Tesla's New Car Insurance Service Will Actively Spy on You, Adjust Rates Accordingly - The Drive

Electric automaker Tesla is entering a new space: auto insurance. CEO Elon Musk announced on Wednesday during the automaker's Q1 2019 earnings call that Tesla will be offering an "insurance product" beginning in about a month.

Insuring a Tesla isn't cheap. In fact, high insurance cost is one of the largest complaints of many new owners, who do not expect a policy of a Tesla Model 3 to cost as much as a brand new Porsche 911 in some markets.

"It will be much more compelling than anything else out there," says Musk.

Documents show that "Tesla Insurance Services, Inc" has been incorporated since June 2017, indicating that Tesla has been planning to make this move for some time, but has just now made the announcement that it is readying the service for the public. Two former Tesla employees are listed as the corporation's directors; CFO Deepak Ahuja and General Council, Todd Maron.

via California SOS

Statement of Information, truncated for details.

Tesla built its notoriety by offering the latest in technology to consumers, and the latest updates to the car applied completely over the air. All these perks mean that Tesla's had direct access to a large amount of telemetric data about its cars and also its drivers.

Presently, Tesla does provide some of this data to insurance companies. Musk says this is to "help with rates," something which has been an ongoing issue for many Tesla drivers as insurance companies hike rates for the premium and luxury segments. But as Tesla launches its own insurance product, Musk also confirms that Tesla will use this information to determine its own rates.

Musk confirms that Tesla has “direct knowledge of the risk profile of customers based on the car,” Musk said, adding that this provides the automaker with an "arbitrage opportunity" based on the customer risk profile. So, if a customer wants to purchase Tesla insurance, they can do so and drive in a respectable manner. But drive in a "crazy way" (as Musk puts it), and "the insurance rate is higher.”

The idea of profile-based insurances rates is far from new. Insurance providers like Progressive have been using programs like this since 1998. One simply plugs in a dongle to their OBDII port and forgets about it; the insurer later reads the data and determines an appropriate risk profile. While the Snapshot program was originally introduced to incentivize good driving, Progressive eventually began to penalize bad drivers in 2013. While Snapshot relied on data being sent back to the insurer, other providers like Allstate soon followed by launching mobile apps to use data from a cell phone's accelerometer and GPS; one of the first "connected" examples of data augmentation for risk-based assessments.

The data that passes through an OBDII port is minuscule compared to the data that can be collected by Tesla. With exterior and interior facing cameras, the automaker can know exactly what the occupant is doing at all times. Musk has said on Twitter that the camera will be used should a driver enroll their car in Tesla's upcoming autonomous taxi fleet.

Tesla's always-connected approach means that the mothership can be beamed back for information about that time you decided to turn off autopilot or mash the gas. With stop sign and traffic signal detection, it could (theoretically) tell when you skirt by those yellow lights or perform a California roll at a stop sign. The purpose of big data is to take action without review—so build a big enough reputation for at-risk driving and rates could go up without human interaction.

Driver monitoring to this capacity could be a legitimate concern for some drivers, while others might not bat an eye at the thought of being scrutinized for every turn of the wheel and press of a pedal. Regardless, finding an appropriate middle ground between extremely high insurance rates and proper driver assessment is a very real conundrum that Tesla is looking to solve.

Let's block ads! (Why?)

https://www.thedrive.com/news/27648/teslas-new-car-insurance-service-will-actively-spy-on-you-adjust-rates-accordingly

2019-04-25 14:25:36Z
52780273338642

Stocks Turn Lower ; Facebook, Microsoft Spike - Investor's Business Daily

A divided start weakened into losses on Thursday, with Facebook (FB) and Microsoft (MSFT) driving the Nasdaq to a new record high, while heavy losses from 3M (MMM) dragged down the Dow Jones industrials.

X

The Nasdaq Composite reversed early gains and slipped 0.1%, despite strong moves from Facebook, Microsoft and Lam Research (LRCX).

The Dow Jones industrials fell 0.9% — about 240 points. 3M — which constitutes almost 6% of the index's weighting — led the declines. Microsoft muscled nearly 4% higher to lead the Dow.

The S&P 500 lagged 0.4%. Facebook rose highest among S&P 500 stocks. 3M and chipmaker Xilinx (XLNX) held the worst declines. Growth stocks ran toward the low end of Thursday's opening action, with the Innovator IBD 50 ETF (FFTY) showing an early 0.8% decline.

(For updates on this story and other market coverage, visit the Stock Market Today.)

Along with 3M, early earnings reports on Thursday also sent Nokia (NOK) and Patterson Energy (PTEN) into nosedives. IBD 50 stocks Xilinx and Spirit Airlines (SAVE) fell hardest among the S&P 500 stocks reporting late on Wednesday.

Lam Research, Aaron's (AAN) and IBD Leaderboard stock ServiceNow (NOW) set up for potential early breakouts. Hershey (HSY) positioned itself to extend recent gains. The recent rally in chip stocks was divided between Xilinx and Lam Research.

The iShares PHLX Semiconductor ETF (SOXX) fell 0.7%. The Direxion Daily Semiconductor Bull 3X (SOXL) dipped 1.9% in early trade.

Cloud Computing Boosts Facebook Stock

Facebook earnings rose 12% while revenue jumped 26% — both clearing analyst estimates. Facebook stock soared 7% in opening trade. UBS upgraded Facebook stock to buy, from neutral, early Thursday. The company said it had set aside $3 billion, preparing for potential resolution of a Federal Trade Commission investigation into data privacy issues. It recorded that $3 billion in its costs for the quarter. The company reported mobile ad revenue rose 91% during the quarter, to 93% of its total ad revenue.

Thursday's gain moved Facebook stock to about 12% below a 218.72 buy point within a deep cup base. Cloud computing services rival Amazon.com (AMZN) climbed 1% in early action, ahead of its first-quarter report due out after today's close.

Microsoft, 3M Divide Dow Jones

Microsoft earnings and revenue easily topped analyst expectations, sending shares ahead 4.1%. Cloud computing revenue surged 41%, to $9.6 billion.

Microsoft stock is working on its seventh-straight weekly advance, and Thursday;s move pushed shares more than 20% above a 108 cup-with-handle buy point. That placed the stock in a profit-taking zone.

3M stock dived 10% after a steep first-quarter earnings and revenue miss. Management cut guidance, citing "slowing conditions in key end markets," and said it had accelerated its restructuring plans.

3M shares had gained 24% from a December low, and were moving up the right side of a 14-month consolidation.

Breakouts: ServiceNow, Aaron's

Cloud-based workflow software developer ServiceNow hammered out an 8% advance after reporting a 20% earnings increase and a 34% rise in revenue for its first quarter. Both numbers easily cleared analyst hurdles. Canaccord raised its price target to 285, from 240, and maintained its buy rating on the stock. Keybanc held its rating at overweight and hoisted the price target to 270, from 250.

The move produced a breakaway gap for the IBD Leaderboard stock, opening well above a 251.75 buy point in a five-week flat base. The breakaway gap establishes a buy zone beginning at the stock's opening price of 261.89.

Electronics and furniture leasing chain Aaron's spiked 6%. First-quarter earnings rose a better-than-expected 33%. Revenue gained 6% to clear $1 billion for the first time.  The early gain on Thursday sent the stock past a 54.13 buy point in an eight-week cup-with-handle base. This could also be considered a breakaway gap, although the stock lagging Relative Strength line leaves some doubt about the strength of the breakout. Shares opened at 55.05.

Durable Goods, Jobless Claims Data

Orders for durable goods surged 2.7% in March, the Commerce Department said, reversing February's 1.6% decline and blasting past views for a 0.7% advance. Transportation was the determining factor, without which orders rose a mere 0.4% — up from a 0.1% gain in February. Core capital goods gained 1.3%, up from a 0.1% slip and besting estimates for a 0.1% rise.

First-time unemployment claims filed in the week ended April 20 jumped almost 20%, to 230,000, the Labor Department reported. That was above forecasts for an increase to 209,000 claims, and the biggest jump in claims filed since September 2017.

Dow Jones: A Bullish Ace?

The Dow Jones Industrial Average recorded a 0.1% gain for the week through Wednesday, maintaining its incremental pace over the past two weeks. The Dow is creeping toward its prior high, ending Wednesday 1.3% below that mark.

The Nasdaq briefly punched through its prior peak on Wednesday, then retook that mark on Thursday, as well as the August high of 8,133. The S&P 500 remains smashed up below its September record, ending a fraction below the mark on Wednesday.

A move above the prior peaks would effectively erase all of the hit taken after incremental upticks in trade war tariffs and Iran sanctions drove the major benchmarks off their peaks between August and October last year. The resolution of those matters remains a potential upside, a pair of bullish aces for global markets and economies, and for the Trump administration heading into the 2020 election cycle.

For more detailed analysis of the current stock market and its confirmed uptrend, study the Big Picture.

Shanghai Slides On Stimulus Worries

In China, stocks in Shanghai sold off as regulators continue contemplating an easing of economic stimulus measures that drove better-than-expected first-quarter growth. The Shanghai Composite dived 2.4%. Hong Kong's Hang Seng index fell 0.9%. The Shanghai Composite is up 28.4% since the start of the year.

The scene was brighter in Japan, where Tokyo's Nikkei 225 climbed 0.5%. Earnings reports were generally positive, and the Bank of Japan announced it would hold both short- and long-term interest rates at current, historically low levels at least until spring 2020.

View the General Market Indicators chart page here.

Find Alan R. Elliott on Twitter @IBD_Aelliott

YOU ALSO MIGHT LIKE:

The Big Picture: Bulls Cheer All-Time High For Nasdaq

What Is A Blue Chip Stock?

MarketSmith: Research, Charts, Data And Coaching All In One Place

IBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today

Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks

Let's block ads! (Why?)

https://www.investors.com/market-trend/stock-market-today/stock-futures-split-dow-jones-stocks-facebook-microsoft-stock-spike/

2019-04-25 14:15:00Z
52780276668806

Tesla needs $2.5 billion in fresh capital, says a top analyst, and it's causing the stock to drop - CNBC

Tesla CEO Elon Musk's comments during the latest quarterly update were a hint that the electric vehicle maker will soon need to raise billions more in capital, Morgan Stanley said on Thursday.

"Given improvements in efficiency and upcoming expansion plans, Mr. Musk admitted that from today's perspective there is 'some merit' to raising capital," Morgan Stanley analyst Adam Jonas said in a note to investors. Jonas is widely followed on Wall Street as an early authority on both Tesla and electric vehicles.

Morgan Stanley forecasts Tesla will raise $2.5 billion in the third quarter of this year, coming "from strategic sources," Jonas said. The firm has a $240 a share price target on Tesla's stock, as Jonas said "concerns over demand and liquidity" will weigh on the stock.

"We think Tesla is waiting to demonstrate a recovery in demand and cash flow before looking to stabilize its balance sheet," Jonas added.

On the company's conference call with investors, Musk deferred on the company raising capital any time soon.

"I don't think raising capital should be a substitute for making the company operate more effectively," Musk said. "I do think there is some merit to raising capital, but is sort of probably about the wrong timing."

Tesla CFO Zach Kirkhorn also warned shareholders that the company will likely report a loss for its second quarter, as well.

Tesla's stock fell 1% in premarket trading from Wednesday's close of $258.66 a share.

Let's block ads! (Why?)

https://www.cnbc.com/2019/04/25/morgan-stanleys-adam-jonas-tesla-is-going-to-have-to-raise-2point5-billion-in-capital.html

2019-04-25 12:30:54Z
52780273338642

10 things you need to know before the opening bell (SPY, SPX, QQQ, DIA, TSLA, FB, DB) - Business Insider

Russian President Vladimir Putin, right, toasts with North Korea's leader Kim Jong Un after their talks in Vladivostok, Russia.AP/Alexei Nikolsky, Sputnik, Kremlin Pool Photo

Here is what you need to know. 

1. History suggests stocks could be headed even higher. The stock market just hit its first record high since October, and history shows that S&P 500 returns over the next 12 months following periods where new highs were not recorded for at least six months averaged 12.9% with 17 of the 18 periods recording a positive return, according to LPL Financial's Ryan Detrick.
2. Tesla posts a big loss. The electric-car maker lost an adjusted $2.90 a share on revenue of $4.54 billion, missing the $1.30 loss and $4.84 billion that was expected.
3. Facebook expects be fined up to $5 billion by the FTC. The social-media giant beat on revenue and said it's bracing for a fine from the the Federal Trade Commission of between $3 billion and $5 billion due to privacy issues.
4. Deutsche Bank and Commerzbank's merger talks collapse. "A combination with Deutsche Bank would not have created sufficient benefits to offset the additional execution risks, restructuring costs, and capital requirements associated with such a large-scale integration," Commerzbank said in a press release announcing the end of talks.
5. Carlos Ghosn is out on bail. The former Nissan chairman walked out of a Tokyo detention center on Thursday after posting a $4.5 million bond. He is expected to go to trial later this year to face a charge of aggravated breach of trust and three other charges of financial misconduct.
6. Slack is getting ready to go public. The workplace-chat provider could file its S-1 as soon as this week, putting it on track to go public through a direct listing on the Nasdaq in May or June. 
7. A fund manager who's beaten 98% of his peers shares his blueprint for success. David Eiswert, the manager of the $55 million T. Rowe Price Global Focused Growth Equity Fund, focuses on companies with strong balance sheets that can improve their future returns even if the economy isn't booming.
8. Stock markets around the world were mostly lower. China's Shanghai Composite (-2.43%) led the losses in Asia and Britain's FTSE (-0.34%) trails in Europe. The S&P 500 was set to open little changed near 2,928.
9. Earnings reports keep coming. 3M, Altria, D.R. Horton, and Southwest Airlines report ahead of the opening bell while Amazon, Ford, Intel, and Starbucks release their quarterly results after markets close.
10. US economic data flows. Initial claims and durable goods orders will both be released at 8:30 a.m. ET. The US 10-year yield was up 1 basis point at 2.53%.

Let's block ads! (Why?)

https://www.businessinsider.com/stock-market-news-opening-bell-april-25-2019-2019-4

2019-04-25 10:55:17Z
CAIiEK2O0zO3OTkvDZOKq8kWK8MqLQgEKiUIACIbd3d3LmJ1c2luZXNzaW5zaWRlci5jb20vc2FpKgQICjAMMJD-CQ

Tesla cars are now 'quite old' and the exclusive brand is at risk, analyst says - CNBC

Tesla's Model S and X cars are reaching the end of their product life cycle and will need a serious upgrade if the company wants to retain a luxury price tag, one auto analyst told CNBC.

Tesla shares were largely unchanged in after-hours trade Wednesday, after the electric car maker posted a wider-than-expected first-quarter loss on an adjusted basis.

The company blamed the dip on struggles to deliver its key Model 3 car to Europe and China, while demand slipped following the end of a tax credit for buyers in January. Tesla warned it will not return to profitability before the second half of this year.

Evercore ISI Group recently downgraded Tesla to an underperform rating and Head of Global Automotive Research, Arndt Ellinghorst, told CNBC's "Street Signs" that the firm's latest update confirmed his view about the risk of cash burn and liquidity at Tesla.

"If you claim that demand is huge and unlimited then the key question is, why do you lower your mix? Why do you lower your pricing?" Ellinghorst added.

The analyst said that in his call to investors, Tesla CEO Elon Musk had not been very clear about a pricing strategy to maintain demand. He added that the Model S, first introduced in 2012, and the SUV model X which debuted in 2015, were now starting to look "quite old."

"I mean the S and the X are quite advanced in any normal life cycle of a product so they would really need significant refresh in order to restore the pricing."

Tesla introduced the Model 3 sedan in 2017 and unveiled a compact SUV, known as the Model Y in March this year.

The Model Y is an attempt to tap into the hugely popular SUV market that dominates the U.S. car market in particular.

"We'll probably do more Y than S, X, and 3 (sales) combined," Musk claimed in March. By the time the Model Y comes to market in 2020 that would equate to more than 1 million vehicles.

Ellinghorst said both the Model 3 and Model Y would attract buyers but Musk's promise of a million of sales looked unrealistic. He said pressure from rival German automakers would make it difficult to enter the car markets of Europe and China with any real scale.

"The brand will be less exclusive than it has been in the past," he said.

Tesla said it lost $702 million on an adjusted basis, or $4.10 a share, in the first quarter while revenue reached $4.5 billion. The company also ended the quarter holding $1.5 billion less than at the end of 2018.

The stock price is down more than 22% year-to-date but Ellinghorst said at around $257 per share it is still too pricey.

"It is priced for growth and we don't see how that growth is going to be financed."

The analyst added that Musk had "opened the door" to fresh equity but investors might now be less interested given the recent reduction in both demand and pricing.

Disclaimer: Ellinghorst, his colleagues, and the Evercore company as a whole do not own a stake in Tesla.

Let's block ads! (Why?)

https://www.cnbc.com/2019/04/25/tesla-cars-are-now-quite-old-and-the-exclusive-brand-is-at-risk.html

2019-04-25 12:26:47Z
52780273338642

Altria Shares Fall After Tobacco Maker Misses Earnings Estimates - TheStreet.com

Shares of Altria (MO - Get Report) were falling Thursday after the tobacco maker missed expectations in the first quarter on both the top and bottom lines. 

The stock was falling 2.58% to $53.30 a share in premarket trading. 

Adjusted earnings were 90 cents a share, missing Wall Street estimates of 92 cents. Adjusted earnings a year earlier were 95 cents a share. Sales rose 6% from a year earlier to $4.39 billion but were below expectations of $4.59 billion. 

Altria said adjusted earnings in the quarter add back unrealized losses related to its investment in Cronos (CRON - Get Report) , and lower earnings from Anheuser-Busch InBev (BUD . 

"As expected, Altria's first quarter adjusted diluted EPS declined in the mid-single digit range as we incurred higher interest expense as a result of our recently issued debt, without the full benefit of savings from our cost reduction program, which began to ramp up at the end of the quarter," said Howard Willard, Altria's chairman and CEO. 

The company reiterated it expects adjusted per-share earnings growth for 2019 of 4% to 7%. 

The stock has risen 11% so far this year. 

Let's block ads! (Why?)

https://www.thestreet.com/markets/altria-falls-after-tobacco-maker-misses-earnings-estimates-14937393

2019-04-25 12:01:12Z
52780276079802

Microsoft becomes third US company to reach trillion-dollar market cap - Android Police

Microsoft's stock price rose this week, briefly seeing the company join the pantheon of trillion-dollar tech giants. MSFT opened at $121.05 Monday morning and peaked at $125.76 Tuesday, nudging the company's valuation over the $1 trillion mark. The price has since fallen.

One share of MSFT was trading for $125.01 at close yesterday for a total market cap of $959.1 billion. As of writing, shares are going for $130.37 in pre-market trading, and it seems likely Microsoft will get back up over $1 trillion in the near future.

Both Apple and Amazon beat Microsoft to the punch on attaining 13-figure valuations last summer, although neither have maintained that status. Apple's market cap is currently $976.82 billion; Amazon's is $935.76 billion.

Let's block ads! (Why?)

https://www.androidpolice.com/2019/04/25/microsoft-becomes-third-us-company-to-reach-trillion-dollar-market-cap/

2019-04-25 10:32:00Z
52780276022016