Diamonds and Dogs
Tesla (TSLA) Model 3 coming to market this month. The stock is up modestly on an abbreviated day thanks to news over the weekend on the Model 3. Tesla's 15-year-quest to reach mainstream consumers with a smaller, more affordable $35,000 electric car will happen this month. Tesla plans to produce 100 Model 3 cars in August, 1500 in September and ramping up to 20,000 a month in December. Tesla reported last spring that 373,000 people had placed $1,000 deposits for the vehicle. If these numbers are accurate, the Model 3 will produce $13 billion in sales for Tesla or a double in company revenue. The big question going forward is will the cars be profitable?
Casinos are under pressure. Wynn Resorts (WYNN) is down 3% as gaming revenue numbers from Macau fell short of expectations. The Gaming Inspection and Coordination Bureau of Macao said June revenue rose 26% at the Chinese enclave, home of Wynn's most expensive property, the Wynn Palace, opened in 2016 to much fanfare. Instinet analyst Harry Curtis said that was well below the low end of his 30% to 35% estimate. The 22% gain for the second quarter was also below his 24% estimate, as gross gaming revenue fell sharply at the end of June, which the analyst attributed to tensions surrounding China's President Xi Jinping's visit to Macau's neighbor Hong Kong. The good news is business is growing again.