Your Monday Blip 3/22/21

Your Monday Blip 3/22/21

The Dow finished the day up 103 at 32,731 on light trading volume. Tech stocks rebounded and Tesla shot higher while energy and banks were mixed. IBD has markets in rally mode while BTS is in cash but pending a move back into high yield.
What are shares of Tesla worth? Depends on who you ask. ARK Invest head Cathie “Short killer” Wood said over the weekend that Tesla could be worth $3,000 per share by 2025. Morgan Stanley meanwhile figures the stock is worth a more modest $800 per share. Why the difference? It gets back to China and self-driving technology. Some gurus feel that Tesla should be valued without considering sales to China since relations between the US and China are becoming a bit rocky. China accounts for 25% of Tesla sales and in fact it was reported that China is restricting its military people from buying a Tesla because all the cameras and location data might give away national security secrets. It’s our version of TikTok? Even with the possibility of this happening Tesla has said it will be offering level 5 autonomous driving this year which in turn sets the stage for the autonomous taxi which opens up new possibilities for Tesla.
Canadian Pacific Railroad is buying Kansas City Southern for $25 billion in cash and stock in what will create the first railroad with integrated connections covering the US, Canada and Mexico. The new company will sport 20,000 miles of track covering most of North America and is expected to benefit from the USMCA and increased trade with Mexico. Canadian Pacific tried to buy Norfolk Southern in 2016 and CSX back in 2014 but failed each time. CP CEO Keith “Real Deal” Creel will be in charge and KSU’s headquarters will move to Ontario, Canada.