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Few companies evoke as much intense discussion as Tesla. With a CEO that loves to stir the pot on Twitter, and ambitious plans to rule the world of electric vehicles (EVs) Tesla has built an army of advocates, and detractors.
In years gone by one of the biggest points of criticism was Tesla's constant losses. Quarter after quarter, Tesla made billions of dollars of losses — taking on more debt, or selling more shares, to fund its growth habit.
Tesla's turnaround
Those criticisms are less valid today, as Tesla reported this week that it had made more than $6.5bn from its operations in 2021, a record high. That number was well received, helping to paper over the ongoing supply chain issues that Tesla also announced, which are set to see plans for new vehicles (like the Cybertruck) get put on hold until 2023 at the earliest. With a valuation equal to the next 8 automakers combined expectations on Tesla remain sky-high. So far, the company is meeting them.
Massing Russian troops on the borders of Ukraine have elevated tensions between eastern and western powers in a way not seen since the cold war.
The 100,000+ Russian troops near the Ukrainian border offer a threat of invasion that now rests heavily on the minds of ordinary Ukrainian citizens. Pre-packing emergency bags, kits and supplies is now commonplace for residents of Kyiv, Ukraine's capital city.
The NATO question
One of the core issues that's ignited this tension is NATO, the North Atlantic Treaty Organization, a military alliance of 30 countries including the US, UK, France, Italy and Germany that promises to defend any member that comes under attack. In December Russia wanted assurances that NATO would limit the resources and troops that it massed in eastern Europe, including a ban on Ukraine ever formally joining the alliance.
It's hard to overstate NATO's influence in geopolitics. According to data from SIPRI, members of NATO account for more than 57% of total global military spending, with the US alone accounting for 40% of all global defense spend. NATO allies delivered written confirmation this week that any ban on new NATO members in eastern Europe was a "non-starter", suggesting tensions are likely here to stay, even as talks continue.
When one of the most successful investors of all time says that a company is "probably the best business I know in the world", it probably means something.
And Warren Buffett has been right about Apple.
Yesterday the tech giant produced another staggering set of results, reporting more than $123bn of revenue for a single quarter. That works out to about $1.36bn per day, $57 million an hour or about $945,000 of sales every single minute.
The services side-hustle
About 15% of that revenue came from Apple's Services division — think the App Store, Apple Pay, Apple Music, Apple TV, the iCloud and more. That business has grown steadily, halting only briefly during the pandemic last year, before resuming its upward march towards ~$20bn of quarterly revenue. For some context on just how big that is, it's more than double what Netflix makes per quarter ($8bn), and about 15x what Twitter makes ($1.3bn).
With people holding onto phones for longer, and with upgrades becoming more incremental (honestly, what else would you want your phone to be able to do?), Apple is unlikely to sell as many iPhones going forward. But it almost doesn't matter as long as Apple keeps people in its "walled garden". With 1.8 billion already active Apple devices, there's a lot of opportunity for Apple's Services business to keep growing.
1) Great visualization of how much money Americans make.
2) A frog has regrown an amputated legover 18-months after being treated with a cocktail of drugs, marking a potentially significant advance for regenerative medicine.
3) US GDP grew at a 6.9% annualized pace in the fourth quarter, ahead of expectations for 5.5%.
4) An interactive deep-dive of dataviz from The Economist, exploring the decline of English dominance in global music, examining 13,000 hits in more than 70 languages.
5) The Daily Upside — founded by a team of investment bankers and scholars — was designed to help you get smarter on markets while respecting your time. Join 250,000 investors (and us), and sign up today, for free.**
6) Which are the most corrupt countries on Earth? The latest league table is out.
7) A 19-year-old built a Twitter bot (@ElonJet) that tracked when Elon Musk's private jet was taking off and landing. Musk wasn't a fan, reportedly offering $5,000 to delete the account.
**This is sponsored content.
