TSLA, Covestor, and potential new project



I saw yet another article on Tesla Motors’ (TSLA) expansion. This time it was about Panasonic’s $30 million investment in Tesla. A few months ago Toyota invested $50 million; last month they inked a partnership with Tesla to use their all-electric powertrains in the new EV RAV4. Daimler has also invested heavily in Tesla’s technology.  Right now, Tesla is burning money. Tesla may not become the next big car manufacturer, but they do have their innovative powertrain technology. If they keep making these strategic alliances, a future where most electric vehicles on the streets use a Tesla powertrain is not that hard to imagine… (disclaimer: I own some TSLA shares).

I’ve switched brokers from Zecco to Interactive Brokers so my tracking portfolio on Covestor will no longer be updated daily (I have to send Covestor my monthly IBrokers statements). On Covestor I track one of my ETF rotation algorithms.

Although moving on from the Faber project, I still intend to keep using/learning more about R. I’m currently reading the paper “The Extreme Future Stock Returns Following I/B/E/S Earnings Surprises” which analyzes the phenomenon of post earnings announcement drift (PEAD). Essentially, stocks drift upwards months after a positive earnings surprise (a very anti-EMH phenomenon). Getting my hands on the data and replicating the research in R would be fun and educational.

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