Latest news with #GuggenheimSecurities
Yahoo
4 days ago
- Automotive
- Yahoo
Why this analyst is 'skeptical' about Tesla's robotaxi plans
Tesla (TSLA) stock is in focus as investors wait for the company's robotaxi event on Thursday. The autonomous taxi launch comes just after CEO Elon Musk and US President Trump's public fallout. Guggenheim Securities director of automotive equity research, Ron Jewsikow, a longtime Tesla bear, joins Morning Brief with Brad Smith and Madison Mills to discuss what to expect from the robotaxi rollout. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Well, President Trump told NBC News this weekend that he had no desire to repair his relationship with Tesla CEO Elon Musk after the two exchanged heated blows on social media last week. Two Wall Street firms downgraded shares of the EV maker Monday after the stock fell more than 14% in the past week. Our next guest is a long-time Tesla bear with a sell rating and a $170 price target on the stock, Ron Josuko, Guggenheim Securities Automotive Equity Research director, joins us now. Ron, good to see you here with us this morning. So, I mean, just take us into, first, your thinking as the spat was playing out via social media and and Twitter fingers, essentially, were prevailing. But how much of this is an overhang to Tesla as an operation and as a manufacturer of vehicles? Yeah, it's a good question and and thanks for having me. I would say our basis for the stock has had very little to do with politics since, since Trump was elected, or before Trump was elected. But the the stock has clearly been sensitive to political headlines. The stock rallied almost 100% post election on this view that Trump would help deregulate autonomous vehicles and kind of clear a path for Tesla's robo taxi plans. We always thought that was a bit dubious. I think that states and local municipalities were always going to have a role to play in autonomous regulation. They do today and they will in the future. But there was clearly a bid in the stock on Tesla being tethered to to Trump. And we saw a lot of that unwind last week. For us, it doesn't change anything. We have not, we have not ascribed any value to any kind of political outcomes here, but it is, it is certainly creating a lot of noise in the stock. So what are those fundamental drivers, Ron, that you would want investors to perhaps refocus on to have good investor hygiene with regards to this name? Yeah, it's a good question. I mean, for us, we focus quite a bit on the vehicle business, the energy business and the potential robo taxi business. I think there's no denying that the robo taxi opportunity is a large opportunity. We just think it's much further into the future than, I think, the stock implies. Um, and in the meantime, the energy business is a nice growth driver, but it's nowhere near large enough to justify the current valuation and the auto business is deteriorating to the point where I I'm not sure it's free cash flow positive this year. Um, so and data through May looks, looks increasingly weak. There's been no acceleration on the new Model Y. So I think the fundamental drivers of the business, as it sits today, continues to skew negative. And then the robo taxi launch, we'll see how it goes. But I think the major question for us is when it goes from the planned 10 cars in Austin this month to something much larger and more generalized when this can actually go to multiple states. I know Tesla has pretty ambitious targets. I would say we're generally skeptical. 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
Yahoo
4 days ago
- Automotive
- Yahoo
Why this analyst is 'skeptical' about Tesla's robotaxi plans
Tesla (TSLA) stock is in focus as investors wait for the company's robotaxi event on Thursday. The autonomous taxi launch comes just after CEO Elon Musk and US President Trump's public fallout. Guggenheim Securities director of automotive equity research, Ron Jewsikow, a longtime Tesla bear, joins Morning Brief with Brad Smith and Madison Mills to discuss what to expect from the robotaxi rollout. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. 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
Bloomberg
19-05-2025
- Business
- Bloomberg
Guggenheim's Millstein Warns of Potential ‘Fiscal Disaster'
Congressional Republicans risk ' fiscal disaster ' if a recession hits as they push through sweeping tax cuts, Guggenheim Securities Co-Chair Jim Millstein warned. 'What today is 6.4% of GDP as a deficit, a $2.4 trillion deficit, could easily expand to $4 trillion if we had a recession,' Millstein said in an interview on Bloomberg Television. The cost estimates of the current GOP package 'assume consistent economic growth. So imagine we have a recession. In the last five or six recessions, the budget deficit actually blows out because tax revenues go down and spending increases.' A key House committee advanced President Donald Trump's giant tax and spending bill over the weekend. The Joint Committee on Taxation had pegged the total cost of the bill at $3.8 trillion over the next decade, though an analysis by the Committee for a Responsible Federal Budget says the outcome will be more dire. Long term Treasury yields have been rising this month in the wake of investor fiscal concern. Yields on the 30-year bond breached 5% Monday in the aftermath of Moody's announcement Friday that it was joining other ratings agencies in downgrading US sovereign debt to Aa1 from Aaa.
Yahoo
19-05-2025
- Business
- Yahoo
Jim Millstein Says US Risks ‘Fiscal Disaster' If Recession Hits
(Bloomberg) -- Washington lawmakers are risking a 'fiscal disaster' if a recession hits as they plow on with their package of sweeping tax cuts, according to Guggenheim Securities Co-Chair Jim Millstein. America, 'Nation of Porches' Maryland's Credit Rating Gets Downgraded as Governor Blames Trump NJ Transit Train Engineers Strike, Disrupting Travel to NYC NYC Commuters Brace for Chaos as NJ Transit Strike Looms Illinois Cuts Revenue Outlook on Economic, Federal-Funding Woes 'What today is 6.4% of GDP as a deficit, a $2.4 trillion deficit, could easily expand to $4 trillion if we had a recession,' Millstein said in an interview on Bloomberg Television. The cost estimates of the current GOP package 'assume consistent economic growth. So imagine we have a recession. In the last five or six recessions, the budget deficit actually blows out because tax revenues go down and spending increases.' A key House committee advanced President Donald Trump's giant tax and spending package. The Joint Committee on Taxation had pegged the total cost of the bill at $3.8 trillion over the next decade, though the Committee for a Responsible Federal Budget analysis says the outcome will be more dire. Long term Treasury yields have been rising this month in wake of investors fiscal concerns. Yields on the 30-year bond breached 5% Monday in the aftermath of Moody's announcement on Friday it was downgrading the US to Aa1 from Aaa, reinforcing Wall Street's growing worries over the nation's fiscal outlook. Ten-year yields are moving upward 'because of the imbalance in the federal government's finances and the huge amount of deficits they have to finance,' said Millstein, who worked in the Treasury Department's financial-stability office under former President Barack Obama. There's going to be 'a huge supply of Treasuries coming to the market.' Ten-year yields will probably rise further, and with it, it's more likely for the key benchmark rate to stay in the 4.5%-to-5.5% range than fall back below 4% - barring a US recession, Millstein told Bloomberg News in a separate interview. And given the interest burden on the debt, he said, that is the US's biggest problem. Millstein recalled in the 1990s when it took the bond market pushing yields sharply higher to help convince US politicians to bring deficit down. He said if it took the same this time it would be worth it. 'Because there really is no check on them right now,' he said, referring to Washington politicians. --With assistance from Sonali Basak and Matthew Miller. Why Apple Still Hasn't Cracked AI Microsoft's CEO on How AI Will Remake Every Company, Including His Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race Anthropic Is Trying to Win the AI Race Without Losing Its Soul ©2025 Bloomberg L.P. 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
Bloomberg
19-05-2025
- Business
- Bloomberg
Millstein on US Downgrade, Tariffs, Trump Tax Bill
Jim Millstein, former US Treasury chief restructuring officer and Guggenheim Securities co-chairman, talks about Moody's downgrading the US credit rating, Republicans trying to push through President Donald Trump's tax and spending package and the impact of Trump's trade war on the economy. He's on "Bloomberg Open Interest." (Source: Bloomberg)
