🏎️ Who Really Owns Tesla?

1) Spirit Acquisition Blocked 2) Tesla Ownership Breakdown, 3) TSMC Earnings Rundown, and more!

Author

Carbon Finance
January 19, 2024

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Some key data bites from this week that you should know: 

  • The world's five richest men increased their fortunes from $405B to $869B since 2020.

  • China's economy grew by 5.2% in 2023, slightly above target, but various risks remain on the table for 2024.

  • Apple $AAPL now permits U.S. developers to link to external subscriptions, charging a 27% commission for these transactions.

  • Corporate debt defaults increased by 80% in 2023, driven by high interest rates.

  • JPMorgan Chase $JPM combats rising hacking attempts by investing $15B annually in technology and employing 62,000 technologists.

In today’s newsletter:

  • ✈️ Spirit Acquisition Blocked

  • ⚡️ Tesla Ownership Breakdown

  • 👨‍💼 TSMC Earnings Rundown

Let’s dive right in!

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✈️ Spirit Acquisition Blocked

Spirit Airlines is in the middle of a terrible nightmare.

On Tuesday, a federal judge blocked JetBlue’s $3.8B purchase of Spirit Airlines.

The judge affirmed that this acquisition would lead to reduced competition and an increase in prices for consumers.

Shares of Spirit Airlines have plunged by roughly 55% since the ruling.

While many analysts believe bankruptcy or drastic restructuring is needed for the airline, Spirit pushed back.

This morning, Spirit reassured investors of its ongoing JetBlue Deal and is exploring liquidity options.

The company also affirmed it is not pursuing a restructuring.

Since 2020, Spirit has lost approximately $2B, leading many to wonder how they can navigate the difficult path ahead.

⚡️ Tesla Ownership Breakdown

On Monday, Elon Musk posted on X indicating he was, “uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control.”

This means Elon is looking for double his current stake, which currently sits at 12.95%, based on data from Wall Street Zen.

Upon further analysis of the data, it’s clear that Elon Musk is Tesla’s largest shareholder and sole insider among the top 10 owners.

The remaining 9 are institutions, most of which are likely holding Tesla shares for index funds.

Musk further added that without this significant stake, he would rather pursue projects outside of Tesla.

These comments raised governance concerns regarding Tesla’s future and Musk’s dedication to the company.

💾 TSMC Earnings Rundown

The Numbers:

  • Net Income: 🟢 $1.44B Beats $1.38B Est.

  • Revenue: 🔴 $19.62B Misses $19.68B Est.

Analyst estimates from FactSet.

The Quarter:

Yesterday morning, TSMC released its fourth-quarter 2023 earnings results.

Overall, TSMC surpassed earnings estimates and narrowly missed revenue targets.

Despite four quarters of declining year-over-year revenue, the stock received positive sentiment from investors as the company forecasted higher revenue than expected.

TSMC is anticipating first-quarter 2024 revenue between $18B and $18.8B, exceeding Wall Street's expectations of $18.27B.

CFO Wendell Huang attributed TSMC’s strong position and future outlook to the company’s cutting-edge 3-nanometer technology and growing demand for high-performance computing.

🍺 Drizly Shutdown. Uber $UBER is shutting down Drizly, the alcohol-delivery service it bought for $1.1B in 2021, to focus on its core Uber Eats strategy - WSJ

☣️ Cramer’s Warning. Jim Cramer is warning that a market pullback is likely, indicating stocks are rising rapidly without substantial justification - CNBC

🚜 Farm Upgrade. John Deere $DE is partnering with SpaceX to connect its farming equipment to the internet via Starlink - BI

🍔 Burger King Refresh. Burger King's owner $RBI is planning to buy its largest U.S. franchisee, Carrols Restaurant Group, for $1B to revitalize hundreds of locations - BB

Notable Companies Reporting Earnings Next Week:

  • Monday:

    • Brown & Brown $BRO, Logitech $LOGI, United Airlines $UAL

  • Tuesday:

    • Johnson & Johnson $JNJ, Procter & Gamble $PG, Netflix $NFLX, Verizon $VZ, Texas Instrumentals $TXN

  • Wednesday:

    • Tesla $TSLA, ASML $ASML, Abbott $ABT, ServiceNow $NOW, IBM $IBM, AT&T $T

  • Thursday:

    • Visa $V, Intel $INTC, T-Mobile $TMUS, Comcast $CMCSA

  • Friday:

    • American Express $AXP, Colgate-Palmolive $CL

All of the companies that are reporting earnings next week can be viewed here.

Major Trades Published 01/12 - 01/18

Buys

  • Tilray Brands ($TLRY)

    • Insider: Irwin Simon (President & CEO)

      • # of Shares Purchased: 53,700

      • $ Amount: $100,956

      • SEC Forms: [1]

Sells

  • Gitlab ($GTLB)

    • Insider: Sytse Sijbrandij (CEO)

      • # of Shares Sold: 380,000

      • $ Amount: $23,679,723

      • SEC Forms: [1]

  • Meta Platforms ($META)

    • Insider: Mark Zuckerberg (COB & CEO)

      • # of Shares Sold: 59,043

      • $ Amount: $21,830,892

      • SEC Forms: [1], [2], [3]

  • Nvidia ($NVDA)

    • Insider: Mark Stevens (Director)

      • # of Shares Sold: 36,000

      • $ Amount: $19,690,344

      • SEC Forms: [1]

  • DoorDash ($DASH)

    • Insider: Tony Xu (CEO)

      • # of Shares Sold: 132,300

      • $ Amount: $13,882,766

      • SEC Forms: [1]

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