So Tesla lost $30m last quarter. Do you know who made $20m in profits on Tesla in one day?
Toyota.
Toyota bought 50 million dollars worth of Tesla shares at the offering price. The Tesla stock traded 41 percent higher and, “Toyota’s unrealized profit was about 1.8 billion yen,” says The Nikkei [sub].
Actually, Toyota profited much more. On Tuesday, the sky dropped on Wall Street. This morning, Tokyo went into a tailspin, and took Toyota with it. It traded at a year-to-date low of around 3,000 yen in the morning: A strong Yen and a possible double dip recession made investors avoid the world’s largest auto maker.
The news of the unexpected Tesla windfall turned the Toyota stock around, it went as high as 3.095 Yen and closed at 3,080. If only Toyota could follow Cramer’s advice to sell immediately …
Tagged as Bertel Schmitt, ipo, Japan, profits, Tesla, Toyota
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Now that’s some “Mad Money”