Shares in Tesla Inc., were set to plunge into the red for the year on Tuesday, hit by a broad sell-off of high-flying technology stocks and the fall of bitcoin, in which the electric car maker recently invested $1.5 billion US.
Early Tuesday morning, Tesla was down over six per cent in U.S. premarket deals after an 8.5 per cent drop during the previous session.
The firm led by Elon Musk has had a stellar ride since 2020, which it began at about $85 per share, before reaching the $900 mark on Jan. 25.
Currently trading at about $673 in pre-market transactions, the stock has lost 25 per cent from its peak, which is above the 20 per cent level that technically defines a bear market.
Bitcoin plummeted as much as 17 per cent on Tuesday as investors grew nervous at sky-high valuations, triggering the liquidation of leveraged bets and sparking a sell-off across cryptocurrency markets.
The world’s biggest cryptocurrency was facing its biggest daily drop in a month, falling to as low as $45,000.
The drop took its losses to over a fifth from a record high of $58,354 hit on Sunday and underscored the volatility of the emerging asset — though it is still up around 60 per cent this year.
“The kinds of rallies we’ve been seeing aren’t sustainable and just invite pullbacks like this,” said Craig Erlam, senior market analyst at OANDA. “It was an extremely overbought market.”
Ether — the world’s second largest cryptocurrency by market capitalization, which often moves in tandem with bitcoin — also dropped more than 20 per cent to $1,410, down over 30 per cent from last week’s record peak.
Bitcoin’s high volatility, critics say, is among reasons that it has so far failed to gain widespread traction as a means of payment — an expectation that has in part fuelled its rally.
Tesla investment could backfire, trader says
A Germany-based trader said he was “taking chips off the table” on Tesla as its $1.5 billion investment in the cryptocurrency could “backfire now.”
Among the factors contributing to the rise of the stocks is surging retail and institutional demand for “environmental, social, and governance” (ESG) friendly investments.
“There is a lot of reasons — purely from a sustainability angle — to hold Tesla. It is part of that transformation towards a more sustainable business model,” Valentijn van Nieuwenhuijzen, chief investment officer at asset manager NN IP told Reuters on Friday.
However, Musk’s decision to invest in bitcoin could weigh on Tesla’s ESG rating, he said.
The billionaire has been criticized for lauding bitcoin prior to Tesla’s purchase of the cryptocurrency.
His role in encouraging a retail frenzy in the shares of U.S. video game chain GameStop and driving up the price of the meme-based digital currency dogecoin have also come under fire while being acclaimed by a large fan base.
Analysts at Barclays noted that there had been a drop of conversations about the electric car makers in Reddit’s WallStreetBets forum, which could explain some of the loss of appetite for the stock.
“With only 2-3 total submissions on each of the past several days, we remain below the trend in attention that has come along with big returns jumps in the past,” the analysts said in a note.
Other analysts have also cautioned against investing in the stock which remains one of the most expensive on the S&P 500 index at 163 times its 12-month forward earnings.
While investing in bets against the company’s stock have backfired spectacularly in the past, short interest in Tesla shares still stood at 5.5 per cent, according to Refinitiv data.
Ontario reports 170 new COVID-19 cases, over 8.4 million fully vaccinated – CTV Toronto
Ontario is reporting a slight decrease in new COVID-19 cases on Saturday from the previous day.
Officials marked 170 new cases of COVID-19 Saturday, with three additional deaths.
The province reported 192 new cases on Friday and 185 on Thursday.
The seven-day rolling average now stands at 159, compared to 151 a week ago.
Provincial labs processed more than 19,131 test specimens, generating a positivity rate of at least 0.8 per cent, according to the Ministry of Health.
The province’s COVID-19-related death toll stands at 9,311.
Another 150 people recovered from the disease yesterday, resulting in 1,424 active cases across the province.
Right now, there are 125 people in hospital with COVID-19 and 132 patients being treated in intensive care, according to the Ministry of Health.
The hospitalization data presented by the province has been skewed over the past several weeks, which may be explained by a delay in patient reporting.
Where are the new cases?
Officials are reporting 44 new cases in Toronto, 26 in Peel Region, 17 in Hamilton, 15 in the Region of Waterloo and 13 in Grey Bruce.
Update on COVID-19 variants of concern
The Ministry of Health is reporting 107 new cases of the Alpha variant Saturday, bringing the total number of cases in the province to 145,255.
Officials reported 12 new cases of Delta variant, B.1.617.2 and the case total is now 3,897.
Four cases of the Beta variant, B.1.351 were also recorded. So far, there have been a total of 1,489 cases of the Beta variant reported in Ontario.
As for the Gamma variant, P.1, 10 new cases were recorded today. The total number of Gamma variants recorded in Ontario is now 5,140.
The province said it administered 124,261 doses of COVID-19 vaccines Friday.
Throughout Ontario’s seven-month vaccination campaign, over 18.8 million needles have gone into arms.
As of Saturday, 8,480,761 people have received both doses and are considered to be fully vaccinated.
The numbers used in this story are found in the Ontario Ministry of Health’s COVID-19 Daily Epidemiologic Summary. The number of cases for any city or region may differ slightly from what is reported by the province, because local units report figures at different times.
New Brunswick to move to Green phase on July 30; reports three new COVID-19 cases Friday – CTV News Atlantic
New Brunswick will move into the Green phase of its recovery plan on July 30, lifting all public health restrictions and opening the province to travel, Premier Blaine Higgs announced Friday.
“This morning, Cabinet and the all-party cabinet committee on COVID-19 agreed that New Brunswick’s mandatory order will not be renewed on July 30. This will lift all mandatory travel and public health restrictions that have been in place since the pandemic began,” said Higgs during Friday’s news update.
As of 11:59 p.m. on July 30, the following restrictions will be removed in the province.
- Lift all mandatory travel and public health restrictions that have been in place over the course of the pandemic.
- Lift all provincial border restrictions; provincial border checks will cease, and registration will no longer be required to enter New Brunswick from anywhere in Canada.
- Lift all limits on gatherings and the number of people within facilities. Capacity limits in theatres, restaurants and stores will no longer be required.
- End the requirement to wear face masks in public.
“We came to this decision because we have reached our goal of 75 per cent of our eligible population having received their first vaccine, and are now at 81 per cent,” said Higgs on Friday. “We know that there will be new cases, but thanks to the amount of people that are already vaccinated, we do not think that our health care system will be threatened.”
As of midnight on July 30, all provincial border restrictions will be lifted, provincial border checks will cease, and registration will no longer be required to visit New Brunswick from anywhere in Canada.
However, travellers will still be subject to Canada’s federal restrictions on International travel.
“We will be living with COVID-19, so we encourage New Brunswickers to continue to practise protective health measures such as hand-washing, coughing in your elbow, staying home when sick and wearing a mask if you so choose,” said Dr. Jennifer Russell, chief medical officer of health. “This virus is still with us and we should all expect to see cases as normal travel returns. If you have symptoms, get tested.”
During Friday’s news update, Higgs and Russell emphasized that some facilities and businesses may choose to maintain their own policies on protective health measures, even after restrictions are lifted.
“When we move to Green, not everyone will feel ready to jump back into life as if nothing happened. We all will have to adapt to this new environment in our own way,” said Higgs. “For some, the return to normal will be at a fast pace. Others may want to ease out of the safety measures we have been surrounded by for so long. There is no right way to do this. Everyone must do what feels best for them while remaining safe.”
THREE NEW CASES ANNOUNCED FRIDAY
New Brunswick is reporting three new cases of COVID-19 on Friday, along with one recovery, as the active number of cases in the province rises to 10.
Two of the new cases were identified in the Saint John region (Zone 2), involving two people ages 19 and under, are both related to travel.
One new case was identified in the Fredericton region (Zone 3), involving an individual in their 20s, and remains under investigation.
New Brunswick has had 2,350 cumulative cases of COVID-19 since the start of the pandemic.
In total, 2,293 people have recovered, and 46 people have died in the province from COVID-19.
There is currently no one hospitalized in New Brunswick due to COVID-19.
“We are approaching having one-million COVID-19 vaccines in the province, a very important milestone in our fight against the virus for our province and the country,” said Russell. “While we are well on our way to getting as many New Brunswick’s vaccinated as we can, we must remember that the COVID-19 virus still exists and can still spread. While case numbers have been low, we are still encouraging anyone having symptoms to make an appointment to get tested.”
On Thursday, 727 tests were conducted in the province. A total of 376,470 tests have been conducted since the beginning of the pandemic.
The number of cases is broken down by New Brunswick’s seven health zones:
- Zone 1 – Moncton region: 490 confirmed cases (six active cases)
- Zone 2 – Saint John region: 300 confirmed cases (two active cases)
- Zone 3 – Fredericton region: 449 confirmed cases (two active cases)
- Zone 4 – Edmundston region: 754 confirmed cases (no active cases)
- Zone 5 – Campbellton region: 185 confirmed cases (no active cases)
- Zone 6 – Bathurst region: 133 confirmed cases (no active cases)
- Zone 7 – Miramichi region: 39 confirmed cases (no active cases)
THOUSANDS OF VACCINE APPOINTMENTS AVAILABLE
In a release issued Tuesday, New Brunswick health officials say there are thousands of first and second dose Pfizer and Moderna appointments available at regional health authority clinics and participating pharmacies.
Vaccination clinics are taking place every day this week with appointments available in each region. New Brunswickers who have yet to be immunized with two doses of vaccine are encouraged to book an appointment through a participating pharmacy or at a Vitalité or Horizon health network clinic.
New Brunswick’s COVID-19 online dashboard provides an update on the amount of vaccines that have been administered to date.
As of Friday, 997,798 doses of COVID-19 vaccine have been administered in New Brunswick. The province says 81.2 per cent of the eligible population has received at least one dose, with 62.7 per cent now fully vaccinated.
All eligible New Brunswickers can book their second dose appointments if at least 28 days have passed since their first dose.
To receive their second dose, New Brunswickers are asked to bring a signed consent form, their Medicare card and a copy of the record of immunization provided after receiving their first dose.
Appointments for people who have not yet received their first dose continue to be available to all New Brunswickers aged 12 and older at regional health authority clinics and through participating pharmacies.
Public Health is also reminding New Brunswickers to keep a copy of their Record of Immunization form as their official proof of vaccination.
YELLOW LEVEL REMINDER
All of New Brunswick remains under the Yellow level of recovery under the province’s order, which will be lifted effective 11:59 p.m. July 30.
International passengers at Pearson airport may have to line up by vaccination status – The Globe and Mail
International travellers arriving at Canada’s largest airport may now be funnelled into different customs lines based on their vaccination status.
Toronto’s Pearson International Airport says it may be splitting passengers coming from the U.S. or other international destinations into vaccinated and partially or non-vaccinated queues.
A spokeswoman for the Greater Toronto Airports Authority says it’s a measure to help streamline the border clearance process since there are different requirements for both sets of travellers.
The Vancouver International Airport has instituted a similar policy.
Fully vaccinated Canadian citizens and permanent residents are now able to skip a 14-day quarantine.
Ontario reported 170 new cases of COVID-19 on Saturday and three more deaths.
In Toronto, there were 44 new cases, with another 26 in Peel Region, 17 in Hamilton, 15 in the Region of Waterloo and 13 in Grey Bruce.
The numbers were based on 19,131 tests.
There were 132 patients in intensive care with critical COVID-related illness and 86 on ventilators.
More than 124,000 doses of vaccines were administered in the previous day, for a total of more than 18.8 million.
Of the 170 new cases, 122 of them are in people under age 40, while just one of the new cases is in someone 80 or older.
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