Mar 18, 2019

Investors underwhelmed by Tesla's Model Y reveal

Reproduced from a Bloomberg table; Table: Axios Visuals

Investors have never responded as negatively to a debut of a new Tesla product as they did after last week's Model Y event. Shares fell 5% on Friday — the worst ever post-event performance for Tesla, Bloomberg reports.

What they're saying: Deutsche Bank analyst Emmanuel Rosner called the event "somewhat underwhelming with no major surprises."

  • Jeffrey Osborne, an analyst at Cowen, said the Model Y wouldn't ignite "elevated demand or enthusiasm for the Tesla brand."

Between the lines: Tons of questions remain about the Model Y — none of which were acknowledged at the event.

  • As Axios' Joann Muller points out, Tesla said "nothing about where it will build the Model Y or how it will afford the capital investment the new model will require."

There are also concerns the problems that plagued previous Tesla vehicles will hit the Model Y.

  • The [manufacturing] is "similar to the original timeline for the Model 3 ramp, which was ultimately delayed by 9-12 months," Bernstein analyst Toni Sacconaghi wrote in a note.

Go deeper: Tesla Model Y makes a splashy debut

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Federal court temporarily halts "Remain in Mexico" program

Migrant wearing a cap with U.S. flagin front of the border between Guatemala and Mexico. Photo: Jair Cabrera Torres/picture alliance via Getty Image

The 9th Circuit Court of Appeals upheld a lower court's earlier injunction on Friday, temporarily stopping the Trump administration from enforcing the Migrant Protection Protocols (MPP) — known as the "Remain in Mexico" policy.

Why it matters: Tens of thousands of migrants seeking asylum have been forced to wait out their U.S. immigration court cases across the border in Mexico under the policy. The Trump administration has long credited this program for the decline in border crossings following record highs last summer.

Go deeperArrowUpdated 2 hours ago - Politics & Policy

Coronavirus updates: WHO raises global threat level to "very high"

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

The World Health Organization raised its global risk assessment for the novel coronavirus to "very high" Friday, its highest risk level as countries struggle to contain it. Meanwhile, National Economic Council director Larry Kudlow this morning tried to reassure the markets, which continued to correct amid growing fears of a U.S. recession.

The big picture: COVID-19 has killed more than 2,860 people and infected about 83,800 others in almost 60 countries and territories outside the epicenter in mainland China. The number of new cases reported outside China now exceed those inside the country.

Go deeperArrowUpdated 3 hours ago - Health

Bernie's plan to hike taxes on some startup employees

Illustration: Sarah Grillo/Axios

Sens. Bernie Sanders (D-VT) and Chris Van Hollen (D-MD) introduced legislation that would tax nonqualified stock options at vesting, rather than at exercise, for employees making at least $130,000 per year.

The big picture: Select employees at private companies would be taxed on monies that they hadn't yet banked.