Finimize - 📊 Diversify like Morgan Stanley

Hi Reader, here's what you need to know for April 4th in 3:08 minutes.

🤏 Inflation doesn’t have to mean it’s crunch time for your investments. Check out our latest Finimize Podcast, How To Protect Your Wealth During The Cost-Of-Living Crisis with Moneybox’s Brian Byrnes, and find out how you can ring-fence your precious nest egg. Listen now

Today's big stories

Tesla announced record quarterly deliveries – but there could be a speed bump around the corner
This Morgan Stanley framework could help you hedge against a stock market slump – Read Now
UFC’s owner Endeavor got hold of WWE in a big, brawny acquisition

Cruising For A Bruising

What’s Going On Here?

Tesla rode high on record quarterly deliveries – but its profit could be an accident waiting to happen.

What Does This Mean?

After a lackluster end to 2022, Tesla began this year with a “new year, new me” mindset. So while we resolved to cut calories, Tesla opted to cut prices – offering discounts in all markets, of up to 20%. And sure, that turned out to be a bit of a self-own in China, but the move did give global deliveries a boost: Tesla sent out nearly 423,000 EVs last quarter, outpacing some analysts’ predictions and setting a new quarterly record. But there’s a snag: that's only a 4% uptick from the previous, underwhelming quarter, amounting to 36% growth from the same time last year. And that’s left Elon Musk – who reiterated his famous 50% growth goal back in January – with more than a little egg on his face.

Why Should I Care?

The bigger picture: Pricey plunge.
Tesla’s problems are spelled out pretty clearly in the fine print. See, while deliveries of bread-and-butter Model 3 and Y EVs grew from the quarter before, its pricier (and more profitable) models actually took a nosedive – a sign of a gloomy economy and consumer belt-tightening. Factor in the Pandora’s box Tesla’s opened by starting a price war, and the firm could be forced to slash prices even further.

For markets: Keep an eye on shares.
Tesla's stock has been on a roll this year, almost doubling as investors applauded Musk's push for growth and his production ramp-up. But the stock's future could hinge on how much these efforts have eaten into profit margins – something investors will learn later on this month. And that’s worth watching out for: the company’s already warned that it's ready to prioritize growth over profit – and while Tesla’s high margins mean the firm can afford to cut prices, hitting profit too hard could make even dyed-in-the-wool Musk fans jump ship.

You might also like: Here’s how to weigh up the value of Tesla’s shares.

Copy to share story: https://go.finimize.com/wp/news/cruising-for-a-bruising/

🙋 Ask a question

Analyst Take

Morgan Stanley’s Top Three Portfolio-Diversifying Trades

Stéphane Renevier, Analyst

You never know what’s around the corner in uncertain times like these, and that’s especially true for stocks.

With that in mind, you might do well to diversify your portfolio – no matter whether you want to find a cheap way to protect your favorite stocks or want to make money from a bearish view.

Well, Morgan Stanley has a trick that might help with that: this metric-based framework can help you decide which investments could hold strong when stocks struggle.

So that’s today’s Insight: Morgan Stanley’s framework for spotting portfolio-diversifying trades.

Read or listen to the Insight here

Meet your future community

Let’s face it, even the best brands need a little push to reach the right audience.

Our one-million-strong community of modern investors is clever, clued-in, and keen to learn. In short, they’re exactly the type of folk you want to reach.

So whether you’re an established brand, scaleup, or startup, our promotional campaigns can help you reach the right audience at the right time.

Your tailored campaign will make the most of all the Finimize channels, including live event and Summit showcases, social media blasts, and curated newsletter placements – yup, right here.

Introduce yourself to your future community with Finimize.

Get In Touch