Stocks traded mixed today with the Dow up and the NASDAQ down. At the close the Dow posted a 9 point gain to 17,660 lighter trading volume.
Another day….another moment of disruption. Tesla reported earnings last night and the big stunner from the call came when Elon Musk said the company plans to be at a production rate of 500,000 vehicles per year by the end of 2018. This represents a 10X increase over current production rates. A jump this big has not been done since the days of Henry Ford and the Model T. Tesla reported a 22% jump in revenue but posted a wider loss than expected. The company manufactured 15,510 vehicles in the quarter and delivered 14,810 with is up 10% from 2015 Q4 numbers.
Atlas Air Worldwide, an air freight company in Purchase, NY, struck a deal with Amazon today in which the two firms will partner in an effort to build out Amazon’s air delivery system. As part of the deal Amazon can take a 20% stake in Atlas. Atlas flies the largest fleet of cargo 747’s and also offers 777’s, 767’s and 737’s. Their business model is to lease a whole plane and crew to a customer looking to move freight.
Oil prices shot higher today as two events spooked oil traders. One is a wildfire near Fort McMurray in Alberta, Canada which is disrupting output at several tar sands facilities and leading some regional pipelines to shut off the oil flow. The other item was reports of escalating violence in Libya by various Islamic groups. WTI crude spiked 3% at the open but then eased back and finished with a 1.3% gain at $44.35 per barrel.
Gold was up $5 an ounce to $1,279.