The Tesla logo shines off the rear deck of an unsold 2020 Model X at a dealership in Littleton, Colo., on April 26, 2020.
David Zalubowski/The Associated Press
Convinced of Tesla Inc.’s imminent meteoric rise, Orestis Palampougioukis, a Netherlands-based software developer, took out a €43,000 (US$49,000) loan in early October to invest it all in the electric-car maker, which at the time was trading at around US$230 a share.
Since then, Mr. Palampougioukis’s bet has paid off as Tesla’s share price has increased more than six-fold, trading around US$1,500 on Monday and surpassing every rival to become the world’s highest-valued automaker. After investing an additional €14,000 in personal funds, he has pocketed around €10,000 in profit to date, even when accounting for the 7-per-cent interest he pays the bank.
“To me it didn’t feel like a bet because I studied what Tesla does very closely and it’s simply inevitable that it would dominate,” Mr. Palampougioukis said, adding that he plans to own the shares for decades.
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He is not alone. Retail investors around the world, staunch believers in the company’s mission to lead the auto industry into a battery-powered future, have invested their personal money, and at times their parents’ retirement funds, in Tesla and reaped handsome rewards.
Tesla reports second-quarter results on Wednesday after the close of trading. While analysts polled by Refinitiv on average expect the company to report a loss, a surprisingly strong vehicle delivery report boosted hopes among many retail investors for a profitable quarter.
Discussions about Tesla on online retail investor forums have surged, with users debating whether to hold their shares in hopes of even higher returns or cash out.
While the total number of Tesla retail investors is not known, around 75 per cent of the company’s stock is owned by large institutional investors and Tesla executives, including chief executive Elon Musk, according to Refinitiv data.
Tesla shares are among the most popular on U.S. retail investor platforms, such as Robinhood Markets Inc. and TD Ameritrade. The number of users holding Tesla stock on the Robinhood trading app increased more than 400 per cent from the first two weeks of July, 2018, to the same point this year, according to data from Robintrack.net, which compiles data on the investing platform.
In South Korea, where Tesla has become the latest craze among tech-savvy professionals, the company is the most-traded overseas stock, with Koreans buying US$3.2-billion worth of Tesla shares so far this year, up nearly 13-fold from all of 2019.
Choi Jong-wan, the former head of Korea’s Tesla owners’ club, borrowed money to invest in Tesla after the company unveiled its Model 3 in 2016. He also bought Tesla stock for his seven-year-old son, taking advantage of Korean inheritance tax breaks.
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Mr. Choi, who bought a Model S, said the company’s shares are supported by its many fans buying stock. Convinced of Mr. Musk’s vision, Mr. Choi bought when Tesla shares tanked in the past.
“I am getting more confident about Tesla,” he said. “I will sell Tesla stock when other automakers introduce better electric cars than Tesla at competitive prices.”
Some investors have invested their stock proceeds in the company by buying its vehicles. David, a marketing specialist from Oakland, Calif., who asked that his last name not be used, bought a Tesla Model 3 last August after selling some of his Tesla shares.
He bought his first Tesla shares for a couple of hundred dollars right out of college in 2010. The company had just listed publicly, with the shares trading around US$29.
David has since invested about another $40,000 and currently holds 180 shares.
“Tesla has treated me well so far. I believe in their vision and I believe in Elon Musk,” he said. “But the house we bought needs a new roof and I’m thinking to just sell a few shares to pay for that.”
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Mr. Musk’s own net worth has soared even higher thanks to the latest share price rally. The outspoken Tesla boss is within reach of another share-based payday potentially worth as much as US$2-billion. Including previously vested tranches, Mr. Musk would own options for about US$4-billion worth of Tesla shares.
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TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
