Stocks Rise Slightly

Catch Up Quick

• U.S. air travel fell last week for first time since April

• Trump now says face masks are "patriotic"

• Supreme Court Justice Ginsburg announced the return of her liver cancer

• Mark Cuban warns current market participants of similarities to dot-com bubble

• Coronavirus vaccine from AstraZeneca shows positive response in early trial

• This past Friday, Florida reported more than 10K new virus cases for fifth day

My Monday Opinion

• This week dozens of companies are reporting earnings, including Microsoft, Intel, American Express, Tesla and Twitter, while Congress returns to session, discussing more potential economic stimulus— the end of July will be an integral period with respect to the short-term trajectory of the stock market as well as the broader economy

Thought of the Day

• Tesla’s stock ($TSLA) is up over 3x year to date, and many investors opine these returns are fractional compared to what is coming

• While delivery numbers have been solid, 30% of its entire shares outstanding are held by retail investors who deploy capital based on speculation, less informed theses, hype, herd mentality, etc

• As big name automotives beef up their electric offerings, I personally don’t see a runway as promising as some do

• In its latest sustainability report, G.M. outlined plans to deliver 20 electric vehicle offerings by 2023

• This will include models for nearly all of its brands, including Cadillac, GMC, Chevrolet, and Buick

• But wait! Tesla has first mover advantage, surely they will remain the vanguard

• Didn't Skype, myspace.com, and Kodak (the list goes on)?

The Bottom Lines

• To be clear, I’m definitely not saying that Tesla is outright doomed; however, I see an highly valued company with copious risks incoming

• Many automotive giants, with lots of capital, both financial and human, are heading for the electric / autonomous realm closely behind Tesla, during a time where transportation itself is threatened by work from home trends and societal lockdowns

— Thanks for Reading —