May 4, 2020
Good morning! This Monday, everyone's scared about another trade war, a proptech company sees opportunity amid chaos, and Elon's selling some houses. Want Index in your inbox each morning? Subscribe here.
As of 4:20 a.m. PDT: Nasdaq Futures: -0.87% | Euro 600: -2.46% | Nikkei: Closed | Hang Seng: -4.18%
I know what you're all thinking: It's been a really slow and quiet year, and it would be awfully nice to have some news to shake things up a bit. Enter: Trade War, Volume II.
Markets are, unsurprisingly, freaking out: Today's drop in the Hang Seng Index wiped out all of April's gains.
A couple of weeks ago, we talked about some of the issues facing proptech companies: A frozen housing market and a tanking economy puts pressure on their already thin margins. But according to Sundae CEO Josh Stech, not everyone's in trouble.
Sundae focuses on California, so Stech has lots of thoughts on what's going to happen to the Bay Area market.
Stech said he's feeling good about Sundae's prospects, saying that a recession is the perfect time to build a company like his. But he does worry about his employees.
You've probably seen Elon Musk's Twitter meltdown by now, in which he said Tesla's stock was overvalued (which may or may not have been an illegal tweet). In and among all that, he said he is "selling almost all physical possessions," including his home. And he seems to be following through on that! CNBC's Sam Shead spotted listings for two of Elon's LA properties: A $30 million mansion, along with a $9.5 million ranch over the road. (The latter was once owned by Gene Wilder!) But don't worry, he's not going to have to move into the Tesla factory again: He still owns another four houses just next door.
Correction: An earlier version of this article misidentified a company that had reportedly laid off approximately 10% of its staff. It is SoftBank Group International. This story was updated May 4, 2020.