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- GraniteShares | May 22nd, 2024
GraniteShares | May 22nd, 2024
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Today's insights are provided by GraniteShares. Learn more about their 2X leveraged long (TSLR) and short (TSDD) Exchange-Traded Funds to get exposure to Tesla.
| Market | Day | Month | Year |
|---|---|---|---|
| Dow | ▲0.17% | ▲4.43% | ▲19.15% |
| S&P | ▲0.25% | ▲6.43% | ▲26.66% |
| Nasdaq | ▲0.22% | ▲9.09% | ▲32.61% |
| Bitcoin | ▲7.80% | ▲9.98% | ▲165.99% |
| 10-Year | ▲0.26% | ▲1.53% | ▼4.79% |
GOOD MORNING
Here's everything you need to know today: President Biden has announced the release of 1 million barrels of gasoline from the Northeast Gasoline Supply Reserve to combat high summer gas prices. This move aims to lower prices at the pump as Americans prepare for Memorial Day and July 4th travel, providing much-needed relief amid rising fuel costs.
The SEC is reportedly leaning towards approving Ether ETFs, leading to a 23% surge in Ethereum’s value. This potential approval could attract institutional investors, boosting market confidence and driving prices higher for Ether and other cryptocurrencies.
Tesla has provided a major update on its electric semi-truck project, confirming production-spec deliveries for 2026. The Tesla Semi, currently in pilot testing with PepsiCo, boasts impressive range and payload capacities, promising to revolutionize heavy-duty transport logistics.
Let’s dive into more detail below.
ENERGY
Biden Releases 1 Million Barrels from Northeast Gasoline Supply Reserve to Combat High Summer Gas Prices
Strategically timed sale aims to lower prices at the pump as Americans prepare for Memorial Day and July 4th Travel
BREAKING NEWS
The U.S. Department of Energy (DOE) has announced the sale of 1 million barrels of gasoline from the Northeast Gasoline Supply Reserve (NGSR). This move is aimed at addressing rising gasoline prices as the summer driving season approaches. The sale includes 42 million gallons of gasoline that will be released to the market. This action is part of the Biden administration's efforts to provide relief to American drivers.
WHAT HAPPENED
The DOE’s Office of Petroleum Reserves has initiated a solicitation for the sale of gasoline from the NGSR. The sale involves 1 million barrels stored in Port Reading, NJ, and South Portland, ME. This gasoline will be sold through a competitive bidding process, with bids due by May 28, 2024. The awarded entities will receive the fuel by June 30, ensuring availability for the July 4 holiday.
WHY IT MATTERS
Gasoline prices have been on the rise, partly due to OPEC's production cuts and geopolitical tensions in the Middle East. By releasing this reserve, the DOE aims to increase supply and lower prices at the pump, providing financial relief to American families during the peak travel season. This move is expected to stabilize the fuel market in the Northeast, where prices have been particularly volatile.
WHAT’S NEXT
Retailers and terminals will receive the gasoline in 100,000-barrel increments, promoting a competitive market environment. The DOE will monitor the impact of this release on gasoline prices and supply levels. Further measures may be taken if necessary to ensure continued price stability and supply adequacy. As the summer progresses, the administration will evaluate the need for additional actions to support American consumers.
| How To Trade $TSLA |
Tesla Stock shoots up by 65% since their April lows as Q2 deliveries beat expectations!
With the stock up ~1,400% in the last 5 years but down ~50% since its November 21’ highs, our research team is excited to highlight two investment opportunities centered around the volatility of Tesla ($TSLA).
As their earnings announcement approaches, it’s now possible to invest in Tesla with GraniteShares leveraged ETFs.
The best part? They have recently reduced their management fees to just 0.95%! After expense waiver, the fund total annual fund operating expenses is 0.95% (down from (2)1.80% before (1)fee waiver). These funds provide a cost-effective way to amplify your exposure to Tesla.
CRYPTO
SEC’s Gary Gensler Flip Flops as Ethereum Surges 23% On News Of Potential SEC Approval For Ether ETFs
The SEC's change of heart could mean institutional investors can soon invest in Ether ETFs, boosting market interest
BREAKING NEWS
The Securities and Exchange Commission (SEC) is now reported to be leaning towards approving exchange-traded funds (ETFs) holding Ether, reversing its previous stance. This move could open the Ether market to a broader range of institutional investors and increase prices for Ether and other crypto.
SEC Chair Gary Gensler has remained cautious and non-committal about the approval of an Ethereum ETF in the past. Despite recently approving a Bitcoin ETF, Gensler warned that this should not signal the SEC's willingness to approve listing standards for crypto asset securities.
WHAT HAPPENED
Days ago, it seemed likely that the SEC would reject BlackRock, VanEck, and others' efforts to launch ETFs holding Ether. However, SEC staff informed exchanges on Monday that the agency is now inclined to approve these products.
This change comes as the SEC provided comments on the applications that could lead to approvals as soon as this week. The SEC's decision to approve several Ether ETFs simultaneously mirrors its approach, with the first spot Bitcoin ETFs launched in January.
This development has also led analysts James Seyffart and Eric Balchunas to increase their expectation of spot Ether ETF approval to 75%. This optimism follows reports that the SEC requested issuers to resubmit Form 19b-4s acceleratedly, explicitly targeting the May 23rd deadline for VanEck's filing. Seyffart clarified that while the odds have improved for the 19b-4 deadline, the SEC still needs to approve Form S-1 registration statements for spot Ether ETFs. If resolved in time, these approvals could come as soon as this week, aligning with the SEC's coordinated approach seen in the simultaneous launch of spot Bitcoin ETFs earlier this year.
ELECTRIC TRUCKS
Tesla's New Semi Truck Campaign on Track to Revolutionize the Sector in 2026
Detailed specs and testing with PepsiCo highlight Tesla Semi’s future in transforming heavy-duty transport logistics
BREAKING NEWS
Elon Musk and Tesla (TSLA) are again in the spotlight, providing a revolutionary update on their electric semi-truck project. They confirmed that production-spec deliveries of the Tesla Semi are on track for 2026.
The announcement at the Advanced Clean Transportation (ACT) Expo in Las Vegas detailed range and payload capacities alongside current pilot testing progress with PepsiCo.
This could be the first step in a long list of changes for the industry, which has seen ongoing technological advancements, shifting consumer needs, and evolving government regulations over the last 100 years.
WHAT HAPPENED
Tesla executive Dan Priestley announced that the company is building a factory in Nevada, set to ramp up production for customer deliveries by 2026 with a target capacity of 50,000 units per year. Currently, the Tesla Semi is in pilot testing with PepsiCo's Frito-Lay division, where the fleet is expanding from 35 to an additional 50 trucks. Priestley revealed that the long-range Semi would have a range of up to 500 miles with a 23,000-lb vehicle weight, and a standard-range truck would cover 300 miles with an unladen 20,000-lb vehicle weight. Real-world testing has shown that the Semis can perform long-range runs of 250 and 520 miles with a gross vehicle weight of up to 82,000 lbs. The Semi test fleet has accumulated 3.5 million test miles, demonstrating its capability in extreme weather and mountainous regions. Tesla stock rose as much as 4.5% following the announcement.
YESTERDAY | Here’s what you missed |
1. Wendy's follows McDonald's with budget-friendly combo
Wendy's has introduced a new budget-friendly breakfast combo, following McDonald's strategy to attract customers impacted by inflation. The move aims to compete in the fast-food market by offering more affordable meal options.
2. Trump Media stock falls 10% after posting $327.6 million loss in first quarter
Trump Media, the company behind the social media app Truth Social and majority-owned by former President Donald Trump, saw its stock drop 10% following a reported loss of $327.6 million in the first quarter. The company trades under the DJT ticker.
3. Macy’s, Inc. reports first quarter 2024 results
Macy’s, Inc. reported first-quarter 2024 results showing a 3.3% increase in comparable owned sales and a 3.4% increase in owned-plus-licensed sales. Earnings exceeded expectations with a diluted EPS of $0.22 and an adjusted diluted EPS of $0.27, leading to an updated annual guidance.
4. Comcast's bundle of Netflix, Apple TV+ and Peacock Premium costs $15 per month
Comcast is launching a new streaming bundle called StreamSaver, which includes Netflix, Apple TV+, and Peacock Premium for $15 per month. This package offers a $10 monthly saving compared to subscribing to each service separately.
5. Anti-crypto FDIC chair Martin Gruenberg to step down
Martin Gruenberg, the current FDIC chair known for his anti-crypto stance, will step down. His departure follows a probe into toxic workplace culture at the government banking agency, paving the way for a new successor.
6. Another patient will get Neuralink’s brain implant
Neuralink has received approval to surgically implant its brain device into another patient. This move is part of the company's ongoing efforts to advance brain-machine interface technology for medical purposes.
7. Target cuts prices on thousands of basic items to lure budget shoppers away from Walmart
Target is reducing prices on around 5,000 basic items this summer to attract budget-conscious consumers, directly competing with Walmart for bargain hunters.
8. Macy’s reports another drop in sales
Macy’s has reported another decline in sales, continuing a trend that has persisted since early 2022. The largest department store chain in the United States struggles to achieve an increase in comparable-store sales.
9. Li Auto shares plunge in HK on disappointing earnings, delay of more BEV launches
Li Auto's shares have plummeted in Hong Kong following disappointing earnings and delays in launching more battery electric vehicles (BEVs). Deutsche Bank cited structural challenges in transitioning from EREV to BEV as a key issue.
10. Dell and Nvidia to integrate Blackwell GPUs into Dell’s servers
Dell Technologies is partnering with Nvidia to integrate Nvidia’s latest Blackwell GPUs into Dell’s servers. This collaboration aims to enhance computing power and efficiency for various applications.
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Today's insights are provided by GraniteShares. Learn more about their 2X leveraged long (TSLR) and short (TSDD) Exchange-Traded Funds to get exposure to Tesla.
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Important Information
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Funds, please call (844) 476 8747 or click here. Read the prospectus or summary prospectus carefully before investing.
The investment program of the funds is speculative, entails substantial risks, and includes asset classes and investment techniques not employed by more traditional mutual funds.
PRINCIPAL FUND RISKS (see the Prospectus for more information)
The Fund is not suitable for all investors. The investment program of the funds is speculative, entails substantial risks, and includes asset classes and investment techniques not employed by most other ETFs and mutual funds. Investments in the ETFs are not bank deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged (2X) investment results, understand the risks associated with the use of leveraged exposure, and are willing to monitor their portfolios frequently. For periods longer than a single day, the Fund will lose money if the Underlying Stock’s performance is flat, and it is possible that the Fund will lose money even if the Underlying Stock’s performance is leveraged over a period longer than a single day. An investor could lose the full principal value of their investment within a single day.
The Fund seeks daily leveraged investment results and is intended to be used as short-term trading vehicles. This Fund attempts to provide daily investment results that correspond to the respective leverage of the performance of its underlying stock (a leveraged Fund).
Investors should note that the Fund pursues daily leveraged investment objectives, which means that the Fund is riskier than alternatives that do not use leverage because the Fund magnifies the performance of its underlying security. The volatility of the underlying security may affect a Fund’s return as much as, or more than, the return of the underlying security.
Because of daily rebalancing and the compounding of each day’s return over time, the return of the Fund for periods longer than a single day will be the result of each day’s returns compounded over the period, which will very likely differ from 200% of the return of the Underlying Stock over the same period. The Fund will lose money if the Underlying Stock’s performance is flat over time, and as a result of daily rebalancing, the Underlying Stock volatility and the effects of compounding, it is even possible that the Fund will lose money over time while the Underlying Stock's performance increases over a period longer than a single day.
An investment in the Fund involves risk, including the possible loss of principal. The Fund is non-diversified and includes risks associated with the Fund concentrating its investments in a particular industry, sector, or geographic region which can result in increased volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. Risks of the Fund include effects of Compounding and Market Volatility Risk, Inverse Risk, Market Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Daily Index Correlation Risk, Other Investment Companies (including ETFs) Risk, and risks specific to the securities of the Underlying Stock and the sector in which it operates. These and other risks can be found in the prospectus.
(1) GraniteShares Advisors LLC has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that total annual fund operating expenses (exclusive of any (i) interest, (ii) brokerage fees and commission, (iii) acquired fund fees and expenses, (iv) fees and expenses associated with instruments in other collective investment vehicles or derivative instruments (including for example options and swap fees and expenses), (v) interest and dividend expense on short sales, (vi) taxes, (vii) other fees related to underlying investments (such as option fees and expenses or swap fees and expenses), (viii) expenses incurred in connection with any merger or reorganization or (ix) extraordinary expenses such as litigation) will not exceed 0.95%. This agreement is effective until December 31, 2025, and it may be terminated before that date only by the Trust’s Board of Trustees. GraniteShares Advisors LLC may request recoupment of previously waived fees and paid expenses from the Fund for three years from the date such fees and expenses were waived or paid if such reimbursement will not cause the Fund’s total expense ratio to exceed the expense limitation in place at the time of the waiver and/or expense payment and the expense limitation in place at the time of the recoupment.
This information is not an offer to sell or a solicitation of an offer to buy shares of any Funds to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.
THE FUNDS ARE DISTRIBUTED BY ALPS DISTRIBUTORS, INC. GRANITESHARES IS NOT AFFILIATED WITH ALPS DISTRIBUTORS, INC.