TLDR Tesla shares fell 13% in November as retail investors continued buying during the decline A Delaware Supreme Court ruling on Musk’s 2018 pay package could trigger a $26 billion profit hit The potential charge equals more than half of Tesla’s total net income since becoming profitable in 2019 Tesla stock trades at 180 times estimated 2026 earnings compared to 25 times for tech peers Retail investors rotated into Tesla and tech stocks this week before Thursday’s market reversal Tesla shares extended their November slide as retail investors who purchased during the dip now face mounting losses. The stock closed Thursday at $395. 04, marking a 13% decline for the month. Tesla, Inc., TSLA Through Friday, Tesla stock was down approximately 2% year to date. The shares have gained 16% over the trailing 12 months. JPMorgan data shows retail investors actively bought Tesla shares this week. They pulled money from healthcare, industrials, and consumer staples to fund purchases in tech stocks. The buying strategy worked well throughout 2025 until this week. Thursday’s market reversal left many retail investors holding losses on recent purchases. Delaware Court Decision Looms Large Tesla faces a more pressing financial concern than short-term stock movements. The Delaware Supreme Court will soon rule on Musk’s 2018 compensation package. A lower court invalidated the package last year. The judge ruled that negotiations were compromised due to board members’ ties to Musk and their own excessive compensation. If Tesla loses its appeal, the company must account for a replacement stock package at current prices. This creates a $26 billion charge that would hit profits over two years. The amount represents more than half of Tesla’s cumulative net income since 2019. That’s when the company first became profitable. Tesla would need to recognize the expense by August 2027. Spreading $26 billion over eight quarters means $3. 25 billion per quarter in charges. This quarterly expense exceeds Tesla’s actual net income in 21 of the last 25 quarters. The impact would be substantial on reported earnings. Accounting Rules Create Profit Pressure Tesla doesn’t need to pay cash for the stock compensation. The company can simply issue new shares to Musk. However, accounting standards require booking stock compensation as an expense. The logic is that Tesla could have sold those shares on the open market instead. If the Delaware Supreme Court sides with Tesla, Musk keeps his 2018 stock options. The company would avoid additional accounting charges. Those options are currently valued at $116 billion. Brian Dunn from Cornell University said the profit impact signals poor board oversight. He described it as a wealth transfer from shareholders to the company’s largest shareholder. Valuation Gap Widens Tesla stock trades at a premium to tech industry peers. The company’s shares command 180 times estimated 2026 earnings. Amazon, Microsoft, Alphabet, and Meta Platforms trade for an average of 25 times earnings. These companies are building data centers for AI computing. Tesla is developing AI applications including self-driving cars and robots. Revenue from these products hasn’t materialized yet. The company currently faces headwinds from declining car sales. Electric vehicle subsidies are disappearing in key markets. Development costs for projects like humanoid robots continue rising. Tesla disclosed that a failed appeal could materially impact its business and earnings. The board has warned that losing the case might cause Musk to leave the company.
https://blockonomi.com/tesla-tsla-stock-the-26-billion-problem-nobodys-talking-about/
Tag: negotiations
These States Lose Most If Federal Food Aid Runs Out
Large states stand to lose the most federal funding, but a higher percentage of the population receives food assistance in some smaller states.
More than 41 million Americans won’t receive federal help buying groceries in November unless Congress reopens the government. “The well has run dry,” the Department of Agriculture wrote on its website on October 27. The department oversees the Supplemental Nutrition Assistance Program (SNAP), which serves about 12 percent of the U.S. population.
The government shutdown began on October 1 after the Senate failed to advance a stopgap funding resolution introduced by Republicans. This resolution would have temporarily funded the government while Congress completed the 2026 spending legislation. Nearly all Democrats have rejected the measure until Republicans agree on proposals to extend health care funding expiring at the end of the year. Republicans contend that those negotiations should happen within the context of regular spending talks, not as a condition for reopening the government.
### States Receiving the Most SNAP Funding
SNAP funding totaled more than $7.8 billion in May 2025, the last month for which data is available. Nearly half of all SNAP funds went to seven large-population states that month.
– **California** received the largest share at more than $1 billion, about 13 percent of the total.
– **New York** received $647 million.
– **Texas** received $614 million.
– Other top recipients included Florida ($536 million), Illinois ($368 million), Pennsylvania ($368 million), and Ohio ($356 million).
Together, these seven states received 49 percent of the food assistance benefits in May 2025 and served approximately 49 percent of all SNAP recipients.
Total SNAP spending reached $99.8 billion in fiscal year 2024. Now, states are preparing for the possibility of no SNAP funding in November.
### Concerns and Warnings from States
A New York State Department of Social Services website carries this warning:
“Due to the ongoing federal government shutdown, November SNAP benefits may be delayed. SNAP benefits cannot be issued for November unless the federal government shutdown ends or other federal action provides necessary funding.” The site promised those receiving assistance an update by November 1.
California Governor Gavin Newsom warned residents on October 20 that food assistance funds would likely be delayed in November if the shutdown lasted beyond October 23.
The ongoing stalemate in Washington threatens millions of Americans who rely on SNAP benefits to put food on the table. As negotiations continue, the impact of the funding lapse is becoming increasingly urgent.
*By Lawrence Wilson*
https://www.thethinkingconservative.com/these-states-lose-most-if-federal-food-aid-runs-out/
China vows to stand firm against Trump’s 100% tariff threat
**China Stands Firm Against Trump’s 100 Percent Tariff Threat, Urges Negotiations**
*BEIJING –* China signaled on Sunday that it will not back down in response to President Donald Trump’s threat of imposing a 100 percent tariff on imports from China. The Chinese Commerce Ministry urged the US to resolve differences through negotiation rather than threats.
“China’s stance is consistent,” the Commerce Ministry said in a statement posted online. “We do not want a tariff war but we are not afraid of one.”
The statement came just two days after President Trump threatened to raise tariffs on Chinese imports by November 1. This threat was a reaction to China’s new restrictions on the export of rare earth minerals — key components used in numerous consumer and military products.
### Tensions Threaten US-China Meeting and Trade Truce
The escalating tensions risk undermining a potential meeting between President Trump and Chinese leader Xi Jinping, potentially ending a trade truce that saw tariffs on both sides briefly top 100 percent in April.
Throughout the year, Trump has increased import taxes on goods from multiple US trading partners with the aim of securing trade concessions. China, however, has remained resilient, relying on its significant economic clout.
“Frequently resorting to the threat of high tariffs is not the correct way to get along with China,” the Commerce Ministry emphasized in its online post, presented as responses from an unnamed spokesperson to media inquiries. The statement called for resolving concerns through dialogue.
“If the US side obstinately insists on its practice, China will be sure to resolutely take corresponding measures to safeguard its legitimate rights and interests,” the post warned.
### Rare Earths: A Critical Point of Contention
Both China and the US accuse each other of violating the spirit of their truce by imposing new trade restrictions. President Trump has accused China of becoming “very hostile” and accused it of “holding the world captive” by restricting access to rare earth metals and magnets.
China recently implemented regulations requiring foreign companies to obtain special approval to export products containing even trace amounts of rare earth elements sourced from China. These critical minerals are essential for a wide range of products, including jet engines, radar systems, electric vehicles, laptops, and smartphones.
China currently accounts for nearly 70 percent of the world’s rare earth mining and controls approximately 90 percent of global rare earth processing, making access to these materials a key issue in ongoing trade negotiations between Washington and Beijing.
The Commerce Ministry clarified that export licenses would be issued for legitimate civilian uses but noted that these minerals also have military applications.
### Retaliation and Ongoing Disputes
The Ministry also accused the US of introducing new restrictions in recent weeks. These include expanding the list of Chinese companies subject to US export controls and moving forward with new port fees on Chinese ships, set to take effect on Tuesday.
In response, China announced on Friday that it would impose corresponding port fees on American ships.
The escalating tit-for-tat measures underscore the fragile state of US-China trade relations as both countries continue to assert their economic and strategic interests.
*AFP*
https://kashmirreader.com/2025/10/13/china-vows-to-stand-firm-against-trumps-100-tariff-threat/
Vegas and Jack Eichel agree on an 8-year, $108 million contract extension, AP source says
Jack Eichel and the Vegas Golden Knights have agreed to terms on an eight-year contract extension worth $108 million, according to a person familiar with the deal. Eichel will count $13.5 million against the salary cap from the time the new contract kicks in for the 2026-27 season through 2034.
The person spoke to The Associated Press on condition of anonymity Wednesday because the extension had not been announced.
The soon-to-be 29-year-old center is the latest high-profile player to re-up with his current team after Minnesota’s Kirill Kaprizov inked the richest deal in league history at $136 million over eight years. Connor McDavid opted to stay in Edmonton on a short-term deal without a raise from his current $12.5 million salary, and Kyle Connor re-signed in Winnipeg for the maximum eight years at $12 million annually.
Eichel is coming off setting career highs with 66 assists and 94 points last season, when the Golden Knights finished first in the Pacific Division. He helped them win the Stanley Cup in 2023. His representatives and Vegas’ front office reached the agreement roughly six hours before the start of the season.
Asked before training camp opened if he would shut down negotiations once meaningful games got going, Eichel brushed off the question.
“If a contract happens organically, then it happens,” Eichel said last month in Las Vegas at the NHL/NHLPA preseason player media tour. “You can only control so much, right, and that’s sort of in my mindset. What are the things that I focus on? Preparing for the season, getting my mind and body in the best place to be successful and help our hockey team. That’s more so my focus. I think anything else sort of just takes care of itself when you do your job well.”
Eichel was the second pick in the 2015 draft by Buffalo. He played his first five-plus seasons for the Sabres before a dispute over surgery to repair his neck injury led to a trade to Vegas in 2021.
Since undergoing artificial disk replacement, Eichel has produced above a point-a-game level for the Knights. He was the No. 1 center for the U.S. at the 4 Nations Face-Off and was already named to the Olympic team.