The Southern Surge, Nothing About The Bakken -- May 20, 2019

One-hundred thousand new immigrants per month during the southern surge is likely to ontinue for some time.

This is where many will end up:

Also, in the hotel/motel housekeeping industry; landscaping industry; dishwashing in restaurant industry, etc., etc. All off the books, of course.

If Congress is not worried, I'm not worried. One million / year at $5,000 / year = $5,000 million or $5 billion to sustain them. The federal government will absorb that cost the first year or two but after that local communities will take over. For the federal government, $5 billion is trivial, especially when most of that money will circulate through the economy.

As far as voting goes: misplaced anxiety.

Bigger concern: the US Supreme Court uses the indentured servant argument from the past as precedent and allows states to include illegal immigrants in their population totals. Of course, to get that number, the illegal immigrants will have to be counted.

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Tesla

I've not looked at the market in about two weeks and have no plans to look at it until the China trade issue is "settled" -- in quotes, because the issue will "never" be settled.

All we will get are temporary truces.

But I happened to see something over at zerohedege regarding Tesla, so was curious. If I recall correctly, I read somewhere that $234/share was the magic number -- it had something to do with Musk Melon's personal risk. I see that Tesla dropped below $200/share (zerohedge) and today is trading at $202.

Google: Tesla today wsj -- link here.

From the linked article:

Tesla Inc. TSLA shares fell to their lowest level in a year Monday amid growing concern regarding the demand for its Model 3 vehicle and the electric car maker’s balance sheet.

The Palo Alto, Calif., company’s stock fell about 5% to $200.33 after Wedbush Securities analysts slashed their price target on the company’s shares to $230 from $275. The analysts cited concerns around Tesla’s growth prospects and underlying demand for the Model 3 in the U.S. over the coming quarters.

In April, Tesla reported one of its worst quarterly losses in history as revenue declined 37% from the prior quarter to $4.54 billion. Vehicle deliveries in the period fell 31% from the fourth quarter. The company is in the midst of proving it can sustain demand for the Model 3 after lowering the price of the sedan to $35,000.

“We have continued concerns around Tesla’s ability to balance this ‘perfect storm’ of softer demand and profitability concerns which will weigh on shares,” the Wedbush analysts said in a research note.

A Tesla representative couldn’t immediately be reached for comment. 

Generally, it's easy to get a statement from Musk Melon.

A lot of Teslas are sold in the Dallas-Ft Worth area.

I saw one in the Starbucks parking lot today. Once they have a few miles on them they look like any other used sedan in the lot. Just saying.

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No matter how many miles there are on a Chevy Corvette, Ford Mustang, or Porsche, they all retain their luxury or muscle-car look.