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- Tesla's $400M Deal on Hold 🚗
Tesla's $400M Deal on Hold 🚗
Ryan Serkes
February 14, 2025
The
Daily Trade
Hey Daily Traders,
Tesla's ambitious $400 million armored vehicle deal with the State Department has been unexpectedly paused, casting a spotlight on the intricate dance between private enterprise and government contracts. The indefinite delay, prompted by administrative changes and scrutiny over taxpayer funding, underscores the complexities of federal procurement and the political influences that can sway significant business transactions.
Meanwhile, DraftKings' larger-than-expected Q4 loss has caught investors' attention, as the company reported a $134.9 million deficit—exceeding analyst predictions. Despite this setback, DraftKings remains optimistic about its annual revenue projections, a critical factor as it navigates the competitive landscape of online sports betting and gaming.
Here's what's happening today:
- Tesla's $400M vehicle deal on hold 🚗
- DraftKings posts Q4 loss 📉
- Wyoming Highway Patrol considers Bitcoin 💰
- Toll Brothers unveils luxury homes in California 🏡
- Historic church in South Bend for sale ⛪
Question
Do you think the State Department's decision to pause Tesla's $400M armored vehicle deal will impact the company's future government contracts? Why or why not?
Reply to this email with your answer
Stock Market  The State Department has paused a plan to purchase $400 million worth of armored electric vehicles from Elon Musk's Tesla. Initially, Tesla was the sole company interested in the contract, which would have been the largest of the year. The deal was put on hold due to changes in the administration and concerns about the specifics of the contract, including the potential for taxpayer money funding Musk's enterprises. Tesla has previously received significant government contracts, including $41.9 million for vehicles supplied to U.S. embassies. The State Department initially planned to release a request for bids in May, but this has been postponed indefinitely. The department's contract forecast has been amended to list the supplier as a generic 'electric vehicle manufacturer' instead of naming Tesla. The delay highlights ongoing discussions about the role of private companies in government contracts and the complexities of federal procurement processes. The situation underscores the influence of political changes on business deals and the scrutiny faced by high-profile companies like Tesla. Key Takeaway
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Stock Market DraftKings Inc. reported a fourth-quarter loss of $134.9 million, translating to a loss of 28 cents per share, which was larger than analysts' expectations of a 19-cent loss per share. The company's revenue also fell short of forecasts, bringing in $1.39 billion compared to the anticipated $1.41 billion. Despite these setbacks, DraftKings projects its full-year revenue to range between $6.3 billion and $6.6 billion. The earnings miss reflects the ongoing challenges faced by the company in a competitive market, where managing costs and meeting revenue targets remain critical. As a major player in the online sports betting and gaming industry, DraftKings' financial performance is closely watched by investors and analysts. The company's ability to bounce back and achieve its revenue goals will be crucial for maintaining investor confidence and market position. Key Takeaway
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Crypto  The Wyoming Highway Patrol Association (WHPA) is considering adding Bitcoin to its balance sheet as part of a broader initiative to explore cryptocurrency adoption. This move is in collaboration with the 'Get Off Zero' initiative by Bitcoin education platform Proof of Workforce, aimed at helping organizations understand Bitcoin's benefits. The initiative has garnered support from Wyoming Senator Cynthia Lummis, who is known for her advocacy of Bitcoin and introduced a federal Bitcoin reserve bill. This potential adoption marks a significant step as it could be the first instance of a law enforcement association in the U.S. embracing Bitcoin. The move reflects growing interest in cryptocurrency as a stable financial tool amid an evolving monetary system. If successful, it could pave the way for other organizations to explore similar strategies, highlighting the increasing integration of digital assets into traditional financial systems. Key Takeaway
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Real Estate Toll Brothers, a leading luxury home builder, has announced the final phase of home sites at Borello Ranch Estates in Morgan Hill, California. The community offers estate-sized single-family homes with various customizable options, priced from $2.89 million. The development features a range of amenities, including a recreation center, pool, and sports courts, catering to the luxury market in Silicon Valley. The release of these final home sites highlights the continued demand for luxury housing in desirable locations like Silicon Valley. Toll Brothers' focus on high-end, customizable homes reflects broader trends in the real estate market, where buyers seek personalized living spaces with premium amenities. The development's strategic location and comprehensive offerings make it an attractive option for affluent buyers, underscoring the company's position as a leader in the luxury home market. Key Takeaway
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Real Estate  A historic church in downtown South Bend, Indiana, built in 1888, is now for sale. The church, located at the corner of Washington and Lafayette, is listed for $750,000 and is protected by the Historic Preservation Commission, ensuring its exterior remains unchanged. The building offers potential buyers various options for reuse, from maintaining its current use as a religious space to converting it into a restaurant or other commercial venture. The sale of this iconic property presents a unique opportunity for buyers interested in preserving and repurposing historic landmarks. The church's architectural significance and central location make it a valuable asset for the community. Potential buyers will need to navigate preservation requirements while exploring creative uses for the space, highlighting the challenges and rewards of investing in historic properties. Key Takeaway
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Today's Technical Analysis
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Sell | ULTOSC Sell | STOCH Sell |
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Sell | ULTOSC Sell | STOCH Sell |
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Sell | ULTOSC Sell | STOCH Sell |
RSI Buy | MFI Buy | WillR Buy | AO Buy |
CCI Buy | BBANDS Buy | ULTOSC Buy | STOCH Hold |
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Technical Indicator Information
Relative Strength Index (RSI) | Period: 14 days | Overvalued threshold: 70 | Undervalued threshold: 30
Money Flow Index (MFI) | Period: 14 days | Overvalued threshold: 80 | Undervalued threshold: 20
Williams Percent Range (WillR) | Period: 14 days | Overvalued threshold: -20 | Undervalued threshold: -80
Aroon Oscillator (AO) | Period: 14 days | Overvalued threshold: 75 | Undervalued threshold: -75
Moving Average Convergence/Divergence (MACD) | Period: 26/12/9 days | Overvalued threshold: MACD crosses below MACD Signal | Undervalued threshold: MACD crosses above MACD Signal
Stochastic Oscillator (STOCH) | Period: 14/3/3 days | Overvalued threshold: %K crosses below %D above 80 | Undervalued threshold: %K crosses above %D below 20
Commodity Channel Index (CCI) | Period: 20 days | Overvalued threshold: 100 | Undervalued threshold: -100
Bollinger Bands (BBANDS) | Period: 20 days | Overvalued threshold: price >= upper band | Undervalued threshold: price <= lower band
Parabolic Stop and Reverse (SAR) | Period: variable 50 - 100 days | Overvalued threshold: SAR crosses above price | Undervalued threshold: SAR crosses below price
Triple Exponential Average (TRIX) | Period: 15 days | Overvalued threshold: TRIX crosses below 0 | Undervalued threshold: TRIX crosses above 0
Ultimate Oscillator (ULTOSC) | Period: 28/14/7 days | Overvalued threshold: 70 | Undervalued threshold: 30
Directional Movement Index (DMI) | Period: 14 days | Overvalued threshold: PlusDI crosses below MinusDI | Undervalued threshold: PlusDI crosses above MinusDI
Average Directional Index (ADX) | Period: variable 14 days | Requirement: >= 25
Analysis is only performed on securities with market caps in excess of $100 million and with daily trade volume in excess of $50 million.
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