Tesla Doing the Electric Slide – Downward, Whole Foods Not Looking Too Wholesome and Woe Is the Housing Sector!

Electric power struggle…

Image courtesy of Paul/FreeDigitalPhotos.net

Image courtesy of Paul/FreeDigitalPhotos.net

It might be a Consumer Reports top pick, but for Tesla Wall Street had a very different reaction. While the luxury electric car company did beat the analysts’ expectations, it also reported a loss of almost $50 million this quarter. Not exactly electrifying news for the company which at this time last year boasted its first profit. As a result, the stock was more fizzle than sizzle. Productions delays of the their Model X car didn’t exactly leave the Street brimming with enthusiasm over the company either. But CEO Elon Musk is not crying himself into a corner as he’s got great big plans for Tesla including building a massive battery factory – or what they’re calling a “gigafactory” – with Panasonic. Musk is also taking the wonders of Tesla abroad with China already having received deliveries of the Model S. Now if he could just figure out a way around those pesky car salesmen in New Jersey…

A whole lotta of food competition…

Image courtesy of KROMKRATHOG/FreeDigitalPhotos.net

Image courtesy of KROMKRATHOG/FreeDigitalPhotos.net

Whole Foods (WFM) is looking a little wholesome these days as the stock lost almost 17% of its value. It missed analysts’ predictions through no fault of their own. Sort of. After all, who can really compete with the likes of Krogers (KR) and perennial powerhouse retailer, Wal-Mart (WMT), both of whom are offering up organic fare for considerably cheaper prices. So rather than attempt a futile price war with these grocery behemoths, Whole Foods is going to try improving the customer experience instead. What that means for you is that Whole Foods will institute new  – and faster – payment and check out procedures. If they really want improve the customer experience, they might want to provide some babysitting so that parents can roam the stores freely without opening up half the grocery packages before they even get to checkout. That’s just my humble opinion. Currently they have 373 stores in the US, Canada and UK. Yeah, I didn’t know about the UK either.

Housing is a bummer…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Just when you were getting excited for spring and all the new fiscal excitement it brings, Janet Yellen goes ahead and kills that buzz by reporting that the housing sector…well…it’s just not really not doing its part to assist with the economic recovery. The amount of filings for building permits fell and those are pretty decent barometers of how the housing sector is doing. As for existing home sales, they seemed to have flat-lined. Those not-so-minor details combined with the fact that the rate of recovery took a veritable stall is leaving the Fed less than enchanted with prospects for a stepped up recovery. The Fed Chairwoman also wouldn’t divulge when low short term interest rates would go back up. If you’re in the market for a cheap mortgage or other type of loan, you better hope they stay low. But Janet Yellen is still holding out for a higher rate of recovery and even expects unemployment numbers to go down, albeit slower tha we would like. Currently, the unemployment rate is holding at a very unflattering 6.3%. Pre-recession that rate was between 4% and 5%.

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One response to “Tesla Doing the Electric Slide – Downward, Whole Foods Not Looking Too Wholesome and Woe Is the Housing Sector!

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