(Bloomberg) — Hertz Global Holdings Inc. could flip its roughly 150,000-car inventory as it looks to stay afloat after filing for bankruptcy last month, according to analysts at Jefferies.Channel checks suggest used-car firms like CarMax Inc. and AutoNation Inc. could be among those eyeing Hertz in bankruptcy amid a rise in demand for used cars, analysts led by Hamzah Mazari and Bret Jordan wrote in a note to clients. The move could help ease some pressure for Hertz, as a sale of its used-car fleet would shore up some cash concerns and could fetch about $3 billion, the analysts said.Shares of Hertz, which have drawn particular interest from small-time investors, rallied as much as 32% on the speculation Wednesday. The bankrupt car renter’s stock surged roughly tenfold to top $5.50 a piece earlier this month, before sliding back toward record lows.Another less probable option for the company would be to see if car dealerships see value in Hertz’s more than 10,000 global branch locations, according to Jefferies. The picking off of storefronts and lots could boost the footprints for CarMax and AutoNation, which have hundreds of locations in the U.S.The longer it takes for Hertz to re-emerge from bankruptcy with a cleaner structure, the more opportunity there is for rivals to snag additional market share, the analysts said. With bankruptcies typically lasting between six months and two years, Jefferies expects Hertz’s path forward to be toward the longer end of that range.Hertz shares have cratered more than 90% from a February peak even with the recent attention from retail investors. The Estero, Florida-based company canceled an effort to raise cash by selling shares last week after U.S. regulators questioned its unusual attempt to pay off creditors.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Value Investor Insight is an investment newsletter created by money manager Whitney Tilson and John Heins. Value Investor Insight aims to deliver the highest-quality investment ideas, analysis, and insight to the just-starting-out investor and sophisticated investors. At the core of Value Investor Insight is the philosophy of the true value investor: buy something only for […]

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Crude inventories rose by 1.4 million barrels in the week to June 19 to 540.7 million barrels, the EIA said. Crude inventories also hit another record high on the Gulf Coast, where the bulk of the nation’s refining capacity is located. U.S. crude futures dropped 3.8%, or $1.54, to $38.83 a barrel by 10:48 a.m. ET (1448 GMT), while Brent was down 3.9%, or $1.67, at $40.96 a barrel.

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Luckin Coffee Inc announced that the Nasdaq has sent a de-listing notice to the company after it missed to file its annual financial report, dragging down its share about 85% since April.

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The U.S. National Highway Traffic Safety Administration (NHTSA) said Tuesday it had opened an investigation into 63,000 Tesla Model S cars after reports of media control unit failures that led to loss of the use of a touchscreen. The complaints said the media control unit failures allegedly fails prematurely due to memory wear-out. NHTSA said Tesla used the same unit in 159,000 2012-2018 Model S and 2016-2018 Model X vehicles built by Tesla through early-2018.

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(Bloomberg) — Wirecard AG won a short reprieve from the lenders on its 1.75 billion euros ($2 billion) revolving credit facility after banks decided to assess the embattled company’s long-term viability before telling it to repay the loan.Advisory firm FTI Consulting is monitoring Wirecard’s compliance with the loan terms as lenders sift through documents and speak with stakeholders including Visa Inc. and Mastercard Inc. to decide how best they can secure the highest repayment, people familiar with the matter said. A standstill agreement is only expected to last a short period before lenders make a final decision, the people said, asking not to be identified discussing the private information.Wirecard earlier this week said that 1.9 billion euros ($2.15 billion) it previously reported as cash on its balance sheet probably doesn’t exist, triggering a collapse in shares and a criminal investigation into how the money went missing. The revelations are rippling across the financial system, with about 15 lenders now grappling with the extent of potential losses. ABN Amro Bank NV, Commerzbank AG and ING Groep NV are among the lead banks among lenders that have given Wirecard about 1.6 billion euros in credit out of the total facility, Bloomberg has reported.Wirecard shares have cratered and ex-Chief Executive Officer Markus Braun surrendered to police after an arrest warrant was issued. He’s since posted bail and is no longer in custody. In an indication of the company’s worsening situation, Moody’s Investors Service withdrew Wirecard’s credit ratings altogether on Monday after cutting it six notches at the end of last week.Bank of China, which is a lender in the group, is considering terminating the loan, Bloomberg has reported.The situation puts enormous pressure on Interim CEO James Freis to reassure Wirecard’s business partners. It has licenses with Mastercard, Visa and JCB International, through which its banking arm issues its credit cards. But time is running out quickly as he seeks to ensure clients end continue their business relationships with the German company.One option that has come up for the banks is swapping debt for equity in the company, one of the people said. Wirecard has also said it’s considering selling parts of the business as one way forward. Wirecard euro bonds maturing in 2024 fell further on Wednesday, to trad at a record low of 21.67 cents on the euro.A spokesman for Wirecard said the company will not be issuing statements about its situation. A representative for FTI declined to comment.(Adds details on bank members in table and on Bank of China’s position in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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"Tech-oriented investors" are driving Tesla Inc.'s (NASDAQ: TSLA) stock price higher without understanding the implications of running a car company, Morgan Stanley analysts said in a note Tuesday, as reported by Forbes.The Tesla AnalystMorgan Stanley's Adam Jones has maintained his previous rating of "underweight" on the company's stock with a price target of $650.The Tesla ThesisJones noted that it is extremely unlikely for Tesla to justify its current stock price within the next decade.Morgan Stanley forecasts Tesla to produce 2 million electric vehicle units annually for the next 10 years. At a stock price of $1,000, the automaker's stock is "discounting roughly 4 million units" by 2030, Jones said, according to Forbes.False Comparison With Tech GiantsTesla's stock is largely being driven by investors who draw a false comparison of the company with established technology companies and ignore the set of risks that come with running a car company, Jones suggested.To be able to draw such a comparison, "one would have to consider (or ignore) significant inherent differences in Tesla's business model and capital intensity," the Morgan Stanley analyst wrote, according to Forbes."One must also take into account many of Tesla's business objectives face a degree of execution risk that may be significantly higher than many of the more proven/mature companies in this analysis."What ElseGLJ Research founder Gordon Johnson similarly suggested on Benzinga's PreMarket Prep show earlier in the day that he was bearish on Tesla's stock.TSLA Price ActionTesla shares closed 0.75% higher at $1,001.78 on Tuesday. The shares traded nearly 0.5% lower in the after-hours session at $997.Latest Ratings for TSLA DateFirmActionFromTo Jun 2020Goldman SachsDowngradesBuyNeutral Jun 2020Morgan StanleyDowngradesEqual-WeightUnderweight Jun 2020WedbushMaintainsNeutral View More Analyst Ratings for TSLA View the Latest Analyst Ratings See more from Benzinga * Tesla Shareholders Meeting, 'Battery Day' Moved To September * Bitcoin Scammers Used Elon Musk's Name To Profit M Over Two Months * Tesla Asks Texas For Tax Incentives As It Proposes To Start Construction For New Factory By Q3(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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