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The K2Fly Ltd (ASX: K2F) share price is climbing higher today after the company announced it has signed a new contract with Alcoa USA Corp (Alcoa).

At the time of writing, the K2fly share price is up 4.6% to an intraday high of 34 cents.

Why is the K2fly share price higher?

In today’s release, K2fly advised that international mining giant Alcoa has entered into a 5-year contact for its RCubed Resource Inventory solution. The agreement will see the Software-as-a-Service (SaaS) offering rolled-out across Alcoa’s 6 international sites from the beginning of February.

Alcoa is based in Pittsburgh, Pennsylvania and specialises in the production of bauxite, alumina, and aluminium. With 7 active mines in Australia, Brazil, Guinea and Saudi Arabia, the company says it’s one of the world’s largest bauxite producers.

K2fly said that the contract’s total value is estimated at around $573,600, depending on exchange rate fluctuations. No other details were given about the terms of the deal or if any support services are included.

What is RCubed Resource Inventory?

Tailored to mining companies, RCubed is a cloud-based platform that accurately reports mineral resources and reserves. This ensures good governance, compliance and reporting among regulators, shareholders, and potential investors.

The SaaS platform can cater to single or multiple commodities, and automates workflow from data capture. In-turn, the software solution reduces time, team overhead costs and gives transparency for data validation and audit trails.

Management commentary

K2fly chief commercial officer Nic Pollock, welcomed the deal, saying:

We are delighted to be working with Alcoa as another NYSE listed user of our governance and reporting software and also an important operator in Western Australia.

K2fly noted that the new contract “validated its position as a market leader” in the mining technical assurance space. The company also advised that other multi-year agreements are currently in negotiations and it will update the market as information becomes available.

More reading

• Here’s why the K2Fly (ASX:K2F) share price is pushing higher

Motley Fool contributor Aaron Teboneras 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 Hazer Group Ltd (ASX: HZR) share price rocketed 20% higher in morning trade today as the company released its report for the second quarter of FY21.

Shares in the small cap hydrogen technology company surged to a high of $1.88, demolishing its previous record high in the process. The Hazer share price has since retreated to $1.74 at the time of writing, up 11.9%.

The company aims to commercialise its ‘Hazer process’ in order to produce hydrogen more efficiently. The Hazer process is a low emission hydrogen and graphite process. It enables the effective conversion of natural gas and methane using iron ore as a catalyst.

What’s driving the Hazer share price?

In today’s release, the company reported a positive second quarter performance, saying its key focus remains the execution of its commercial development project (CDP). A successful execution of the CDP will demonstrate the benefits of Hazer’s technology to potential clients.

Hazer said it has made significant progress during the quarter, despite challenging conditions due to COVID-19. It has obtained the various permits required for its operations. As a result, site preparation is set to begin in the first quarter of the 2021 calendar year.

Regarding the company’s cash flow, Hazer reported cash reserves of $28.8 million at the end of the quarter. The company generated $8.7 million, with more than $10 million additional money coming in from various grants. This includes the Australian renewable energy agency grant, totalling $9.4 million.

About the Hazer share price

The Hazer share price has seen a phenomenal rise in the last 12 months, lifting from 42 cents to its current price of $1.85. This represents a 270% increase.

As mentioned in its report:

This growth is coming as the global hydrogen market continues to gather pace. The market has a favourable macro environment with national roadmaps and strategies now translating into investment targets, funding programs and regulatory changes.

Hazer is seeing a significant increase in interest in its technology from international companies across a wide range of applications driven by a desire by end-users to de-carbonise operations.

Around the globe other hydrogen technology companies have also been performing well, with the likes of Plug Power Inc (NASDAQ: PLUG) gaining 1,655% in the last year.

More reading

• Here are the US shares ASX investors are buying
• ASX stock of the day: Hazer Group (ASX:HZR) share price surges 14%

Motley Fool contributor Daniel Ewing owns shares of Plug Power. 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.

Amazon.com, Inc‘s (NASDAQ: AMZN) ad business might’ve been overshadowed in 2020 amid the boom in e-commerce that occurred as consumers stayed home and did more shopping online.

But the ads people see on Amazon’s marketplace, Twitch, and its Fire TV platform grew right alongside its retail operations. Through the first 9 months of 2020, Amazon’s other revenue line item, which consists primarily of advertising, increased 45%.

That strength is expected to continue into the middle of the decade. Advertisers expect to spend larger and larger percentages of their ad budgets on Amazon ads over the next couple of years, according to a new survey from Cowen. As a result, Amazon will continue taking market share from competitors like Facebook (NASDAQ: FB) and Alphabet‘s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google.

E-commerce acceleration

One reason for Amazon’s growing appeal among advertisers is the acceleration in e-commerce. Marketers want to put their products in front of people where they’re most likely to make a purchase. That’s increasingly online.

Online sales increased dramatically across the board in 2020, and there are indications that those sales are likely to stay online instead of migrating back into brick-and-mortar stores. Online sales in the US increased an estimated 32.4% last year, according to eMarketer. While growth will likely dip in 2021, it won’t go negative, and growth is expected to return to pre-pandemic levels in 2022.

Amazon gets to double-dip on the acceleration in e-commerce. Not only is it the largest online retailer, it also offers prime real estate for advertisers in consumer-packaged goods, electronics, apparel, and more. Amazon.com is the first stop for online product searches for about half of Americans. And those subscribing to Prime start with Amazon nearly three-quarters of the time. So, even if a consumer doesn’t end up purchasing from Amazon, an advertiser can get value from showing an ad for its product on Amazon’s marketplace.

Less effect from outside influences

Amazon is also in a position of having greater control over its destiny versus Facebook and Google. The competitors are particularly susceptible to Apple (NASDAQ: AAPL), which controls the valuable iOS platform.

Apple’s set to launch an iOS update that will require app developers to ask permission to track user data across the web. That could negatively affect Facebook’s ability to measure ad efficacy and target advertisements. Facebook stopped reporting what percentage of its ad revenue came from mobile after the third quarter of 2019, when 94% of its ad revenue came from mobile devices.

Meanwhile, Alphabet pays Apple a handsome sum every year to make Google the default search engine on Safari, the web browser built into iOS and macOS. Regulators are questioning that relationship’s antitrust implications, which could force some negative changes for Google. Additionally, Apple is reportedly developing its own search engine, which could become the new default. Still, Google is more insulated from changes on Apple’s platform thanks to the growth of YouTube and the appeal of Google search over other options.

Amazon, meanwhile, is largely insulated from changes outside of its ecosystem. It owns the Fire TV platform, so not much can change its data usage behavior on that platform that isn’t in its control. Meanwhile, it doesn’t track much user behavior outside of its own app on mobile, as its advertising products are mostly contained to its marketplace. Amazon has the luxury of tracking ads from impression to conversion all within its own ecosystem, whereas Facebook and Google rely on data coming at least in part from other parties.

Expanding operating margin

Amazon has already shown its potential for high operating margins compared to other retail companies in 2020, as it maximised its warehouse capacity and both shoppers and sellers flocked to its online marketplace. The continued growth of high-margin ad revenue will only expand on that margin potential.

Cowen analysts predict Amazon’s advertising business will generate more than $85 billion in 2026. To put that in perspective, Facebook’s revenue over the last four quarters totalled less than $80 billion. Moreover, Facebook’s operating margin over that period was over 36%. By comparison, Amazon’s operating margin in the same period was less than 6%, although that was negatively affected by massive spending on COVID-19-related expenses.

In other words, Amazon could add a Facebook-rate of revenue to its business over the next six years. That will have a considerable effect on its overall operating margin, generating tremendous profits for investors.

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

More reading

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• Why Tesla (NASDAQ:TSLA) shares were last year’s worst short bet
• 3 biggest risks to ASX share investors right now
• Why Amazon.com stock just popped
• Here are the US shares ASX investors are buying

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Adam Levy owns shares of Alphabet (C shares), Amazon, Apple, and Facebook. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Facebook and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Facebook. 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.

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The Nickel Mines Ltd (ASX: NIC) share price has started the week very strongly.

In afternoon trade the nickel producer’s shares are up a sizeable 8% to a new record high of $1.39.

When the Nickel Mines share price reached that level, it meant it was up a massive 135% since this time last year.

Why is the Nickel Mines share price surging higher today?

Investors have been buying Nickel Mines shares following the release of its final quarter update for FY 2020.

According to the release, Nickel Mines had a record-breaking quarter in respect to production, sales, and earnings.

During the quarter, the combined production from its Hengjaya Nickel and Ranger Nickel projects (on a 100% basis) came to a record 11,527 tonnes of nickel. Management advised that production levels were consistently around 1,900 tonnes per month of nickel from each project.

Pleasingly, a strong rise in the nickel pig iron (NPI) price across the quarter led to the weighted average contract price received being 23.4% higher than in the September 2020 quarter. This underpinned record sales of US$158.8 million across the Hengjaya Nickel and Ranger Nickel projects.

It was the same story for its earnings, with the company delivering record underlying earnings before interest, depreciation and amortisation (EBITDA) of US$71.6 million and a record underlying net profit of US$67.8 million for the three months.

At the end of December, the company held cash and cash equivalents of US$351.4 million. This is up from US$93.8 million at the end of September.

“Delighted”

Nickel Mines’ Managing Director, Justin Werner, was delighted with the company’s performance during the quarter.

He said: “We are delighted to report to our shareholders on what was a record-breaking quarter for both our RKEF and mine operations. The December quarter marked another period of very strong and consistent production from both Hengjaya Nickel and Ranger Nickel, which combined with a much stronger NPI price, translated into a record financial performance for our RKEF operations.”

“Production from the Hengjaya mine of almost 500,000wmt for the quarter means the mine should meet targeted ramp up from 600,000wmt pa to 1.5 mtpa with further ramp up targets to be implemented. Encouragingly, costs at the Hengjaya mine continue to decline significantly,” he added.

Outlook

Mr Werner appears confident on the company’s prospects in FY 2021.

He said: “With the Company’s RKEF assets now well established, a development project underway and a broadly positive outlook across the global nickel market we look forward to 2021 with great optimism.”

More reading

• These ASX stocks just got a big upgrade on the back of Tesla (NASDAQ:TSLA)
• Leading broker names the ASX resources shares to buy in 2021

Motley Fool contributor James Mickleboro 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 Mach7 Technologies Ltd (ASX: M7T) share price reached a multi-year high today. This comes after the company announced it has altered an existing contract with Adventist Health System.

During morning trade, the Mach7 share price stormed higher to $1.47, representing a new, multi-year high. At the time of writing, Mach7 shares have slightly pulled back to $1.45, up 9.85%. In comparison, the All Ordinaries Index (ASX: XAO) is marginally higher to 7,097 points, up 0.3%.

What’s driving the Mach7 share price?

The Mach7 share price is on the move after the company reported it has expanded its relationship with Adventist Health.

According to the release, Mach7 will provide Adventist Health the licence for its Mach7 Picture Archive Communication System (PACS) solution. This includes the Mach7 Enterprise Imaging Platform, eUnity Diagnostic Viewer, Mach7 Universal Worklist, Mach7 QC Module, and Mach7 Clinical Portal.

Terms of the deal

Under the agreement, the software licence will be rolled out in stages as per Adventist Health’s individual hospital directions. Mach7 is anticipating that 3 of the 22 hospitals will place an order within the current quarter, reflecting immediate short-term revenue generation.

The remaining orders are mostly expected to be completed by the end of the 2021 calendar year.

The contract is worth $7.9 million, and includes migration services as well as support and maintenance for 5 years.

Quick take on Adventist Health

Adventist Health is a multinational, non-profit corporation that services over 80 communities across the West Coast of the United States, and in Hawaii. The organisation provides care in hospitals, clinics, home care agencies, hospice agencies and joint-venture retirement centres.

Management commentary

Mach7 CEO Mr Mike Lampron welcomed the extended partnership, saying:

I am delighted to partner with Adventist for their PACS replacement project. The collaborative partnership we have established with Adventist Health has allowed us to help them expand their enterprise imaging growth strategy. I am confident Mach7’s full Enterprise PACS solution will provide a flexible and scalable foundation that meets the needs of radiologists across their health network.

Mach7 share price snapshot

The Mach7 share price has travelled higher over the last 12 months, gaining almost 90%.

Its shares reached a 52-week low of 37 cents in March, before rising to a multi-year high of $1.47 today.

Based on the current Mach7 share price, the company commands a market capitalisation of roughly $340 million.

More reading

• Why IDP Education, Lake Resources, Mach7, & Tyro shares are shooting higher
• Why the Mach7 (ASX:M7T) share price is surging 8% higher today
• 2 fantastic ASX healthcare shares to buy
• Fundie names 5 ASX shares with good growth prospects
• Wilson Asset Management thinks these 2 small cap ASX shares are a buy

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MACH7 FPO. The Motley Fool Australia has recommended MACH7 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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On Monday afternoon the Bega Cheese Ltd (ASX: BGA) share price is trading lower despite the release of a positive announcement.

At the time of writing, the diversified food company’s shares are down slightly to $5.34.

What did Bega announce?

This morning Bega provided a market with an update on the acquisition of the Lion Dairy & Drinks business.

According to the release, the $534 million acquisition has now completed successfully and Bega has taken control of brands such as Dare, Farmers Union, Yoplait yoghurts, Pura milk, and Juice Brothers juices.

In addition to this, this acquisition sees Bega take control of Australia’s largest national cold chain distribution network supplying food service and convenience stores.

What now?

Management expects the combined business to generate annual revenues in excess of $3 billion. As a comparison, Bega recorded revenue of ~$1.5 billion in FY 2020.

Furthermore, the acquisition is expected to generate significant synergies. Management’s base case is for synergies is $41 million per annum. This is primarily from milk network optimisation, indirect procurement, and a corporate reorganisation.

As a result, the company is expecting the deal to be double digit earnings per share accretion in FY 2022.

Bega’s Executive Chairman, Mr Barry Irvin, was pleased with the news and believes this is a big day for the company.

He commented: “Today is a significant day in the history of Bega, the acquisition of Lion Dairy & Drinks doubles the size of the company with revenue of $3 billion and brings together great brands including Bega Cheese, Vegemite, Dare, Farmers Union, Dairy Farmers, Yoplait, B honey, Big M, Masters, Juice Brothers and Berri.”

“This goal of creating a great Australian food company with the capacity to service our customers in Australia and around the world took a major step forward today,” he added.

More reading

• The latest ASX “buy” recommendations from top brokers

Motley Fool contributor James Mickleboro 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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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week strongly. At the time of writing, the benchmark index is up 0.4% to 6,825.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

Ampol Ltd (ASX: ALD)

The Ampol share price is tumbling 5% lower to $29.27. This morning Ampol announced the completion of its $300 million off-market buyback. The fuel retailer bought the shares back at $26.34, which represents a 14% discount. Ampol advised that it expects $24.33 of the buyback price to be treated as a fully franked dividend for Australian capital gains tax purposes.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down 3% to $15.17. Flight Centre and a number of other travel shares have come under pressure today. This may have been driven by concerns that there could be delays to the rollout of COVID-19 vaccines in Australia.

Syrah Resources Ltd (ASX: SYR)

The Syrah share price has tumbled 6% lower to $1.23. This decline appears to have been driven by a broker note out of Credit Suisse this morning. According to the note, the broker has downgraded the graphite producer’s shares to a neutral rating with a price target of $1.25. Credit Suisse doesn’t believe graphite prices have recovered sufficiently to warrant the restart of its Balama operation just yet. It suspects it could happen in the final quarter of the year.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price is down 4% to $4.35. This is despite the release of a positive announcement this morning. That update reveals that the company has dosed the first patients from the phase 3 Zircon clinical trial. The Zircon (Zirconium Imaging in Renal Cancer Oncology) trial is a prospective imaging trial in approximately 250 renal cancer patients undergoing kidney surgery to determine the sensitivity and specificity of TLX250-CDx PET imaging to detect clear cell renal cell cancer (ccRCC).

More reading

• ASX 200 up 0.35%: Afterpay & Appen push higher, big four banks rising
• Why the Telix (ASX:TLX) share price is dropping lower today
• The Syrah (ASX:SYR) share price is up 8% today. Here’s why
• Here are the 10 most shorted shares on the ASX
• Why the Ampol (ASX:ALD) share price is flat today

Motley Fool contributor James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia has recommended Flight Centre Travel Group 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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There are some S&P/ASX 200 Index (ASX: XJO) growth shares that could be worth watching for growth over the coming years.

Here are two businesses which have a long-term history of growth:

Altium Limited (ASX: ALU)

Altium is one of the world’s leading electronic PCB software businesses. It has various software segments like Altium Designer, Octopart and Nexus which service the needs of different software engineers.

Over the past five years the Altium share price has risen by 500%.

The ASX 200 growth share has a large, blue chip client base. Some of its clients include: NASA, Space X, Boeing, Lockheed Martin, Tesla, Toyota, Google, Bosch, Proctor & Gamble, CSIRO, the University of Melbourne, ABB, Siemens, Honeywell, Qualcomm, Broadcom, Texas Instruments, Disney, Apple and Amazon.

Altium 365 is the product from the business to pivot towards the cloud. The company says that the total global electronic manufacturing and supply chain is estimated to be over $2 trillion. The cloud move should help significantly increase the total addressable market according to management.

One of the ways that Altium is planning to grow using Altium 365 is with Altimade, a new premium service which is about ‘smart manufacturing’.

Over the long-term, the ASX 200 growth share is aiming for US$500 million of revenue and 100,000 Altium Designer subscribers, perhaps by 2026.

However, in the short-term the company is suffering from COVID-19 effects. In the FY21 half-year, Altium expects to report that total revenue fell 3% to US$89.6 million. This was led by a 10% drop in revenue in the Americas.

Nexus recorded a decline of 14% for the half because of the timing of deals – there’s a significant pipeline in the second half.

The final main negative point was that China revenue underperformed with a decline of 15% in revenue for the half as licence compliance activities became more difficult at the low end of the market because of uncertain economic conditions in China.

On the positive side of things, board and systems revenue has been improving – revenue was down 11% in the first quarter but flat in the second quarter, despite the reorganising to the cloud pivot. Also, Octopart saw revenue growth of 19% for the half, which is a positive leading indicator for PCB design growth that should drive Altium Designer sales in the second half according to management.

According to Commsec, the Altium share price is valued at 42x FY23’s estimated earnings.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is one of the oldest businesses on the ASX, it was listed in 1903. Since then it has evolved into a large investment conglomerate.

Over the past five years the Soul Patts share price has risen by 65%.

The biggest part of Soul Patts’ performance comes from the returns of its underlying holdings. The biggest positions in the portfolio are names like Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG) and New Hope Corporation Limited (ASX: NHC).

Soul Patts hopes that some of its smaller investments can grow to become more larger companies within the portfolio. Clover Corporation Limited (ASX: CLV) and Palla Pharma Ltd (ASX: PAL) are two of the smaller names that Soul Patts has a large position in.

Not only can Soul Patts grow from its existing investments, but it’s regularly making new investments too with the excess cashflow from its dividend income (less expenses). Some agriculture assets were among the latest investments that Soul Patts made. It also tried to acquire Regis Healthcare Ltd (ASX: REG) at the end of last year, though that was knocked back.

More reading

• ASX 200 up 0.35%: Afterpay & Appen push higher, big four banks rising
• Why Tesla (NASDAQ:TSLA) shares were last year’s worst short bet
• 3 ASX dividend shares rated as strong buys by brokers
• ASX 200 Weekly Wrap: Change in America spurs ASX 200 higher
• 5 things to watch on the ASX 200 on Monday

Tristan Harrison owns shares of Altium and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company 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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The Tesla Inc (NASDAQ: TSLA) earnings announcement is scheduled to take place on Wednesday following market close.

The Wall Street Journal (WSJ) notes that this year so far, Tesla has added $134 billion to its market capitalisation. At the start of 2020, it was worth $78 billion.

The United States-based electric vehicle producer has experienced unprecedented success. While some investors consider Tesla overvalued, other market participants, as featured in the WSJ article, see a bubble. 

Let’s take a closer look at these theories.

Is the Tesla share price overvalued?

According to one analyst, the Tesla share price is “dramatically” overvalued. JP Morgan (NYSE: JPM) analyst Ryan Brinkman believes that the share price has been pumped up by the market based on factors that have nothing to do with the fundamentals of the business.

In terms of determining the value of a company, there are different approaches to take. It all starts with a fundamental analysis. Metrics pulled from this analysis, like price-to-earnings (P/E) numbers and balance sheet data, helps investors form an opinion of whether a company is overvalued.

People who argue that Tesla is overvalued believe that the share price is moving based on investor perception, opposed to fundamentals.

Considering the Tesla share price one-year performance, it’s no wonder investors are curious about the company’s fundamental value. Tesla shares have shot up nearly 650% over the past year, pricing in at US$846.64 at last market close.

Is the electronic car industry a bubble?

The Wall Street Journal‘s article compared today’s markets with the dot-com bubble, discussing 5 market qualities that have signified or led to a bubble in the past. Among them, it mentions “exponential growth in the price of story stocks”.

The term ‘story stock’ is used to describe a company everyone already knows about because it’s in the news so much. Some investors think that this type of hype overvalues the share price because it starts to be based more on people’s opinions and expectations opposed to literal data.

As a company that makes news headlines daily, it’s a pretty safe bet to regard Tesla as a story stock. The debate comes in when people try to determine what that means for the share price.

The Elon Musk factor

Considering Telsa’s monster performance last year, it comes a little surprise to learn a few weeks ago that CEO Elon Musk is now the richest man in the world.

Musk does not seem to have a problem figuring out how to spend his money. The Tesla SpaceX subsidiary recently announced it will be drilling for natural gas near the company’s Boca Chica spacecraft development facility. Musk further tweeted last Friday that he’s going to donate a $100 million prize “towards a prize for best carbon capture technology” with details on the way. I expect we’ll learn more along with the announcement.

Am donating $100M towards a prize for best carbon capture technology

— Elon Musk (@elonmusk) January 21, 2021

https://platform.twitter.com/widgets.js

Foolish takeaway

One thing Tesla and Elon Musk have consistently delivered is surprises. We’ll find out on Wednesday about what’s been happening and what’s coming up.

More reading

• Why Tesla (NASDAQ:TSLA) shares were last year’s worst short bet
• Why the Ioneer (ASX:INR) share price is up 16% this week
• 2 reasons to avoid Tesla stock right now
• The Syrah (ASX:SYR) share price is up 8% today. Here’s why
• 3 ASX shares powering the electric car revolution

Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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 morning, Australia’s medical regulator, the Therapeutic Goods Administration (TGA), gave the thumbs up for use of the Pfizer Inc (NYSE: PFE) COVID-19 vaccine, as reported by The ABC.

The approval comes one year after the first recorded case of coronavirus on Australian shores. Pfizer’s product is the first COVID-19 vaccine to be approved for use within Australia, beating out other suppliers, including Moderna Inc (NASDAQ: MRNA) and AstraZeneca plc (NYSE: AZN). Health Secretary Professor Brendan Murphy advised that the Australian Government will not be seeking to procure Moderna’s vaccine, due to the similarity with Pfizer’s.

Prime Minister’s comments

Prime Minister, Scott Morrison addressed the public regarding the approval this morning. Mr Morrison noted the premise of today’s approval.

This is not an emergency approval, as has been done in some other jurisdictions around the world. This is a formal approval under the ordinary processes of the TGA – and we are one of the first countries, in the handful of countries, to have gone through that comprehensive and thorough process here in Australia, to ensure the approval of that vaccine.

As mentioned in the press briefing held this morning, initial Pfizer vaccines are expected to be rolled out closer to late February than mid-February, due to stresses on global supply.

The impact on supply means that the government’s original guide of 4 million people injected by the end of March now looks more likely to be targeted for late April.

Mr Morrison remarked on how this reflects the importance of having domestic manufacturing capability.

..and it was for that reason, around August of last year, that we took the decision that we didn’t want to be in a situation where we are completely reliant on the production of vaccines overseas.

The product of that early decision is the working relationship between CSL Limited (ASX: CSL) and AstraZeneca to manufacture ‘our own vaccine’ here in Australia, pending TGA approval. Overseas supply is expected in early March, with domestic production of the AstraZeneca formulation through CSL to yield around 1 million doses per week by late March.

COVID-19 vaccine details

Reportedly, the Pfizer vaccine will be supplied in Australia for people aged 16 years and older. The inoculation will be provided in two doses, with a minimum of 21 days between each dose.

Professor Murphy also noted that the immunity length is still unknown, “It may be that people will need additional doses of vaccines, possibly annually. These things are completely unknown at the moment.”

Additionally reported by The Australian Financial Review, there is currently no data on the Pfizer vaccine’s effect on pregnant women. Professor Murphy commented, “We will be getting advice, that is just going to be based on the best guess of what the risks are are at the moment and that is coming very shortly, before the vaccine is administered.” 

It is advised that Australia will have access to around 50 million injections of the AstraZeneca vaccine once approved by the TGA.

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Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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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