In some good news for investors today, the All Ordinaries Index (ASX: XAO) is enjoying yet another strong day of gains so far this Tuesday. The All Ords is currently up a pleasing 1.08% at 7,640 points. But one ASX share isn’t joining the party. That would be the Piedmont Lithium Inc (ASX: PLL) share price.

Piedmont Lithium shares were last priced at 94 cents each, as of yesterday’s close. And that’s where they will be staying, at least for now. That’s because Piedmont Lithium requested a trading halt this morning, meaning its shares are unavailable for buying or selling.

So why is Piedmont Lithium not trading today? It’s due to a capital raising that the company announced this morning. In its request for a trading halt to the ASX, Piedmont stated that “the trading halt is requested on connection with a proposed capital raising to be undertaken by way of a U.S. public offering of the Company’s shares”.

The shares are scheduled to return to trading on Thursday (24 March).

Piedmont Lithium share price halted amid capital raising

So Piedmont is indeed issuing more shares as part of its capital raising effort. The company will be conducting a public offering for 1.5 million new shares.

Piedmont Lithium said this about what it is intending to use the proceeds of this capital raising for:

Piedmont intends to use the net proceeds from the offering to fund the Company’s share of the capital required to restart the operations at North America Lithium in Quebec, to fund exploration and definitive feasibility studies at Eyowaa in Ghana, to advance the Company’s merchant lithium hydroxide plant in the southeastern United States, and to continue development of the Carolina Lithium Project, including ongoing permitting activities, engineering design, and property acquisition.

The company also said the funds could be used for “possible strategic initiatives” and for “general corporate purposes”.

So that’s why Piedmont Lithium shares are in a trading halt this Tuesday. We might have to wait until Thursday to find out how investors react to this news through the Piedmont Lithium share price. But until then, this company’s shares look to remain on ice.

Piedmont shares are up just over 22% in 2022 but remain down by 11.3% over the past 12 months. This ASX lithium share has a market capitalisation of $1.49 billion.

The post Why is the Piedmont Lithium (ASX:PLL) share price on ice today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So, we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.”

Australia is banning all Australian exports of alumina and aluminum ores to Russia. But how could this impact Rio Tinto Limited (ASX: RIO)?

The Rio Tinto share price is up more than 3% in early trading today, currently swapping hands at $113.80. For comparison, the S&P/ASX 200 Index (ASX: XJO) is up around 1% at the time of writing.

Let’s take a look at the aluminum export ban to Russia and the impact it may have on Rio?

Aluminum ban

The federal government has banned Australian exports of alumina and aluminum ores, including bauxite, to Russia. Australia had previously been supplying close to 20% of Russia’s alumina needs.

A ship was due to dock in Australia this week to load alumina bound for Russia. The Australian reported the alumina would have come from Queensland Alumina, based in Gladstone. Rio Tinto has a 80% stake in Queensland Alumina, while Russian company Rusal has a 20% stake.

Commenting on the shipment, Prime Minister Scott Morrison said:

Late last week it came to our attention that there was a ship that was due to dock in Australia this week to collect a load of alumina bound for Russia. That boat is not going to Russia with our alumina.

Our decision here should say very clearly that to all countries, all companies operating in Australia, we are watching these things very, very carefully.

A Rio Tinto spokesperson said the company “notes the government’s announcement” on export sanctions and is still in the process of “terminating all commercial relationships it has with any Russian business”, The Economic Times reported.

Cutting commercial ties

Rio Tinto has recently undertaken to cut all commercial ties with Russia, as Motley Fool Australia reported. Speculation has also emerged Rio might need to buy out Rusal’s 20% stake in Queensland Alumina.

Rio Tinto is currently under some pressure from advocacy groups to take this action. In a statement released yesterday, Australasian Centre for Corporate Responsibility​ director Dan Gocher said:

In the absence of sanctions on Rusal, Rio Tinto must take immediate action to protect its reputation, by taking complete control of the Queensland Alumina joint venture and quarantining any profits from Rusal shareholders.

Rio share price snapshot

The Rio Tinto share price has soared nearly 14% this year to date, gaining nearly 6% in the past 12 months.

In the past month, Rio Tinto shares have slipped by more than 5%, but are up 2% over the past week.

Rio has a market capitalisation of about $42 billion based on its current share price.

The post How does Australia’s ban on alumina exports to Russia impact Rio Tinto (ASX:RIO)? appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The stock market hasn’t performed well this year. As of this writing, all three major U.S. market indexes are comfortably in negative territory for the year with the worst-performing of the bunch, the Nasdaq Composite Index (NASDAQ: IXIC), down by 11%.

Given current geopolitical tensions and their effect on worldwide economies, many investors might fear that we will experience a market crash at some point this year. 

Of course, no one knows whether that will happen, but it can’t hurt to prepare in advance. And in doing so, it’s worth taking a page out of Warren Buffett’s playbook. The Oracle of Omaha is known for not fearing downturns since they can present great opportunities to buy shares of excellent companies on the dip.

Let’s look at two of Buffett’s favourite stocks that might be worth loading up on in the next market crash: Apple Inc (NASDAQ: AAPL) and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). 

1. Apple

At first glance, Apple might not seem like the kind of company investors might want to bet on during a downturn. After all, the tech giant is best known for its sleek technology products, most notably its iPhone.

While the quality of Apple’s hardware is top of the line, the company’s products aren’t known for being cheap. When economic troubles hit and lead to a market crash, consumers might choose to cut back on products like the iPhone first.

But let’s look at the bigger picture. Historically, bear markets have lasted 9.6 months on average. By contrast, bull markets have lasted 2.7 years.

Economic recessions also tend to be shorter than expansions. Even if Apple suffers during the next downturn (whenever it happens), investors can rest assured it will perform exceptionally well once things settle. After all, the company has soundly beaten the market in the past three years, a period that includes the recession and bear market caused by the COVID-19 pandemic.

Further, Apple is looking to decrease its reliance on its hardware. To be clear, the company’s products segment still makes up the bulk of its revenue. During its 2021 fiscal year — which ended on 25 September 2021 — Apple racked up $365.8 billion in total net sales, 33.3% higher than the previous fiscal year.

The company’s products unit accounted for about 81% of its net sales. The good news is Apple’s services segment — where it offers such things as iCloud, Apple TV+, Apple One, Apple Music, etc. — is becoming increasingly important for the company and offers much higher margins. Last fiscal year, Apple’s products segment reported gross margins of 35.3%, compared to nearly double that for the services segment of 69.7%.

Given the powerful brand name it has built as a leading tech company, Apple will continue generating solid sales from its hardware products, at least for the foreseeable future. But the company’s services unit will likely grow in importance thanks to the ecosystem it has built. That should allow Apple to find even more ways to monetize its users and work wonders for its bottom line. That’s why even after crushing the market historically, Apple remains an excellent buy-and-hold stock. 

2. Berkshire Hathaway

Warren Buffett clearly loves purchasing shares of the corporation he leads. In the past couple of years, Berkshire Hathaway bought back 9% of its shares that were outstanding as of the end of 2019 — for a total of $51.7 billion. Investors who want to survive downturns and beat the market should consider following Buffett’s lead and load up on shares of Berkshire Hathaway.

This conglomerate wholly owns many notable subsidiaries, including Geico, Fruit of the Loom, Duracell, and more. Berkshire Hathaway boasts an insurance division and a manufacturing unit, and it also owns several energy and utility companies. That is more diversity than investors can typically get by investing in just one stock. And don’t think it’ll stop there.

Buffett and his team have often deployed their huge cash pile to acquire even more excellent businesses. That last point underscores what is perhaps the best reason to purchase shares of Berkshire Hathaway: Doing so allows investors to have both Buffett and the company’s vice chairman Charlie Munger in their corner.

Both are widely considered among the best investing minds ever. And with these two at the helm, Berkshire Hathaway has historically crushed the market while surviving many economic recessions and market downturns.

Having proven they know how to lead a highly successful business, Buffett and Munger — both in their 90s — have reportedly already chosen who will lead the company next. The chosen one’s name is Gregory Abel, vice chairman of Berkshire Hathaway’s non-insurance operations. Munger himself has emphasized that Abel will keep the culture of the company.

That’s all the insurance that investors need to know — that Berkshire Hathaway should continue performing well for many years to come. If the company’s shares plunge in a market crash this year, initiating a position looks like it would be a great move. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 Warren Buffett stocks to buy and hold if the market crashes appeared first on The Motley Fool Australia.

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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Blackmores Limited (ASX: BKL) shareholders might be wondering why the share price has fallen 0.52% to $75 today.

The health supplements company released its half-year results on 24 February, reporting strong growth across key financial metrics.

In turn, the board opted to ramp up its upcoming interim dividend to eligible investors.

Let’s take a look below at why Blackmores shares are edging lower during morning trade.

Shareholders set eyes on Blackmores’ interim dividend

The Blackmores share price is in reverse following the company’s shares trading ex-dividend today.

Typically, one business day before the record date, the ex-dividend date is when investors must have purchased the company’s shares. If the investor does not buy Blackmores shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

When can shareholders expect to be paid?

For those eligible for Blackmores’ interim dividend, shareholders will receive a payment of 63 cents per share on 12 April. The dividend is fully franked.

Franking credits, otherwise known as imputation credits, are highly regarded in the investing world. This is a type of tax credit that is passed onto shareholders when dividend payments are made by a company. Essentially, the company is paying the tax on the dividends received by the shareholders.

Investors who elect for the dividend reinvestment plan (DRP) will see a number of shares added to their portfolio. This will be based on a volume-weighted average price from 24 March to 30 March.

The DRP discount rate is set at 2.5%, and the last election date for shareholders to opt-in is 24 March.

Blackmores share price summary

Since the beginning of 2022, Blackmores shares have lost 17% on the back of weakened investor sentiment. The S&P/ASX 200 Index (ASX: XJO) is also down around 1% over the same timeframe.

The Blackmores share price reached an all-time high of $103.97 in November, before backtracking amid inflationary movements and geopolitical tensions.

Based on today’s price, Blackmores commands a market capitalisation of roughly $1.46 billion and has a trailing dividend yield of 0.94%.

The post Why is the Blackmores (ASX:BKL) share price sliding today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Blackmores Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX shares that are producing significant growth could be attractive to some investors.

Albert Einstein reportedly once said about the power of compounding:

Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.

But not every ASX share is destined to deliver long-term compound growth, however, these two ASX shares are hoping to keep growing for a long time.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a global retailer of affordable jewellery.

It has a sizeable presence in a number of countries such as Australia, the USA, UK, South Africa, Singapore, Malaysia, New Zealand, France, Germany, Belgium, and the Middle East region. There are a few more European countries where it has a limited presence.

The company continues to grow its global store network, adding to its operating leverage and expanding its market presence.

Its growth and scalability were shown in the company’s FY22 half-year result. Revenue went up by 48.3%, earnings before interest and tax (EBIT) increased 59% and net profit after tax (NPAT) jumped 70.3% to $36.7 million.

The ASX share has high hopes for its global online offering. It is aiming to invest to achieve growth, while also generating satisfactory profit as well.

Since the start of 2022, the Lovisa share price has fallen by around 5%. That’s despite the company announcing that in the first eight weeks of the second half, sales were up another 61.7%.

ELMO Software Ltd (ASX: ELO)

ELMO Software is a growing HR and payroll software provider for small and medium-sized organisations in Australia and the UK.

Since the start of the 2022 calendar year, the ELMO share price has fallen around 13%.

However, the business continues to report a high level of growth. In its FY22 half-year result, revenue grew by 41% to $43.1 million and annualised recurring revenue (ARR) rose 35% to $98.3 million. ARR is now expected to reach between $107 million to $113 million in FY22, which was an upgrade from prior expectations.

The ASX share managed to achieve a positive earnings before interest, tax, depreciation and amortisation (EBITDA) of $0.3 million, up by $0.9 million from last year.

ELMO explained that operating leverage continues to improve with a reduction in key spending ratios across the business which has driven the positive EBITDA, as well as reducing the operating monthly cash burn by 36% year on year.

The company is now expecting to grow revenue by between 32% to 39% to between $91 million to $96 million. FY22 EBITDA is expected to come between $1.5 million to $6.5 million.

ELMO commented that its UK acquisitions are performing “exceptionally well” and provide a solid foundation to increase market share in the region.

The post Growth investors should put these 2 top ASX shares on the watchlist appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Elmo Software. The Motley Fool Australia owns and has recommended Elmo Software. The Motley Fool Australia has recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Qantas Airways Limited (ASX: QAN) shares could receive some tailwinds in the form of extra revenue from the sale of non-fungible tokens (NFTs).

That’s right.

The flying kangaroo is stepping into the digital art space. One based on blockchain technology, meaning each artwork is unique and cannot be copied. Though they may look identical to the human eye.

If you own Qantas shares, here’s what your airline is up to.

What’s this about NFTs?

As reported by The Australian, Qantas is planning to offer 4 different NFTs in its initial digital art rollout. That’s expected to occur around the middle of this year.

The 4 NFTs range from First, Business, Premium Economy and Economy. First, as you’d expect, is the most expensive and rare.

The 4 different digital artworks will portray various aspects of Qantas’ history in the air.

And if you buy an NFT, you’ll also get frequent flyer points. Which could spur more people to book a flight, adding another tailwind for Qantas shares.

Commenting on the rollout, Qantas group chief customer officer Stephanie Tully said (quoted by The Australian):

From model aircraft to posters and boarding passes, people have been collecting pieces of Qantas history for more than 100-years and we know how much our customers love having their own unique piece of the national carrier.

A Qantas NFT collection allows us to engage the next generation of aviation and digital art enthusiasts, leveraging blockchain technology to celebrate our heritage and future.

How have Qantas share been tracking?

Qantas shares have seen some big ups and downs in 2022, battered by soaring fuel costs and then lifted by the reopening of international travel routes.

The Qantas share price is down 1.6% year-to-date, compared to a 3.2% loss posted by the S&P/ASX 200 Index (ASX: XJO).

At the current price of $5.07 per share, Qantas has a market cap of $9.6 billion.

The post Own Qantas shares? Here’s how the airline is planning to profit from NFTs appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The New Hope Corporation Limited (ASX: NHC) share price is having a strong day following the release of its half year results.

On Tuesday morning, the coal miner’s shares are up 10% to $3.22.

New Hope share price jumps on strong profit growth

• Total revenue up 153% to $1,025 million
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up to 582% to $554.4 million
• Net profit after tax of $330.4 million, compared to a loss of $55.4 million a year earlier
• Fully franked interim dividend up 325% to 17 cents per share
• Special dividend of 13 cents per share fully franked

What happened during the first half?

For the six months ended 31 January, New Hope reported a 153% increase in revenue to $1,025 million and a whopping 582% jump in EBITDA to $554.4 million. This was underpinned by a 7% increase in sales volumes to 5.1Mt, a reduction in site cash costs, and a 147% lift in its realised price to $192.4 per tonne.

This ultimately led to New Hope bouncing back from a loss of $55.4 million a year earlier to a net profit after tax of $330.4 million.

Pleasingly for shareholders, the New Hope board has elected to share a significant part of its profits with them. Not only did it increase its fully franked interim dividend by 325% to 17 cents per share, but it has also declared a fully franked 13 cents per share special dividend.

Management commentary

New Hope’s Chief Executive Officer, Rob Bishop, was pleased with the half and believes the company is well-positioned to continue generating strong, sustainable shareholder returns.

This is due to the fact that demand for high quality, lower emissions thermal coal is expected to remain robust in the short to medium term as supply remains constrained.

Commenting on the half, he said: “Cost control disciplines that were introduced during the 2021 financial year in response to a period of depressed prices have been embedded across the Group and will ensure that New Hope remains in the lowest cost quartile compared to other producers of seaborne thermal coal.”

“Bengalla dealt very well with the challenges from COVID-19 related labour shortages and wet weather to minimise the impact on coal production, which was down only 1 per cent compared to the first half of last financial year. The mine will shortly take delivery of two additional haul trucks which will increase saleable production during the second half of the financial year.”

“Strong demand and lower than normal stock levels held by customers have pushed thermal coal prices well above the long-term average. Newcastle Index pricing is currently above US$300/t, and our forward sales book will support robust returns,” Bishop added.

The post New Hope (ASX:NHC) share price up 10% amid huge first half profits and special dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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When a professional investor has 54 ASX shares in his portfolio but singles out one as his pick of the February reporting season, investors need to pay attention.

According to Katana Asset Management portfolio manager Romano Sala Tenna, his team categorises investment opportunities into one of three categories: growth, quality, or (deep) value.

Occasionally he runs into a gem that fits two of those buckets.

However, Pepper Money Ltd (ASX: PPM) is the triple threat that somehow fits all three categories.

“Pepper Money is trading on a PE ratio of five times earnings, has averaged 21% growth per annum for the past decade, and has a high calibre management team and business model,” Sala Tenna posted on Livewire.

Second time unlucky?

Pepper Money has had two lives on the ASX. The first incarnation, called Pepper Global, lasted from 2015 until 2017 when it was bought privately.

The current version listed in May last year and has had “a troubled return” since.

“From an IPO price of $2.89 per share, the stock has steadily declined to around the $1.70 mark.”

But this just makes it a golden buying opportunity, as far as Sala Tenna is concerned.

“There is a lot to like about this company, and it wasn’t a straightforward decision,” he said.

“We have been tracking Pepper Money since listing, and finally began building a position around the $1.90 level.”

Pepper Money is ‘the holy grail’

As a loans provider, one very obvious tailwind for Pepper is rising interest rates, which is expected to come multiple times later this year.

“In the 21+ years that PPM has been operating, it has demonstrated that it is increasingly adept at passing on rate increases to preserve net interest margin.”

A structural growth stock, according to Sala Tenna, is “the holy grail of investing”.

“It is easy to see why. If we consider a stock growing at 5% per annum, then after 10 years it has grown profits by 1.6 and presumably its share price by about the same amount,” he said.

“However, if a company is able to grow its profit by 20% per annum consistently, then through the effect of compounding its profit will grow 6.2x, and so too will its share price (all things being equal).”

He added that true structural growth narratives are extremely rare, and they often trade at a PE ratio that’s 10 or 15 times higher than the market.

“A basket of structural growth stocks that we track is currently trading on an average PE ratio of 34 versus the S&P/ASX 200 Index (ASX: XJO) ‘s PE ratio of 16.3.”

This makes Pepper, with a PE ratio of 5, outstanding value at the moment.

The Pepper Money share price has plunged more than 22% this year so far, closing Monday at 1.69.

The post This rare ASX share is growth, quality AND value: expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The A2 Milk Company Ltd (ASX: A2M) share price is trading lower on Tuesday morning.

At the time of writing, the embattled infant formula company’s shares are down 0.5% to $5.40.

Why is the A2 Milk share price dropping?

Today’s decline by the A2 Milk share price appears to have been driven by the release of an announcement out of smaller rival, Bubs Australia Ltd (ASX: BUB)

According to the release, Bubs is going head to head with A2 Milk by launching Bubs Supreme infant formula and toddler milk with natural A2 beta-casein protein.

The release notes that the Bubs Supreme formula range will be on shelf in 500 Coles Group Ltd (ASX: COL) supermarkets from May. This expands the company’s shelf presence in Coles stores, which already includes Bubs easy-digest goat milk formula and Bubs Organic grass-fed cow’s milk formula.

Bubs estimates that the global A2 beta-casein protein milk market is valued at US$1.23 billion and is forecasting it to reach US$2.6 billion by 2026.

Is this bad news for A2 Milk?

Whether Bubs will ever win a decent share of the A2 beta-casein protein milk market is difficult to say.

It has launched countless new products in recent years, diluting its original unique selling point as being a goat milk infant formula company.

For example, in 2020 the company talked up its launch of a Vita Bubs vitamins range. It appointed Jennifer Hawkins as its brand ambassador and spoke about its $2.3 billion opportunity in the Australian vitamin and mineral supplements category.

However, almost two years later, despite being ranged in 400 Chemist Warehouse stores at launch, the Vita Bubs product didn’t even get a mention with its first half results.

So, just like Blackmores Limited (ASX: BKL) probably wasn’t quaking in its boots over that launch, chances are that A2 Milk won’t be over this launch. Which may explain why there has only been a reasonably subdued response by the A2 Milk share price today.

But time will ultimately tell what happens.

The post Why is the A2 Milk (ASX:A2M) share price falling today? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Tesla (NASDAQ: TSLA) stock jumped 4% to start the week on Monday morning with the initial deliveries from the company’s new gigafactory near Berlin imminent. The early pop settled back to a gain of 3% as of 11:40 a.m. ET. 

So what

Tesla CEO Elon Musk has reportedly arrived in Germany ahead of a big opening ceremony for the company’s new Berlin-Brandenburg gigafactory. According to Twitter users who follow Musk’s travel and other Tesla-related news, Musk landed at the Berlin airport about 10 hours after leaving Austin, Texas. Pictures of preparations outside the factory for the grand opening ceremony event have also been posted on social media. German Chancellor Olaf Scholz will also attend Tuesday’s “Delivery Day” opening, according to Yahoo! Finance. 

Now what

Earlier this month, the facility received its final environmental permits, which listed several conditions the company needed to achieve. That has apparently been accomplished, and Musk will reportedly be there for the initial 30 Model Y Performance customer vehicle deliveries. 

The German factory will play a key role in Tesla’s overall growth plans. Along with China, Europe is one of the largest global electric vehicle markets. With the Berlin factory in operation, the company’s Shanghai factory can focus more on sales within China. Currently, the Shanghai plant exports much of its production to Europe and elsewhere. 

Tesla reported $5.5 billion in net income in 2021 and expects to be able to sustain annual production growth of more than 50% for several years. The new factory in Germany, as well as one in Austin, Texas, will help drive that growth. 

Tesla shares are down about 12% year to date but have jumped more than 20% in the last week leading up to the openings of the two new factories. That upward move has continued today as Tesla followers highlight the events near Berlin. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla shares are up ahead of ‘Delivery day’ appeared first on The Motley Fool Australia.

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Howard Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla and Twitter. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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