Ether and other major cryptocurrencies follow bitcoin higher after Elon Musk says Tesla may accept it as payment again

The photo shows physical imitations of cryptocurrency
  • Major cryptocurrencies rose in lockstep with bitcoin after Elon Musk tweeted that Tesla may accept the popular coin as payment.
  • Ether, tether, binance coin, cardano, and dogecoin, all edged higher over the last 24 hours.
  • An expert said she is unsure whether the most recent pop signals a continuing upward trend, but she does know one thing: “Musk is responsible.”
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Major cryptocurrencies rose on Monday, moving in lockstep with bitcoin‘s jump after Elon Musk tweeted that Tesla would accept the cryptocurrency as payment again once mining can be done using cleaner energy.

Bitcoin edged higher Monday following the tweet, inching closer to $40,000, its highest level in two week.

Here’s where the major cryptocurrencies stood in the past 24 hours as of Monday morning ET:

Alexandra Clark, sales trader at GlobalBlock, a UK-based digital asset broker, said that Sunday, when the Tesla chief tweeted, was a turning point for bitcoin, whose movements often influence the broader market.

“A number of analytic tools, including the spent output profit ratio and stock-to-flow, all firmly point to an undervalued bitcoin at current prices, although many analysts are still on the fence when it comes to determining whether the digital asset is ready to continue its uptrend,” she said in a note. “What we do know, is that Musk is responsible.”

The cryptocurrency market has yet to recover from its May crash when it suffered a sharp sell-off, wiping out 47% of its entire value. Most coins have been moving sideways as of late, after peaking to their record highs earlier this year.

Yet a recent finding from crypto-asset broker Voyager revealed that 81% of respondents in a recent survey are more confident in the future of cryptocurrency following last month’s crash. Steve Ehrlich, CEO of Voyager, said this increase was a much higher percentage compared to the last survey conducted in April.

But for Pankaj Balani, CEO at Delta Exchange, the surge is temporary. He said that given the market’s little appetite to own risk, most traders would be inclined to own bitcoin risk rather altcoins.

“We have seen altcoins underperform bitcoins in this bounce and we expect the same to continue over the next few months,” he said. “Capital has been rotating out of altcoins into bitcoin.”

Bitcoin market capitalization dominance, which had hit a low of 40% has already bounced to 46%.

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Bitcoin surges above $40,000 after Elon Musk says Tesla will resume crypto payments when mining is cleaner

Elon Musk with a bitcoin symbol
  • Bitcoin climbed above $40,000 after Elon Musk suggested Tesla might accept it as payment again.
  • Musk said he’ll do it when there’s proof of about 50% of mining energy used is clean.
  • Tesla halted bitcoin payments last month over concern its mining process is damaging to the environment.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin traded above $40,000 on Monday after Elon Musk tweeted Tesla would accept payment in cryptocurrency again once mining can be done using cleaner energy.

“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions,” the billionaire said in a tweet.

He was responding to a Cointelegraph report that quoted Magda Wierzycka, a South African billionaire businesswoman and CEO of asset manager Sygnia, saying that Musk’s bitcoin-related tweets should have led to a regulatory investigation.

According to Wierzycka, Musk deliberately pumped up bitcoin’s value and then sold a chunk of his exposure at its peak. But the Tesla boss disputed this claim, saying “Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.”

Elon Musk tweet on resuming bitcoin payments.

Bitcoin saw further gains after billionaire Paul Tudor Jones said on CNBC he likes the digital asset as a portfolio diversifier. ” The only thing I know for certain, I want 5% in gold, 5% in bitcoin, 5% in cash, 5% in commodities,” he said on Monday.

The cryptocurrency was last trading 13% higher around $40,700 on Monday as of 9:35 a.m. ET, and it is up 40% so far this year.

“The charts suggest consolidation followed by a rally through $41,000 targets further gains to around $44,000,” Jeffrey Halley, a senior market analyst at OANDA, said.

Musk revealed in February his electric car company invested $1.5 billion in bitcoin and that it would start accepting it as payment for its vehicles. Barely three months later, Tesla made a U-turn and stopped payment in bitcoin because of how energy-intensive the mining process is.

“We are concerned about the rapidly increasing use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk said in a tweet at the time.

It isn’t clear yet how Musk will gather data to assess bitcoin’s clean energy use. But he previously suggested that the cryptocurrency can rid itself of its negative environmental image if top miners prove they’re using greener energy by posting audited data on renewables used.

Read More: Founders of a leading crypto brokerage lay out a thesis for why ether looks ‘very cheap’ while providing a more conservative case for bitcoin – and share 2 ETH challengers to watch

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TikTok’s 9 most popular pieces of investing advice, rated and reviewed by 2 financial experts

TikTok Markets
  • The TikTok hashtag “#investing” has amassed over 2.8 billion views on the mobile video app as young people flock to the platform to learn about the stock market.
  • While there’s plenty of helpful information, there’s also a lot of bad advice.
  • Insider asked two financial experts to watch and review nine popular TikTok investing videos with questionable advice. Here’s what they had to say.
  • Sign up here our daily newsletter, 10 Things Before the Opening Bell.

The investing side of TikTok, better known as “StockTok”, is ballooning, with the TikTok hashtag “#investing” garnering over 2.8 billion views. Many videos with tagged with #investing are centered around investing tips, and novice traders on the app have said they often heed the advice.

Thirty-six-year-old Douglas Boneparth, who provides investing advice to Millennials through his firm Bone Fide Wealth, said he loves the greater attention given to the world of investing through social media. But with the democratization of the stock market comes a lot of misinformation and “cringe.”

“It can get loud and noisy, and if you follow the wrong thing you can make some mistakes you really regret,” he said.

Insider asked three market experts for their take on nine popular TikTok investing videos with questionable advice.

Boneparth, along with Sam Stovall, chief investment strategist at CFRA, spoke with Insider for the story. Five of the TikTokers did not respond to Insider’s request for comment, and two couldn’t be reached through social media.

Video: “Max out your 401K could be the dumbest advice

TikTok bad investing advice
A screenshot of Kris Kohn’s TikTok video about 401Ks.

Kris Krohn, @kriskrohn, advised his 832,000 followers to avoid the “401K scam” in an August 2020 video. Krohn, known for his real estate-investing advice, said “max out your 401K could be the dumbest advice that I’ve ever heard for anyone that wants to take control of their financial future.”

“I admire his passion and love for real estate, but this is just factually incorrect,” Boneparth said. “A 401k is not a scam, it offers tax advantages.”

Sam Stoval said the advice is good “only if you like to throw away money, and if you are a believer in illogical conclusions.”

“Maxing your company’s 401K match will get you free money, since the company will give you – free of charge – all or some of your contributions,” Stovall said.

Plus he said stocks, which 401Ks can invest in, have delivered an 11% compound annual total return since 1946, not the 1% Krohn claimed in the video. The retirement accounts can ensure “the building of a substantial retirement nest egg,” he said.

Video: “How to make a million dollars or more with very little effort

TikTok Investing advice
Screenshot of TikTok video on how to make a million dollars

The @teen.executive account, which has 187,500 followers, said people can make a million dollars or more if they use soap and shampoo samples from hotels, saving about $45 per month, and investing those savings into the S&P 500.

Stovall said that practically saving money whenever possible and investing those savings “is indeed useful advice toward becoming a millionaire by the time you retire.”

But, “who’s spending $45 a month on soap?” Boneparth said, “and you still have to pay for the hotel room.”

Boneparth, who wondered if the video was made as a joke, said penny pinching on the small things isn’t the path to financial independence.

“Soap alone isn’t going to get you a million dollars here.”

Video: “I see a stock going up, and I buy it

TikTok bad advice
A screenshot from the @chadandjenny TikTok investing video

The couple from the @chadandjenny account told their 116,000 followers that they make money by buying stocks that go up and then selling at the top.

The video’s advice reminded Stovall of a humorous quote from the Great Depression to buy stocks “that go up, and if they don’t go up, don’t buy them.”

Boneparth said the couple is actually describing momentum trading, in which investors have to time the market, which is “very difficult.”

“You can be very wrong trying to do momentum trading and guess when the stock is going to go up or down,” he said.

From a constructive perspective, the video “encourages novice investors to learn about technical analysis, focusing on: turnaround spotting, trend following, and topping patterns,” Stovall said.

In a response to Insider on TikTok, the user said, “The strategy I use specifically is referred to as scalping.” He said it’s “similar to momentum trading but much more short term.”

Video: AMC could reach $100,000 per share or more

TikTok bad investing advice
A screenshot from the @atomcash TikTok video about AMC shares.

Amid the resurgence in meme-stock mania around AMC Entertainment, the @atomcash account, which has 1,400 followers, said, “Mathematically speaking, it is statistically possible that AMC can reach anywhere from 100k a share to 500 or even a million dollars a share.”

“There is a huge difference between being ‘statistically possible’ and ‘realistic,'” Stovall said.

At even just $1,000 per share, the company, which is currently trading at all-time highs around $45, would be a $500 billion business.

“It’s just absolutely ludicrous to think that AMC, a company that’s bleeding cash and trying to shore up its balance sheet and survive would be worth something slightly less than Tesla,” Boneparth said.

Video: “Buy what rich investors buy”

Tik Tok investing screenshot
A screenshot from the @ceowatchlist TikTok account.

The creator behind @ceowatchlist publishes regular TikToks encouraging his 822,000 followers to track public investing records of CEO’s, senators, and other rich people and buy what they buy.

It’s a piece of advice that a lot of investors follow, seeing how many attend the Berkshire Hathaway annual meeting and read Warren Buffett’s letter to investors, Stovall said.

“A problem with buying what rich people own, however, is that these rich people probably don’t publish a newsletter telling when to buy and sell, along with publishing a track record,” Stovall added. “Therefore, blindly buying what rich people own means you may get in late and never know when to get out.”

Video: “Support and resistance lines will show you when to buy and sell”

technical analysis
A screenshot from @Chris.stocks TikTok video

Tik Tok Creator @Chris.stocks detailed to his followers what a support and resistance level is, and said when you see a stock nearing it’s support or resistance level, you can predict what’s going to happen, and make money.

“That is much of the basis behind technical analysts. ‘The trend is your friend until it ends,'” said Stovall.

Boneparth said the video is a foray into how to use technical analysis for trading, but warned that the skill takes time to practice.

“There’s no secret formula to getting rich,” said Boneparth. “I’m glad people are getting interested but that’s not long-term investing. You just can’t watch this video and go buying and selling.

Video: “Your money loses value in a retirement account”

tiktok screenshot
A screenshot from the @realitycheck2020 TikTok.

In another TikTok video slamming retirement accounts, @realitycheck2020 says that investors shouldn’t use retirement funds, as those charge fees while your money loses value. His solution is for investors to put money in an S&P 500 index fund, and then look for opportunities in new IPOs, cryptocurrencies, and real estate.

Stovall clarified that most retirement accounts allow you to invest in the S&P 500 at a low cost.

Boneparth summed up this video has “really broad financial advice from someone spouting their opinions about asset classes.”

“It’s not backed with any information that would help someone. It’s all predicated on FOMO, of a market that’s been treating investors well for taking risk,” he said.

Video: “SPACs only go up”

tiktok
A screenshot from the @tdorriz TikTok video.

@tdorriz tells Tik Tok that investors can turn their $1,400 “stimmy” (stimulus) into $10,000 by buying SPACs that are about to acquire a target company.

“If these target companies are any good, these stocks will easily double or triple overnight,” @tdorriz said in a TikTok

Boneparth said this investor is incorrectly linking correlation and causation, and urged investors to do their own due diligence.

“To just go buy any SPAC and not understand is a disservice,” said Boneparth.

“This advice assumes that all SPACs make money. There are no investment guarantees!” Stovall added.

In a response to Insider on Twitter, the TikToker said the idea “flopped,” but noted his video was just his opinion not advice. “80% of the stocks I buy go up in my opinion,” he said in a message.

Video: “Invest with cryptocurrency using a loan”

tiktok screenshot horrible investing advice
A screenshot from the @rickrahim TikTok

A TikTok from @rickrahim tells investors to take out a low interest loan, “plow it all into crypto,” and take out a tiny bit of profits each month to make monthly interest payments. Boneparth and Stovall both had strong reactions to this one.

“If he’s trolling, very funny. If he’s not, that’s an extremely dangerous, borderline stupid idea,” Boneparth said. ” Do not lever yourself to invest in any speculative assets. The risk is not worth the reward. Very dangerous, terrible, terrible financial advice.”

“Anyone who believes that a particular asset class ‘always goes up’ deserves to lose money,” Stovall said. “Also, why compound a possible mistake by taking out a loan (which carries its own cost) to purchase the investment you didn’t bother to research, or, worse yet, buying on margin? You’ll only end up losing more than you initially invested.”

Read more: A TikTok crypto influencer with nearly 600,000 followers explains why bitcoin is at risk of tumbling 30% in the next couple of weeks – and unpacks the tools he uses to determine price predictions

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Elon Musk says he’s selling his last remaining house, a ‘special place’ in California that he wants a large family to buy

GettyImages 1229892934
Tesla CEO Elon Musk says he’s selling his final house.

  • Elon Musk tweeted that he planned to sell his last remaining house, located in California’s Bay Area.
  • Musk said that he has already sold all his other houses to fund a Mars colony.
  • Musk called the property a “special place” and said he wanted to sell it to a large family.
  • Sign up for the 10 Things in Tech daily newsletter.

Tech billionaire Elon Musk said Monday that he planned to sell his “last remaining house.”

Musk called the property, in California’s Bay Area, a “special place” and said he wanted to sell it to a large family.

Musk has repeatedly said he plans to sell most of his possessions, including all his houses, to fund a colony on Mars. He has said he wants to send 1 million people to Mars by 2050.

It follows a ProPublica report last week that said Musk, the CEO of both Tesla and SpaceX, paid $455 million in taxes from 2014 to 2018. His wealth grew $14 billion over the same period.

Read more: Elon Musk is Tesla’s most visible leader, but not its only one. Meet 12 other people who control its future.

In response to the ProPublica report, Musk tweeted on Wednesday that he would continue to pay income taxes in California even after relocating to Texas, and said that he only owned one property – a house in California’s Bay Area that he rented out for “events.”

He now plans to sell this house, according to a tweet he posted in the early hours of Monday morning.

Musk said last week that he had sold all his other houses, and added that he rented his main property in Boca Chica, Texas, from his aerospace company SpaceX.

“It’s going to take a lot of resources to build a city on Mars,” Musk told Mathias Döpfner, the CEO of Insider’s parent company, Axel Springer, in a December interview. “I want to be able to contribute as much as possible to the city on Mars. That means just a lot of capital.”

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Bitcoin surges near $40,000 after Elon Musk says Tesla will resume crypto payments when mining is cleaner

Elon Musk with a bitcoin symbol
  • Bitcoin jumped above $39,000 after Elon Musk suggested Tesla might accept it as payment again.
  • Musk said he’ll do it when there’s proof of about 50% of mining energy used is clean.
  • Tesla halted bitcoin payments last month over concern its mining process is damaging to the environment.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin traded above $39,000 for a second day on Monday after Elon Musk tweeted Tesla would accept payment in cryptocurrency again once mining can be done using cleaner energy.

“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions,” the billionaire said in a tweet.

He was responding to a Cointelegraph report that quoted Magda Wierzycka, a South African billionaire businesswoman and CEO of asset manager Sygnia, saying that Musk’s bitcoin-related tweets should have led to a regulatory investigation.

According to Wierzycka, Musk deliberately pumped up bitcoin’s value and then sold a chunk of his exposure at its peak. But the Tesla boss disputed this claim, saying “Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.”

Elon Musk tweet on resuming bitcoin payments.

Bitcoin was last trading 11% higher around $39,530 on Monday as of 3:20 a.m. ET, and is up 36% so far this year.

“The charts suggest consolidation followed by a rally through $41,000 targets further gains to around $44,000,” Jeffrey Halley, a senior market analyst at OANDA, said.

Musk revealed in February his electric car company invested $1.5 billion in bitcoin and that it would start accepting it as payment for its vehicles. Barely three months later, Tesla made a U-turn and stopped payment in bitcoin because of how energy-intensive the mining process is.

“We are concerned about the rapidly increasing use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk said in a tweet at the time.

It isn’t clear yet how Musk will gather data to assess bitcoin’s clean energy use. But he previously suggested that the cryptocurrency can rid itself of its negative environmental image if top miners prove they’re using greener energy by posting audited data on renewables used.

Read More: Founders of a leading crypto brokerage lay out a thesis for why ether looks ‘very cheap’ while providing a more conservative case for bitcoin – and share 2 ETH challengers to watch

Read the original article on Business Insider

How billionaires like Jeff Bezos and Elon Musk avoid paying federal income tax while increasing their net worth by billions

amazon jeff bezos white house
Amazon cofounder and CEO Jeff Bezos.

  • Amazon CEO Jeff Bezos didn’t pay any income taxes for at least two years between 2006 and 2018, ProPublica reported.
  • Tesla CEO Elon Musk also skipped paying federal income taxes in 2018, according to the report.
  • Billionaires are able to circumvent federal income taxes through legal financial manipulation.
  • Visit the Business section of Insider for more stories.

In 2007, and again in 2011, billionaire Amazon CEO Jeff Bezos reportedly paid nothing in federal income taxes. In 2018, billionaire Tesla CEO Elon Musk reportedly did the same thing.

That’s according to confidential tax documents filed with the Internal Revenue Service obtained by ProPublica, which were revealed in a bombshell new report on some of the world’s wealthiest people.

Bezos is currently listed by Forbes as the richest person in the world, with a net worth of $188.8 billion. Musk isn’t far behind at number two on the Forbes list, with a net worth of $153.3 billion.

How do men with such dramatically high net worths avoid paying federal income tax?

Billionaires like Jeff Bezos and Elon Musk derive little wealth from their annual income. Instead, much of their net worth is tied to stock holdings.

Amazon Jeff Bezos
Jeff Bezos cofounded Amazon in the early ’90s, and still owns a 10% stake in the company.

Bezos, for example, owns a 10.3% stake in Amazon that’s valued at about $170 billion.

The majority of Bezos’ net worth – $170 billion – is tied to Amazon stock, which fluctuates regularly and has even left the billionaire jockeying for the world’s wealthiest title with Tesla CEO Elon Musk at times. At least $19 billion of Bezos’ wealth is not tied to his stake in Amazon.

Bezos can skip paying taxes on his accumulated wealth from the Amazon stock because stock gains aren’t taxed until they are realized by selling off the stock: Since those stocks represent value, but cannot be used as tender, they aren’t counted as “income” – even if they appreciate in value tremendously, like those of Amazon and Tesla.

As a result, though Bezos’ net worth increased by a reported $127 billion between 2006 and 2018, he only reported an income of $6.5 billion for those 12 years, according to ProPublica, resulting in a tax bill of around $1.4 billion.

That puts his federal income tax rate at about 21%, but his reported income doesn’t account for the massive increase in his net worth tied to stock ownership.

If you account for the $127 billion increase to his net worth that came from stocks appreciating in value over time, that $1.4 billion in federal income taxes accounts for just over 1%.

Moreover, Bezos and other stock-holding billionaires are able to turn those stocks into usable cash without having to sell: By borrowing money against their stock holdings, they’re able to lock in a lower loan interest rate than what they would pay through capital gains taxes that are applied after a stock is sold.

Got a tip? Contact Insider senior correspondent Ben Gilbert via email (bgilbert@insider.com), or Twitter DM (@realbengilbert). We can keep sources anonymous. Use a non-work device to reach out. PR pitches by email only, please.

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The Tesla Model S Plaid has arrived – here’s how it stacks up to every other Tesla

Tesla Lineup
Tesla’s cars range in price from around $40,000 to $150,000

  • Tesla launched its latest sedan, the $129,990 Model S Plaid, on Thursday.
  • It claims a top speed of 200 mph and a 0-60-mph under two seconds.
  • Tesla sells four models – the Model S, 3, X, and Y – which cost roughly $40,000 to $130,000.
  • See more stories on Insider’s business page.

Tesla has launched its priciest and fastest vehicle to date: the Model S Plaid.

We’ve known the sporty sedan was coming since late 2020 and orders have been open for months. But, after a couple of delays, Tesla kicked off deliveries with an event on Thursday night.

The Plaid may run you $129,990 before options, but it promises to offer some totally bonkers performance in exchange. Think a 200-mph top speed and a sub-two-second 0-60-mph time that could make it the quickest production vehicle on the market.

But a Tesla doesn’t need to cost six figures, and the company offers plenty of electric vehicles for people who are just fine traveling at more normal speeds.

Those shopping for a new Tesla can consult this guide to understand the latest prices of the Tesla Model S, 3, X, and Y, and how the models stack up.

Although add-ons vary between models, any Tesla can be optioned with the $10,000 Full Self-Driving driver-assistance package, which doesn’t currently make Teslas fully autonomous.

Model S

Tesla Model 3
Tesla Model S.

Launched in 2012, the Model S sedan is Tesla’s longest-running model. The luxury four-door got an overhaul at the top of 2021, which included an updated exterior and a controversial new steering yoke. It’s the choice for EV buyers who have a little more to spend and don’t want a crossover.

Here’s how each Model S breaks down:

  • Long Range: For $79,990, the base Model S delivers an estimated range of 375 miles, a top speed of 155 mph, and a 0-60-mph time of 3.1 seconds.
  • Plaid: The $129,990 Model S Plaid, whose name is a reference to the movie “Space Balls,” travels 350 miles on a charge, hits a top speed of 200 mph, and sprints to 60 mph in 1.99 seconds, Tesla says. Both Plaid models have three motors good for more than 1,000 horsepower.

A paint color other than white will run you $1,500 to $2,500, 21-inch wheels cost $4,500, and a white or off-white interior costs $2,500.

Model 3

Tesla Model 3 update
Tesla Model 3.

With the debut of the Model 3 in 2017, Tesla made good on its promise to build a more affordable vehicle than the Model S or Model X that came before it. And since it launched, the Model 3 has proved wildly successful, becoming both Tesla’s most popular model and the overall best-selling EV in the world in 2020.

The Model 3 comes in three flavors:

  • Standard Range Plus: The $39,990 base Model 3 gets an estimated range of 263 miles, a top speed of 140 mph, and a 0-60 time of 5.3 seconds.
  • Long Range: The $48,990 Long Range model has an EPA-estimated range of 353 miles
  • Performance: For $56,990, the sporty Model 3 Performance delivers a 315-mile range, a top speed of 162 mph, and a 0-60-mph time of 3.1 seconds. It also has a lowered suspension, better brakes, and 20-inch wheels as standard.

A paint color other than white will set you back $1,000 to $2,000, 19-inch rims cost $1,500, and a white interior – as opposed to the standard black – costs a $1,000 premium.

Read more: Don’t blame bitcoin for Tesla’s stock slide – it’s high-time faithful investors took some profits

Model X

Tesla Model X
Tesla Model X.

The Model X crossover is Tesla’s second-oldest model behind the Model S. It hit the market in 2015.

There are two versions of the Model X:

  • Long Range: For $89,990, the dual-motor base Model X delivers 350 miles of estimated range and a 155-mph top speed.
  • Plaid: The $119,990 Plaid version steps things up a notch with three motors that Tesla says put out 1,020 horsepower. Tesla says the high-performance crossover will have a 330-mile range and a 0-60-mph time of 2.5 seconds when deliveries start.

Like on Tesla’s other vehicles, a white paint job comes standard – black, silver, blue, or red will run you $1,500 to $2,500. Five seats come standard, and a six-seat or seven-seat layout costs $6,500 and $3,500, respectively.

A white or cream interior costs $2,000, while bigger rims go for $5,500.

Model Y

Model Y Sunset White
Tesla Model Y.

Starting deliveries in early 2020, the Model Y compact crossover is Tesla’s newest vehicle. It’s based on the same platform as the Model 3, but has more cargo capacity, rides higher, and has a general shape more like the Model X. It’s proving to be a hot seller just like its sedan sibling.

The Model Y comes in two versions:

  • Long Range: The $51,990 base vehicle has an EPA-estimated range of 326 miles, a top speed of 135 mph, and makes the sprint to 60 mph in 4.8 seconds.
  • Performance: The sportier option costs $60,990, and although it gets a lower range of 303 miles, it makes up for it in performance upgrades. The crossover accelerates to 60 mph in 3.5 seconds, has a higher top speed, and comes with bigger wheels, better brakes, and a lowered suspension.

There’s also a more affordable Standard Range model that Tesla briefly sold starting in January. Elon Musk said on Twitter it’s still available as an off-menu option.

Buyers can shell out an extra $1,000 for a tow hitch, $1,000 for a white interior, and $3,000 for third-row seating. A non-white paint job costs $1,000 to $2,000, while bigger rims command $2,000.

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Finance professor Aswath Damodaran warns investors not to get cocky, dismisses bitcoin as a currency or store of value, and blasts the Fed in a new interview. Here are the 11 best quotes.

Aswath2
Aswath Damodaran.

  • Aswath Damodaran worries investors have grown complacent and might get burned.
  • The NYU Stern finance professor said bitcoin fails as both a currency and a store of value.
  • The Federal Reserve has become too cocky and transparent, Damodaran said.
  • See more stories on Insider’s business page.

Finance professor Aswath Damodaran warned investors not to get complacent, weighed in on Tesla’s prospects, and argued that bitcoin fails as both a currency and a store of value in a RealVision interview released this week.

The professor at NYU Stern School of Business – whose nickname is the “Dean of Valuation” – also downplayed Warren Buffett’s recent performance, touted “big tech” companies as inflation havens, and cautioned that the Federal Reserve is overestimating its powers.

Here are Damodaran’s 11 best quotes from the interview, lightly edited and condensed for clarity:

1. “We’ve been in a market that’s been so good for so long that people have become sloppy and lazy – whether it’s in the form of SPACs or buying deep out-of-the-money call options. They think making money is easy, and markets have a way of fixing that thinking very quickly. Be cautious, because the exact forces that lead you to speculate might be the forces that hold the seeds for your downfall.”

2. “This market is being driven by mood and momentum, and even revenge. Think of what drove those Redditor investors to drive GameStop up: It’s not because they thought GameStop was worth more, they wanted to take revenge on hedge funds. Mood and momentum is being reflected in things like SPACs, or what happened to NFTs, or what’s happening to bitcoin.”

3. “Warren Buffett has been a pretty average investor for the last 20 years. The portion of the market which has delivered returns has been the portion of market that he’s been least comfortable dealing with – growth companies where it’s all about the future.”

4. “We have all these people telling you to buy a quality company. That’s really bad advice. If you buy a quality company that everybody else recognizes as a quality company, you’re going to pay through the roof. Good companies can be bad investments, and bad companies can be good investments. The sooner we recognize that, the healthier investing is going to be.”

5. “As a currency, bitcoin has really not worked, and it was never designed to work. When did you use it to buy a house, your lunch, your coffee? The answer is almost never, because it’s an incredibly inefficient currency.” – underscoring the effort and energy required to complete bitcoin transactions.

6. “Between February 14 and March 20 last year, we were in full-scale panic and stocks lost 35% of value, but gold held its value. You know what bitcoin did in those six weeks? It was down 50%. When stocks came back, bitcoin came back even more strongly. In 2020, bitcoin behaved like a very risky stock, not like gold, not like a collectible.” – arguing that bitcoin isn’t an uncorrelated asset that investors can use as a haven during crises.

7. “The story being told about Tesla by the bulls is that it’s not just an automobile company, it’s a revolutionary company that’s going to change the way everything gets done. The people who hate the company think it’s a scam, that Elon Musk is a magician who’s pulling wool over people’s eyes. Both sides are wrong; there is a good company at the core, but Tesla has lots of issues to get through to become a great company. I can’t get to a story where I can get a $600 billion value, but I can get to a story that gets me a $250 billion value, which a year ago would have made the stock cheap.”

8. “SPACs reflect other trends in society, including how social media and celebrity worship have taken over every aspect of our lives. SPACs are the coming together of that celebrity worship and social media into IPO investing.” – Damodaran gave the example of Shaquille O’Neal advising and promoting the SPAC buying WeWork.

9. “The Fed is like the Wizard of Oz, its power comes from the perception that it has power. My worry is that the Fed is becoming so open in making statements that they really can’t back up with their power. I think they’ve drank the Kool-Aid. They’ve read their own press, they think they’re actually more powerful than they really are. That’s a dangerous place for a central bank to be.”

10. “Central bankers are acting like drunks at a party, printing money like crazy.”

11. “The big tech companies are best equipped to deal with inflation. I wouldn’t go to a manufacturing company, I won’t go to Exxon Mobil. The Facebooks and the Googles, the Apples of the world fit the bill much better, because they have substantial cash flows. They also have pricing power.”

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Anthony Scaramucci says Elon Musk scared people off bitcoin but he backs it to soar like Amazon stock in the long run

Scaramucci
Anthony Scaramucci founded SkyBridge Capital.

  • Anthony Scaramucci said Elon Musk had “scared people” off bitcoin, but backed it to soar in the long run.
  • He said bitcoin was like Amazon stock, which swung dramatically in its early history.
  • Scaramucci’s SkyBridge capital has around $500 million in bitcoin and sees it as digital gold.
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Anthony Scaramucci has said that bitcoin will shoot higher in the long run despite some early setbacks – just like Amazon stock.

One of those setbacks has been the fact that Elon Musk “scared people” away from the cryptocurrency, the founder of SkyBridge Capital and former White House chief of communications told CNBC on Tuesday.

Musk’s electric car company Tesla stopped accepting bitcoin as payment in May due to its “insane” energy use, helping trigger a crash in the cryptocurrency. Bitcoin traded at around $33,000 on Wednesday, more than 45% below its record high of close to $65,000 reached in April.

Scaramucci, whose SkyBridge investment firm has around $500 million in bitcoin, said he thinks the huge volatility is more to do with the fact that the cryptocurrency is in the early stages of adoption than with Musk.

He compared bitcoin to Amazon, whose stock price has fluctuated dramatically through the years.

“If you went back to Amazon’s IPO back in 1997, if you held $10,000 of that stock on its IPO, it’s now worth $24 million. But you would have subjected yourself to eight periods of time where the stock dropped at least 50%.”

However, critics argue that bitcoin is not comparable to stocks as it has no intrinsic value.

Scaramucci said he was confident bitcoin would similarly shoot higher because millions more people would adopt it as a replacement for gold in investment portfolios.

Bitcoin fans argue the crypto asset’s scarcity means it can be a store of value that will protect investors against inflation, as gold traditionally has.

“Right now, we have about 125 million [bitcoin] users globally,” Scaramucci said. “Our research department of SkyBridge thinks that you will have at least a billion users by 2025.”

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One of Tesla’s longtime top executives has left the company

Jerome Guillen Tesla
Jerome Guillen had worked at Tesla in various high-level positions since 2010.

  • Jerome Guillen, Tesla’s president of heavy trucking, has left the company, Tesla said Monday.
  • Guillen joined the automaker in 2010 and led the Model S project and Tesla’s automotive division.
  • Guillen earned more than $46 million in salary and stock in 2020.
  • See more stories on Insider’s business page.

One of Tesla’s top executives has left the company, it said in a filing on Monday.

Jerome Guillen, who has led Tesla’s heavy trucking division since March, left the automaker as of last Thursday. The company’s share price held steady in after-hours trading.

Tesla did not give a reason for the departure, but said in the filing: “We thank him for his many contributions and wish him well in his future career.”

Before serving as Tesla’s head of heavy trucking, Guillen was the company’s president of automotive from 2018 to 2021. From 2016 to 2018, Guillen served as Tesla’s vice president of trucks and other programs, and prior to that he was the automaker’s vice president of worldwide sales and service. Guillen joined electric-car maker in November 2010 to head up the Model S program.

Read more: Americans still aren’t sold on EVs for rural living and road trips. Experts say solving these 2 issues could win them over.

Guillen climbed Tesla’s ranks over the years to become one of its highest-paid executives. In 2020, he earned more than $46 million in salary and stock awards.

His departure comes at a critical time for Tesla’s trucking division. The Tesla Semi has had trouble getting off the ground since it made its debut in 2017. Since then, major retailers and distributors have ordered thousands of trucks, but Tesla has yet to deliver a single unit. Tesla initially eyed a 2019 on-sale date, but now says the first deliveries will happen in 2021.

This month, Tesla also lost its head of energy operations, RJ Johnson.

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