The Richest Person Just Got A Lot Richer!

Before we officially start today’s newsletter, which happens to be the 10th edition of the newsletter, I want to genuinely thank all of you from the bottom of my heart for supporting me throughout the process!

About 11 weeks ago, I decided that I wanted to help 100 people with this newsletter by the end of the year. We are over 50% done with that goal, but we are not done. If you have been enjoying reading and learning from this at all, I want to request that you share this with ALL of your friends. I promise to keep them entertained too. Send them this link and ask them to subscribe. Now onto today’s edition 🙂 

In Today’s (9th) Edition of “Element, by Arsh“ -

• Tesla reports earnings from the last quarter. Elon Musk gained $34 Billion in 1 day…

• The company behind Michal Kors, Jimmy Choo is in trouble…

• Boeing plans to sell their Space business…

TESLA & ELON MUSK

Elon Musk Gains $34 Billion (Net Worth) In 24 Hours…

Tesla Reported Earnings. Over the past few months, Elon Musk has been incredibly busy campaigning for Donald Trump to be the next President of the United States. One would’ve assumed that he hasn’t been too involved in his multiple businesses, indicating that the companies might not be doing too well. Well, they would be wrong!

Tesla recently reported their quarterly results and the stock jumped a whopping 22% in a single day!

What Did They Report? Tesla reported that their revenue increased 8% from last year, and its Earnings Per Share (a measure of profitability) was 25% higher than estimated by analysts. While the revenue number isn’t too attractive, the fact that the company is able to increase profitability with such mediocre revenue growth is commendable. Another fact that was apparent from the report was that Tesla’s Cybertruck operations were now profitable.

This seemed to excite investors to no end. They managed to push the stock up over 20% just based on this report. This massive boost in Tesla’s stock price meant that it was a great day for Elon Musk’s net worth, which grew by $34 Billion in a single day. Elon owns 22.3% of Tesla right now.

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FASHION + BUSINESS

A Massive Fashion Merger Was Just Blocked…

The Fashion Industry. Earlier this week, a US District Judge blocked the merger of Capri Holdings (Parent Company of Jimmy Choo, Micael Kors & Versace) and Tapestry (Parent Company of Coach, Kate Space, etc.). The judge argued that this merger would be detrimental to the consumer as a partnership of this kind would decrease the competition in the industry, thus increasing the cost. The judge actually said, “Antitrust has come to fashion“

Selling To The Rich. My immediate question with this was, “Can’t rich people afford these handbags, even if the prices increase?“. The obvious answer was a resounding “yes“. However, the case made before the judge was that these companies are competitors in the “accessible-luxury handbag“ market. Accessible luxury is a purposely vague term, but it seems that the information presented before the court made the judge believe that these luxury brands also serve the middle class of the country, and a merger between them would not be detrimental to the market.

Antitrust has come to fashion. The US has “Antitrust laws“ to prevent already big companies from becoming even bigger and have unlimited power over the cost a consumer pays for the product.

Imagine that there is a company that is the only company in the industry, but a lot of people want to buy that product. This hypothetical company could theoretically continue to increase costs until the consumer is bankrupt, and the company has a lot of money. To stop this from happening and protect the consumers, Antitrust laws are actively used.

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BOEING + SPACE

Boeing Plans To Sell Their Space Business…

Boeing’s Growing Pains. It is no surprise that Boeing is going through a tough time. The stock has lost over 50% of its value in the last 5 years. However, this year has been particularly troubling -

• The infamous door blew off the aircraft

• 30,000 workers decided to strike & ask for a pay rise

• Production problems, etc.

To add to this problem, a couple of astronauts were struck in the International Space Station (ISS) when they didn’t trust a Boeing space capsule to bring them back home. And a recent news report said that a Boeing-made satellite just exploded in space! Honestly, if I were Boeing, I would want to forget that 2024 ever even happened.

Boeing’s Plan To Change. This growing list of pains for Boeing has stemmed from the fact that they have been cutting corners in production for years just to make a little bit more money. The new CEO of Boeing (Kelly Ortberg) wants to change this. He has indicated that taking back control of the culture of the company is incredibly important for its growth, but so is making the best-engineered product in the world.

To do this, the company plans to go back to its roots and focus on one (their main) business at a time - They want to make the best airplanes again before exploring other avenues. Therefore, they are now allegedly planning to sell their space business (partnership with NASA) and scale down their defense business.

We would just have to wait and see if this will work or not, but let me know what you think about the move…

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