In today’s top story, new data reveals that Tesla’s dominance of the US electric vehicle market is slipping, cannabis sales experience a bumper Thanksgiving weekend, and HSBC agrees to a $10bn sale of its Canadian business. Elsewhere, Ritholtz Wealth Management CEO Josh Brown explains how he interprets VIX volatility index, and Asian markets experience their best month since 1993.
Cannabis sales high on Thanksgiving weekend supply
US-regulated cannabis sales gained 12.7% year-over-year over the Thanksgiving weekend. According to software company Akerna [KERN], sales reached $289m between 23 and 26 November. Black Friday and Green Wednesday are set to be the country’s second- and third-largest cannabis sales days of 2022, topped only by '420', which broke records this year with $154.4m in sales.
Tesla’s market share crashing
Tesla’s [TSLA] position as the US’s leading producer of electric vehicles (EVs) may be slipping, according to the S&P Global Mobility report released Tuesday. Tesla’s market share fell from 71% in the third quarter of 2021 to 65% a year later, and could fall below 20% by 2025, according to forecasts by the research group. The Tesla share price fell 2.25% throughout the day on Tuesday.
HSBC agrees Canadian business sale
HSBC [HSBA.L] shareholders could receive a bumper payout as the bank agrees to a C$13.5bn ($10bn) sale of its Canadian arm to the Royal Bank of Canada [RY.TO]. The price represents a 30% premium on analyst appraisals of HSBC’s Canadian business, and part of the anticipated $5.7bn pre-tax gain is expected to fund a one-off dividend or share buyback.
Josh Brown, CEO of Ritholtz Wealth Management, advises investors to “sell something” given current market volatility. The Cboe Volatility Index (VIX) hit 20 last Friday, at which level “you have to look at your portfolio and say, ‘You know what, I’m taking something off,’” Brown told CNBC’s Halftime Report. Brown also advocates buying when VIX reaches the high 20s.
Asian markets on the rise
November was the best month for Asian stocks relative to global peers since 1993. The MSCI All Country World Index gained under 6% through the month, while the MSCI Asia Pacific Index gained 15%. China’s easing of its COVID Zero policy encouraged investors, while non-Chinese Asian emerging markets saw $12.6bn in foreign share purchases, mainly in Taiwan, Hong Kong and the Philippines.