Sep 11, 2018

Tesla: When a company isn't investable

Illustration: Sarah Grillo / Axios

Tesla has a market value of nearly $48 billion, making it one of the 150 most valuable companies in America. Yet Nomura Instinet analyst Romit Shah today put out research saying that Tesla is "no longer investable."

The reason: What Shah refers to as "the erratic behavior of Elon Musk."

Shah says that Tesla could be a good bet with a different leader, but chaos monkey CEOs aren't the only reason that securities are sometimes considered uninvestable.

  • The S&P 500 won't include unprofitable companies, which is why Tesla isn't in the index.
  • Memories are still raw when it comes to synthetic derivatives, which no one really understood and which therefore no one should have been investing in before the financial crisis.
  • Similar arguments can be and often are made about cryptocurrencies, today.
  • Environmental, social, and governance considerations can also make a stock uninvestable.
  • Many investors won't touch gun manufacturers, for instance, or tobacco companies, or companies like Snap which give shareholders no voting rights.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 3:30 p.m. ET: 838,061 — Total deaths: 41,261 — Total recoveries: 174,115.
  2. U.S.: Leads the world in confirmed cases. Total confirmed cases as of 3:30 p.m. ET: 177,452 — Total deaths: 3,440 — Total recoveries: 6,038.
  3. Public health updates: More than 400 long-term care facilities across the U.S. report patients with coronavirus — Older adults and people with other health conditions are more at risk, new data shows.
  4. Federal government latest: The White House and other institutions are observing several models to better understand and prepare cities for when the coronavirus is expected to peak in the U.S.
  5. In Congress: New York Rep. Max Rose deploys to National Guard to help coronavirus response.
  6. 🎧 Podcast: Misinformation in the coronavirus age.
  7. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

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U.S. coronavirus updates: White House studies models projecting virus peak

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

The White House and other institutions are observing several models to better understand and prepare cities for when the coronavirus is expected to peak in the U.S.

The state of play: The coronavirus is expected to peak in the U.S. in two weeks, but many states like Virginia and Maryland will see their individual peaks well after that, according to a model by the University of Washington's Institute for Health Metrics and Evaluation.

Go deeperArrowUpdated 2 hours ago - Health

FDA authorizes two-minute antibody testing kit to detect coronavirus

Currently, it takes days to produce results from testing kits. Photo: Sergei Malgavko\TASS via Getty Images

The Food and Drug Administration issued an emergency approval Tuesday for a serological testing kit produced by Bodysphere Inc. that can detect a positive or negative result for COVID-19 in two minutes.

Why it matters: Access to testing has improved in the U.S. thanks to commercial labs, but the average wait time for a patient's results is four to five days — with some reports of it taking more than a week.

Go deeperArrowUpdated 3 hours ago - Health