This week money will grow on Trees

Notes on Klima Dao launch and Tesla Q3 report.

Next week is going to be marked by two very green and important events: Klima’s official launch, and Tesla’s third-quarter financial results.

The launch of Klima, the first cryptocurrency directly related to carbon credits, will be on Monday at 8 in the afternoon. Klima, pre-launched just over 3 weeks ago and valued already at about 100MM, seeks to tokenize carbon credits (permits that companies have to emit certain amounts of carbon) in order to accumulate them in their treasury, removing them from the market and exercising upward pressure on their prices. This is relevant since the more expensive these credits are, the more incentives companies have to stop polluting and have more sustainable practices, or invest in environmental regeneration.

The last price of Klima in the launch auction, was 323 USD, and will be its starting price on Monday 18 at 20:00. The “new” liquidity will be 17,000 new Klimas, but the total liquidity will be 260,000.

Being a KLIMA holder is incentivized not only by the financial altruism that I already mentioned, but also by the incredible appreciation that the currency must have in the coming years, being that each KLIMA is backed by a permit to emit one ton of carbon, and such permits will be appreciated in the coming years.

Another incentive is that of the APY, or Annual Percentage Yield, which will be 30,000% in the first months, to decrease as time goes by. This growth rate takes into account the compounding effect, and although it is designed to decrease over time, we can learn from Olympus (the protocol that Klima is inspired by, and whose developers are related) that it is incredibly lucrative, and astonishingly sustainable.

What to do at launch?

Since the starting price is 320, and it is now trading at 1500, you might think it is time to sell if you participated in the auction. I do not recommend it, rather, I recommend trying to buy as much as possible at the starting price, leaving a little extra liquidity in case there is a dumping by the whales.

Resources:

Information about Klima: https://klimadao.medium.com/

TESLA

Tesla TSLA is set to release third-quarter 2021 results on Oct 20, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $ 1.35 per share and $ 13.16 billion, respectively.

Sources I trust estimate an EPS of $ 1.70, well above Wall Street expectations, even though these have been updated in the last week.

This quarter for Tesla is going to be its ninth quarter in a row reporting profits. Leaving the narrative that Tesla is in danger.

What to do on the 21st?

Personally, I will keep my shares until February, where I will evaluate what to do with them (probably keep holding), but my leap options I plan to sell them before they deliver the report, since it usually happens that traders and Hedge Funds sell in the news, depreciating the stock between 2 and 3%.

This is not financial advice.

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