Evening digest: Bitcoin slips, Musk’s $1T Tesla pay under cloud, Adani plans raise
Bitcoin slipped back below $100,000 as traders booked profits and broader risk sentiment softened.
In corporate news, Norway’s sovereign wealth fund is opposing Elon Musk’s $1T pay package at Tesla, setting up a closely watched shareholder vote.
Adani Enterprises is gearing up for a major rights issue, while Ferrari topped expectations thanks to strong pricing power and premium model demand.
A glance at the major developments on Tuesday.
Bitcoin slips below $1,00,000
Bitcoin has dipped back below the $100,000 level for the first time since late June, continuing the recent downturn as traders take profits and global markets lean more cautiously.
The cryptocurrency fell about 5% in the past day, with sentiment cooling and trading activity slowing down.
Analysts say uncertainty around US regulations and a slowdown in big institutional money flowing into crypto are both playing a role in the pullback.
Even so, Bitcoin is still up more than 120% so far this year, thanks to ongoing interest in digital assets and hopes that spot ETF inflows and future monetary easing could provide another boost down the road.
Norway’s wealth fund opposes Musk’s $1T Tesla pay package
Norway’s massive sovereign wealth fund says it plans to vote against Elon Musk’s proposed $1 trillion pay package at Tesla’s shareholder meeting on November 6.
The fund acknowledged that Musk has been hugely influential and has created enormous value for Tesla.
But it says the compensation plan is simply too large, could overly dilute existing shareholders, and doesn’t do enough to address the risks of the company relying so heavily on one person.
Norges Bank Investment Management owns about 1.14% of Tesla, worth roughly $11.6 billion, so this isn’t a small voice.
Still, Tesla’s board is strongly urging shareholders to vote in favor, even hinting that Musk could walk away if the package doesn’t pass.
The pay proposal would give Musk up to 423 million shares if Tesla hits certain performance goals over the next 10 years.
Most major investors haven’t revealed how they’ll vote yet, though analysts expect enough support to push the package through.
Adani seeks fresh capital raise
Adani Enterprises is looking to raise about $2.8 billion (roughly 250 billion rupees) through a rights issue, as it tries to move forward from last year’s controversy.
Back in 2023, the company had to return about 210 billion rupees to investors after US short seller Hindenburg Research accused the group of poor corporate governance and stock manipulation.
India’s market regulator later said it didn’t find evidence of regulatory violations, but the episode still cast a long shadow.
This new rights issue is aimed at strengthening Adani Enterprises’ financial position and funding some of its major growth projects, including partnering with Google to build what could become India’s largest AI data center campus.
Despite the announcement, the company’s shares slipped about 2.7% afterward, as investors digested the news and weighed the broader market mood.
Ferrari beats Q3 earnings expectations
Ferrari reported a solid third quarter, with core earnings up 5% and coming in stronger than analysts expected.
The company posted EBITDA of €670 million (about $781 million), helped by its ability to command higher prices, especially on premium models like the SF90 XX and the 12Cilindri.
Ferrari also continues to benefit from customers who are willing to pay extra for more customization and personalization options.
Interestingly, the number of cars delivered didn’t really move much; shipments were basically flat at 3,401 units. But for Ferrari, it’s not always about selling more cars; it’s about selling high-value ones.
The company stuck to its full-year outlook, saying it still expects to bring in at least €7.1 billion in revenue and around €2.72 billion in adjusted EBITDA in 2025.
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