Latest news with #Brinkman
Yahoo
5 days ago
- Automotive
- Yahoo
Analyst says Tesla faces one big beautiful hit from Trump bill
Analyst says Tesla faces one big beautiful hit from Trump bill originally appeared on TheStreet. After demonstrating strong resilience and rising steadily in May 2025, Tesla () stock is off to a difficult start for June. CEO Elon Musk finally did what many experts have advocated for and shifted his focus away from Capitol Hill and back to his companies. When he announced plans to step away from the Department of Government Efficiency (DOGE), share prices surged and investors rejoiced. 💵💰💰💵 June stands to bring a highly anticipated event, as Tesla prepares to debut its fleet of autonomous robotaxis in Austin, Texas. Despite concern that its technology isn't ready, Musk has made it clear that the company will proceed with the launch as planned, even after admitting he is 'paranoid' about it. That isn't the only potential problem Tesla is facing, though. One Wall Street analyst recently speculated that a looming policy from the White House could significantly impact its bottom line. Over the past few months, Tesla stock has battled high volatility, primarily trending downward from January through April. Musk's focus shift from DOGE to Tesla and SpaceX helped spark momentum as the Spring season began, suggesting that a turnaround could be now all experts are convinced that the company's road to recovery will be smooth. JPMorgan analyst Ryan Brinkman recently highlighted a risk that Tesla is facing, one that stands to severely compromise its chances of getting share prices back to their previous highs. Brinkman's thesis centers around a piece of legislation that has been trending on Capitol Hill lately. It would represent a major policy achievement for President Donald Trump. Dubbed 'One Big Beautiful Bill Act,' it centers around tax cuts and social reforms, most of which would benefit the already wealthy. Trump's economic policies are often geared at benefiting corporations and wealthy individuals, such as the Tax Cuts and Jobs Act (TCJA), the landmark bill from his first term. However, Brinkman thinks that his newest bill is likely be shave up to 52% off Tesla's Earnings Before Interest and Taxes (EBIT), a key financial metric. 'The legislation would get rid of the $7,500 federal tax credit EV buyers receive, resulting in a $1.2 billion (19% of its EBIT) headwind for the company thanks to lower demand and margins,' reports Sherwood News. 'Additionally, [it] would outlaw the California Air Resources Board's ZEV program, which furnishes Tesla with regulatory credits. Without them, Tesla would have posted a loss last quarter.' More Tesla News: Billionaire fund manager dumps Tesla in favor of other tech stock Elon Musk, Tesla send bold message to Washington, DC Elon Musk gets devastating news as the 'anti-Tesla' catches on According to Brinkman's estimations, that could result in Tesla taking an additional $2 billion hit, amounting to roughly 33% of its EBIT. On a recent webinar, he stated that the market seemed completely oblivious to what the bill could mean for TSLA stock if passed. Brinkman isn't the only one concerned about what the bill could mean for Tesla. Elon Musk, who recently announced that he is done with his political responsibilities, recently expressed disappointment with Trump, stating that the bill 'increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing.'The Tesla CEO noted that while he thinks the bill can be both big or beautiful, he is skeptical that it can be both. While he hasn't commented on what it could mean for Tesla, it is clear he doesn't approve of how Trump, someone he previously worked closely with, is approaching this major bill. Investing expert James "Rev Shark" DePorre recently raised the question of whether or not Wall Street will be forced to admit that there is a 'method to Trump's madness.' As it stands, the answer remains unknown, as economic conditions remain complicated and highly uncertain, making it hard to pinpoint broader market movements. If Tesla stock continues to struggle as the bill gains traction, though, other experts may join Brinkman in his argument that the EV leader could end up paying the price for Trump's policy. This could push shares downward at a highly critical says Tesla faces one big beautiful hit from Trump bill first appeared on TheStreet on Jun 3, 2025 This story was originally reported by TheStreet on Jun 3, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
03-06-2025
- Automotive
- Miami Herald
Tesla could take major hit from Trump bill, analyst predicts
After demonstrating strong resilience and rising steadily in May 2025, Tesla (TSLA) stock is off to a difficult start for June. CEO Elon Musk finally did what many experts have advocated for and shifted his focus away from Capitol Hill and back to his companies. When he announced plans to step away from the Department of Government Efficiency (DOGE), share prices surged and investors rejoiced. Don't miss the move: Subscribe to TheStreet's free daily newsletter June stands to bring a highly anticipated event, as Tesla prepares to debut its fleet of autonomous robotaxis in Austin, Texas. Despite concern that its technology isn't ready, Musk has made it clear that the company will proceed with the launch as planned, even after admitting he is "paranoid" about it. That isn't the only potential problem Tesla is facing, though. One Wall Street analyst recently speculated that a looming policy from the White House could significantly impact its bottom the past few months, Tesla stock has battled high volatility, primarily trending downward from January through April. Musk's focus shift from DOGE to Tesla and SpaceX helped spark momentum as the Spring season began, suggesting that a turnaround could be imminent. Related: Analyst sets eye-popping Tesla stock price target However, now all experts are convinced that the company's road to recovery will be smooth. JPMorgan analyst Ryan Brinkman recently highlighted a risk that Tesla is facing, one that stands to severely compromise its chances of getting share prices back to their previous highs. Brinkman's thesis centers around a piece of legislation that has been trending on Capitol Hill lately. It would represent a major policy achievement for President Donald Trump. Dubbed "One Big Beautiful Bill Act," it centers around tax cuts and social reforms, most of which would benefit the already wealthy. Trump's economic policies are often geared at benefiting corporations and wealthy individuals, such as the Tax Cuts and Jobs Act (TCJA), the landmark bill from his first term. However, Brinkman thinks that his newest bill is likely be shave up to 52% off Tesla's Earnings Before Interest and Taxes (EBIT), a key financial metric. More Tesla News: Billionaire fund manager dumps Tesla in favor of other tech stockElon Musk, Tesla send bold message to Washington, DCElon Musk gets devastating news as the 'anti-Tesla' catches on According to Brinkman's estimations, that could result in Tesla taking an additional $2 billion hit, amounting to roughly 33% of its EBIT. On a recent webinar, he stated that the market seemed completely oblivious to what the bill could mean for TSLA stock if passed. Brinkman isn't the only one concerned about what the bill could mean for Tesla. Elon Musk, who recently announced that he is done with his political responsibilities, recently expressed disappointment with Trump, stating that the bill "increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing." Related: Tesla's robotaxi rollout is alarming the public, new report shows The Tesla CEO noted that while he thinks the bill can be both big or beautiful, he is skeptical that it can be both. While he hasn't commented on what it could mean for Tesla, it is clear he doesn't approve of how Trump, someone he previously worked closely with, is approaching this major bill. Investing expert James "Rev Shark" DePorre recently raised the question of whether or not Wall Street will be forced to admit that there is a "method to Trump's madness." As it stands, the answer remains unknown, as economic conditions remain complicated and highly uncertain, making it hard to pinpoint broader market movements. If Tesla stock continues to struggle as the bill gains traction, though, other experts may join Brinkman in his argument that the EV leader could end up paying the price for Trump's policy. This could push shares downward at a highly critical time. Related: Billionaire fund manager, skeptical of AI, backs shocking stock The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
CNBC
22-05-2025
- Automotive
- CNBC
JPMorgan says shares of this American tiremaker can rally 60% as tariffs hit competitors
JPMorgan is bullish on Goodyear Tire & Rubber , as the company is not only executing on its transformation plans but can also serve as a hideout from tariff pressures. Analyst Ryan Brinkman assigned an overweight rating to the stock. He also lowered his year-end price target by $1 to $17, but that still suggests shares could gain 61.9% from Wednesday's close. Hype has been building around Goodyear Tire's major transformation efforts , which were revealed after activist investor Elliott Investment Management took a stake in the company in 2023. Goodyear's "Goodyear Foward" two-year transformation plan ends in December, but is ahead of schedule for its benchmarks, the company has said. The plan includes implementing top-line and cost reductions of $1.5 billion, doubling operating income margin to 10% and significantly reducing the company's debt load. GT 1Y mountain Goodyear stock performance. Brinkman thinks these changes will lead to stronger earnings and greater debt deleveraging for the company. He also highlighted that Goodyear can manage tariff pressures better than rivals given its significantly U.S. manufacturing footprint. "There is the new kicker of potentially material price and/or share gains emanating from Goodyear's best-in-class positioning vis-à-vis recently imposed tariffs," the analyst said in a Thursday note to clients. "The higher earnings in combination with lower-than-expected Goodyear Forward restructuring costs contribute to a delevering process that is being significantly catalyzed by a strategy to dispose of non-core assets, which we assess is also running ahead of plan," he added. Analysts are split on Goodyear. LSEG data shows that of the 11 analysts covering the stock, six rate it a strong buy or buy, while five have a hold rating on shares.
Yahoo
20-05-2025
- Business
- Yahoo
Controversial Oklahoma bill would block cities from banning pet stores
OKLAHOMA CITY (KFOR) — Animal welfare advocates are raising concern about a bill at the Oklahoma State Capitol. House Bill 1421 would only allow the state government to make rules about banning pet stores like Petland, not the local government. 'We do not want these type of operations in our state, let alone our communities. And we certainly don't want out-of-state corporate puppy mills telling us how to regulate our local municipalities,' said Katie Hawk, co-founder of Good Dogma. It's personal for Hawk; she helped get an ordinance passed in 2021 banning the retail sale of dogs and cats in Midwest City that come from breeders. This bill would undo that. 'Our local rescues are full, our local shelters are full. We do not have the capacity to manage more pets in our community, let alone sick pets from Petland,' said Hawk. We reached out to Petland, but didn't hear back. The Pet Advocacy Network has hired an instate lobbyist to support the passage of House Bill 1482. 'Local governments can still regulate, inspect and set high standards, just not erase these businesses entirely,' said Ashley Brinkman, government affairs director for Pet Advocacy Network. State lawmakers start approving items for new $12.5 billion budget They believe bans like Midwest City's don't work, bringing up a similar state-level ban in California. 'To this day, not one puppy mill has been shut down. Their shelters are just as overcrowded and overpopulated,' said Brinkman. Brinkman says there has also been a rise in puppy scams. Another reason behind this push is for consumer choice. 'Local pet sale bans in this way eliminate the only trusted brick and mortar sources that many families have for finding a pet,' said Brinkman. While others say there are plenty of pets at the shelter. 'There are designer breeds, there are mutts, there's a little bit of everything at the shelters and they all have just as much of a big loving heart and goofy soul as the ones that are at these designer puppy mills,' said Hawk. Hawk says there is also a public health risk. 'Sick animals have brought home contagious infections that have been contracted by their new owners who were then hospitalized,' said Hawk Representative Josh West (R-Tulsa) co authored this bill with Senator Grant Green (R-Wellston). We reached out to both and they declined to comment. Those against the bill encourage you to reach out to them and share your concerns. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Boston Globe
12-05-2025
- Business
- Boston Globe
Rome? How about a road trip instead. Americans pare back vacation plans as economy wobbles.
Advertisement Adding to the allure of road trips, oil prices have dropped to near a four-year low, pushing down gasoline costs. The national average pump price was about $3.14 a gallon Sunday, almost 50 cents a gallon cheaper than a year earlier, AAA data show. US gasoline prices will remain at roughly that level in the second and third quarter, the Energy Information Administration projects. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Meanwhile, domestic flights are 2 percent more expensive this Memorial Day weekend compared to the same period last year, with an average round-trip ticket costing $850, the AAA said. That's being driven partly by bargain airlines moving upscale and raising fares. Concerns surrounding airplane safety in light of a few high-profile incidents are also giving travelers pause. The turmoil has led several US airlines to withdraw their full-year earnings forecasts. Advertisement Beyond the pricing factors, recent stock market volatility pushed nearly 68 percent of travelers to alter their vacation plans, from paying upfront to counteract a weakening dollar to canceling altogether, data from travel tech company Histoury shows. For Julie Brinkman, Americans' rapidly changing travel plans remind her of the shift during the sweeping flight restrictions and lockdowns to fight COVID-19 in March 2020. Travelers are increasingly opting for destinations like the Gulf Coast, Gold Coast and Smoky Mountains over overseas markets, said Brinkman, chief executive officer of Beyond, a revenue manager for vacation rentals. 'People still want to take trips, but those trips might be closer to home,' Brinkman said. 'They're also waiting longer to book. They need to know that they have job security, that they're able to fund their trip.' Energy research firm Wood Mackenzie now sees US jet fuel demand falling 0.7 percent in 2025, compared to the 1.1 percent advance it projected at the start of the year. The revision accounts for diminished travel spending as consumers sour on the Trump administration's economic stewardship, said Austin Lin, an analyst for the firm. In the meantime, jet fuel demand is still at the highest since 2019 for this time of year on a four-week-average basis, according to US government data. 'There's an emotional component to the market,' Lin said. Even if the trade war is resolved quickly, the memory of markets' sudden plunge will keep a lid on discretionary spending, he said. The richest Americans, who saw their wealth shrink in the recent stock market slide, also are reshaping vacation plans. Travel Beyond — which specializes in trips that average $22,000 per person and feature exotic locales ranging from the Arctic to Africa — saw inquiries in March fall 20 percent from a year earlier, followed by a 14 percent drop in April. Advertisement So far, at least one client has explicitly cited economic uncertainty in canceling an upcoming trip, while others are adjusting departure dates to capture off-peak prices, according to Kayla Hoyles, a travel adviser at the Minnesota-based firm. For Oregonian traveler Herman, financial constraints are limiting her Memorial Day weekend plans to either a day trip or nothing at all. Even though Trump's tariffs aren't yet showing up in prices, she says she's already stressed about living costs. 'It feels like we're all being squeezed from every angle,' Herman said. 'And it makes it harder to plan anything long-term.'
