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Hatch Weekly: Tesla’s bumpy ride

Tesla’s bumpy ride

Last week, Tesla (TSLA) reported first-quarter delivery and production figures that fell short of analysts’ expectations. Have they lost their star power or does Wall St not know that EVs are the future?

Drop it like it’s hot

While Tesla Models 3, X and S outsell all other EVs by 3-1 in the US, their sales were hit hard in 2019’s first quarter – in fact, it’s the worst sales drop in Tesla history. So what about Tesla shares? Well, the day after Tesla announced their sad sales results, shares dropped as much as 10%, shaving $17 billion off their market cap. Ouch. Love ‘em or hate ‘em, you can count on Tesla for a wild ride.

No shortage of drama

Tesla’s share volatility can be bewildering, so what’s going on? Investors are reacting to company news such as the announcement of physical store closures, and then an abrupt reversal. A new model release (the underwhelming SUV) and the uncertainty of where it will be produced. January layoffs increased investors’ worries about the health of Tesla’s balance sheet, which were further compounded by the fact that they began March with a $920 million convertible bond obligation in cash payment. Oh, and let’s not forget that pesky dispute with the Securities and Exchange Commission over whether or not Elon’s tweets exaggerated his company's prospects.

No pain, no gain

Red flags aside, Tesla is in it for the long haul and wants to drive humanity forward. Is Wall St simply being too harsh? We’ll be watching how Tesla performs in the next few quarters, as it could determine the company’s success in the future. In the meantime, buckle up.

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Snapchat steps up its game

Gone are the days of only using Snapchat (SNAP) for its cat ears filter. You can now use it to tap into a new level of augmented reality. Point and interact instead of point and snap? We’re keen!

From augmented reality to gen z

The company recently held its first ever press event where CEO Evan Spiegel announced they would launch an ad network, a real-time multiplayer games platform, an augmented reality (AR) developer platform known as “Scan” and power Stories in other apps. Busy, busy. While others had tried to build AR utility platforms before and failed, they lacked the community and daily use needed to be adopted by users. Snap now reaches nearly 75% of all 13 to 34-year-olds in the US, and 90% of 13 to 24-year-olds, so they might just have the people power needed to kick this off.

How Scan works

Using your Snapchat camera, Scan that slice of pizza, and voilà, a dancing Giphy pizza slice appears. If this doesn't wow you, there will be 400,000 AR lenses for you to play with, all created by Snapchat’s community. But, wait – there’s more. "Landmarkers" will let you transform major landmarks into animated AR transformations. Want to see the Eiffel Tower spew rainbows? Yes, yes you do. Looks like growth is no longer the only success metric for this tech company. They are now looking to deepen user engagement, and create an advertising revenue stream - that’s right shareholders, we said revenue (yusss).

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