Bidness Etc - Factors affecting Tesla motors (NASDAQ:TSLA)

During the last several months oil prices have had a great fall, which had a negative impact on the automaker’s capitals. According to a report by Morgan Stanley, there are few regions in which Tesla Motors could confront issues which would eventually allow them to redeem their stance.
Sales of luxury Model S sedan are not likely to suffer due to this issue, however, upcoming Model 3, which has a lower value point, might become the victim of this tyranny.
Another issue Tesla Inc. can face is US dollar volatility, Jonas said. As US dollar strengthens it will affect Tesla because of its exposure to international market. Tesla’s production cost will go up as its production is entirely based in the United States. However, its sales will go down as more than 50% of the automaker's business is situated outside United States.
According to Adam Jonas analyst at Morgan Stanley, if the dollar strengthens by 10% against euro, there would be a adverse impact up to $100 million on Tesla Motors. Since 30% of its volume will arrive from Western side of Europe this year. Thus, Tesla Motors cut $70 million from their working figure during the current year and $20 million from the final quarter.
Jonas has said; “continuous volatility will complement, but for investors who believe in the company, Tesla stock is a worthy choice”.
On Thursday, a better buying opportunity was shown by Tesla Motors.US dollar affecting the stock price of Tesla Motors and the main reasons behind that are decreasing oil prices, sluggish sales in china and stronger, Morgan Stanley brings down its price target on Tesla Motors from stock price of $290 to $280 per share.
Jonas also reported that he had reduced his fourth quarter prediction to 9,993 from 11,165 units. As a result of the whole estimation, it comes to 31,814 units which means more than 1000 units are are there. And just because of lower volume estimate and strengthening of the US dollar, Jonas lowered his estimation regarding gross margin from 29.6% to 28%.
Last week at Detroit Auto show Tesla Motors CEO Elon Musk said, they assume GAAP to be profitable by 2020 in the U.S, however, according to Jonas forecast by the end of 2020, Tesla will earn approximately $1.6 billion in U.S GAAP profit.
The analyst noted that there’s been a shift in emotion are positive on Tesla Motors because of believe that the automaker’s technology will make traditional car engines “outdated” in coming years.

Bidness Etc - Price war between Gilead and AbbVie for the treatment of liver destroying virus

Gilead and Aetna are battling it out amongst each other regarding the prices of their drugs. As mentioned in the coverage policy by Aetna, it will prefer Gilead’s drug Harvoni and Sovaldi. These drugs are being offered at discounted prices than AbbVie’s newly approved Vierra Pak for the treatment of Hepatitis C. however, the amount has not been disclosed yet. Aetna’s coverage policy can be useful for Gilead to re-gain its market share in treatment of liver-destroying virus.
As competition between Gilead sciences and AbbVie in terms of prices continues Gilead shares went up to 3 %. As one of the US largest health insurer Aetna Inc. provided the desired status to Gilead science Inc. for the treatment of hepatitis C. Gilead hepatitis C treatment becomes available to nearly 11 million commercial customers helping its stock to reach up to $100.71, Bloomberg analyst Asthika Goonewardene observed a drastic increase in the consumption of Harvoni, compared to the usage of Viekira Pak. In order to cope with the loss AbbVie has been trying to eliminate Gilead’s treatment off the market by offering discounts to pharmaceutical managers.
Health insurers have been forcing Gilead and AbbVie to lower the prices of their expensive dealings, claiming them to be unaffordable. Gilead’s Harvoni is priced at $94,500, whereas Sovaldi costs about $84,000 for a complete course. However, Viekira Pak costs $10,000 lower. Chief medical officer Steven Miller said, for the first time in the history of pharmaceutical industry that a price-war has emerged. This will bolster the treatment of hepatitis to a great extent since almost 170,000 people will get hepatitis treatment in 2015, compared to 100,000 last year.Later, Gilead signed deals with, CVS Health Corp, the Humana Inc, a managed health care, and one of the largest US pharmacy insurers, Anthem Inc. for special coverage of its treatment against high discount price. A discount of 30% was being is said to be offered by Gilead but the company has not officially revealed anything.Gilead’s deal with top of the line pharmacy benefits health insurers, securities its ability to earn accretive revenue from its treatment of hepatitis C. According to RBC Capital analyst Michael Yee, the sales for Gilead’s liver destroying virus treatments will increase by $15 billion globally and it will continue to increase as the prescription numbers gets reveal.