Diamonds and Dogs

1/30/20

Tesla (TSLA) trades at new highs. The electric carmaker is up 10% to new highs following strong earnings. Tesla beat estimates by 2.5 times while sales rose 2.2% to $7.38 billion. Tesla managed to generate more than a billion in free cash flow in 2019 while building a factory in Shanghai. Tesla also expects to deliver at least half a million vehicles this year and currently does not have to raise as capital. The stock is up 50% for the first four weeks of the year and up 2.5 times since October. Many analysts remain skeptical while the short interest remains high at 11% of the free float.

United Parcel Service (UPS) spending big to keep up with online demand. The stock is down 5% to a seven-month low after in-line earnings and disappointing guidance. UPS needs to accelerate spending to become more efficient with more automation while also expanding weekend services. UPS will spend $1.4 billion on a new "super hub" in Harrisburg, Pennsylvania, and other automated sorting facilities in that state.