Wednesday’s Headlines: Tesla’s Indian Expansion Begins

Wednesday’s Headlines: Tesla’s Indian Expansion Begins

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Stitch Fix (SFIX) +18.3%

Etsy (ETSY) +12.1%

DocuSign (DOCU) +9.0%

Nautilus (NLS) +7.2%

Nordstrom (JWN) +7.1%

Moving Down ⬇️

Lemonade (LMND) -5.6%

Huazhu Hotels Group (HTHT) -4.4%

Trupanion (TRUP) -3.8%

GoPro (GPRO) -3.7%

Take-Two Interactive (TTWO) -3.6%

1. Shares in Tesla (TSLA) are on the rise once more after the EV leader registered Tesla Motors India, sending shares up more than 4%. Following the Indian government’s $4.6 billion electric vehicle incentives pledge for 2021, Tesla Motors India and Energy Private Limited were incorporated on January 8 with its registered office in the southern city of Bengaluru, a hub for several global technology companies. The world’s most-valuable automaker is showing no signs of slowing its growth, as it currently seeks to build new factories in Germany, China, and the U.S. in a bid to increase production after it missed its 2020 target of 500,000 deliveries. Read more about Tesla’s expansion here

2. Following a similar announcement from Lemonade (LMND) on Monday, Zoom (ZM) announced on Tuesday that it plans to raise $1.5 billion in a secondary share sale, with its stock valued nearly 10 times above what it IPO’d at in 2019. Zoom expects to sell 4.4 million shares at an assumed price of $337.71. Unlike Lemonade, Zoom managed to avoid investor dissatisfaction at having their shares diluted by also revealing an impressive sales milestone for its business phone system: one million Zoom Phone seats in just 2 years. Zoom has become an invaluable companion to social and business users worldwide since COVID-19 struck, and the success of its phone business highlights its versatility and continued innovation. If you’re unsure about the implications of Zoom’s secondary offering, we cover that in this article here relating to Lemonade.

3. Shares in DocuSign (DOCU) soared 9% on Tuesday — no, not because Biden’s inauguration will be signed remotely via its software — but because it has secured a sizeable amount of credit. The eSignature leader has closed a $500 million, five-year revolving credit loan, as well as an option for an additional $250 million if needed. Basically, this means that they can draw upon up to $750 million if necessary, without having to reapply for any loans, providing it with a bit of a safety net and more funds for growth. “We are taking advantage of the favorable market environment to optimize our capital structure and strengthen our balance sheet,” remarked Cynthia Gaylor, CFO. Read the official press release here.


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