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Poor old Elon hasn't had a good week.

His highest profile supporters are heading for the exit.

SPAC superstar & Tesla bull Chamath revealed yesterday that he had sold all of his Tesla stock "in the past year"

Four years ago he said Tesla could be 'the next Apple', now he's all out because the high price meant he could generate cash to fund his other ideas.

And Cathie Wood's selling too...



But it's just another case of selling outperformance really...


BBG

It's still the largest position in the ARKK innovation ETF at 11%, and ARKK often 'rebalances' by selling whenever that figure goes above 10%.

So both Chamath & Cathie are selling up to fund other ventures.

But Cathie's still very much invested, and the chart isn't looking too bad either πŸ‘‡



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utrust

The big green nudge is on...

UK green energy surcharges set to switch from electric to gas bills (FT)

Next month, ministers will announce plans to pass green surcharges from electric bills to gas bills...


Hannah Dillon, from the Zero Carbon Campaign, said addressing that imbalance was crucial. β€œWe are calling for an end to the perversity of overtaxing electricity and undertaxing gas,”
Ministers hope tilting the balance of costs away from electricity towards gas will help nudge consumers to install electric heat pumps and buy electric cars, both of which are essential components of the government plan to achieve β€œnet zero” carbon emissions by 2050. The government is set to ban the sale of new gas boilers by 2035.
The plan would involve the introduction of new levies on gas bills designed to support net zero, such as a charge on gas bills to help fund the fledgling hydrogen industry.
It could also result in the transition of existing levies from electricity bills to gas bills, such as those used to subsidise low-carbon electricity.

That's the heart of the plan globally. Make undesirable power sources more expensive, and green energy sources cheaper. Nudge, nudge...

Other ideas mentioned:


  • Subsidies for renewable energy, including β€œcontracts for difference”, which guarantee the price of energy
  • Protecting energy producers from volatile wholesale prices
  • β€œFeed-in tariffs”, payments to households that produce their own renewable electricity, which are paid for through a levy on energy bills.

Ministers will also argue that Britain will benefit from a more secure energy system as the nation comes to rely less on imported gas and more on domestically generated nuclear, solar and wind power.

The nudging will continue until morale improves.

Just in case you're not familiar with 'nudge', Thaler's book is well worth a read, if only to understand how government think tanks are trying to influence your decisions...


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The outlook's not so bright. Expect to see more of this πŸ‘‡





Companies are fighting a lot of battles all at once.

The following is from Boohoo and it's very clear where the issue lies:


"Elevated short-term cost headwinds experienced in the first half are expected to continue in H2 alongside recent freight inflation in our supply chain and wage inflation within our distribution centres,"
Boohoo made adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 85.1 million pounds in the six months to Aug. 31, down 5% on the same period last year, reflecting 26 million pounds of additional freight and logistics costs.
First half sales rose 20% to 975.9 million pounds and are forecast to be up 20% to 25% over the full year, implying growth of 20% to 30% in the second half.
Boohoo said consumer demand had improved through both August and September.

This strange pattern of Increasing Sales & Strong Demand = Lower Profits is likely to feature strongly throughout this earnings season...