September 19, 2023 Investor Insights
Tesla Benefits from Strike
September 19, 2023
Enjoy this week's "Investor Insights," a weekly newsletter highlighting the financial news you need and providing tips and tricks to help you make better investment decisions.
- The 10 largest companies in the S&P 500 now make up an astounding 34% of the index. These 10 mega-cap companies have an average price-to-earnings (P/E) ratio of 50x, which is significantly higher than the overall market. 1
- For the first time since 2003, monthly imports from Mexico into the US exceeded imports from China on a 12-month average. Imports from China have accounted for just 14.43% of total imports over the last 12 months compared to 14.84% from Mexico. 2
- 15 years have passed since the Lehman Brothers went bankrupt. From the close on the Friday before Lehman filed for bankruptcy (9/12/08) to the stock market low on 3/9/09, the S&P 500 declined 46%. Despite that, the S&P 500's total return in the 15 years since that Friday is 380.8%. 2
- A United Auto Workers strike has begun amongst General Motors, Ford, and Stellantis, and is expected to further increase Tesla’s market advantage. Tesla pays its non-union workers an average of $45 an hour compared to $66 an hour for the striking union workers (before any salary increases). 3
Sources:
- Apollo - "The Daily Spark"
- Bespoke - "Stat Sheet"
- WSJ - "Whatever the UAW Strike Outcome, Elon Musk Has Already Won"
*Past performance is not indicative of future performance
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