer significant margin opportunities and will enable new electrified Jeep products, including at least four plug-in hybrid vehicles and the flexibility to produce fully battery electric vehicles.”

Detroit officials have 60 days to meet the terms of a memorandum of understanding, which requires the acquisition of property critical to the execution of a Mack Avenue Eingine Complex project, FCA officials said. The additional investments are subject to that negotiation, FCA officials announced.

FCA would invest $1.6 billion to convert the two plants that make up the Mack Avenue Engine Complex into the future assembly site for the next generation Jeep Grand Cherokee and a three-row, full-size Jeep SUV and plug-in hybrid, adding 3,850 jobs to support production, FCA officials said.

The company plans to start construction of the new Detroit facility by the end of the second quarter in 2019, with the first three-row vehicles expected to roll off the line by the end of 2020 and the new Grand Cherokee in the first half of 2021.

The North Assembly Plant would receive an investment of $900 million to retool and modernize the facility to build the Dodge Durango and next generation Jeep Grand Cherokee, which would create 1,100 new jobs at the plant, FCA officials announced.

The reborn Mack facility would be the first new assembly plant built in Detroit in nearly three decades, FCA officials said.

Statements on FCA announcement

Here are some statements released by officials and companies about this FCA announcement.

Macomb County Executive Mark Hackel:

Once again, Macomb County is at the epicenter of the evolution of the auto industry. FCA’s announcement of $1.9 billion dollars of investment and nearly 1,500 new jobs at Warren Truck, Warren Stamping and Sterling Stamping showcases the company’s future-focused strategy. It is also a testament to the abilities of our talented workforce, who will now be charged with building exciting new products and advancing automotive technology and capabilities. Thank you Mike Manley, FCA and their talented workforce for believing in Michigan.”

UAW Vice President Cindy Estrada:

I look at today’s investment as a reward for the efforts of our membership and a show of confidence that the members of the UAW are the best auto workers in the world. This is especially exciting given that these are good union jobs with union wages and benefits that have been collectively bargained for with the company. We also look forward to collaborating with FCA, the City of Detroit and other community leaders on a Community Benefits Agreement that re-imagines our city and empowers our citizens to create sustainable communities with long term viability.”

Congressman Paul Mitchell:

I was thrilled to hear that Fiat Chrysler Automobiles (FCA) plans to invest further in its Michigan manufacturing operations, especially at the Sterling Stamping Plant in Michigan’s 10th Congressional District – currently the world’s largest automobile part stamping plant. FCA’s realignment over the last two years to build more of its new SUVs and Ram trucks in Michigan has added millions of dollars to our economy, and has created hundreds of well-paying jobs for my constituents.”

Congresswoman Haley Stevens:

Betting on Michigan’s best-in-class workforce is always a smart decision. I am thrilled to hear that FCA is investing in Michigan and creating thousands of new jobs in the process. Michigan is a global leader in technology and innovation in the auto industry and there is no better place for FCA’s investment in modernization and electrification.”

Wayne County Executive Warren C. Evans:

Today’s announcement of a multibillion dollar investment at Mack and Jefferson North, along with the creation of nearly 5,000 new jobs, demonstrates that FCA emerged from the bankruptcy era poised to be a leader in the budding mobility sector. Detroit and Wayne County have rebounded on a similar trajectory as FCA so this partnership is a natural fit. I applaud FCA’s commitment to Detroit and Wayne County, and their continued investment in the city amid the automotive industry’s daunting pace of change.”

Copyright 2019 by WDIV ClickOnDetroit – All rights reserved.

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Target announces launch of its curated, third-party marketplace, Target+ – TechCrunch

Target this morning announced Target+, a new initiative designed to expand the assortment on Target.com with merchandise from third-party sellers. But unlike with Walmart and Amazon’s marketplaces, Target is taking a more curated approach as to how sellers will be added to its program. The retailer says it’s starting with “thoughtfully selected” additions in areas like home, toys, electronics and sporting goods.

While any seller can apply to join Amazon or Walmart’s marketplace, there’s no such process for joining Target+. Instead, Target explains that each partner is “carefully selected” and then invited into the program – a move it hopes will help keep quality high.

At launch, guests will be able to discover an expanded array of running shoes, outdoor décor, patio accessories, a bigger selection of STEM learning toys, new musical instruments, and baseball gear from both national and speciality sellers, says Target. Some of the current sellers include: SVSportsMizunoKaplan Early Learning CompanySerenity Health & Home Décor and Music123.

Over time, more products and sellers will be added, as Target learns more about guest needs.

Offering only a curated selection means Target+ won’t face the same struggles as other retailers when it comes to policing their third-party marketplaces for offensive content – like the racist merchandise found on Amazon, for instance; the toilet seat covers featuring holy text, politically charged and controversial apparel; and other items. Because these marketplaces are so large, offensive or just generally questionable or odd merchandise repeatedly surfaces, resulting in bad PR for the marketplace’s host, like Amazon, Walmart or eBay.

Target will avoid this issue by way of its curation, but it will come at the expense of having a larger third-party assortment.

Target+ merchandise will also be integrated into the site within the appropriate categories, so the items can be discovered through both browsing and search. There’s no way to just search for “Target+” items.

In addition, shoppers will have the same perks when buying from third parties as they do when buying from Target’s own assortment, including 5 percent off when using their Target REDcard, free shipping, and in-store returns.

Before Target+, a portion of Target’s assortment was shipped directly from third-party vendors, but guests were purchasing the items from Target. With Target+, products are purchased and shipped from the third-party vendors.

“Guests look to Target for great products. With Target +, we aim to give them easy access to even more great products by partnering with best-in-class specialty and national brands that will help guests save and get more done in just one stop to Target.com,” said Rick Gomez, Target’s chief marketing officer and digital officer, in a statement.

The launch of Target+ follows Walmart’s recent announcement that it would expand its 2-day shipping program to the millions of products offered by its own marketplace sellers, to better compete with Fulfillment by Amazon, which allows sellers to make their items available on Prime. And, like Target, Walmart aims to leverage its brick-and-mortar stores for third-party merchandise returns.

Both moves put Amazon at more of a disadvantage, as its brick-and-mortar footprint is limited to its Whole Foods stores, and various bookstores and other shops in urban metros. Walmart, on the other hand, has 140 million weekly in-store customers, and says 90 percent of Americans live within 10 miles of a Walmart store.

Target, meanwhile, has 1,850 retail stores in the U.S. compared with roughly 475 Whole Foods stores in the U.S., and over 4,700 Walmart locations in the U.S. (excluding Sam’s Club.)

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