Connect with us

Financial News

Elon Musk: ESG Is A Scam

Published

on

The removal of Tesla from the S&P 500 ESG index is a big blow to green technology. The company has been one if its most reliable suppliers, but now it will be absent from what many consider to be an iconic list due in part by their recent issues with racial discrimination and autopilot vehicle crashes. Through Elon Musk’s Twitter account he argued that “ESG itself seems like a scam”.

The sustainability index has added Twitter and Phillips 66 to its list of companies. These new additions took effect on May 2nd while dropping Delta Air Lines (DAL) as well as Chevron Corporation(OG).

The debate over ESG metrics has been ongoing for some time now. It reflects the growing number of investors who are looking beyond traditional accounting numbers when making their decisions about which companies will best represent them in society and on what terms with future profits at stake, too.

Tesla is not just an auto industry company. It has become one of the most valuable companies in America by pioneering electric vehicles and expanding into battery storage for solar-power systems as well.

The lack of published details on Tesla’s low carbon strategy and business conduct codes were what contributed to their departure from the index.

Tesla has been making headlines for years as the world’s first and only company to produce electric vehicles with a range greater than 200 miles per charge. However, some of its other issues such as lack or poor disclosures relative to ESG criteria should also raise concerns among investors looking into judging Tesla based on environmental impacts alone.

“You can’t just take a company’s mission statement at face value; you have to look at their practices across all those key dimensions.” This was said by an expert on corporate social responsibility.

Advertisement

Musk called the ESG methodologies ‘fundamentally flawed.’ He went on to say that this is an example of how “phony” and unqualified these so-called social justice warriors really are.
Focused solely on profits at any cost, Tesla has been found guilty of manipulating its own product line with recycled materials when in reality it’s just a token effort put forth by environmentally conscious CEO Elon Musk.

When asked about the tweet, an index provider representative said Musk may have been referring to a list on their blog post of the largest 10 corporations by market cap in ESG indexes after the removal of Tesla and others. The list is “not ranked as best companies for sustainability,” according to them; Exxon now accounts for 1.443%. Apple Inc was at 9.657% before it dropped down last year due to new regulations implemented across various industries that promote sustainable development goals through reduced emissions.

The debate over whether ESG funds are effective in promoting change has been sparked by investors who want to see tangible results from their investment.
The push for more diversity and climate-friendly policies comes at a time when many Americans feel like the country is slipping away from them, with economic equality becoming an increasingly rare thing throughout America’s landscapes.

It’s no secret that investors are concerned about issues like diversity and climate change. They’ve poured billions of dollars into funds using ESG criteria to pick stocks, prompting debate about how effectively these “green” investment strategies promote social good or whether they push companies too much on matters better left up to government policy (or lack thereof).

The S&P 500 ESG Index fund received a D-grade from activist group As You Sow for containing fossil fuel stocks which account for 6.5% of its assets in spite of its sustainability mandate and name suggesting it is environmentally friendly.

S&P’s new index aims to keep industries weighted the same as they are in its regular S&P 500 while enhancing their sustainability profile. This means it can include oil companies that lack big players like Facebook parent Meta Platforms and Wells Fargo & Co., but won’t have any impact on how valuable those firms might be considered.

Tesla’s ESG score has declined slightly from last year, but at the same time, other automakers have improved their average. This causes Tesla to fall out of this index because it is considered low-quartile performance.

Dorn’s report offers more insight into the growing transparency of ESG ratings, which are becoming increasingly important for investors. Companies like Tesla get an “average” from MSCI Inc while Morningstar’s Sustainalytics unit gives them a medium risk rating based on their website information.

Advertisement

Financial News

Massive Update: NEW Chinese Policy on NIO Stock

Published

on

By

NIO

The stock of NIO and other electric car companies is poised to turn the corner higher and head in the right direction after the Chinese government indicated that it was exploring “severe measures” to improve manufacturing production.

This is earth-shattering news for the stocks of Chinese electric vehicle manufacturers like NIO. China has become the global leader in the electric vehicle market. In point of fact, sixty percent of all of the world’s batteries for electric vehicles are produced there. As a result, the manufacturing of electric vehicles in China will continue to advance in lockstep with the growth of China’s overall manufacturing output. If companies can speed up the production of these autos, it won’t be long before they see a return on their investment and start turning a profit. And very shortly after that, the value of their stock will skyrocket.

Additionally, China has announced that it would be extending tax benefits for consumers who are acquiring their first electric vehicle. These consumers will be eligible for these benefits beginning in 2022. At the end of this year, these would become invalid because their time limit had been reached. On the other hand, in view of continuous economic volatility and issues with the supply chain, it has been agreed to extend the suspensions through the year 2023, and possibly even further than that.

As a consequence of this, demand ought to continue being consistent. The bull thesis on electric vehicle stocks is gaining ground as a result of the strengthening of demand drivers as well as supply issues. This is especially true for NIO, which Luke thinks is one of the top electric vehicle stocks that are now available for purchase.

About NIO: Corporate Profile

NIO Inc. is a pioneer and a leading company in the premium smart electric vehicle market. Founded in November 2014, NIO’s mission is to shape a joyful lifestyle. NIO aims to build a community starting with smart electric vehicles to share joy and grow together with users. NIO designs, develops, jointly manufactures and sells premium smart electric vehicles, driving innovations in next-generation technologies in autonomous driving, digital technologies, electric powertrains and batteries. NIO differentiates itself through its continuous technological breakthroughs and innovations, such as its industry-leading battery swapping technologies, Battery as a Service, or BaaS, as well as its proprietary autonomous driving technologies and Autonomous Driving as a Service, or ADaaS. NIO launched the ES8, a seven-seater flagship premium smart electric SUV in December 2017, and began deliveries of the ES8 in June 2018 and its variant, the six-seater ES8, in March 2019. NIO launched the ES6, a five-seater high-performance premium smart electric SUV, in December 2018, and began deliveries of the ES6 in June 2019. NIO launched the EC6, a five-seater premium smart electric coupe SUV, in December 2019, and began deliveries of the EC6 in September 2020. NIO launched the ET7, a flagship premium smart electric sedan, in January 2021, and began deliveries of the ET7 in March 2022. NIO launched the ET5, a mid-size premium smart electric sedan, in December 2021. NIO launched the ES7, a mid-large five-seater premium smart electric SUV, in June 2022.

Advertisement
Continue Reading

Financial News

Intel’s CEO Threatens to Expand in Europe if Congress Doesn’t Act

Published

on

By

Intel

Pat Gelsinger, CEO of Intel, warned Tuesday that if Congress fails to pass $52 billion in government subsidies promised under the CHIPS Act, he may expand chip manufacturing in Europe instead of the United States.

At the Aspen Ideas Festival, Gelsinger remarked, “The rest of the world is moving rapidly despite the inability of Congress to get this finished.”

It was only in 2021 that Congress finally gave CHIPS the funding it needed as part of the National Defense Authorization Act. Attempts by the House and Senate to overcome differences on a broader package of policies to help the United States’ tech industry compete with China have left the money for subsidies stalled.

A shortage of government funding forced Intel to postpone the groundbreaking ceremony for a new $20 billion facility in Ohio, the company announced last week. He stated Tuesday, “I hate the idea of announcing a delay,” Gelsinger said.  Although Intel “would end up investing a lot more in Europe as a result,” he cautioned. A new $18 billion plant in Germany will be built as part of a $35 billion expansion of the chipmaker’s European operations.

According to Gelsinger, the CHIPS Act’s subsidies, which are limited to $3 billion per site, would help the United States “approximately competitive with other regions of the world.” There were no “handouts” in the industry, he claimed.

There are also calls from other semiconductor companies to support American chip manufacturers.

The construction of a $12 billion facility in Arizona by Taiwan Semiconductor Manufacturing Corporation will necessitate the U.S. government to subsidize the gap in operating expenses between Taiwan and the United States.

Advertisement

Taiwanese chipmaker GlobalWafer launched a new $5 billion facility in Texas on Monday. Despite this, Commerce Secretary Gina Raimondo told CNBC that the contract “will go away” if Congress does not approve subsidies for the project.

Government leaders in Taiwan are urging Congress to approve financing for the island nation. For the most part, this is because TSMC has already commenced construction in Arizona. Ming-Hsin Kung, a minister on Taiwan’s National Development Council, told the Washington Post on Tuesday that the Chips Act is expected to pass the Congress.

East Asian chipmakers “all believe they need to put more manufacturing in the U.S.” Gelsinger stated. There is no rivalry between us and TMSC or Samsung.” ‘We are not competing with TMSC or Samsung. We are competing with Taiwan and Japan and Korea,” he declared.

According to the European Chips Act, the European Union allocated $46 billion in support for chip manufacturing in February. Intel’s new factory in Germany will receive $7.3 billion of that money.

A $4.5 billion fund set up by the Japanese government to boost the country’s semiconductor industry would finance 40% of the cost of a new TSMC factory in Kumamoto.

As a matter of national security, according to Gelsinger, the United States must invest in chip manufacturing, transferring production away from East Asia. As he spoke, he said, “This is the future of geopolitics.”

Advertisement
Continue Reading

Financial News

Robinhood Shares Rise 16% After Report FTX is Considering a Buyout

Published

on

By

Robinhood

The trading of the no-commission trading platform Robinhood (HOOD) was briefly halted after it was reported, citing people with knowledge of the matter, that cryptocurrency exchange FTX was looking into a possible deal to acquire the company. This report caused the shares of Robinhood to rise by approximately 16 percent, and trading was halted briefly.

The article states that FTX has not yet made a formal offer, and it is possible that the company will decide against moving forward with any plans. An SEC document made public in May disclosed that Sam Bankman-Fried, founder and CEO of FTX, had acquired a 7.6 percent ownership in Robinhood through Emergent Fidelity Technologies Ltd., a company based in Antigua.

“We are excited about Robinhood’s business prospects and potential ways we could partner with them, and I have always been impressed by the business that [Robinhood CEO Vlad Tenev] and his team have built,” wrote Bankman-Fried in a statement. “That being said, there are no active M&A conversations with Robinhood.”

Coinbase (COIN) shares were downgraded by Goldman Sachs in a report published on Monday morning. The reduction was a result of the steep decrease in cryptocurrency prices and accompanying trading activity. Goldman Sachs raised shares of Robinhood from sell to neutral.

The price of a share of Robinhood has decreased by 47 percent so far this year. They have dropped by almost 75% since its initial public offering level in July of last year. The percentage of Robinhood’s revenue that comes from commissions earned from the trading of cryptocurrencies continues to rise.

About Robinhood (HOOD)

Robinhood is a cryptocurrency broker that not only makes trades easier but also enables users to buy stocks and alternative cryptocurrencies. You may purchase and sell a variety of cryptocurrencies within the Robinhood app, including Bitcoin, Ethereum, Bitcoin Cash, and even Dogecoin. These cryptocurrencies are all offered by Robinhood. The absence of trading costs, which may be rather variable among traditional exchanges, is one of the primary benefits of trading cryptocurrencies on Robinhood, just as it is with the company’s other investing opportunities.

Its accessibility as an investment platform is a major lure for many users, regardless of whether they are investing in cryptocurrencies or the stock market; nevertheless, this accessibility is also what can make Robinhood risky for users. It has been criticized on the grounds that it makes trading too much like a game and that it promotes volatility through aggressive trading rather than the growth of long-term investments. If you approach an already speculative asset like cryptocurrency with such a mindset, it might make your investment an even bigger bet. This is similar to how stock transactions work. Always asses the risk involved when making investment choices and seek professional guidance to insure you make the right decision for your investment strategy.

Advertisement

Continue Reading

Trending

© Copyright 2022 | All Rights Reserved RISK DISCLAIMER There is a very high degree of risk involved in trading. Past performance is not necessarily indicative of future results. Financial Wars and all individuals affiliated with this site assume no responsibility for your trading and investment results. All the material contained herein is believed to be correct, however, Financial Wars will not be held responsible for accidental oversights, typos, or incorrect information from sources that generate fundamental and technical information. Options trading carries significant risk. Futures and futures options trading carries significant risk. Trading securities, security options, futures and/or futures options is not for every investor, and only risk capital should be used. You are responsible for understanding the risk involved with trading options. Prior to trading any securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options. The indicators, strategies, columns, and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of Financial Wars may have a position or affect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. All of our partners or affiliated companies are in no way associated with the proprietary information provided by the Financial Wars Trading Method or software. All returns are based off buy side analysis and do not include commission costs. All projections are based on current returns. The projections do not account for any possible draw down effects on performance and performance projections. Actual returns and projected returns may fluctuate over the course of the service. "VIP" or "Lifetime" designation refers to the lifetime of the product only and not to be assumed to be the lifetime of any individual. Any person who chooses to use this information as a basis for their trading assumes all the liability and risk for themselves and hereby and absolutely agrees to indemnify and hold harmless Financial Wars, its principals, agents and employees. As a Student and Chat Subscriber, we ask that you please cross check the information posted here. We ask that you challenge any information you feel is incorrect. We do not guarantee any of the information that is posted in the chat. All company names are trademarks or registered trademarks if their respective holders. Use of a mark does not imply any affiliation or endorsement by them.

Social Media Auto Publish Powered By : XYZScripts.com