Bloomberg - Evening Briefing - Zero-growth Tesla

It’s not a new story that Tesla is no longer a red-hot growth stock. But even by that standard and with its growth forecasts sinking rapidly, a grim sales prediction from a key analyst of Elon Musk’s electric-vehicle maker was still shocking. There’ll be zero growth in sales volumes for the electric-vehicle maker this year, Wells Fargo’s Colin Langan said Wednesday. And in 2025, it’ll be worse yet: volumes will drop. Shares of the company reacted appropriately, dropping 4.5% to close at a 10-month low. The stock has now fallen 32% this year, missing out on a broader rally that has pushed the S&P 500 Index up 8.3%. 

The reason is clear: Tesla’s ability to grow at the furious pace that its expensive valuation promises is no longer a guarantee. The company still trades at a multiple that is significantly higher than other mega-cap high-flyers, yet the pace of expansion in its revenue and profit have slowed markedly since last year. “Right now, the market is voting and telling us that it believes Tesla does not currently deserve that high valuation,” said Adam Sarhan of 50 Park Investments. —David E. Rovella

Ukrainian drone attacks halted three oil refineries deep within Russian territory in an assault Kremlin leader Vladimir Putin said was aimed at disrupting his expected re-election this week. An aerial strike on Wednesday caused a blaze at one of the country’s biggest crude-processing facilities, Rosneft PJSC’s Ryazan plant near Moscow. The attacks underline how the full-scale invasion of Ukraine that was intended to last a few days is instead leading to growing insecurity for ordinary Russians near the border as the war enters its third year. And it’s also in sharp contrast to Putin’s claims that he is the guarantor of the country’s defense.

Smoke rises from the Ryazan refinery in Russia on March 13. Source: Ostorozhno Novosti via AP

The European Central Bank presented a new framework for how it implements monetary policy, preserving the current system of steering interest rates while giving lenders more of a say over how much cash they need to operate. The revamp of the plumbing that underpins the ECB’s key task of maintaining stable prices in the 20-nation euro zone will see banks decide how much liquidity they need from the Frankfurt-based institution on top of what’s provided through a new permanent portfolio of bonds.

Advanced Micro Devices has kept pace with Nvidia’s furious ascent of late, but the factors underpinning its rally look less certain. Optimism over how the chipmaker will benefit from artificial intelligence is seen as overblown, suggesting recent gains could be at risk. Not only is AMD expected to grow slower than Nvidia—whose processing chips continue to be viewed as the gold standard—but the stock is much more expensive.

Doctors across the US are stretching to keep their practices afloat as a debilitating cyberattack on a once little-known company at the center of the health-care system continues to cause havoc. The Feb. 21 attack against Change Healthcare, a subsidiary of the largest US health insurer by market value, UnitedHealth Group, has frozen the health-care system for three weeks and counting, halting the normal flow of billions of dollars in payments between doctors, hospitals, pharmacies and insurers. The paralysis is tilting some clinics into financial peril.

Hong Kong has the highest proportion of employers pressuring their staff to work in the office regularly compared with competing hubs in Asia. Over 90% of firms in Hong Kong are urging their workers to increase their office presence, compared with 56% of employers doing so globally.

When Andy Morling heard about a revolutionary new weight-loss cure last spring, he figured it might spark a shadier UK market for fakes. His hunch was right. Almost a year later, the law-enforcement veteran who spent the last four decades helping to bring down drug gangs and child sexual abusers is leading the charge against criminals looking to profit from the very human desire to slim down. “This is a brand new criminal threat for us,” Morling said, speaking from an office outside London that sits adjacent to a secure warehouse filled with thousands of seized medicines, including large sacks of fake Ozempic. “It was born essentially last spring.”

Australia is grappling with a deepening housing crisis. Yet when it comes to the most obvious solution—constructing more apartments—city dwellers are pushing back. Placards reading “Save Sydney’s Lungs” and “Wrecking Ball Coming to You” were waved by residents and councilors this week protesting a proposal from the New South Wales state government to boost density by allowing six-story apartment blocks to be built around suburban train stations. That will cause social problems, be destructive to the environment and the city’s heritage, opponents argue.

Fueled by immigration growth and insufficient supply of new dwellings, more people are being priced out of Sydney. Photographer: Lisa Maree Williams/Bloomberg

• US House passes TikTok ban bill, but Senate fate is uncertain at best.
• Meet the GOP megadonor with a $15 billion stake in TikTok’s parent.
• Under Armour returns founder Plank to CEO, ousting Linnartz.
• Botched effort to make student financial aid easier wreaks havoc.
• Airport run-in doesn’t mean Kanye coming back to Adidas, CEO says.
• Airlines want to stop “travel hack” carrier from luring away rich flyers.
• Loro Piana’s $9,000 sweaters and the destitute farmers behind them.

Aman Resorts, arguably the world’s most exclusive hotel brand, has for 35 years made its name by charging eye-popping nightly rates—often exceeding $2,000—as the price of hyper-luxurious seclusion. Guests stay in standalone villas or sky-high penthouses. Its new spinoff brand, Janu, seeks to do the opposite. Opening today in central Tokyo, the first Janu hotel has 122 rooms across the lowest floors of a luxury residential tower, and its guests will be encouraged to circulate locally. In a bid to court a younger demographic—and create a more scalable model—it also promises (somewhat) more democratic pricing.

Janu Tokyo’s Chinese eatery, Hu Jing, is one of eight dining options at the hotel. Photographer: Robert Rieger

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