☕️ Detached from reality

Tesla's quarterly earnings call was described as a mini-disaster

Good morning.

Tesla held its quarterly earnings call overnight and one prominent analyst described it as a “mini disaster”. Elon Musk appeared on the call and didn’t provide the Street with what it was looking for.

Instead of providing clarity about pressure on Tesla prices and margins, he raised concerns about the US economy and took aim at people who work from home, who he said are “detached from reality.” Ah yes, they are the ones detached from reality…

*Stock data as of the market close. Commodities and crypto data in USD.

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Market News: ARB Corp, Australia’s largest manufacturer and distributor of 4×4 accessories was one of the strongest performers on a flat day for the broader market. The company told investors at its AGM that unaudited profits were up 10% in the first quarter of the financial year compared to the same period a year ago.

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  • Australia has quietly become a force in tech's next $1 trillion market (Capital Brief)

  • Jerome Powell says inflation is still too high and lower economic growth is likely needed to bring it down. (CNBC)

  • New York’s attorney general is suing the crypto outfit founded by the Winklevoss twins and two other firms over an alleged US$1 billion fraud (CNN)

  • Slack co-founder Cal Henderson is a self-confessed AI sceptic (Capital Brief)

  • The 60-40 investing strategy just had its worst year in generations (WSJ)



  • Brookfield and EIG are reportedly preparing an enhanced Origin Energy bid. (The Australian)

  • Qantas abandons Alliance Aviation takeover six months post watchdog opposition. (SMH)

  • Jefferies' trading desk liquidated 21m Whitehaven shares in the wake of its BHP deal. (AFR)

  • With the world's largest lithium producer abandoning its $6.6 billion acquisition of Liontown Resources, focus is shifting toward Albemarle's next opportunity. (The Australian)

  • Mirvac's Serenitas acquisition may not yield immediate gains but could improve over time. (The Australian)

Capital Markets:

  • Alceon's has plans for another exit this financial year as Nido raises $99.2m in IPO. (Capital Brief)

  • Microba Life Sciences initiated a $20m equity fundraising campaign to finance the purchase of a UK-based microbiome company. (AFR)

  • UBS and Bell Potter underwrote Liontown Resources' $375m equity raise at $1.80 per share. (AFR)

  • Silver Lake, TEG's owner, plans a debt-driven dividend recap. (AFR)

  • BHP's Queensland coal mine sale may spur more asset sales. (The Australian | AFR)


  • Employment Hero raised $263m in a Series F led by TCV(Capital Brief | AFR)

  • Darwinium banked $28m from US Ventures, Blackbird and AirTree (Capital Brief)


  • Credit Suisse's Australian securities research head and its emerging companies research head have both signed with Canaccord Genuity. (AFR)

  • 'Never in his wildest nightmares': Adir Shiffman grilled on Sleeping Duck dispute (Capital Brief)

  • Nanuk Asset Management pitches 'climate moneyball' approach to sustainable investing (Capital Brief)


Buying the dip

As interest rates have risen all over the world, bonds are having one of their worst drawdowns in decades. However, investors seem to be buying the dip quite heavily, as suggested by the iShares 20+ Year Treasury Bond ETF fund flows. Just in the past 12 months, the ETF has seen over US$20b in net flows, as investors position themselves to harvest higher yields and prepare for the possible start of a new bond bull market, should the Fed start to cut.

This is not financial advice.