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Flashback: On an earnings call in April 2020, Musk called California's COVID-related restrictions "fascist" in an expletive-laced rant. Last year, he also personally relocated to the Austin area from Los Angeles, where he had lived for two decades. The move allowed him to lower his personal tax burden and be closer to the SpaceX (SPACE) launch site in Boca Chica, Texas.
Tesla isn't the first company to move its headquarters out of California to Texas. Hewlett Packard Enterprise (HPE) and Oracle (ORCL) have shifted their base from Silicon Valley to Houston, while Charles Schwab (SCHW) relocated its HQ to the Dallas area from San Francisco. Texas lawmakers have been encouraging migration from the coasts through a combination of lower taxes, financial incentives and a business-friendly environment.
Other notes from the meeting: Musk said Tesla is likely to begin producing its Cybertruck late next year as it works through supply chain challenges. He also hopes the company will manufacture its long-delayed semitrailer truck and a revamped version of its Roadster sports car in 2023. Shareholders additionally re-elected Musk's brother Kimbal and James Murdoch to the board (Institutional Shareholder Services had advised against the re-election). (290 comments) Download Seeking Alpha for your Phone or Tablet
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Tesla isn't the first company to move its headquarters out of California to Texas. Hewlett Packard Enterprise (HPE) and Oracle (ORCL) have shifted their base from Silicon Valley to Houston, while Charles Schwab (SCHW) relocated its HQ to the Dallas area from San Francisco. Texas lawmakers have been encouraging migration from the coasts through a combination of lower taxes, financial incentives and a business-friendly environment.
Other notes from the meeting: Musk said Tesla is likely to begin producing its Cybertruck late next year as it works through supply chain challenges. He also hopes the company will manufacture its long-delayed semitrailer truck and a revamped version of its Roadster sports car in 2023. Shareholders additionally re-elected Musk's brother Kimbal and James Murdoch to the board (Institutional Shareholder Services had advised against the re-election). (290 comments)
Economy
Ireland finally came around to a global minimum tax plan that G7 and G20 nations hope will combat tax evasion and standardize rules across the world. The country will give up its treasured 12.5% corporate tax rate by joining a group of 140 nations that have agreed to an effective levy of 15% on major multinationals. The new rate will affect 1,556 companies in Ireland employing 500K people, including tech giants like Apple (NASDAQ:AAPL), Google (GOOG, GOOGL), Amazon (NASDAQ:AMZN) and Facebook (NASDAQ:FB), and will end up costing the country about €2B in lost revenues.
What happened? Dealmakers crossed out two words that changed the country's mind. The initial text mentioned a minimum corporate tax rate of "at least" 15%, but that was updated to just 15%, meaning the rate wouldn't be pushed up at a later date. Ireland was also given assurances that it could keep its lower rate for smaller companies operating in the country, ahead of an OECD meeting in Paris this weekend.
"In joining this agreement, we must remember that there are 140 countries involved in this process and many have had to make compromises," said Paschal Donohoe, Ireland's Finance Minister. "This is a difficult and complex decision but I believe it is the right one." Over the past five years, hi-tech companies have accounted for the majority of Ireland's €5B-€7B/year in foreign direct investment.
Outlook: The last remaining holdout for the deal in the EU is Hungary, after Estonia joined Ireland on Thursday in signing up to the accord. Over in the U.S., President Biden and Treasury Secretary Janet Yellen are also on board, though they face challenges of getting the agreement through Congress. The changes could require the Senate to alter existing tax treaties, which would take a two-thirds vote and at least some GOP support. Republicans have already expressed opposition to any rise in taxes, while some lawmakers have condemned the idea of ceding taxing authority to other governments. (71 comments)
What happened? Dealmakers crossed out two words that changed the country's mind. The initial text mentioned a minimum corporate tax rate of "at least" 15%, but that was updated to just 15%, meaning the rate wouldn't be pushed up at a later date. Ireland was also given assurances that it could keep its lower rate for smaller companies operating in the country, ahead of an OECD meeting in Paris this weekend.
"In joining this agreement, we must remember that there are 140 countries involved in this process and many have had to make compromises," said Paschal Donohoe, Ireland's Finance Minister. "This is a difficult and complex decision but I believe it is the right one." Over the past five years, hi-tech companies have accounted for the majority of Ireland's €5B-€7B/year in foreign direct investment.
Outlook: The last remaining holdout for the deal in the EU is Hungary, after Estonia joined Ireland on Thursday in signing up to the accord. Over in the U.S., President Biden and Treasury Secretary Janet Yellen are also on board, though they face challenges of getting the agreement through Congress. The changes could require the Senate to alter existing tax treaties, which would take a two-thirds vote and at least some GOP support. Republicans have already expressed opposition to any rise in taxes, while some lawmakers have condemned the idea of ceding taxing authority to other governments. (71 comments)
U.S. Indices
Dow +1.2% to 34,746. S&P 500 +0.8% to 4,391. Nasdaq +0.1% to 14,580. Russell 2000 -0.3% to 2,235. CBOE Volatility Index -11.3% to 18.77.
S&P 500 Sectors
Consumer Staples +1.4%. Utilities +1.5%. Financials +2.3%. Telecom -0.1%. Healthcare -0.3%. Industrials +1.8%. Information Technology +0.3%. Materials +1.%. Energy +5.%. Consumer Discretionary +0.9%.
World Indices
London +1.% to 7,096. France +0.7% to 6,560. Germany +0.3% to 15,206. Japan -2.5% to 28,049. China +0.7% to 3,592. Hong Kong +1.1% to 24,838. India +2.2% to 60,059.
Commodities and Bonds
Crude Oil WTI +4.9% to $79.58/bbl. Gold -0.1% to $1,757.3/oz. Natural Gas -0.3% to 5.6. Ten-Year Treasury Yield -0.9% to 131.03.
Forex and Cryptos
EUR/USD -0.22%. USD/JPY +1.05%. GBP/USD +0.49%. Bitcoin +14.7%. Litecoin +5.%. Ethereum +5.7%. Ripple +3.6%.
Top Stock Gainers
Voyager Therapeut (NASDAQ:VYGR) +113%. Xenon Pharmaceuticals Inc (NASDAQ:XENE) +111%. Chemocentryx Inc (NASDAQ:CCXI) +109%. Renren Inc ADR (NYSE:RENN) +75%. Nextplay Technologies Inc (NASDAQ:NXTP) +70%.
Top Stock Losers
Macquarie Infrastructure Hldgs Llc (NYSE:MIC) -91%. Prelude Therapeutics Incorporated (NASDAQ:PRLD) -50%. Allogene Therapeutics Inc (NASDAQ:ALLO) -46%. Amplify Energy Corp (NYSE:AMPY) -40%. Nkarta Inc (NASDAQ:NKTX) -33%.
Where will the markets be headed next week? Current trends and ideas? Add your thoughts to the comments section.
Dow +1.2% to 34,746. S&P 500 +0.8% to 4,391. Nasdaq +0.1% to 14,580. Russell 2000 -0.3% to 2,235. CBOE Volatility Index -11.3% to 18.77.
S&P 500 Sectors
Consumer Staples +1.4%. Utilities +1.5%. Financials +2.3%. Telecom -0.1%. Healthcare -0.3%. Industrials +1.8%. Information Technology +0.3%. Materials +1.%. Energy +5.%. Consumer Discretionary +0.9%.
World Indices
London +1.% to 7,096. France +0.7% to 6,560. Germany +0.3% to 15,206. Japan -2.5% to 28,049. China +0.7% to 3,592. Hong Kong +1.1% to 24,838. India +2.2% to 60,059.
Commodities and Bonds
Crude Oil WTI +4.9% to $79.58/bbl. Gold -0.1% to $1,757.3/oz. Natural Gas -0.3% to 5.6. Ten-Year Treasury Yield -0.9% to 131.03.
Forex and Cryptos
EUR/USD -0.22%. USD/JPY +1.05%. GBP/USD +0.49%. Bitcoin +14.7%. Litecoin +5.%. Ethereum +5.7%. Ripple +3.6%.
Top Stock Gainers
Voyager Therapeut (NASDAQ:VYGR) +113%. Xenon Pharmaceuticals Inc (NASDAQ:XENE) +111%. Chemocentryx Inc (NASDAQ:CCXI) +109%. Renren Inc ADR (NYSE:RENN) +75%. Nextplay Technologies Inc (NASDAQ:NXTP) +70%.
Top Stock Losers
Macquarie Infrastructure Hldgs Llc (NYSE:MIC) -91%. Prelude Therapeutics Incorporated (NASDAQ:PRLD) -50%. Allogene Therapeutics Inc (NASDAQ:ALLO) -46%. Amplify Energy Corp (NYSE:AMPY) -40%. Nkarta Inc (NASDAQ:NKTX) -33%.
Where will the markets be headed next week? Current trends and ideas? Add your thoughts to the comments section.


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