I Love It, I Guess I'd Buy It: Elon.
Elon put his money where his mouth is (literally), Robinhood in a struggle bus, another Chinese founder bites the dust & NIO EV production is saying its prayers.
It’s time for our weekly juice.
Let’s get it!
Elon, Now Inside Twitter
Musk has been recently added to the board at Twitter🤠 and the question on everyone's mind is, Can One Vote Change it All?
Musk wasn’t added to the board because ‘he is Musk’ hah (although thats a tempting assumption lol), the man now owns 73,486,938 shares of Twitter, representing a 9.2% stake in the company, making him the largest individual shareholder in the company. Upon the news, the company’s stock jumped 27% and Twitter has literally been on our fingers (😉) as well incessantly in the news, cough cough, Elon on the beats.
As expected, because anything with Elon’s name on it, stays newsworthy
During the week, the company posted that Elon is now a board member of Twitter, which means Elon now gets a say on how Twitter should operate. Elon did say he has no present plans to “shake things up” at Twitter or change any of its policies, board or the company’s dividend or share-buyback policy.
Within the week, the company also posted an Ask-Me-Anything session between company staff and their new billionaire investor. In a company wide email, Twitter’s CEO said the ‘ask me anything’ will be for employees to address their questions to Mr Musk and Twitter leadership about this week’s development.
Has Robinhood Come To Its Wit's End?
Seems like its biggest investors have lost hope in it as Goldman now says it's a sell
Things are not looking good for the management team and early investors in Robinhood at the moment. They seem to have lost their magic and the big boys might be ready to cut their losses.
Goldman Sachs, which led Robinhood's IPO less than a year ago, has placed a sell rating on the stock.🤔😰 And it's not just Goldman Sachs, JPMorgan Chase and other institutional investors have also turned bearish on the free-stock trading app.
In case you’re wondering why all of this is happening, it’s simple. People have returned back to work, meaning many of Robinhood's customers are not trading as frequently as they were during the pandemic.
Shares of the company are down 70% below its IPO price and 84% below the record highs in August 2021.
JD’s CEO Steps Down
Earlier this week, the CEO of JD.com announced that he would be stepping down.
You can already imagine that the Chinese “authorities” might have a hand in this👀
Richard Liu, who is also the founder of China’s second-largest online retailer, has joined a long list of technopreneurs who have stepped aside from top management roles due to the crackdown on tech businesses by the Chinese government. Other CEOs who have towed this path include ByteDance’s (owner of TikTok) founder Zhang Yiming, who stepped down in November of 2021.
And because nothing good stays on the market for long…
The role of CEO will be taken over by Xu Lei effective immediately. Xu Lei recently became President of JD.com and he has about 10 years of experience working at JD. The announcement of the founder’s departure from management resulted in JD’s stock dropping by about 3% as of the close of the stock market on the same day.
Clearly investors aren’t too thrilled about the change
Nonetheless, Richard Liu still remains chairman of the company with a massive voting power of 76%.
NIO EV Production, Suspended
The Chinese electric vehicle company announced that it would be suspending production of its EVs due to supply chain disruptions.
Not good news for NIO shareholders. Sorry guys.
The company had to shut down its plant in Hefei, China due to the effect of COVID-19 on its suppliers in various cities and unfortunately, these suppliers are yet to recover.
Can COVID give us a break already 😫
Unfortunately, this is not the first time NIO has had to shut down production. In March of 2021, it shut down for 5 days due to a semiconductor shortage. The company also shut down in October 2021 for about two weeks which greatly affected the number of vehicles delivered for 2021. There was about a 27% decrease in the number of vehicles produced in 2021 as compared to 2020.
NIO isn’t the only EV maker affected by the outbreak. Tesla and Volkswagen have also had to shut down their plants in China.
There is no indication as to how long NIO’s production suspension will last and this will definitely put a dent in their production goals for this year.
To my NIO holders, y’all stay strong, okay?
Forget not this ministry of yours:
What are you waiting for?!?!
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Go kick a$$ this week!
Your dearest and favorite Stocks Market Gist Partner,
Tomi, From Trove 🖤
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