The clock is again ticking down on the US debt ceiling saga as Auntie Yellen updated on the new schedule of default date – 15 Dec. If legislators do not raise the debt ceiling limit before this date, default is inevitable once again.
The stopgap sum of $480 billion in additional funding had helped to avert a default in October. She called on Congress to raise or suspend the debt limit to allow the US to continue its debt obligation.
A new estimate is incorporated with the infrastructure bill, which President Biden recently signed. It will appropriate around $118 billion into the Highway Trust Fund that must be transferred by 15 Dec into the Treasury securities that are non-marketable.
Pika World sees December as a dark cloudy sky as many deadlines are looming. First, we have Biden’s social spending bill to Congress before recess and this debt ceiling fight.
It is always the last-minute dash that hope occurs. We hope it stays true in this chase.
Tesla: Love from Cathie Wood
We got another piece of good news for the bull. Cathie Wood, the founder and CEO of Ark Investment, has been a loud bull caller for Tesla. During a virtual interview with Barron, she shared her new insights on Tesla.
She believed that if Tesla is successful in the autonomous driving sphere in the US, it is likely that the company will eat up a significant share in the electric vehicle market, up to 25% of the auto market within the next 5 years.
Her estimation is for Tesla’s share price to hit $3000 in 2025, which has to be dependent on the success of the autonomous driving mechanism, even so for taxi networks. But, more importantly, the general background has to be favourable, so electric vehicle prices will fall below gas-powered cars.
While there is serious competition from competitors such as Rivian Automotive and Lucid Group, Cathie is confident that the success of these firms does not spell doom for Tesla since Tesla’s batteries are estimated to be around 3-4 years ahead of competitors. In addition, neither of them is pursuing autonomous transport, which is the key highlight of Tesla’s competitive narrative.
As discussed in our previous updates, Pika World favours Tesla as our long-term bet with other Chinese EVs.
What’s on the menu today?
It is a data light day as we expect FOMC member Clarida to speak at around 1.15 am.
It is 19 Nov, Friday, at 7.35 am in Singapore and 7.35 pm in New York. We hope the last trading day of the week will bring you joy and happiness. Pika World wishes everyone a safe weekend!
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All is well.