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Date stringdate 2022-01-02 00:00:00 2023-12-16 00:00:00	Symbol stringclasses 220 values	Article stringlengths 332 142k
2023-12-16	TSLA	By Nivedita Balu TORONTO, Dec 18 (Reuters) - Bank of Nova Scotia (Scotiabank) BNS.TO is eying North America's booming $1.6 trillion trade with its renewed Mexico bet, a strategy that offers hope but brings risks that have seen many global lenders including Citigroup Inc. C.N scaling back. Scotiabank's new CEO Scott Thomson, who built a career specializing in Latam, sees the "Mexico First" strategy unveiled last week, offering clients in Canada, the United States and Mexico end-to-end trade finance, helping to differentiate Scotiabank among its Canadian rivals. The plan will see Canada's No. 4 lender move away from other struggling South American markets. Still, it will expose Scotiabank to a market with unpredictable political risks and where foreign banks have struggled to make inroads, analysts said. But that is not deterring Scotiabank. "Trade is a key component of why Mexico is attractive. ... When you see the connectivity of a North American corridor, that's the essence of what we're going after," Scotiabank head of international business Francisco Aristeguieta said in an interview. Since the three countries hammered out a "New NAFTA" deal in 2020, North American trade has hit $1.6 trillion in 2022 and international companies are moving production closer to customers to tackle supply chain woes. That is expected to add about 1.2% to Mexico's GDP this year. Aristeguieta, who joined the bank in May, said 14% of Scotiabank's Canadian commercial bank clients have operations in North America and has a 10% market share in Mexico, giving its clients more access to the corridor. He highlighted auto, energy and medical equipment as attractive sectors. Mexico accounts for more than a third of Scotiabank's international income. While the strategy shows promise, analysts and shareholders were not convinced as it comes with risks. "Focusing on that (Mexico) market does make sense. ... But despite those tailwinds, there's still more political, economic, and currency risks in Mexico and Latin America than in Canada or the U.S.," Veritas Investment Research analyst Nigel D'Souza said. Scotiabank's new strategy is key to reviving confidence in Canada's worst-performing big bank stock this year, which is down 6.6% versus a 5.9% rise in the financial sub-index .SPTTFS. It trades at a forward price-to-earnings ratio of 9.6, compared with an industry average of 10.7, according to LSEG data. Aristeguieta sees 12% growth in the multinational business in Mexico and 50% of its commercial and wealth banking incremental earnings coming from Mexico by the next five years as trade finance often opens door to higher-margin businesses. Aristeguieta is paying close attention to Mexico's June 2024 election and is hoping that regardless of the outcome, the country offers a stable regulatory framework for foreign investment. Some 48 banks operate in Mexico, but just seven control 78% of the market share by total assets. Foreign banks like Citigroup have lost market share to local Mexico banks, prompting the U.S. lender to exit. But after struggling to find a buyer, Citigroup is planning an IPO of its Mexico unit. Flavio Volpe, president of Automotive Parts Manufacturers Association of Canada said Scotiabank could face competition from China, as exporters setting up factories in Mexico to preserve their sales to the United States rely on Beijing lenders. Tapping the North American trade drove Canadian Pacific Railway to buy Kansas City Southern to create the first direct railway linking Canada, the United States and Mexico in 2021 in a hotly contested deal. Volpe said Scotiabank could make it work. "It's a smart strategy for Scotiabank. Because the (manufacturers) in Mexico are the same ones that they probably have as customers here on a retail basis," he said. Canada's big five banks in the past five years Canada's big five banks in the past five years https://tmsnrt.rs/3TwojIq (Reporting by Nivedita Balu in Toronto; Editing by Mark Porter) ((Nivedita.Balu@thomsonreuters.com; X: @niveditabalu;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	M arket commentators love tortured acronyms or catchy phrases when it comes to big tech stocks. First it was FANG, which was reputedly first used by CNBC's Jim Cramer. That stood for Facebook (now Meta: META), Amazon (AMZN), Netflix (NFLX), and Google (now Alphabet: GOOG, GOOGL). Then, a few years later, Apple (AAPL) was added to the mix, and we got the less catchy, but probably more representative, FAANG. Then corporate expansion and a shifting tech landscape caught up with that one too. Facebook and Google changed their names to better reflect the fact that they were no longer one-product affairs, streaming wars made Netflix less of a rapid growth stock, and the once moribund Microsoft (MSFT) took off under Satya Nadella, forcing their inclusion. That led to MAMAA: Meta, Apple, Microsoft, Amazon, and Alphabet becoming the phrase du jour. Recently, though, with everything having to be adjusted to allow for the AI revolution and with EVs becoming much more mainstream, the most popular phrase for big tech stocks has become “The Magnificent Seven,” adding Nvidia (NVDA) and Tesla (TSLA) alongside Amazon, Apple, Microsoft, Alphabet, and Meta. That one is credited to a Bank of America (BAC) analyst, but the very fact that over the last few years there have been so many iterations of the way analysts and pundits refer to outperforming big tech stocks shows why such things are of little use. There is always a group of outperformers but is a fluid thing, almost by definition. Tech is about meeting trends and grabbing opportunities, and while doing that well can lead to rapid, short-term success, there is no guarantee that even the best companies will maintain their outperformance for any length of time. Nor is it true that, as MSFT showed all too well, one that missed out for a while cannot burst back onto the scene with a change of management and/or focus. So the obvious answer to the question, “Can the Magnificent Seven continue to lead the market in 2024?” is no. That is not because those seven stock can’t or won’t do well. In fact, if the bond and stock markets are right and the Fed cuts rates early next year, they almost certainly will perform well. But I say the answer is "no" is because if the ever-changing history of who's in this group tells us anything, it is that the name of the group itself will probably have changed twelve months from now. Maybe it will have to include at least one company making weight-loss drugs, or the long-awaited and oft-predicted rise of fuel cells will force the inclusion of a name from that industry, or a new social media platform could take off. Or maybe what we will be talking about a year from now will be a stock in a field that most of us have never heard of, or have already written off. Let’s face it, how many of you were screaming about AI at this time last year when NVDA was trading at around $150 after it had lost half of its value in around a year? My guess is not that many would have imagined NVDA to have gone from $150 to almost $500 in twelve months. Then there is the very real chance that the market will fall next year. That isn’t out of the realm of the possible, for several reasons: The fight against inflation is still ongoing and may not have as happy an ending as is now generally assumed. There are two major wars in strategically important parts of the world which could yet get worse. Also, 2024 is an election year in a country where “divided” doesn’t even come close to describing the political environment, and where a win for either party will have a third of the country believing that the end of America is coming. The chance of any or all of those things derailing stocks next year is another subject for another day, but they do have to be considered. All things considered, the chance of the “Magnificent Seven” -- as that phrase is currently understood -- leading the market higher next year is close to zero. That may be because the market doesn’t go up at all next year, or it may be because trends and developments in technology create a shifting landscape, but either way, it looks like someone will have to come up with a new acronym or cute phrase to describe next year’s stock market leaders. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $584.9 million dollar outflow -- that's a 1.8% decrease week over week (from 125,400,000 to 123,150,000). Among the largest underlying components of IWB, in trading today Tesla Inc (Symbol: TSLA) is up about 1.8%, Eli Lilly (Symbol: LLY) is up about 1.9%, and Johnson & Johnson (Symbol: JNJ) is relatively unchanged. For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $206.23 per share, with $261.35 as the 52 week high point — that compares with a last trade of $261.13. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. Click here to find out which 9 other ETFs experienced notable outflows » Also see: Seth Klarman Stock Picks PTLO Options Chain FDS Stock Predictions The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	STOCKHOLM, Dec 18 (Reuters) - Most Swedes support an ongoing mechanics strike at Tesla's TSLA.O workshops in the Nordic country over the right to collective bargaining, an opinion poll by Novus showed. The U.S. car maker is facing a backlash from unions and pension funds across the Nordic region over its refusal to accept the demand from trade union IF Metall, whose members at Tesla workshops have been on strike since October. "A clear majority - or 58% of Swedes - believe the union is right to take the fight with Tesla," said daily Svenska Dagbladet, which commissioned the poll. "Only 20% of those who answered believe the union's industrial action is wrong." The dispute has sparked sympathy strikes across the Nordics - a key region for Tesla - and prompted some pension funds to sell their shares in the company. Tesla has avoided collective bargaining agreements with its roughly 127,000 workers, and CEO Elon Musk has been vocal about his opposition to unions. A clear majority of Swedes polled by Novus said their confidence in Tesla had faded during the conflict, SvD reported. "The support for the Swedish model is very strong," Novus CEO Torbjorn Sjostrom told the daily. The Swedish labour market model means employers and unions negotiate working conditions and salaries with very little involvement of the government. (Reporting by Anna Ringstrom, editing by Terje Solsvik) ((anna.ringstrom@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	It’s the time of year when investors are treated to a slew of market predictions for the next year. The onslaught of those offerings is dizzying. Add those predictions up and it’s likely market participants can absorb hundreds of stock picks for the year ahead. That's neither efficient nor practical for many investors to have portfolios populated in the dozens or hundreds. The good news is that some of the stocks market observers are most bullish on for 2024 are found in several familiar, cost-effective ETFs. Those include the Invesco QQQ Trust (QQQ) and Invesco NASDAQ 100 ETF (QQQM). The two Nasdaq-100 Index (NDX)-tracking ETFs have delivered stellar showings this year. They have surged 52.22% as of December 15. QQQ and QQQM may not deliver comparable performances in 2024. But more upside is possible for the ETFs next year. That's assuming predictions about some of the funds’ holdings prove accurate. Familiar Names Could Lift QQQ, QQQM in 2024 This year, QQQ and QQQM benefited in large part from significant exposure to the magnificent seven. That group includes Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla. On aggregate basis, that group delivered jaw-dropping showings this year. Some analysts believe it’s possible some of the super seven could build on 2023 gains next year. Alphabet is “expected to grow as fast as Microsoft, with earnings forecast to be up 15% in 2024, three times as quickly as Apple’s 5% growth. Yet its stock trades for just 20 times earnings, a discount to both Microsoft and Apple’s 30 times, despite gaining 50% this year,” reported Andrew Bary for Barron’s. “Investors have been worried about slowing growth in Alphabet’s cloud computing division, the threat that artificial intelligence poses to its search business, and antitrust scrutiny. Those issues look manageable.” QQQ and QQQM have long been associated with growth investing. That's rightfully so given the ETFs’ large weights to tech and communication services stocks. But it might surprise some investors to learn the funds have some defensive exposure. Take the case of Pepsico (PEP), which is the second-largest consumer staples holding in the ETFs behind Costco (COST). “Fears that weight-loss drugs will curb snacking caused PepsiCo stock, at $168, to drop 7% in 2023. A confident Pepsi, though, said in October that it expects to deliver per-share earnings growth at the top of its high-single-digit annual target in 2024 after a projected 13% gain this year. And the stock trades for 20.6 times next year’s projected earnings, below its five-year average. It also yields 3% and has raised its dividend for 51 straight years, including a 10% increase this past summer,” according to Barron’s. For more news, information, and analysis, visit the ETF Education Channel. Read more on ETFTrends.com. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	TORONTO, Dec 18 (Reuters) - Bank of Nova Scotia (Scotiabank) BNS.TO is eying North America's booming $1.6 trillion trade with its renewed Mexico bet, a strategy that offers hope but brings risks that have seen many global lenders including Citigroup Inc. C.N scaling back. Scotiabank's new CEO Scott Thomson, who built a career specializing in Latam, sees the "Mexico First" strategy unveiled last week, offering clients in Canada, the United States and Mexico end-to-end trade finance, helping to differentiate Scotiabank among its Canadian rivals. The plan will see Canada's No. 4 lender move away from other struggling South American markets. Still, it will expose Scotiabank to a market with unpredictable political risks and where foreign banks have struggled to make inroads, analysts said. But that is not deterring Scotiabank. "Trade is a key component of why Mexico is attractive. ... When you see the connectivity of a North American corridor, that's the essence of what we're going after," Scotiabank head of international business Francisco Aristeguieta said in an interview. Since the three countries hammered out a "New NAFTA" deal in 2020, North American trade has hit $1.6 trillion in 2022 and international companies are moving production closer to customers to tackle supply chain woes. That is expected to add about 1.2% to Mexico's GDP this year. Aristeguieta, who joined the bank in May, said 14% of Scotiabank's Canadian commercial bank clients have operations in North America and has a 10% market share in Mexico, giving its clients more access to the corridor. He highlighted auto, energy and medical equipment as attractive sectors. Mexico accounts for more than a third of Scotiabank's international income. Not everyone is convinced. "Focusing on that (Mexico) market does make sense. ... But despite those tailwinds, there's still more political, economic, and currency risks in Mexico and Latin America than in Canada or the U.S.," Veritas Investment Research analyst Nigel D'Souza said. Scotiabank's new strategy is key to reviving confidence in Canada's worst-performing big bank stock this year, which is down 6.6% versus a 5.9% rise in the financial sub-index .SPTTFS. It trades at a forward price-to-earnings ratio of 9.6, compared with an industry average of 10.7, according to LSEG data. Aristeguieta sees 12% growth in the multinational business in Mexico and 50% of its commercial and wealth banking incremental earnings coming from Mexico by the next five years as trade finance often opens door to higher-margin businesses. Aristeguieta is paying close attention to Mexico's June 2024 election and is hoping that regardless of the outcome, the country offers a stable regulatory framework for foreign investment. Some 48 banks operate in Mexico, but just seven control 78% of the market share by total assets. Foreign banks like Citigroup have lost market share to local Mexico banks, prompting the U.S. lender to exit. But after struggling to find a buyer, Citigroup is planning an IPO of its Mexico unit. Flavio Volpe, president of Automotive Parts Manufacturers Association of Canada said Scotiabank could face competition from China, as exporters setting up factories in Mexico to preserve their sales to the United States rely on Beijing lenders. Tapping the North American trade drove Canadian Pacific Railway to buy Kansas City Southern to create the first direct railway linking Canada, the United States and Mexico in 2021 in a hotly contested deal. Volpe said Scotiabank could make it work. "It's a smart strategy for Scotia. Because the (manufacturers) in Mexico are the same ones that they probably have as customers here on a retail basis," he said. (Reporting by Nivedita Balu in Toronto; Editing by Mark Porter) ((Nivedita.Balu@thomsonreuters.com; X: @niveditabalu;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	There's reason to believe interest rates may decline in 2024, and that usually means it's a good idea to start investing in some interest-rate-sensitive stocks. In that line of thought, here's a look at why UPS (NYSE: UPS), Tesla (NASDAQ: TSLA), and machine vision company Cognex (NASDAQ: CGNX) are good ways to play this theme. Why rates could fall next year I'll start with a few words/charts on why rates could be lower. A quick look at the recent inflation data shows a continuation of a downtrend that began in the summer of 2022. US Inflation Rate data by YCharts The data was good enough to lower market interest rates, with the benchmark 10-year Treasury rate falling. In addition, note that one-year and two-year rates are notably lower than the six-month rate, implying that the Federal Reserve target rate will be lower in one year than in six months. 10-Year Treasury Rate data by YCharts While there's no guarantee the bond markets are right, history suggests higher interest rates, over an extended period, will result in lower inflation. UPS This stock will suit investors looking for solid returns and some income. UPS will benefit from the effect lower rates will have on the economy. That should result in increased volumes, or at least increased levels of the delivery volumes that management targets. In addition, there's likely to be a positive margin mix impact as customers stop shifting to lower-cost delivery options the way they have been doing in the rising rate environment. While it's true that UPS enjoyed a couple of boom years during the pandemic (as lockdowns drove customers into buying online), and according to Wall Street analysts, it won't get back to 2022 levels of sales of $100.3 billion until 2025, there are a couple of favorable things to bear in mind. First, analyst forecasts have UPS generating earnings of $9.71 a share in 2024 and free cash flow (FCF) of $7.1 billion, putting the stock at 16.7 times 2024 earnings and less than 19 times FCF in 2024. Those are reasonable multiples for a stock that will be in volume recovery mode in 2024. Second, UPS is achieving good traction in its goal of growing revenue in targeted markets like small and medium-sized businesses and healthcare. As such, it will emerge from the slowdown with a better revenue quality than when it entered it. Throw in a 4% dividend yield, and UPS is a solid choice for investors in 2024. Tesla Like UPS, Tesla will likely have a stronger underlying business coming out of a rising rate environment. Yes, Tesla is an automaker, meaning rate movements will impact its sales; consumers usually buy cars on credit, so monthly interest payments are a crucial part of the decision. In contrast to the internal combustion engine (ICE) market of recent decades, the electric vehicle (EV) market is not a low-single-digit type growth market; it's high-growth and relatively early-stage. That distinction impacts the decisions CEO Elon Musk has made this year. In response to rising rates, Tesla reduced prices to keep cars affordable and maintain market share while enabling volume growth. It's much documented that preserving market share is a crucial aim of a company in the early innings of a multiyear growth market, but what's less discussed is the importance of volume growth in reducing Tesla's cost per unit vehicle. Image sources: Getty Images. Volume growth justifies investment in facilities and technology that enables cost per unit vehicle cost reductions. For example, its average vehicle cost decreased from $39,500 in the fourth quarter of 2022 to $37,500 in the third quarter of 2023. That's a major plus in enabling Tesla to produce affordable cars. It stands in good stead to win market share when ICE-heavy manufacturers like Honda and General Motors cut back on plans to produce lower-cost EVs. With lower rates, Tesla can raise prices and benefit from margin expansion after cutting its cost per vehicle on its established cars. Cognex This machine vision company will suit enterprising investors looking for a beaten-up stock with plenty of growth potential. Higher interest rates hit Cognex's main end markets by slowing consumer electronics sales (which impacts investment in developing new production lines that use machine vision) and ICE sales (ICE automakers are pausing investment as well). Slower consumer sales exacerbated the correction in e-commerce warehouse automation spending from the boom of previous years. Image source: Getty Images. All these issues hit Cognex in 2023, and its nine months of sales were down by 16% compared to the same period last year, with net income down a whopping 36%. That said, lower rates will help all these end markets, and all it will take is a few large orders from, say, consumer electronics companies (Apple is a Cognex customer), automakers (ICE, EV, and EV battery manufacturers), or e-commerce companies and the narrative and growth trajectory of Cognex will look dramatically different than it does now. Should you invest $1,000 in United Parcel Service right now? Before you buy stock in United Parcel Service, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and United Parcel Service wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Cognex, and Tesla. The Motley Fool recommends General Motors and United Parcel Service and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	Electric vehicle (EV) behemoth Tesla TSLA is recalling more than 2 million vehicles on U.S. roads to install new safeguards in their Autopilot system. U.S. legacy automaker General Motors GM delayed EV drive production at its Toledo plant. This follows GM's October announcement of postponing the production of its electric trucks, including the Chevy Silverado RST and GMC Sierra Denali EVs, to late 2025. GM’s crosstown rival Ford F also announced a reduction in the production of its Lightning Pro model by half. Initially, EV pickups were expected to revolutionize the market by replacing traditional gas-powered trucks with zero-emission alternatives boasting impressive towing capabilities. However, challenges such as higher pricing, charging issues and reduced range during towing have led to consumer hesitation. Telecom giant AT&T inked deal to purchase EVs from Rivian Automotive RIVN and deploy those to its fleet in early 2024. The collaboration is a bold statement in the ongoing narrative of environmental responsibility and technological advancement. While TSLA carries a Zacks Rank #4 (Sell), GM, F and RIVN currently carry Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Last Week’s Top Stories Tesla is recalling more than 2 million vehicles after the U.S. safety regulator cited safety concerns. Per the U.S. safety regulator, the autopilot features are either too confusing for the drivers or too easy to misuse. Per the National Highway Traffic Safety Administration (“NHTSA”) filings, the automaker did not agree with the agency’s analysis but has agreed to issue a recall and release an over-the-air update. The agency found that under some circumstances, the Autosteer feature may increase the risk of a collision. Per the filings, the Autosteer feature provides steering, braking and acceleration support to drivers in certain conditions. However, the drivers are supposed to remain attentive and keep their hands on the steering wheel while using the feature. The Autopilot system uses several controls to find out if the drivers are attentive or not. NHTSA found that the controls may not be sufficient to prevent drivers from exploiting the feature. Tesla will recall a total of 2,031,220 of its Model S, Model X, Model 3 and Model Y. The automaker has started rolling out a software update, which will be free for Tesla’s customers. Rivian has joined forces with AT&T, which will encompass the integration of RIVN’s EVs into AT&T’s operational fleet. The deal is set to be launched in early 2024 The collaboration is a testament to Rivian’s commitment to sustainability and innovation in the EV sector and also positions AT&T at the forefront of the eco-friendly corporate movement. AT&T's plan to incorporate EVs into its fleet is a key component of its broader ambition to achieve carbon neutrality by 2035. The tie-up will see the telecom leader integrating Rivian's commercial vans and the much-anticipated R1 EVs into its operations. The alliance between Rivian and AT&T extends beyond the mere purchase of EVs. In a strategic move, AT&T has been designated as the exclusive connectivity provider for all Rivian vehicles across the United States and Canada.After the conclusion of its exclusivity pact with Amazon, this deal with AT&T showcases Rivian’s appeal to a wide range of corporate clients. Rivian remains committed to delivering 100,000 vans ordered by Amazon by 2030. The ongoing relationship with Amazon, coupled with the new deal with AT&T, underscores Rivian's growing influence in the EV market. General Motors announced a significant delay in the launch of its EV drive production at the Toledo Propulsion Systems plant, a notable setback in the company's EV strategy. Originally slated to begin in early 2024, the production of the electric drives is now rescheduled for the end of 2024, a delay of nine months. Last year, GM committed $760 million to transform the Toledo plant into its first U.S. facility dedicated to EV drive production. The Toledo Propulsion Systems plant, located on Alexis Road, was gearing up to commence building the EV units in the first quarter of 2024. However, this timeline has been pushed to the fourth quarter of the year. This delay directly impacts approximately 75 temporary workers who were terminated following the plant's cessation of 6-speed transmission production in April to accommodate the new EV drive line. The deal offers Toledo plant's management and workforce additional time to prepare for a crucial transition in automotive manufacturing. Ford reduced its planned production target of F-150 Lightning to half for 2024. In light of slowing demand, the automaker took a step back after significantly increasing its plant capacity for EVs this year. Ford plans to bring down its average weekly production volume at Rouge Electric Vehicle Center in Dearborn, MI, to 1,600 trucks, down from the current production volume of 3,200 per week. After receiving 200,000 reservations for the F-150 Lightning in January 2022, Ford announced it would double its production capacity to 150,0000 units per year by mid-2023. However, the demand for EVs has been slower than anticipated due to higher prices and interest rates. The growth in demand lags far behind the expectations of automakers, which compelled them to reduce investments in EVs. On the third-quarterearnings call Ford’s executives shared plans to cancel or delay nearly $12 billion in EV investments due to softening demand for premium vehicles. Year to date, the company has lost almost $3.1 billion on EV spending and anticipates losing a total of $4 billion this year. Price Performance The following table shows the price movement of some of the major EV players over the last week and six-month period. Image Source: Zacks Investment Research What’s Next in the Space? Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry. Zacks Naming Top 10 Stocks for 2024 Want to be tipped off early to our 10 top picks for the entirety of 2024? History suggests their performance could be sensational. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	The NASDAQ 100 Pre-Market Indicator is up 5.92 to 16,629.37. The total Pre-Market volume is currently 50,840,748 shares traded. The following are the most active stocks for the pre-market session: NIO Inc. (NIO) is +0.72 at $8.70, with 11,608,982 shares traded. NIO's current last sale is 83.65% of the target price of $10.4. United States Steel Corporation (X) is +11.27 at $50.60, with 8,847,350 shares traded., following a 52-week high recorded in prior regular session. Arcutis Biotherapeutics, Inc. (ARQT) is +0.74 at $3.18, with 8,086,768 shares traded. ARQT's current last sale is 35.33% of the target price of $9. CNH Industrial N.V. (CNHI) is -0.01 at $11.47, with 3,395,069 shares traded. CNHI's current last sale is 75.91% of the target price of $15.11. Gaotu Techedu Inc. (GOTU) is -1.07 at $3.56, with 3,004,839 shares traded. GOTU's current last sale is 154.78% of the target price of $2.3. ProShares UltraPro Short QQQ (SQQQ) is -0.07 at $14.18, with 2,756,780 shares traded. This represents a .78% increase from its 52 Week Low. ProShares UltraPro QQQ (TQQQ) is +0.2199 at $49.46, with 1,180,973 shares traded. This represents a 207.2% increase from its 52 Week Low. Tesla, Inc. (TSLA) is +0.71 at $254.21, with 924,434 shares traded. TSLA's current last sale is 101.68% of the target price of $250. Ebix, Inc. (EBIX) is -2.24 at $2.69, with 897,523 shares traded. EBIX's current last sale is 5.38% of the target price of $50. Vodafone Group Plc (VOD) is +0.52 at $8.69, with 885,823 shares traded. VOD's current last sale is 60.24% of the target price of $14.425. Cleveland-Cliffs Inc. (CLF) is +1.55 at $20.25, with 734,632 shares traded. CLF's current last sale is 95.29% of the target price of $21.25. ZIM Integrated Shipping Services Ltd. (ZIM) is +0.39 at $10.03, with 718,619 shares traded. ZIM's current last sale is 159.21% of the target price of $6.3. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	There's been no shortage of news and interest surrounding electric vehicle (EV) leader Tesla (NASDAQ: TSLA) this year. The stock has more than doubled so far in 2023. But one Wall Street analyst thinks the stock is heading back down to near where it began the year. A crash could be coming On Friday, Guggenheim analyst Ronald Jewsikow raised his firm's price target for Tesla stock, but that doesn't mean he thinks it's a good buy. The new price target of $132 per share was bumped from $125 as Jewsikow acknowledged continued strong sales overseas and the likelihood that Tesla hits its 2023 global production target of 1.8 million EVs. But he still thinks the company is valued way too high. Jewsikow's price target represents a drop of 48% from Friday's closing price. There's no denying that Tesla is valued with a high price-to-earnings (P/E) ratio. But there's another side to the Tesla story. That side was told by a different Wall Street analyst just one day before the Guggenheim report was released. Deutsche Bank analyst Emmanuel Rosner lowered his firm's price target on Tesla by $15 per share to $260, but still thinks it's a buy. What should investors believe? Rosner also thinks the company will reach its 2023 production guidance. He also agrees that there are risks ahead with potential headwinds for growth and earnings. So what gives? The two analysts agree on the basics, but not the valuation. It comes down to what analysts see beyond the next year or two. That conundrum reflects how investors need to think about Tesla, too. Rosner sees a new phase of growth coming when Tesla launches its next-generation platform. That could also mark a new slate of EV offerings to stir fresh demand. Lower interest rates could also help consumers decide they can afford to transition to an EV. Tesla also has a burgeoning energy storage business and continues to expand its charging network and battery production. Investors who see those ancillary businesses continuing to grow along with EV sales over the long term might agree with Rosner that Tesla can still be a profitable stock to buy now. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	I f there were any doubt for when the Federal Open Market Committee (FOMC) would be done with their interest rate hiking cycle, those doubts were blown away last Wednesday when the Fed not only maintained its pivotal policy rate unchanged, but also projected a reduction of 75 basis points in 2024. Fed Chairman Jerome Powell, in the post-decision press briefing, mentioned that discussions about reducing rates were "clearly a topic of conversation" among policymakers. In other words, after eleven rate hikes over the past two years, which pushed the fed funds rate to its highest level in 22 years, the Fed just proclaimed that its efforts to fight inflation have worked. And now the central bank has given the market some confirmation that it is done with its rate hikes and is poised to initiate reductions soon. As you can expect, stocks skyrocketed last week as investors celebrated the Fed’s gift. For the week, the S&P 500 gained 2.6% and is now less than 1.6% away from a record close set in January 2022. The Dow Jones Industrial Average added 2.7% during the week, after jumping more than 400 points on Thursday to surpass 37,000 for the first time. The Nasdaq gained 2.9% and is roughly 9% from its all-time intraday high. There is now some assurance that a year-end Santa Claus rally is now more than just a wish. Investors don't need to look too far to find the source of the recent rally. With the Fed announcing its pivot from its hawkish stance to a dovish policy, growth stocks, particularly the "Magnificent Seven" mega-cap stocks, will now be in vogue. These mega-cap tech giants consisting of Alphabet (GOOG, GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) will be money-makers for investors who own then today. Some investors who have missed the massive three-month rally are wondering whether there is still room for gains in 2024. Year to date, Apple -- the largest of the bunch in terms of market cap — has retuned by 58%, while Microsoft the second largest, boasts a gain of 55%. But the impressiveness doesn’t stop there when considering that Tesla (up 134%) has doubled in value, while Meta has enjoyed a remarkable return of 170%. There are a range of opinions as to whether there is still value to be gained in these mega-cap stocks, which have already been stellar performers. But while their collective valuation might have gotten a bit stretched, their tech leadership in the financial markets remain undeniable. The reason for their collective popularity, which can’t be overstated, stems from their exposure to high-growth technologies, such as high-end software and hardware, cloud computing and artificial intelligence. While there are some reasons for caution as their collective valuation have soared, investors should position their portfolios to be on the right side of the pivot in 2024, especially amid clearer signs of dampening inflation risk. In that vein, the Fed has done a solid job managing inflation which has dropped to 3.7% year-over-year in November, after hitting the highest levels in decades at over 9% in mid-2022. While the inflation is not yet at the Fed’s 2% target, the Fed has just told us they are done raising rates. The Magnificent Seven stocks, aptly coined by Bank of America analyst Michael Hartnett, have more than doubled the return of the S&P 500 over the past decade. Armed with tons of cash on the balance sheet, strong cash flows and excellent leadership, they are well-positioned to continue leading their respective markets in 2024 and making new all-time highs. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	Without a doubt, Tesla (NASDAQ: TSLA) has been one of the best investments in the past decade. As of this writing, shares have soared 2,330% since December 2013. This top automotive stock is now the ninth most valuable company in the world. And it has done this by spearheading the EV (electric vehicle) industry, while also keeping its foot on the gas as it relates to technological innovation. Even at a current market cap of $750 billion, some investors might be hoping that Tesla's stock can double in the next five or so years. Here's what has to happen for this lofty outcome to become a reality. Profitable growth is a necessity Between Q3 2018 and Q3 2023, this business was able to grow revenue from $6.8 billion to $23.4 billion, translating to an unbelievable compound annual rate of 28%. Surely, this top-line metric can be credited for being a key factor driving shares higher. Over the next five years, there's no question that Tesla will need to continue increasing sales. That's not hard to believe. According to Canalys, EV units represented 16% of total light vehicle sales globally in the first half of 2023. Some estimates call for this figure to jump to 86% by 2030. I don't think anyone doubts that Tesla should continue to be a clear leader in the industry far into the future. Perhaps more importantly, this company will need to continue finding ways to boost profitability. To its credit, Tesla generated positive net income in 2020, a trend that hasn't changed. This contrasts wildly with the unprofitable EV operations at rival companies. Bolstering manufacturing capabilities and lowering the cost of production has helped Tesla grow the bottom line. But investors shouldn't easily assume that this business will be able to expand its margins going forward. We've seen macro headwinds, like higher interest rates and inflation, as well as stiff competition, lead Tesla to implement numerous price cuts for its vehicles this year. That's why the operating margin last quarter of 7.6% was meaningfully lower than 17.2% in the year-ago period. Competition isn't going away, which will surely make things more difficult. Nonetheless, the thesis for investors to own Tesla shares likely incorporates the successful rollout of a worldwide robotaxi service. Should this happen, Elon Musk says margins and profitability would skyrocket, and there would be "quasi-infinite demand." "The short-term variances in gross margin and profitability really are minor relative to the long-term picture," Musk said on the Q2earnings call "Autonomy will make all of these numbers look silly." High expectations Whether autonomy happens or not, it's still easy to believe that Tesla will post strong revenue and earnings growth, even if these numbers rise at a slower clip than in the past. But the current valuation presents a major headwind getting in the way of the stock doubling in the next five years. Shares currently trade at 77 times trailing earnings. That's a steep price to pay, even for one of the world's most disruptive companies. If Tesla is successful at finally introducing its full self-driving capabilities to market, an innovative breakthrough that has been delayed multiple times, then the optionality and upside potential is truly massive. However, there is still a ton of uncertainty around this outcome, especially within the next five years. While it hasn't been a smart idea historically to bet against Elon Musk, I think the current valuation represents the enthusiasm that shareholders have toward this company. It's almost as if investors believe that robotaxis are an inevitability, which is not the case. Based on its track record of incredible returns, investors might think Tesla shares are automatically going to double in the next five years. But I don't think it's a sure thing. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	By Carolina Mandl NEW YORK, Dec 15 (Reuters) - A number of U.S. equities hedge funds focused on technology are set to post double-digit returns this year, boosted by a powerful rally in the Nasdaq .IXIC and after being hard hit in 2022, according to performance numbers obtained by Reuters. San Francisco-based SoMa Equity Partners' long/short fund, led by chief investment officer Gil Simon, soared 48% this year through November, according to a document, versus a 36% gain in the Nasdaq. Last year, the fund was down 33.9%. Whale Rock Capital's long/short rose 28%, compared with a decline of 43% last year, two sources familiar with the matter said. Tiger Global Management's long/short fund was up 27%, a third source said - it lost 56% last year. Coatue Management was up 20% through November, a source familiar with the return said. Last year, it was down 19%. The so-called TMT hedge funds' (technology, media and telecommunications) performance comes as the Nasdaq surged 41.3% so far this year fueled by investors bets on the prospects of artificial intelligence. That compared with 2022 when the index fell 33%. This year's trend has mainly benefited the so-called Magnificent Seven mega-cap growth and technology companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. In a letter to investors seen by Reuters, SoMa Equity told its clients it had holdings in Microsoft, Amazon and Meta. Still, those shares were not among SoMa's five top contributors to performance in the last quarter. The hedge fund profited the most from exposure to Universal Music Group NV UMG.AS, Wix.Com Ltd, Uber Technologies Inc UBER.N, Varonis Systems Inc VRNS.O and Atlassian Corporation TEAM.O, it said. On the short side, bets against consumer-led shorts related to automotive, travel and luxury spending also helped performance, according to the letter. On average, TMT long/short hedge funds are up 14.2% this year through November, according to data provider PivotalPath, after tumbling 22.4% in 2022. The numbers show they are on track for a "semi-magnificent" year as on average they were not able to recover from previous losses or beat the Nasdaq. Jon Caplis, Chief Executive Officer at PivotalPath, which tracks over $3 trillion in hedge funds, said that TMT hedge funds started this year with a lower exposure to the Nasdaq, as they reduced their risk appetite throughout last year amid mounting losses. "While the Nasdaq has roared back, gaining 36% through November, being levered down caused TMT managers on average to catch much less of this rally," he said. (Reporting by Carolina Mandl, in New York; editing by Jonathan Oatis and Josie Kao) ((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	Adds details; paragraphs 2,4,6,7 SHANGHAI, Dec 18 (Reuters) - Electric vehicle maker Nio 9866.HK has signed a pact for an investment of $2.2 billion from CYVN Holdings, an investment vehicle based in Abu Dhabi, the Chinese company said on Monday. The investment comes as Nio, with its EV sales and profitability under pressure in a price war started by Tesla TSLA.O, has sought to boost efficiency by cutting a tenth of the workforce and deferring non-core projects. The deal, expected to close in the final week of December, would take CYVN's shareholding to 20.1% of Nio's total issued and outstanding shares, following an investment of $1 billion in July, Nio said in a statement on its website. That would make CYVN the largest single shareholder of Nio, although founder and chief executive William Li retains the most voting power, with his ownership of Class 'C' ordinary shares. CYVN, which will subscribe to 294,000,000 newly issued Class A ordinary shares priced at $7.50 each, will also be entitled to nominate two directors to Nio's board, the company said. The company, whose Nio-branded EVs compete with premium brands such as Mercedes-Benz and BMW in China, has been developing two new brands for mass markets that it aims to bring them to Europe from 2025, its executives have said. In its drive to become more efficient, Nio is considering a spin-off of its battery production unit while continuing to develop technologies for key components on its own, Reuters has reported previously. (Reporting by Zhang Yan, Brenda Goh; Editing by Jason Neely and Clarence Fernandez) ((Zoey.Zhang@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	Adds U.S. targets, EV auto sales in the U.S. in the last three paragraphs Dec 17 (Reuters) - Canada expects to announce this week that all new cars will have to be zero emissions by 2035, a senior government source said, as Ottawa is set to unveil new regulations in the latest example of countries around the world pushing for electrification. The new rules, known as the Electric Vehicle Availability Standard, would help ensure supply is available to the Canadian market and shorten wait times to get an electric vehicle, the source told Reuters, confirming earlier media reports. The Canadian provinces of British Columbia and Quebec already have the same regulated sales targets. Zero-emission vehicles - which include battery electric, plug-in and hydrogen models - must represent 20% of all new car sales in 2026, 60% in 2030 and 100% in 2035, the source said on condition of anonymity. Officials at Canada's environment ministry declined comment. Global EV sales now make up about 13% of all vehicle sales and are likely to rise to between 40%-45% of the market by the end of the decade, according to the Paris-based International Energy Agency (IEA). In the United States, the Republican-led House of Representatives voted earlier this month to bar the Biden administration from moving forward with stringent vehicle emissions regulations that would result in 67% of new vehicles being electric by 2032. The vote drew a veto threat from the White House. Market leader Tesla TSLA.O sold 325,291 vehicles in the United States during the first half of 2023. General Motors’ GM.N Chevrolet brand was a distant second at 34,943, trailed by Ford F.N, Hyundai 011760.KS and Rivian RIVN.O. (Reporting by Costas Pitas and Allison Lampert; Editing by Sandra Maler and Lisa Shumaker) ((Costas.Pitas@thomsonreuters.com; Reuters Messaging: @Cpitas on X)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	Below is Validea's guru fundamental report for TESLA INC (TSLA). Of the 22 guru strategies we follow, TSLA rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and consistent intermediate-term relative performance. TESLA INC (TSLA) is a large-cap growth stock in the Auto & Truck Manufacturers industry. The rating using this strategy is 83% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. DEFINE THE UNIVERSE: PASS TWELVE MINUS ONE MOMENTUM: PASS RETURN CONSISTENCY NEUTRAL SEASONALITY NEUTRAL Detailed Analysis of TESLA INC TSLA Guru Analysis TSLA Fundamental Analysis More Information on Wesley Gray Wesley Gray Portfolio About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". He is also the author (along with co-author Tobias Carlisle) of "Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors". He is an industry recognized expert in the application of quantitative investing strategies. Wes is also a former Marine and has his Phd from the Univerisity of Chicago, where he studied under Nobel Prize winner Eugene Fama. Additional Research Links Top NASDAQ 100 Stocks Top Technology Stocks Top Large-Cap Growth Stocks High Momentum Stocks High Insider Ownership Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	In this week's video, I cover need-to-know news items related to Tesla (NASDAQ: TSLA) during the week of Dec. 11. Today's video will focus on Tesla's sales numbers in China and Europe, Tesla's humanoid robot, some announcements that might impact the company in 2024, and a look at Tesla stock from a technical analysis standpoint. You can find last week's summary here. Stock prices used were from the trading day of Dec. 15, 2023. The video was published on Dec. 16, 2023. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market. They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Neil Rozenbaum has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	Over the past decade, Ark Investment Management has established its niche on Wall Street by making sizable investments in disruptive and groundbreaking technologies. These include genomic research, robotics, artificial intelligence (AI), autonomous driving, and more. Ark is helmed by founder Cathie Wood, who grabbed the spotlight by investing early in hugely successful companies including Tesla, Nvidia, and Block, among others. After a punishing 2022, the ARK Innovation ETF has come roaring back, generating returns of 55% so far this year, more than two-and-a-half times the returns of the S&P 500. Driving the results were blockbuster performances by Coinbase Global, Roku, and UiPath, which have gained 290%, 153%, and 93%, respectively. Wood believes this could be just the beginning. While some of Ark's more high-profile calls seem to get all the headlines, Wood makes the case that biotech company Exact Sciences (NASDAQ: EXAS) has significant upside and will likely rise to $139 by 2027, representing upside of 115% compared to Monday's closing price. Then there's the bull case, which calls for the stock to surge to $208, which would represent gains of 222%. The stock is already up 31% so far this year, so how likely is it that it will more than triple from here, and how should investors approach Exact Sciences going forward? Let's review the evidence. Image source: Getty Images. The case for Exact Sciences Cancer is the No. 1 cause of death for people under the age of 85, so it's no wonder that a cancer diagnosis can be so devastating. However, recent advances in medicine have changed the landscape, leading to early detection. That combined with a host of new treatments has drastically improved survival rates. Exact Sciences, for its part, "helps detect cancer earlier and provide smarter answers at every step." The company's Cologuard screening test is the industry standard test for colon cancer, with more than 13 million tests completed to date. However, recent updates by insurers and Medicare could be a catalyst. Policy changes enacted earlier this year stipulate that once a patient tests positive for cancer via a Cologuard test, a follow-up colonoscopy can be administered at no cost to the patient. This will likely encourage patients to take the relatively inexpensive test in advance of more complex procedures. Exact Sciences' next-generation test, Cologuard 2.0, is showing impressive results in clinical trials, generating even more accurate results than its predecessor, with improved sensitivity in cancer detection and fewer false negatives. The company has also developed the multi-cancer early detection (MCED) screening test, which can check for multiple types of cancer with a single, minimally invasive blood test. Perhaps most exciting is the development of Oncotype DX tests, which provide genetic information about the specific patient and the biology of their tumor, which gives physicians much-needed insight into the most effective treatments for each case. Finally, after being buffeted by macroeconomic headwinds for a couple of years, Exact Sciences appears to be back on track. In the third quarter, revenue climbed 20% year over year. Excluding last year's COVID-19 testing and foreign currency fluctuations, core revenue increased 23%. Perhaps as importantly, excluding one-time charges, Exact Sciences not only swung to a profit but also generated strong operating and free cash flow. Furthermore, management raised the company's full-year guidance, with increases across each of its major segments. The assumptions in Ark's thesis Ark's valuation model for Exact Sciences was released in January 2023, outlining three potential outcomes by 2027. The base case suggests the stock will reach $139 by 2027, which would represent gains of 115%. During the same period, the bull case suggests the stock will increase to $208, or gains of 222%. The bear case suggests a price of $74, suggesting upside of just 15%. While the thesis is based on several variables, the continuing success of Cologuard represents the biggest contributor to its future success, with demand for Oncotype DX as the wildcard. Exact Sciences is guiding for revenue of roughly $2.48 billion this year, which would represent year-over-year growth of about 19%. In order to achieve Ark's bear case, the company would have to achieve revenue growth of roughly 14% annually by 2027, which seems like an easy bar to clear given its current pace of growth. To achieve Ark's base, Exact Sciences would have to grow revenue by 21% annually over the coming four years, or 26% to reach its bull case. The base case certainly seems achievable, while the bull case seems like a bit of a stretch -- but still within the realm of possibility. Will Exact Sciences stock soar 222%? Given the economic speed bumps of the past couple of years, Exact Sciences has its work cut out for it in order to achieve Ark's bull case. If the company can ramp up its precision oncology revenue -- or more specifically that of Oncotype DX -- it certainly has a shot. Exact Sciences is forecasting revenue from the segment of about $625 million at the midpoint of its guidance, and by Ark's calculations that would have to climb to more than $1.1 billion by 2027. That's not to say the company won't achieve Ark's bull case price target of $208 -- but it might take a year or two beyond 2027. Exact Sciences isn't exactly cheap, currently selling for 4 times next year's sales. Despite the recent downturn, the stock has soared 449% over the past decade, an enviable performance and worthy of a slight premium. With multiple catalysts to fuel its growth, a reasonable stock price, and a strong endorsement from Ark Investment Management, now seems like a great time to buy Exact Sciences ahead of a robust move higher. Should you invest $1,000 in Exact Sciences right now? Before you buy stock in Exact Sciences, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Exact Sciences wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Danny Vena has positions in Block, Nvidia, Roku, and Tesla. The Motley Fool has positions in and recommends Block, Coinbase Global, Nvidia, Roku, Tesla, and UiPath. The Motley Fool recommends Exact Sciences. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	TSLA	Recasts, adds details on Nissan exports plan in paragraphs 1-4 BEIJING, Dec 17 (Reuters) - Nissan Motor 7201.T said on Sunday it would sell China-developed electric vehicles (EVs) globally as it struck a deal with the country's top university to leverage local resources to accelerate research and development on electrification. The Japanese automaker is considering exporting the line-up of existing internal combustion engine vehicles and upcoming pure electric and plug-in hybrid cars manufactured and developed in China to overseas markets, Masashi Matsuyama, vice president of Nissan Motor and president of Nissan China, told reporters in Beijing. Nissan is considering aiming at the same markets as Chinese rivals such as BYD 1211.HK, he said. The company is joining foreign brands including Tesla TSLA.O, BMW BMWG.DE and Ford F.N that are expanding their exports of China-made cars to exploit the country's lower manufacturing costs and increase the capacity utilisation of their factories. China accounted for just over a fifth of Nissan's worldwide sales of about 2.8 million vehicles over the first 10 months of the year, down from over a third for the same period last year. Japanese automakers have faced a severe sales challenge this year in China, the world's biggest auto market, due to the popularity of domestic brands and heavy price competition amid a rapid shift to EVs. Nissan announced it would establish a joint research centre with China's leading Tsinghua University next year, focussing on research and development of EVs, including charging infrastructure and battery recycling. "We hope that this collaboration will help us gain a deeper understanding of the Chinese market and develop strategies that better meet the needs of customers in China," Nissan President and Chief Executive Makoto Uchida said in a statement. The launch of the research centre is an extension of joint research efforts the company has had with Tsinghua since in 2016 that focussed on intelligent mobility and autonomous driving technology. (Reporting by Zhang Yan in Beijing and Daniel Leussink in Tokyo; Editing by Antoni Slodkowski and William Mallard) ((antoni.slodkowski@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-15	TSLA	By Francesca Landini ROME, Dec 16 (Reuters) - Oil and gas should not be demonised in the medium-term, Elon Musk, the founder of electric car maker Tesla TSLA.O, said on Saturday, but he also said it was important to reduce carbon emissions to preserve the planet. Musk, speaking at a right-wing political gathering organised by Italian Prime Minister Giorgia Meloni's Brothers of Italy party said: "Climate change alarm is exaggerated in the short term," adding that the environmental movement may have gone too far, causing people to lose faith in the future. At this month's COP28 climate summit, representatives from nearly 200 countries agreed to begin reducing global consumption of fossil fuels to avert the worst of climate change, signalling the eventual end of the oil age. Musk said he considers himself an environmentalist and added that it is important that, in the long run, industries reduce the billions of tons of carbon they take from the earth and release into the atmosphere by burning fossil fuels. "We should not demonise oil and gas in the medium term," he added. Asked whether his companies would invest in Italy, Musk said he was worried about the country's declining birth rate. "I think Italy is a great place to invest, but I do want to emphasise that I worry about a low birth rate. If the workforce declines than who will work in the country?" he said. He called for the Italian government to create incentives for families to have more children, adding that a country could not rely only on immigration flows to fill the gap. Italy has earmarked around 1 billion euros ($1.09 billion) in next year's budget to tackle the country's demographic crisis. Births in Italy last year fell for the 14th year in a row and were the lowest since the country's unification in 1861. Speaking about social media site X, Musk played down concerns about a fall in advertising on the platform. The platform is "already seeing advertisers return", he said. ($1 = 0.9179 euros) (Reporting by Francesca Landini; Editing by Kirsten Donovan and Jane Merriman) ((francesca.landini@thomsonreuters.com; +39 02 66129437; Reuters Messaging: reutersitaly.thomsonreuters@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-15	TSLA	In June 2021, shortly after its mega listing, Lucid Motors (LCID) CEO Peter Rawlinson said in an interview that the company was looking to make the electric vehicle (EV) industry into a “two-horse race” – with Tesla (TSLA), of course, being the other horse in the race. Cut to 2023, and Lucid is looking to produce only 8,000-8,500 cars this year – which is even below the 12,000 that it projected at the beginning of the year, and a tiny fraction of the 49,000 that it predicted in 2021 ahead of the SPAC merger. Far from being a potential “Tesla killer,” as it was labeled by some, Lucid is now looking like an “also ran” - and many fear whether the company will even survive the current EV industry slump. The recent departure of its CFO Sherry House is not building any confidence, either. Here’s how Lucid Motors went from being a market favorite to its current state, where the stock has sunk to near-record lows - and, as of this Monday's rebalancing, will also be booted from the Nasdaq-100 Index ($IUXX). www.barchart.com Lucid Motors Was the Largest SPAC Merger Lucid went public in 2021, during a time of widespread euphoria toward green energy companies. It was the biggest special purpose acquisition company (SPAC) merger up until that point, before Grab (GRAB) took the honors later that year – and Churchill Capital IV stock soared 550% on rumors that it would merge with Lucid Motors. If anyone had any doubt about an EV bubble or a SPAC bubble, it became clearly apparent with Lucid’s mega-merger. In a rare move, the investors in Lucid’s private investment in public equity (PIPE) transaction paid $15 per share, which - albeit below the then-SPAC stock price - was a 50% premium to the SPAC IPO price, and an affirmation by institutional investors (including Saudi Arabia’s sovereign wealth fund) in the company's valuation and outlook. By November 2021, Lucid Motors' market cap topped $90 billion, and it looked set to join the league of $100 billion companies, like fellow EV startup Rivian (RIVN) - which also went public that month. In December 2021, Lucid joined the Nasdaq-100 as leading indices looked to make their composition more contemporary amid the green energy pivot. Just over two years later, Lucid Motors will be removed from the Nasdaq-100 Index. More than just the regular rebalancing of the index, it’s a story of how the company - which is led by a former Tesla engineer, and seems to have a promising product in its Air sedan - has fallen out of favor with markets. What Went Wrong with Lucid Motors? Nothing much has actually gone right for Lucid Motors over the last couple of years. To begin with, the global automotive industry faced a severe supply-chain crisis in 2021, which negatively impacted production. The Fed’s relentless rate hikes since 2022, which have since lifted benchmark rates to their highest level dating back to 2007, haven’t helped matters either for growth names like Lucid Motors. And for Lucid, the troubles are also company-specific. First, and as it has also acknowledged, it hasn’t been able to build brand equity to the extent it would have wanted, which has resulted in fewer-than-expected sales. Lucid’s perennial cash burn and multiple rounds of capital raises have meant that the outstanding share count has exploded, leading to dilution for existing shareholders. In my view, Lucid was a bit too optimistic about its cars and abilities, which led it to overpromise and underdeliver on multiple occasions. A mere look at its merger presentation would tell us how generously it benchmarked itself to Tesla, both in terms of car quality as well as valuations. What a lot of “wannabe Teslas” failed to envision or incorporate was Tesla’s manufacturing prowess and the brand power - which has largely withstood the self-inflicted damage by CEO Elon Musk, whose “free speech absolutism” hasn’t gone down well with many potential Tesla buyers. Will Lucid Motors Be Around by 2025? While many EV and green energy companies might go bankrupt over the next couple of years, Lucid Motors might not - for the simple reason that it had a total liquidity of $5.45 billion at the end of September 2023, which it believes will fund the launch of its Gravity vehicles and also last into 2025. www.barchart.com It also has the “Saudi backstop,” as the oil-rich kingdom has so far looked amenable to fund Lucid Motors’ cash burn. Also, unlike many other startup EV companies that have, at best, “me-too” products - or worse, unviable and questionable products, Lucid Motors has a reasonably good offering. MotorTrend awarded the Car of the Year 2022 award to Lucid Air, and said, “The win affirms Lucid Air as the new EV benchmark, with the most advanced electric powertrain available today — technology wholly designed, developed, and manufactured in-house.” Luxury carmaker Aston Martin has also partnered with Lucid to buy electric motors and batteries, which provides credence to Lucid Motors’ claim that it offers a world-class product. But for now, Lucid Motors is facing a severe demand crunch. While CEO Rawlinson had described low brand awareness, which he blamed for fewer sales, as an “entirely solvable problem,” it is proving to be a lot more complicated. While Lucid Motors could still be a multibagger if the management can execute well, with every passing day even the most ardent LCID stock bulls might be getting disenchanted with the company. On the date of publication, Mohit Oberoi had a position in: RIVN . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-15	TSLA	Fool.com contributor Parkev Tatevosian highlights the phenomenal year Tesla's (NASDAQ: TSLA) stock price had in 2023. Also, he includes a discussion of Tesla's longer-term prospects and answers if investors should buy the EV stock for 2024. Stock prices used were the afternoon prices of Dec. 13, 2023. The video was published on Dec. 15, 2023. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market. They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	Tesla (NASDAQ: TSLA) stock has crushed the market so far this year. However, it's still down over 40% from its all-time high during a time when many other mega-cap growth stocks, like Microsoft, Apple, and Nvidia, are making new all-time highs. Tesla has what it takes to continue its hot streak going into 2024. But it has to execute across some key aspects of its business. Here's what to watch next year and what the electric car stock needs to do to justify a higher valuation. Image source: Getty Images. Managing margins In hindsight, it's easy to see why Tesla hit an all-time high in early 2022. The once-unprofitable company shocked the investing world with quarter after quarter of consistent profits paired with high revenue growth and high margins. Tesla carried its torrid growth pace into 2022 -- posting a banner year across the board. But Tesla's margins have since come down, and its top- and bottom-line growth rates have slowed. Over the last year, Tesla's trailing-12-month revenue has grown by only 17.8%, while its net income is down 14.3%, and its operating margin has fallen by over a third to 11.2%. The following chart does a good job of showing Tesla's massive growth, followed by this year's deceleration. TSLA Operating Margin (TTM) data by YCharts Price cuts and lower growth contributed to Tesla's margin decline this year. However, its margins could be lower in the future as Tesla tries to unlock entry into the coveted mass-market electric vehicle market, which would shift the company's strategy toward higher volume, lower-priced vehicles. In its third-quarter earnings presentation, the company reiterated its goal of a 50% long-term production compound annual growth rate. It would be a worthy trade-off if Tesla achieves solid revenue and earnings growth at the expense of a lower margin. In the short term, be on the lookout to see if Tesla can improve its operating margin. Longer-term, the challenge will be finding the sweet spot between revenue growth and profitability. Monetizing AI and robotics Tesla has done an impeccable job of becoming a profitable and (generally) high-growth electric vehicle company. But it has yet to monetize its artificial intelligence (AI) and robotics ventures -- mainly fully autonomous self-driving vehicles. For several years now, Tesla has been flaunting its self-driving software. It got to the point where Tesla was thinking far too long-term and had to reel itself in and focus on generating positive cash flow from the Model 3 and then the Model Y. Thankfully, Tesla did that. But the company has a history of throwing money at projects that either pan out later than expected or don't pan out at all. Tesla has an extremely attractive portfolio of AI and robotics ideas. Cracking the code on vehicles that can safely drive themselves would open the door to electric robotaxis -- an idea integral to the ultra-bullish investment thesis held by Cathie Wood and others. While you could argue that Tesla could have made a lot more money if it hadn't spent so many resources on self-driving, the long-tail potential is too appealing to ignore. If you invest in Tesla, you have to accept that this will simply be a part of the company's budget and that it may not prove to be a worthwhile investment for some time. Preserving the balance sheet Tesla has done an excellent job of keeping debt off of its balance sheet and relying on cash flows to fund both short- and long-term investments. The company has $15.9 billion in cash and equivalents on its balance sheet and just $3.7 billion in long-term debt. It is impressive that Tesla can keep a largely debt-free balance sheet despite being in the capital-intensive auto industry and supporting expensive long-term projects. One of the biggest things Tesla investors should watch in the coming years is how the quality of the balance sheet responds if there is a prolonged slowdown in demand or if Tesla tries to invest even during a downturn in the business cycle. In other words, what is the extent of the damage to the balance sheet if expenses stay the same or increase, but cash flows decline? The stock market can be overly focused on the short term. If Tesla barrels ahead full throttle on its multidecade plans even as growth slows, its performance deteriorates, and its leverage increases, then the stock could sell off. Even if investing throughout the market cycle is the right long-term move, it's vital to recognize that the market may be unwilling to think so long-term during a broad sell-off. Know what you're getting into before you invest If you invest in Tesla, it's important to understand that the company will probably stick to its long-term plans even at the expense of its short-term performance and the wishes of Wall Street. This mindset is why Tesla stock can suffer steep sell-offs and meteoric gains. When the stars align, Tesla looks like it can do no wrong. But when Tesla stubbornly pursues its goals no matter the market cycle, it can look reckless and borderline irresponsible. Tesla is one of those companies where understanding the long-term investment thesis and what can move the stock in the short term are equally important. That way, you aren't caught off guard if the stock moves to the upside or the downside. If Tesla improves its top- and bottom-line growth rates, bolsters its margins, charts a path toward monetizing AI and robotics, and maintains or improves its rock-solid balance sheet, the stock could surpass a new all-time high in 2024. But there's also a good chance that Tesla needs more time to return to the growth that investors have come to expect. In sum, Tesla has the makings of an excellent long-term investment and is certainly worth holding or even buying a small position in. But there's no rush to dive in headfirst and buy the stock hand over first at this time. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	Say you had invested $10,000 in each of the SPDR select sector ETFs on Jan. 1, 2023. There are 11 such ETFs, and they focus on different industries, such as consumer staples, energy, financials, health care, industrials, and technology. Which one performed the best? Well, here's a chart showing their year-to-date performance: XLK data by YCharts As you can see, the Technology Select Sector ETF won. Granted, the Communications Services Select Sector ETF gave technology a run for its money, but more than 37% of that ETF is comprised of Meta Platforms and Alphabet shares. So one could argue those two names belong in the Technology ETF anyway. At any rate, there's no denying this: Tech stocks were simply on fire in 2023. And for investors looking ahead to 2024 -- particularly those who are underweight tech stocks -- now is the time to think about which tech stocks are worth buying. Here are three names I think can keep the tech rally going in 2024 and beyond. Image source: Getty Images. Advanced Micro Devices Topping my list of tech stocks to buy right now is Advanced Micro Devices (NASDAQ: AMD). The company designs semiconductors for data centers, personal computers, gaming devices, and embedded uses. Crucially, AMD recently debuted its new MI300X graphics processing unit (GPU). This chip, designed to train large language models, puts AMD in direct competition with Nvidia, the current market leader in AI chips. As AMD Chief Executive Officer (CEO) Lisa Su said at the recent rollout event for the MI300X: "If you look at MI300X, we made a very conscious decision to add more flexibility, more memory capacity, and more bandwidth. What that translates to is 2.4 times more memory capacity and 1.6 times more memory bandwidth than the competition." At any rate, the MI300X should boost AMD's fundamentals, which were already sound. Analysts expect the company to grow revenue to $26.4 billion in 2024, up 16% from this year. Meanwhile, 2024 earnings are estimated to rise to $3.71/share, an increase of 40%. Yet despite the rosy outlook, AMD isn't the stock for every investor. Shares trade at a price-to-sales ratio of 10, which is more than double its 10-year average of 4.5. So for value-oriented investors, or those unwilling to hold through future volatility, AMD may not be the right choice. Airbnb It's now been more than three years since Airbnb (NASDAQ: ABNB) debuted via an initial public offering. And in that time its stock price is almost unchanged. Granted, there have been ups and downs for sure. But for many investors Airbnb hasn't lived up to the hype. However, I'm a believer in the stock for one reason: Its fundamentals are fantastic. Let's start with the top line: revenue. The company has grown trailing 12-month revenue from a low of $3.4 billion in early 2021 to $9.6 billion as of its latest quarter (the three months ending on Sept. 30, 2023). That represents a compound annual growth rate (CAGR) of 41%. And while there's no denying the pandemic is behind that three-fold increase, it's an impressive bounce. On top of the revenue growth, Airbnb is awash in net income and free cash flow. Net income over the last 12 months stands at $5.5 billion, and free cash flow has risen to $4.2 billion. ABNB data by YCharts Those are signs the business is maturing. And as that occurs, Airbnb can return more of its profits and free cash flow to its investors. In May 2023 the company announced a share buyback of $2.5 billion. Over the long term, share repurchases like this (combined with more modest stock-based compensation) will help drive up Airbnb's stock price -- thus rewarding its shareholders. Tesla Last on my list is Tesla (NASDAQ: TSLA). Let me be clear: I'm a long-term Tesla bull, and that's because I believe certain things, like the following: The world is transitioning away from internal combustion engines, and millions of electric vehicles will take their place in the decades to come. Tesla will develop game-changing full-self-driving technology. Elon Musk is a visionary corporate leader, following in the footsteps of other corporate giants like Steve Jobs, Walt Disney, and Henry Ford. Nevertheless, you don't have to believe all of those points to think Tesla is a smart investment. In the short term, Tesla's production figures continue to rise. The company is on pace to deliver around 1.8 million EVs in 2023, roughly in line with what Wall Street expected. 2024 estimates vary, but somewhere between 2 million and 2.5 million seems likely -- representing about 25% production growth year-over-year. Not only would those figures help keep revenue growing nicely, but hopefully Tesla can capture some cost savings as production ramps, thus boosting gross margins. In addition, a new calendar year brings new federal and state tax credits, which could help increase demand. Moreover, a more accommodative Federal Reserve, combined with declining long-term interest rates, may entice prospective buyers off the sidelines and into new Teslas. Finally, the debut of the Cybertruck is yet another sign that Tesla intends to take on competitors -- even in markets traditionally dominated by traditional gas-powered vehicles. In any event, investors would be wise to consider Tesla, not just for 2024 -- but for the long term. Should you invest $1,000 in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jake Lerch has positions in Airbnb, Alphabet, Nvidia, Select Sector SPDR Trust - The Energy Select Sector SPDR Fund, Select Sector SPDR Trust - The Utilities Select Sector SPDR Fund, and Tesla and has the following options: short December 2023 $78 calls on Select Sector SPDR Trust - The Energy Select Sector SPDR Fund. The Motley Fool has positions in and recommends Advanced Micro Devices, Airbnb, Alphabet, Meta Platforms, Nvidia, and Tesla. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	In this video, Fool.com contributor Parkev Tatevosian discusses the implications of two big news items that impact Tesla (NASDAQ: TSLA) stock investors. Stock prices used were the afternoon prices of Dec. 13, 2023. The video was published on Dec. 15, 2023. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market. They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	When executives, directors, and major shareholders buy company shares, it's often considered a bullish sign. As per Peter Lynch, while company insiders might sell their shares for any number of reasons, they tend to buy stock for only one reason - because they think the share price is going higher. Publicly available through Form 4 filings, insider buys by C-suite executives are particularly notable - like the one that just popped up on Ford Motor Company (F) after a long two-year drought of insider buying on the automaker. Here's a closer look. About Ford Synonymous with American engineering and an icon of the automobile industry, Henry Ford founded Ford Motor Company in Dearborn, Mich., in 1903. It has gone on to become a global auto giant, designing, manufacturing, and selling cars, trucks, SUVs, electric vehicles, and commercial vehicles. They also offer financing, leasing, and service solutions. Commanding a market cap of $48.3 billion, Ford stock is up less than 3% on a YTD basis. The stock is underperforming the broader S&P 500 Index ($SPX), up over 22%, by a considerable margin. www.barchart.com A Rare C-Suite Buy on Ford Stock John Douglas Field is the Chief EV, Digital and Design Officer at Ford. Formerly of Apple (AAPL) and Tesla (TSLA), this is Field's second stint with Ford after serving as a development engineer from 1987 to 1993. In his current role, Field plays a vital role in developing Ford's electric vehicles, creating digital platforms and software for Ford’s entire product lineup, and leading the company’s vehicle and digital design studios. On Dec. 8, Field purchased 182,000 shares of the company at an average price of $11.0472 per share for a total value of just over $2 million. This marks the first insider buy on Ford stock since Feb. 23, 2021, and the first purchase by a member of the C-suite since April 2020. Though Ford has underperformed on a YTD basis, the stock is already up more than 8% from Field's Dec. 8 entry price. Ford's EV Future After UAW Strikes The UAW strike against Detroit's “Big Three” had a material impact on Ford's operations, but the automaker has since updated its guidance to reflect expected labor costs through 2028, along with a reduction to its earnings guidance. This offers some key visibility for shareholders and removes a significant overhang. During Q3, revenues were up 11% from the year-ago period to $44 billion, supported by sales growth across its gas, hybrid and electric vehicles. All three core segments of the company reported year-over-year revenue increases, including Ford Blue (revenues of $25.6 billion, up 8% YoY), Ford Pro (revenues of $13.8 billion, up 15% YoY), and Ford E (revenues of $1.8 billion, up 29% YoY). EPS improved 30% from the prior year to $0.39, up 30% from the previous year, but fell short of Wall Street's expectations. The company closed the quarter with $51 billion of available liquidity. For the nine months ended Sept. 30, it recorded net cash from operating activities of $12.4 billion, substantially up from $5.7 billion in the same period last year. Ford has scaled back its electric vehicle (EV) ambitions amid a tough macro environment, but remains committed to the market. Recently, Ford announced a partnership with Xcel Energy (XEL) to develop 30,000 commercial EV charging ports in Xcel Energy service territories across the U.S. by 2030. Is Ford Stock a Good Value? Ford stock currently offers a forward dividend yield right around 5%, based on the quarterly dividend of $0.15. Management has said they remain committed to returning 40% to 50% of free cash flow to shareholders. At current levels, the auto stock looks attractively valued. Ford stock is trading at a forward price/earnings ratio of 6.44, forward price/sales of 0.29, and price/book of 1.09, representing a significant discount to sector medians. Overall, analysts remain optimistic about the stock, which has an average “Moderate Buy” rating and a mean target price of $14.23. This denotes an expected upside potential of about 18.7% from current levels. Out of 14 analysts covering Ford shares, 6 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, 4 have a “Hold” rating, and 2 have a “Strong Sell” rating. www.barchart.com On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	The NASDAQ 100 Pre-Market Indicator is up 46.86 to 16,584.69. The total Pre-Market volume is currently 58,117,891 shares traded. The following are the most active stocks for the pre-market session: Gaotu Techedu Inc. (GOTU) is +0.51 at $5.28, with 3,501,743 shares traded. GOTU's current last sale is 229.57% of the target price of $2.3. C4 Therapeutics, Inc. (CCCC) is +0.37 at $5.38, with 2,596,467 shares traded. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock. NIO Inc. (NIO) is +0.3203 at $8.18, with 2,323,928 shares traded. NIO's current last sale is 78.66% of the target price of $10.4. ProShares UltraPro QQQ (TQQQ) is +0.4202 at $49.08, with 2,048,431 shares traded. This represents a 204.85% increase from its 52 Week Low. ProShares UltraPro Short QQQ (SQQQ) is -0.1299 at $14.28, with 1,999,191 shares traded. This represents a 1.35% increase from its 52 Week Low. Tesla, Inc. (TSLA) is +1.7286 at $252.78, with 1,482,563 shares traded. TSLA's current last sale is 101.11% of the target price of $250. Rivian Automotive, Inc. (RIVN) is +0.66 at $23.09, with 1,253,412 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range". Grab Holdings Limited (GRAB) is unchanged at $3.14, with 1,204,968 shares traded. As reported by Zacks, the current mean recommendation for GRAB is in the "buy range". Palantir Technologies Inc. (PLTR) is +0.3299 at $18.54, with 924,092 shares traded. PLTR's current last sale is 115.87% of the target price of $16. UBS AG (UBS) is +0.01 at $29.76, with 887,326 shares traded., following a 52-week high recorded in prior regular session. Sumitomo Mitsui Financial Group Inc (SMFG) is -0.4247 at $9.56, with 751,352 shares traded. SMFG's current last sale is 94.61% of the target price of $10.1. ChargePoint Holdings, Inc. (CHPT) is +0.2 at $3.10, with 748,158 shares traded. CHPT's current last sale is 77.5% of the target price of $4. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	For Immediate Release Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN. Why Tesla's Cheap (2024 Outlook) An Up and Down Year for Tesla Tesla is the undisputed market leader in battery-powered electric car sales in the United States, enjoying roughly a 70% market share. Over the years, Tesla has shifted from developing niche products for affluent buyers to more affordable EVs for the masses. The firm's three-pronged business model approach of direct sales, servicing, and charging sets it apart from other carmakers. Year-to-date, shares are higher by 128%. However, investor concerns are mounting, including: · Valuation: The EV king's market capitalization is more than the combined value of all legacy automakers. · Underperformance: Though Tesla has more than doubled this year, it has underperformed the market and "Magnificent 7" recently. · Recall: This week, news broke that Tesla must recall more than 2 million vehicles. Below, I will debunk the most common investor concerns and lay out my bull case for the stock: Don't Judge a Book By its Cover: Tesla Valuation is Cheap The price-to-book ratio (P/B ratio) is a financial metric that compares a company's market value (its stock price) to its book value (the net value of its assets minus liabilities). P/B is calculated by dividing the market price per share by the book value per share. A low P/B ratio may suggest that a stock is undervalued, while a high ratio may indicate overvaluation. Investors use this ratio to assess a company's relative worth in the market compared to its accounting value. Tesla currently has a book value of 14.03. Compare that to another mainstream stock like Apple, whose book value is 49.54, and Tesla suddenly looks cheap. Furthermore, it is essential to remember that Wall Street is a discounting device. Over the past twelve years, Tesla has achieved a stunning compound annual growth rate (CAGR) of 72%, earning its premium above slower-growing legacy automakers. Rallying on Negative Recall News Earlier this week, Tesla was forced to recall over two million vehicles over autopilot safety concerns. As I always like to remind investors, the reaction to negative news supersedes the news itself. In the case of TSLA, the stock shook off the bad news and is green for the week. Technical "Shakeout" and Price Rotation Higher Savvy investors understand that price movement is the ultimate arbiter of decisions, because after all, price is the only thing that pays. TSLA shares sliced below the 50-day moving average on the recall news and then ripped higher. Such price action indicates a shakeout, where weak hands get stopped out of their positions, clearing the way for the next move higher. Now, TSLA is triggering a bullish swing trade signal by clearing last week's highs. Cybertruck Hype Real Many Tesla bears suggest that the hype around Tesla's Cybertruck is unfounded. However, Google Trends data suggests the opposite is true. As Tesla investor and enthusiast Sawyer Merritt points out, "Tesla has surpassed Ford to become the most searched auto brand in the US. Tesla's gone from not making the rankings at all in 2022 to second place in 2023, with 29 of 155 countries listing Tesla as their #1 car brand in Google Trends." Competition Not a Threat Thus far, all of the fully-EV focused automakers like Rivian have yet to achieve a quarterly profit. As Elon Musk points out, it's one thing to create a prototype and a whole other thing to manufacture at scale. Meanwhile, Ford, the only other profitable EV maker in the US, announced that it would cut F-150 Lightning production in half next year. (the Lightning is seen by the market as the biggest threat to the Cybertruck) China Sales Growing Despite Weak Economy Despite a floundering Chinese economy, recent registration numbers suggest that Tesla is on pace to break its quarterly record for deliveries in China (156.7k). Exponential EV Growth is on the Horizon A recent study suggests that by 2030, two-thirds of all global car sales will be EVs. Bottom Line Investors using traditional valuation metrics to value Tesla are likely to be wrong. Tesla's price-to-book ratio reveals an undervalued position compared to other mainstream stocks. Meanwhile, the Cybertruck's rising popularity and Tesla's sustained growth in China further underscore its market strength. As the automotive landscape continues to evolve towards electric vehicles, Tesla's innovative approach and global expansion prospects make it a must-own. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	InvestorPlace - Stock Market News, Stock Advice & Trading Tips There is no denying that the Electric Vehicle industry is cooling. EV makers have reduced their capital allocation toward EV production and set a lower target for the first half of 2024. This could be due to the high interest rate environment and lower consumer spending. However, it is temporary, and we will see the demand pick up. If you are enjoying the transition toward EVs, remember there is much more to the industry than Tesla (NASDAQ:TSLA). While it is a leader and one of the biggest players in the industry, the competition is growing, and several EV makers have a stronghold on the market. With that in mind, let’s look at the three EV stocks to buy that are better than Tesla. Li Auto (LI) Source: Carrie Fereday / Shutterstock.com At the top of my list of electric vehicle stocks is Li Auto (NASDAQ:LI), one of the best EV makers right now. Li Auto is leading the EV race, whether you consider the delivery numbers, financials or product lineup. Trading at $34 today, the stock is up 64% year to date but still trading lower than the 52-week high of $47. It has launched Li Mega, a fully electric EV that will be available in February, and the 10,000 pre-orders already show the enthusiasm surrounding the car. The company has impressed investors with the delivery numbers—over 40,000 cars in November. It is very close to achieving the final quarter delivery target, and we could see it report even better delivery numbers in 2024. While EV sales are slowing for several companies, Li Auto is picking up pace. At the end of November, its cumulative year-to-date deliveries stood at 325,677, higher than the target of 300,000 for the year. Its Li-One SUV is one of the best-selling models in China, and aims to launch four new models in 2024. Li Auto’s financials prove that the company is thriving despite rising competition. In the third quarter, it reported a revenue of $4.75 billion, which is a 271% increase year over year, and its net income stood at $385.5 million, up from the net loss it reported in the prior period. The EV maker has achieved success through its upscale SUVs which are well-priced compared to the premium cars offered by Tesla. It is the product lineup, execution, and pricing that has helped Li Auto grow over the years. BYD Company (BYDDF) Source: J. Lekavicius / Shutterstock.com Next on the list of EV stocks is an obvious pick, BYD (OTCMKTS:BYDDF), a fierce Tesla competitor. The company is very close to beating Tesla on delivery numbers and is also the world’s second-largest battery maker. A huge advantage that BYD has over Tesla is its global presence. It is already exporting its cars to several countries globally and is steadily expanding its reach. BYDDF stock is exchanging hands for $26, much lower than the 52-week high of $36. Another thing to remember is that Tesla only manufactures battery-powered EVs, whereas BYD makes BEVs and plug-in hybrid cars, which helps it achieve a larger market share. The company is expected to beat Tesla in delivery numbers in the final quarter of the year. The company sets itself apart with the price point. It offers top-quality cars at a lower price than that of Tesla, where it benefits the most. As the EV market improves and we see higher demand, we will see BYD Co. thrive. It is at the top of the EV stocks that are better than TSLA. In the first nine months of the year, we saw the company’s profits increase by 142% year over year to hit over $3 billion, and this is when Tesla’s profits dropped due to cost-cutting measures. It currently has a better profit margin than Tesla. The stock is highly undervalued with a huge potential to double, and if you think Tesla is expensive, this is your chance to own a strong EV stock before the year ends. XPeng (XPEV) Source: Koshiro K / Shutterstock XPeng (NYSE:XPEV) disappointed investors in the third quarter results, but it expects the next year to be much better. It anticipates deliveries between 59,500 and 63,500 in the year’s final quarter, and it has already delivered 40,043 cars in October and November. It only needs to deliver 19,457 cars to achieve the lower end of its target. Additionally, the company has revealed a 7-seater multi-purpose vehicle, which has garnered a lot of interest and attention from buyers. Its G6 EV has become the most popular SUV in China, and the launch of another car could benefit the company’s revenue. While XPeng might find it difficult to compete with some of the industry leaders, it is still going strong. XPEV stock is trading at $15 today and is up 51% year to date. The company is still in growth mode, with much more to come. XPEV stock was as high as $64 in Nov 2020 and has lost most of its value. Buying the stock at $15 is a good deal, not one that comes along easily. While the stock may not soar exponentially high anytime soon, there is a strong chance of it bouncing back in 2024. It is one of the top EV stocks to buy now. Many EV makers are eyeing China’s top spot, but it is too soon to declare a winner. XPeng is still in the race and is riding strong, expecting a better 2024. On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 EV Stocks That Are Definitely Better Buys Than Tesla appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	In the current investment landscape, the focus has shifted from the FANG stocks, and a new set of influential stocks, known as the Magnificent Seven Stocks, has emerged. These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. These companies are considered the new leaders in the stock market. There is a pureplay ETF called Roundhill Magnificent Seven ETF MAGS on this theme. The ETF has surged more than 32% this year. There is another ETF called Invesco S&P 500 Top 50 ETF XLG, which invests about 50% of the basket in Magnificent Seven. That fund is up about 34% this year. Individually, Apple, Alphabet and Microsoft are up more than 50% each, Meta shares are up about 165%, Amazon has gained 70%, Nvidia has skyrocketed about 233% and Tesla is up nearly 118% this year (as of Dec 12, 2023). But there are a few tech ETFs that have beaten even the Magnificent Seven ETF MAGS. These include Inside the Dominance of Magnificent Seven The Magnificent Seven stocks have a significant impact on the Nasdaq index, as they collectively account for a major portion of its total weighting. Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index mainly due to their meaningful positions in the Artificial Intelligence (AI) space. The AI boom made them stars in 2023. What About Other Tech Jewels? Even in the narrow market breadth in 2023, some other tech ETFs that are not solely focused on “Magnificent Seven” shined. With the Fed expected to cut rates by 75 bps in 2024, overall tech space should do well as the area thrives better in a low-rate environment. Already, market breadth has continued to broaden, and smaller tech companies are likely to excel. Plus, the AI boom is ongoing, which is expected to push the space to another height next year. ETF Picks Below, we highlight those winning tech ETFs that trumped even Magnificent Seven in 2023. VanEck Digital Transformation ETF (DAPP) – Up 192.3% The underlying MVIS Global Digital Assets Equity Index is a rules-based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the global digital asset segment. Along with DAPP, several other digital asset ETFs, bitcoin mining ETFs and blockchain ETFs have exceled and beaten MAGS this year by a wide margin (read: Block (SQ) Soars on Upbeat Earnings & Outlook: ETFs to Gain). VanEck Semiconductor ETF (SMH) – Up 63.9% The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment. Along with SMH, other semiconductor ETFs also soared this year (read: Semiconductors Lead Decade's Top Gainers: 3 ETFs Up At Least 550%). SPDR NYSE Technology ETF (XNTK) – Up 63.9% The underlying NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies. The fund includes semiconductors (25.85%), Systems Software (12.33%), Application Software (9.82%), Interactive Media & Services (7.88%), Internet Services & Infrastructure (6%) and so on. iShares U.S. Technology ETF (IYW) – Up 60.4% The underlying Russell 1000 Technology RIC 22.5/45 Capped Index includes companies in the following sectors: software and computer services and technology hardware and equipment. The Index is capitalization-weighted and includes only companies in the technology industry of the Dow Jones U.S. Total Market Index (read: Buffett's Favorite 4 Sectors: ETFs in Focus). WisdomTree Cybersecurity Fund (WCBR) – Up 59.1% The underlying WisdomTree Team8 Cybersecurity Index is designed to track the performance of companies primarily involved in providing cyber security-oriented products. The fund charges 45 bps in fees (read: Here's Why Cybersecurity ETFs Are At a 52-Week High). Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	Tesla TSLA is recalling more than 2 million vehicles after the U.S. safety regulator cited safety concerns. Per the US safety regulator, the autopilot features are either too confusing for the drivers or too easy to misuse. Per the National Highway Traffic Safety Administration (“NHTSA”) filings, the automaker did not agree with the agency’s analysis but has agreed to issue a recall and release an over-the-air update. The agency found that under some circumstances, the Autosteer feature may increase the risk of a collision. Per the filings, the Autosteer feature provides steering, braking and acceleration support to drivers in certain conditions. However, the drivers are supposed to remain attentive and keep their hands on the steering wheel while using the feature. The Autopilot system uses several controls to find out if the drivers are attentive or not. Per the report, NHTSA found that the controls may not be sufficient to prevent drivers from exploiting the feature. Tesla will recall a total of 2,031,220 of its Model S, Model X, Model 3 and Model Y. The automaker has started rolling out a software update, which will be free for Tesla’s customers. NHTSA began an investigation into 11 incidents that involved Tesla cars with Autosteer and Autopilot in 2021, leading to the recent recall. Per Part 573 Recall report, the company is planning to launch additional controls and alerts to persuade the driver to adhere to their continuous driving responsibility even when the Autosteer feature is active. The new update will increase the prominence of visual alerts, simplify engagement and disengagement of Autosteer and require additional check-ins while using Autosteer to ensure that the driver is concentrating. Zacks Rank & Stocks to Consider TSLA currently carries a Zacks Rank #4 (Sell). Some better-ranked players in the auto space are Volvo VLVLY, Renault SA RNLSY and BYD Company Limited BYDDY, each sporting Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 70.6%, respectively. The EPS estimates for 2023 and 2024 have increased 8 cents and 7 cents, respectively, in the past seven days. The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimate for 2024 has increased 2 cents in the past 60 days. The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimates for 2023 and 2024 have increased 59 cents and 55 cents, respectively, in the past 60 days. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report AB Volvo (VLVLY) : Free Stock Analysis Report RENAULT (RNLSY) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - U.S. stocks ended firmer on Thursday, with the Dow Jones Industrial Average notching its second straight record high close, lifted by optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. Apple AAPL.O hit an intra-day record high before surrendering some of its gains to close up 0.08%. Tesla TSLA.O shares surged 4.9%, with about $40 billion worth changing hands. Its turnover was more than double that of Nvidia NVDA.O, the next most traded company. The heavyweight chipmaker gained 0.5%. Sectors that have underperformed this year also rose. Of the 11 S&P 500 sector indexes, six closed higher, led by energy .SPNY, up 2.94%, followed by a 2.62% gain in real estate .SPLRCR. The S&P 500 .SPXclimbed 0.26% to end at 4,719.55 points. It remains down less than 2% from its record high close in January 2022. The Nasdaq Composite Index .IXICgained 0.19% at 14,761.56 points, while the Dow Jones Industrial Average .DJIrose 0.43% to 37,248.35 points. Volume on U.S. exchanges was unusually heavy, with 17.1 billion shares traded, compared to an average of 11.1 billion shares over the previous 20 sessions. The PHLX semiconductor index .SOX surged 2.7% to close at a record high. The Russell Index .RUT of smaller companies also jumped about 2.7%. The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view." Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. They were last down at 3.94%. "The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina. "While the market celebrates lower rates, it can question why yields are below 4%" as investors weigh the economic outlook, she added. AdobeADBE.O fell 6.35% after the Photoshop maker forecast annual and quarterly revenue below estimates. U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday. Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 1.9-to-one ratio. The S&P 500 posted 96 new highs and no new lows; the Nasdaq recorded 259 new highs and 64 new lows. Fed rate cut expectations https://tmsnrt.rs/41oElWr S&P 500's busiest trades https://tmsnrt.rs/3TvGPRf (Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Richard Chang) ((caroline.valetkevitch@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	Adds background in paragraphs 3-4 BERLIN, Dec 15 (Reuters) - Chinese EV startup Nio's 9866.HK affordable Firefly brand will launch in Europe in 2024, a year earlier than previously disclosed, with a second cheaper brand possibly launching after 2025, president Lihong Qin said in a press conference on Friday. Both brands, the second of which was dubbed Alps, will produce cars for families, with the Firefly brand offering smaller models, Qin said. Nio, which currently competes with EVs offered by premium carmakers like BMWBMWG.DE, and Mercedes-Benz MBGn.DEat a price point above 298,000 yuan ($41,971.24) in China, has been facing expanding losses as a price war started by Tesla TSLA.Oweighed on its profitability. The company has laid off 10% of its workers, is considering spin-offs of units such as its battery manufacturing business, and has struck partnerships to help fund ventures such as battery swapping as it looks to cut costs. ($1 = 7.1001 Chinese yuan renminbi) (Reporting by Victoria Waldersee, Zhang Yan Editing by Miranda Murray and Linda Pasquini) ((Victoria.Waldersee@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	Corrects headline and paragraph 1 to show Firefly brand launching in Europe in 2025 (not 2024), removes reference in paragraphs 1-2 to Alps brand coming to Europe BERLIN, Dec 15 (Reuters) - Chinese electric vehicle (EV) maker Nio 9866.HK will launch its cheaper Firefly brand in Europe in 2025, its president said on Friday. Both the Firefly and Alps brands will produce cars for families, with Firefly offering smaller models, Lihong Qin said in a news conference online. He did not give details of pricing for the two brands. A wave of Chinese EV makers are expanding in Europe as demand slows at home and they look to capitalise on a cost advantage versus Western rivals, which have been slower to adopt the new technology. The European Union, however, is investigating Chinese EV imports to see if they breach competition rules. Nio, which currently competes with EVs offered by premium carmakers like BMW BMWG.DE, and Mercedes-Benz MBGn.DE at a price point above 298,000 yuan ($42,000) in China, has been facing expanding losses as a price war started by Tesla TSLA.O weighed on its profitability. The company has laid off 10% of its workers, is considering spin-offs of units such as its battery manufacturing business, and has formed partnerships to help fund ventures such as battery swapping as it looks to cut costs. The partnerships - struck in November with Geely 0175.HK and state-owned Changan Automobile 000625.SZ - will involve building a new battery pack and chassis architecture together with the carmakers to use as a blueprint for future partners, Qin said. Nio has since signed a third partnership agreement, but it is too soon to disclose details, he added. ($1 = 7.1001 Chinese yuan renminbi) (Reporting by Victoria Waldersee, Zhang Yan; editing by Linda Pasquini and Mark Potter) ((Victoria.Waldersee@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	The magnificent seven cohort of mega-cap growth stocks have loomed large for investors. They drove a significant portion of the impressive returns notched by broad market indexes. Big gains by Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla are prompting market participants to wonder whether or not sequels are in store next. History isn’t guaranteed to repeat. And asking for a similar upside to what was notched by the magnificent seven may be too demanding. But these beloved names may continue their bullish ways in 2024. That would benefit a variety of exchange traded funds, including the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). Both ETFs follow the Nasdaq-100 Index (NDX). They’re fine options for investors who want exposure to each of the magnificent seven without having to directly own those names. Expensive, But Justifiably So During rallies, such as the one that occurred this year, investors often that the Nasdaq-100 is richly valued. With QQQ and QQQM higher by 51.49% year-to-date, a case can be made that plenty of the stocks residing in the ETFs are expensive. But when it comes to the magnificent seven, that’s not necessarily an indictment. Why? Because these companies have the fundamentals to support elevated earnings multiples. “The second point is that it is important to remember that large market capitalisation can be justified by large fundamentals. This might sound obvious, but these companies are some of the most profitable and cashflow generative in the world. For that reason, they command higher-than-average valuations in the stock market,” according to Schroders. Another point to consider is that AI is far from the only reason the magnificent seven surged this year. And that's actually good news for QQQ and QQQM. Experienced investors know as much. QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year. Still, it’s worth remembering that there’s more to the ETFs and the magnificent seven than just AI. “While generative AI has and will be a significant tailwind for some of these businesses (as with Nvidia), their strength in 2023 cannot be attributed solely to AI. We only need to look at Meta/Google to illustrate this - both companies are likely to deploy generative AI aggressively in the coming years, but the shares have been supported by the combination of recovering end markets and cost optimisations. This has led to significant improvements in profitability and cash flow, particularly at Meta,” concluded Schroders. For more news, information, and analysis, visit the ETF Education Channel. Read more on ETFTrends.com. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	With 2023 drawing to a close, the time has come once again to take a longer look at what next year might bring. As part of VettaFi’s 2024 Market Outlook Symposium, Vettafi Vice Chairman Robert Huebscher sat down with Professor Jeremy Siegel to discuss. Siegel, Russell E. Palmer Professor Emeritus of Finance at the Wharton School, who also serves as WisdomTree’s senior economist, took the time to share his thoughts on the 2024 market outlook. The pair’s conversation followed recent dovish signaling from the Fed. For Siegel, 2023 saw a “tale of two markets” take place, with the so-called Magnificent Seven on one side and styles like value on the other. In 2024, he believes, markets will see a reversal, with value and small stocks shedding their lethargy as part of his market outlook. “I’m not saying these large stocks won’t do well, they've got incredible franchises and growth prospects, but I’m bullish and I’m going to say they're 10% to 15% from today’s level toward the end of 2024,” Siegel said. Inflation, the Fed, and the Market Outlook The pair turned to Siegel’s ongoing coverage of the Fed’s battle with inflation, with Huebscher asking Siegel to share his 2024 inflation market outlook. For Siegel, the money-supply drop was concerning, welcoming the Fed’s recent dovish signaling given what he sees as a need for cuts next year. “Why has inflation gone down? Because of high interest rates and lower money-supply growth. I think the supply side normalized earlier so I’m going to give it to the tightness of the money supply,” he said. “I would’ve stopped decreasing it earlier, but I’ve been surprised by the resistance of the economy to the money supply and the higher real interest rates.” “The indications for a soft landing are certainly increasing and I would say are odds on now for 2024,” he added. Huebscher underlined Siegel’s accurate prediction of about 3% growth for 2023, turning toward the possibility of a recession next year and what growth may look like then. They also talked about the future of the 10-year yield, for example, as part of an overall market outlook. Siegel shared that he believes the 10-year won’t drop to 2%, 2.5%, with people more suspicious about the hedging ability of bonds. He believes, then, that the 10-year will land between 3.5% and 4%. “Inflation is coming down, commodities are coming down. That puts downward pressure on the long rate and induces the Fed to lower that short term interest rate," Siegel noted. TIPS and Housing Ahead Huebscher responded, asking if real rates do come down, what would that mean for stocks. To Professor Siegel, TIPS may hit about 1% or 1.5%, with inflation fears priced into bond yields and even TIPS yields. That comes with a new 3.5% equilibrium for inflation. “I’m looking for TIPS much closer to that 1%, 1.5%. I don’t think we’re going back to that zero we had before the pandemic,” he explained. Turning to housing, the duo assessed the current CAPE Shiller index and housing prices. Siegel, who has spoken to Professor Shiller, shared that the high end of the market is still seeing cash transactions doing very well. At the lower end, there have been fewer transactions, not holding up as well as the upper end. “The CAPE-Shiller is overstating what has happened to housing. We’ve had a huge surge, a 35% increase in housing prices from the pandemic over the next two to two and half years,” he said. “The recent increase has been a distortion because of the factors you mentioned, that the lower-priced houses that need financing are not getting into that index.” “However, if prices keep going down and there is a shortage of housing, housing starts are low … there won’t be a boom like 2020. But I would imagine we could have a rise in housing prices of 4% or 5% in 2024.” Growth Stocks in the 2024 Market Outlook The pair also discussed what sectors may be over- or undervalued. 2023 was a year for growth stocks, unusually to Siegel, as this is one of the very few times in which the new bull market was led by the leadership from the previous. “Now we obviously, minus the speculation … the speculation that the pandemic darlings like Peloton (PTON), some of the craziness in the crypto market, some of the craziness in the NFT market, that’s gone,” he said. “The quality growth stocks reasserted themselves, the Googles (GOOGL), the Nvidias (NVDA), the Teslas (TSLA), the Amazons (AMZN) ... all those just reasserted themselves.” Siegel identified a pretty big gap between valuation and growth, with his predictions last year that rates and value may have been 12 months early. He doesn’t believe the U.S. economy will see a recession, with value and small stocks perhaps set to benefit from that amid the Fed’s recent dovish signaling. “When you're at 12X, 15X earnings, you just need a little growth and you’ll see a return,” he said. Geopolitical Risks, Politics, and the Market Outlook Turning to risks, the pair touched on what Siegel might see as big risks next year to the market. For Siegel, the standout issue is protecting the internet from foreign hacking. “Can you imagine what the chaos would be if people woke up and tried to access their bank account or Vanguard funds and couldn’t get it,” Siegel said. “The security of our data is paramount.” At the same time, however, Siegel doesn’t see much risk of new conflicts erupting or risk to oil supply. While war in Southwestern Asia could expand, he noted, an oil embargo is unlikely, and U.S. energy production should make markets more resistant to conflict in that region. The pair also talked about the impact of U.S. elections in 2024, with Siegel assessing that the key factor at stake would be that the Trump tax cuts from his previous administration will expire in 2025. “No matter who wins the presidency (and Congress), there’s going to be a real negotiation that’s going to take place,” Siegel said. “So I do not think that the presidency is going to affect the market substantially.” He also recommended overall asset allocation, emphasizing a 75/25 portfolio with bonds mixed between Treasuries and hybrid corporates Siegel also underlined that junk bonds have been a solid long-term hold despite volatility, returning almost like stocks over long time frames. For more news, information, and analysis, visit the Modern Alpha Channel. Read more on ETFTrends.com. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	The Ark Innovation ETF (NYSEMKT: ARKK) managed by Cathie Wood is one of the most closely followed actively managed funds in the world. Wood rose to prominence in 2020 when all six of Ark Invest's active exchange-traded funds (ETFs) saw their prices soar more than 100%. The flagship Ark Innovation ETF climbed 148.7% that year. Wood and her team seek out companies developing disruptive technologies in the areas of genomics, automation, artificial intelligence (AI), and finance, among others, for the Ark Innovation fund. But just four stocks out of 33 total holdings make up the bulk of the fund's investments. These are Ark Invest's biggest bets. And if Wood is right, these four could turn out to become much bigger companies than they already are today. Let's find out a bit more about these four stocks. 1. Coinbase: 10.6% of holdings Coinbase Global (NASDAQ: COIN) has grown to become Ark Invest's biggest holding across several of its ETFs. The company is the leading U.S.-based cryptocurrency exchange, and it's a big beneficiary of the increased adoption of Bitcoin. As a result, its stock price tends to move in coordination with the price of Bitcoin. Bitcoin's price has climbed over 163% so far in 2023, including a recent rally this month, pushing the price higher by 16%. Investors responded, pushing Coinbase stock 289% higher so far this year, including a 63% increase since reporting better-than-expected third-quarter earnings. Coinbase has improved its net losses in 2023, producing positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). That's due in large part to reducing costs. Management slashed its operating expenses by 34% year over year in the third quarter. Meanwhile, revenue grew just 8%, including a 21% decline in transaction revenue. It's unlikely Coinbase can sustain its improvements in profits going forward. Ark Invest has been selling off some of its shares of Coinbase recently, not necessarily because it's soured on the long-term prospects of the company, but because the stock's recent rally has pushed the weighting so high. 2. Roku: 8.4% of holdings Roku (NASDAQ: ROKU) is a favorite of Cathie Wood and her teams in the connected-TV and streaming space. Ark analysts published a financial model last year, indicating their belief that Roku stock could reasonably reach $605 per share by 2026. With the stock currently trading at just over $100 per share, Ark still sees a lot of upside. There's a lot to like about Roku. It's seeing strong momentum in active user growth and streaming hours on its platform. And while revenue growth has been slow amid a weak advertising spend environment, the growing and increasingly engaged user base is a stronger indication of long-term potential for the company. After falling below EBITDA profitability in 2022, the company returned to the black last quarter on the back of cost-cutting and restructuring. Management is committed to full-year EBITDA profitability for 2024. With the recent strength in Roku's stock price, Ark has been selling shares. Still, it remains one of its biggest holdings across multiple funds, and with expectations for the stock price to climb significantly higher in the long run, it'd be a big surprise if Ark changed channels midstream. 3. UiPath: 7.8% of holdings UiPath (NYSE: PATH) is not just one of the biggest holdings in the Ark Innovation ETF, it's one of the biggest holdings in all six of Ark's active ETFs. The team seems to believe UiPath's robotic process automation (RPA) has the potential to span just about every industry, making it the biggest AI stock in Ark's holdings. UiPath benefits from more and more businesses looking to cut overhead. With fewer employees, businesses need to automate more tasks. UiPath steps in, uses its AI to find tasks that can be automated, and then implements a solution for the business. As a result, it saw its annual recurring revenue improve 24% year over year last quarter. That's a notable slowdown from the 30% growth in recurring revenue UiPath produced in 2022, and management expects a further slowdown in the fourth quarter. That said, the growing scale of the business has led to substantial improvements in operating margin, and the company should be able to produce stronger margins by implementing more AI solutions for each customer. It does face much bigger competitors in the space, including Microsoft, which has its finger on the pulse of AI through OpenAI and its Azure cloud computing business. But if it can fend off its bigger competitors, it's in a strong position to keep growing at a rapid pace. Ark has been trimming its position in UiPath as the stock price climbs. But considering it's still held across every single one of its funds, the managers' commitment to the stock can't be questioned. 4. Tesla: 7.5% of holdings Tesla (NASDAQ: TSLA) has long been a favorite of Cathie Wood and the team at Ark Invest. It was previously the fund's No. 1 holding, but has now fallen to fourth despite strong price performance in 2023. Wood sold off a significant number of shares this summer following the stock's strong run, and shares have since pulled back slightly in price. Still, Wood's belief that Tesla is at the forefront of autonomous vehicle technology is unwavering. She sees the biggest challenge for solving autonomous driving as collecting enough data, and basically, every Tesla vehicle in operation is feeding data into the company's algorithms. Ark's financial model published earlier this year sees Tesla shares climbing to $2,000 per share by 2027 for its base case, with an upside of $2,500 per share. The model is heavily reliant on Tesla launching autonomous vehicles in the very near future and a robotaxi service using those vehicles. Musk has continuously fallen short of his promises of delivering fully autonomous vehicles. Many believe Tesla's approach to eschew lidar and mapping systems like other autonomous vehicle companies will ultimately result in it falling short of achieving full autonomy capable of providing a robotaxi service. Meanwhile, Tesla has been susceptible to pricing pressure and the macroeconomic environment has curbed new auto sales. That's seen in Tesla's margins, which have come under pressure this year. Nonetheless, Wood believes Tesla has the foundational technology that will transform transportation. In fact, she recently told CNBC she thinks it will remain a top-five holding for the Ark Innovation fund for a long time. Should you invest $1,000 in Ark ETF Trust-Ark Innovation ETF right now? Before you buy stock in Ark ETF Trust-Ark Innovation ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ark ETF Trust-Ark Innovation ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Adam Levy has positions in Bitcoin, Microsoft, and Roku. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Microsoft, Roku, Tesla, and UiPath. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high. Tesla TSLA.Oshares surged, with over $37 billion worth changing hands. Sectors that have underperformed this year also rose, including energy and real estate. Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. They were last down at 3.94%. "The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina. "While the market celebrates lower rates, it can question why yields are below 4%" as investors weigh the economic outlook, she added. AdobeADBE.O fell after the Photoshop maker forecast annual and quarterly revenue below estimates. U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday. Fed rate cut expectations https://tmsnrt.rs/41oElWr S&P 500's busiest trades https://tmsnrt.rs/3TvGPRf (Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Richard Chang) ((caroline.valetkevitch@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Tesla Inc (Symbol: TSLA), where a total volume of 3.2 million contracts has been traded thus far today, a contract volume which is representative of approximately 318.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 263.2% of TSLA's average daily trading volume over the past month, of 120.9 million shares. Particularly high volume was seen for the $250 strike call option expiring December 15, 2023, with 273,481 contracts trading so far today, representing approximately 27.3 million underlying shares of TSLA. Below is a chart showing TSLA's trailing twelve month trading history, with the $250 strike highlighted in orange: Alteryx Inc (Symbol: AYX) saw options trading volume of 34,177 contracts, representing approximately 3.4 million underlying shares or approximately 262.8% of AYX's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $47.50 strike call option expiring December 15, 2023, with 6,549 contracts trading so far today, representing approximately 654,900 underlying shares of AYX. Below is a chart showing AYX's trailing twelve month trading history, with the $47.50 strike highlighted in orange: And Super Micro Computer Inc (Symbol: SMCI) saw options trading volume of 72,742 contracts, representing approximately 7.3 million underlying shares or approximately 254.3% of SMCI's average daily trading volume over the past month, of 2.9 million shares. Especially high volume was seen for the $300 strike call option expiring December 15, 2023, with 6,852 contracts trading so far today, representing approximately 685,200 underlying shares of SMCI. Below is a chart showing SMCI's trailing twelve month trading history, with the $300 strike highlighted in orange: For the various different available expirations for TSLA options, AYX options, or SMCI options, visit StockOptionsChannel.com. Today's Most Active Call & Put Options of the S&P 500 » Also see: Funds Holding NAAC FTRI market cap history Top Ten Hedge Funds Holding COUR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	TSLA	Updates with details in paragraphs 4-9 AMSTERDAM, Dec 15 (Reuters) - The Dutch vehicle authority RDW said on Friday it does not currently plan a Tesla TSLA.O recall in Europe following a major U.S. recall this week of the carmakers' models due to concerns about their Autopilot driver assistance systems. The Netherlands' RDW oversees safety approval for Teslas in Europe. The agency cited differences between Autopilot functions that are available on the European and U.S. markets and said it is in touch with Tesla. The U.S. recall, Tesla's largest to date, was prompted by National Highway Traffic Safety Administration findings that drivers do not always pay enough attention to the road when the system's automatic steering functions are turned on, possibly increasing the chance of crashes. Tesla's steering functions in Europe are tested against the U.N., not U.S. rules, they said. Other "differences are, for example, in how the 'drivers monitoring' is done and the warning given to the driver when the system is abused," the spokesperson said. (Reporting by Toby Sterling; Editing by David Evans and Susan Fenton) ((toby.sterling@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	An Up and Down Year for Tesla Tesla (TSLA) is the undisputed market leader in battery-powered electric car sales in the United States, enjoying roughly a 70% market share. Over the years, Tesla has shifted from developing niche products for affluent buyers to more affordable EVs for the masses. The firm’s three-pronged business model approach of direct sales, servicing, and charging sets it apart from other carmakers. Year-to-date, shares are higher by 128%. However, investor concerns are mounting, including: · Valuation: The EV king’s market capitalization is more than the combined value of legacy automakers, including Toyota (TM), Volkswagen (VWAGY), Daimler, General Motors (GM), and Ford (F). · Underperformance: Though Tesla has more than doubled this year, it has underperformed the market and “Magnificent 7” recently. · Recall: This week, news broke that Tesla must recall more than 2 million vehicles. Below, I will debunk the most common investor concerns and lay out my bull case for the stock: Don’t Judge a Book By its Cover: Tesla Valuation is Cheap The price-to-book ratio (P/B ratio) is a financial metric that compares a company's market value (its stock price) to its book value (the net value of its assets minus liabilities). P/B is calculated by dividing the market price per share by the book value per share. A low P/B ratio may suggest that a stock is undervalued, while a high ratio may indicate overvaluation. Investors use this ratio to assess a company's relative worth in the market compared to its accounting value. Tesla currently has a book value of 14.03. Compare that to another mainstream stock like Apple (AAPL), whose book value is 49.54, and Tesla suddenly looks cheap. Image Source: Zacks Investment Research Furthermore, it is essential to remember that Wall Street is a discounting device. Over the past twelve years, Tesla has achieved a stunning compound annual growth rate (CAGR) of 72%, earning its premium above slower-growing legacy automakers. Rallying on Negative Recall News Earlier this week, Tesla was forced to recall over two million vehicles over autopilot safety concerns. As I always like to remind investors, the reaction to negative news supersedes the news itself. In the case of TSLA, the stock shook off the bad news and is green for the week. Technical “Shakeout” and Price Rotation Higher Savvy investors understand that price movement is the ultimate arbiter of decisions, because after all, price is the only thing that pays. TSLA shares sliced below the 50-day moving average on the recall news and then ripped higher. Such price action indicates a shakeout, where weak hands get stopped out of their positions, clearing the way for the next move higher. Now, TSLA is triggering a bullish swing trade signal by clearing last week’s highs. Image Source: TradingView Cybertruck Hype is Real Many Tesla bears suggest that the hype around Tesla’s Cybertruck is unfounded. However, Google Trends data suggests the opposite is true. As Tesla investor and enthusiast Sawyer Merritt points out, “Tesla has surpassed Ford to become the most searched auto brand in the US. Tesla’s gone from not making the rankings at all in 2022 to second place in 2023, with 29 of 155 countries listing Tesla as their #1 car brand in Google Trends.” Image Source: Sawyer Merritt/Google Trends Competition is Not a Threat Thus far, all of the fully-EV focused automakers like Rivian (RIVN) have yet to achieve a quarterly profit. As Elon Musk points out, it’s one thing to create a prototype and a whole other thing to manufacture at scale. Meanwhile, Ford, the only other profitable EV maker in the US, announced that it would cut F-150 Lightning production in half next year. (the Lightning is seen by the market as the biggest threat to the Cybertruck) China Sales Growing Despite Weak Economy Despite a floundering Chinese economy, recent registration numbers suggest that Tesla is on pace to break its quarterly record for deliveries in China (156.7k). Image Source: @piloly Exponential EV Growth is on the Horizon A recent study suggeststhat by 2030, two-thirds of all global car sales will be EVs. Bottom Line Investors using traditional valuation metrics to value Tesla are likely to be wrong. Tesla’s price-to-book ratio reveals an undervalued position compared to other mainstream stocks. Meanwhile, the Cybertruck’s rising popularity and Tesla’s sustained growth in China further underscore its market strength. As the automotive landscape continues to evolve towards electric vehicles, Tesla’s innovative approach and global expansion prospects make it a must-own. The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%. Download the brand-new FREE report revealing 5 EV battery stocks set to soar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Toyota Motor Corporation (TM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Volkswagen AG Unsponsored ADR (VWAGY) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	Fool.com contributor Parkev Tatevosian discusses his Tesla Cybertruck predictions for 2024. Tesla (NASDAQ: TSLA) stock investors might be surprised at what he has to say. Stock prices used were the afternoon prices of Dec. 11, 2023. The video was published on Dec. 13, 2023. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market. They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	(New throughout, adds judge's tentative ruling) By Chris Prentice and Jody Godoy Dec 14 (Reuters) - A federal judge in San Francisco on Thursday tentatively ruled that billionaire Elon Musk must testify again for the U.S. Securities and Exchange Commission's investigation of his $44 billion takeover of Twitter. During a hearing, U.S. Magistrate Judge Laurel Beeler quickly rejected arguments by Musk's attorney that SEC officials do not have the authority to issue subpoenas, saying the agency has broad investigative powers and that no judge would "second guess" an SEC probe. She said Musk and the SEC must agree to a date for the world's richest person to provide another day of testimony, or she would set a date. "You’ve got one more four-hour deposition, one more day of depositions to survive and it’s over. It seems unlikely there’s going to be any more hassle," she said. The SEC sued Musk in October to compel the Tesla and SpaceX CEO to testify as part of an investigation into his 2022 purchase of social media giant Twitter, which he subsequently renamed X. Musk refused to attend a September interview for the probe, the SEC said. The agency is examining whether Musk followed the law when filing the required paperwork with the agency about his purchases in Twitter stock, and whether his statements in relation to the deal were misleading. The court hearing is the latest spat in a years-long feud between Musk and the top U.S. markets regulator, dating back to 2018 when he tweeted that he had "funding secured" to take the electric carmaker private. The SEC has been probing Musk's Twitter takeover since April 2022, when he first disclosed he had purchased stock in the company. Musk gave the SEC documents for its probe and testified via videoconference for two half-day sessions that July, the SEC said in its filing. SEC attorneys said they have more questions for Musk after receiving new documents, and had sought additional testimony in September, but Musk would not comply. In response to the SEC's October lawsuit, Musk's lawyers urged Beeler to deny the SEC's request, calling the probe misguided. "The SEC's pursuit of Mr. Musk has crossed the line into harassment," they wrote in a filing last month. They argued that individual SEC attorneys do not have the legal authority to issue subpoenas for testimony. The SEC rejected those claims, saying agency officials have legal authority to seek additional testimony as probes evolve. On Thursday, Beeler within minutes sided with the SEC, emphatically dismissing Musk's attorney's arguments, although she conceded the demands of long-running investigations can be "frustrating." TWITTER TAKEOVER Musk and the SEC have been sparring since his "funding secured" tweet in 2018. The SEC settled that case but the commission sued Musk again in 2019 for allegedly breaching a that settlement. The tweets also prompted a shareholder lawsuit. A jury in February found Musk was not liable for misleading investors. Over the years, the agency has opened multiple other probes into Musk and Tesla. On April 4, 2022, Musk disclosed he had acquired a 9.2% stake in Twitter. It was 11 days after the SEC's deadline for such disclosures. Musk initially indicated via that regulatory filing that he planned to be a passive stakeholder, meaning he did not plan to take over the company. Later that month, however, he announced plans to buy Twitter for $44 billion. He subsequently tried to get out of the deal, alleging Twitter was not disclosing the full extent of bot activity on its platform. After being sued to complete the deal, Musk closed his acquisition of Twitter in late October 2022. (Reporting by Chris Prentice; Additional reporting by Jody Godoy in New York; Editing by Michelle Price and David Gregorio) ((christine.prentice@thomsonreuters.com; +1 (202) 843-6464;)) Keywords: USA SEC/MUSK (UPDATE 1, PIX) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	Shares of ChargePoint Holdings (NYSE: CHPT), the world's largest independent charging network for electric vehicles (EVs), were rallying today in response to the Federal Reserve's interest rate announcement yesterday, trending with other beaten-down stocks that stand to benefit from lower interest rates and the jolt they are expected to give to the economy. As of 11:48 a.m. ET Thursday, ChargePoint stock was up 18.5%. Image source: Getty Images. Saved by the Fed There was no major news on ChargePoint today, but yesterday's rate decision from the Fed was enough to push the stock up by double digits. The central bank did not adjust interest rates and indicated in its forecast that it expected three cuts to the fed funds rate, lowering the benchmark rate from the current 5.25%-to-5.5% range to 4.5% to 4.75% by the end of next year. ChargePoint has struggled badly this year with slowing demand for EVs, macro challenges, and a threat from Tesla as a number of EV makers plan to switch to Tesla's North American Charging Standard (NACS), forcing ChargePoint to adapt. The company is struggling on multiple fronts as revenue fell 12% to $110 million in the third quarter and a loss of $158.2 million under generally accepted accounting principles (GAAP). ChargePoint also has nearly $300 million in debt on its balance sheet, though that is at a fixed rate, making it less sensitive to fluctuations in benchmark interest rates. However, if the company continues to lose money, it might need to tap the debt markets again. Demand for EVs and the overall health of the economy are sensitive to interest rates as most car buyers use financing to purchase vehicles. What's next for ChargePoint? The Fed's forecast for lower interest rates shouldn't do much to affect ChargePoint's business directly, but it is breathing new life into the stock. The company is under the guidance of a new management team as its CEO and chief financial officer recently departed and the board of directors named Rick Wilmer as its new CEO. There's no shortage of challenges facing Wilmer as he aims to deliver positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by the fourth quarter of next year, but stronger EV demand would help. Still, investors should expect ChargePoint's volatility to continue as the business needs a lot of work to reach viability. Should you invest $1,000 in ChargePoint right now? Before you buy stock in ChargePoint, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and ChargePoint wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	The NASDAQ 100 Pre-Market Indicator is up 64.79 to 16,627.16. The total Pre-Market volume is currently 59,223,924 shares traded. The following are the most active stocks for the pre-market session: ProShares UltraPro Short QQQ (SQQQ) is -0.16 at $14.18, with 3,427,135 shares traded., following a 52-week high recorded in prior regular session. C4 Therapeutics, Inc. (CCCC) is -0.04 at $5.47, with 3,252,368 shares traded. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock. ProShares UltraPro QQQ (TQQQ) is +0.64 at $49.38, with 3,152,568 shares traded., following a 52-week high recorded in prior regular session. iShares 20+ Year Treasury Bond ETF (TLT) is +1.0205 at $97.55, with 2,497,427 shares traded.TLT has a $3.72640800cash dividend with an Ex/Eff Date of12/14/2023 XBP Europe Holdings, Inc. (XBP) is +5.48 at $11.15, with 1,636,388 shares traded., following a 52-week high recorded in prior regular session. Tesla, Inc. (TSLA) is +1.688 at $240.98, with 1,531,136 shares traded. TSLA's current last sale is 96.39% of the target price of $250. Pacific Gas & Electric Co. (PCG) is +0.2 at $18.35, with 1,411,549 shares traded. As reported by Zacks, the current mean recommendation for PCG is in the "buy range". Gaotu Techedu Inc. (GOTU) is +0.28 at $3.97, with 1,179,401 shares traded. GOTU's current last sale is 172.61% of the target price of $2.3. Palantir Technologies Inc. (PLTR) is +0.3 at $18.17, with 1,053,318 shares traded. PLTR's current last sale is 113.56% of the target price of $16. NIO Inc. (NIO) is -0.0301 at $7.40, with 934,124 shares traded. NIO's current last sale is 71.15% of the target price of $10.4. Pfizer, Inc. (PFE) is +0.08 at $26.74, with 933,489 shares traded., following a 52-week high recorded in prior regular session. Alibaba Group Holding Limited (BABA) is -0.22 at $71.24, with 467,551 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range". The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Ark Invest’s Cathie Wood is fresh off a must-needed year of relief, with her flagship Ark Innovation ETF (NYSEARCA:ARKK) soaring more than 70% year-to-date. Indeed, Cathie Wood stocks still have a long way to go if they’re to see new highs again. Though new highs in 2024 seem unrealistic, I do believe that the trio of rate cuts the Federal Reserve has planned for next year could be the tailwind that disruptive innovation stocks need to take their rally to the next level. Either way, it’s hard not to want to bet on Cathie Wood stocks as it looks to sail into smoother, lower-rate waters from here. Let’s have a look at three stocks in the ARKK that I find most intriguing for the new year: Roku (ROKU) Source: Michael Vi / Shutterstock Roku (NASDAQ:ROKU) stock has been on a great run so far this year, now up 153% year-to-date. Led higher by improvements in the ad market, Roku stands out as one of the most compelling recovery plays in the realm of Cathie Wood stocks. Though I’d much rather wait for shares to pullback after more than doubling in a year, I do find DA Davidson’s recent comments on the company encouraging. According to the investment firm, Roku may be an “attractive takeout target,” perhaps through the eyes of a mega-cap tech firm seeking to expand exposure in the streaming markets. My take is that Roku would be even better in the hands of a media-focused streamer that’s lacking in exposure on the hardware side. Undoubtedly, many of the mega-cap tech companies with exposure to streaming also have their own streaming sticks or something similar. In any case, Roku remains a relatively small firm, with its mere $14.49 billion market cap at the time of writing, making it a bite-sized deal for any firm eager to make bigger strides in streaming. For now, I wouldn’t speculate on a takeover deal, as it’s hard to gauge where Roku goes from here if no acquirer steps forward. Tesla (TSLA) Source: Arina P Habich / Shutterstock.com Electric vehicle (EV) firm Tesla (NASDAQ:TSLA) has been a standout performer for Cathie Wood’s ARKK fund over the past several years. Of late, though, Tesla stock has driven into a bit of a rough patch, sinking from its more than $400 peak in late 2021 to around $113 at its depths earlier this year. At writing, the stock’s going for just shy of $250 per share, up around 130% year-to-date. Recently, Tesla recalled around 2 million cars due to “insufficient” Autopilot safeguards. For now, the headline doesn’t appear to be having a drastic impact on the stock. I view Autopilot as a nice-to-have feature for now. Give it a few years, though, and Autopilot capabilities may become a must as more self-driving technologies move into the mainstream. In any case, I wouldn’t make too much of the recall. At around 77.2 times trailing price-to-earnings, I view Tesla stock as intriguing if you believe in Elon Musk and his firm’s AI prowess. As a tech company, a case could be made that the stock’s reasonably valued. However, as an auto company, it looks absurdly expensive. So, it really depends on your point of view! Either way, Tesla looks intriguing here as we look forward to what AI has to offer in 2024. UiPath (PATH) Source: dennizn / Shutterstock.com Speaking of AI, I find UiPath (NYSE:PATH) to be one of the most interesting AI stocks in ARKK right now. The company is in the business of automating repetitive tasks in the workforce. The stock’s been on a steady descent since it went live on the public markets back in 2021. Today, shares are off around 68% from their peak, but up more than 104% year-to-date. Should three rate cuts be in the cards in 2024, hyper-growth companies with skin in the automation game could be in for another good year. UiPath is at 52-week highs, but there’s still a harsh macro climate to get through. Yes, low rates are a good thing, but it may prove tougher to compete in an arena where numerous enterprise software companies are in a rush to improve their AI capabilities. My guess is that UiPath remains competitive, even as other industry players look to chase after the AI puck in the new year. That said, I wouldn’t bet on the stock as it appears the easy money’s already been made. On the date of publication, Joey Frenette did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Joey Frenette is a seasoned investment writer specializing in technology and consumer stocks. Contributing to the Motley Fool Canada, TipRanks, and Barchart, Joey excels in spotting mispriced stocks with long-term growth potential in a fast-paced market. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post ROKU, TSLA, PATH: 3 Cathie Wood Stocks Picking Up Traction appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	Adds quote from letter, detail and background in paras 2-7 STOCKHOLM, Dec 14 (Reuters) - A group of Nordic institutional investors said in a letter to Tesla TSLA.O on Thursday they were deeply concerned by the conflict between the company and labour unions in Sweden, and asked it to reconsider its approach to collective bargaining. Tesla is facing a backlash from unions and some pension funds in the region over its refusal to accept a demand from Swedish mechanics for collective bargaining rights covering wages and other conditions. A group of Nordic investors, which includes Norway's largest pension fund KLP, Sweden's Folksam and Denmark's PFA and PensionDanmark said the Swedish labour market model enabled the Nordics to thrive. The model means employers and unions agree on working conditions and salaries with very little involvement of the government. "We as Nordic investors acknowledge the decade old tradition of collective bargaining, and therefore urge Tesla to reconsider your current approach to unions," the investors, which have assets of approximately one trillion dollars under management, said in the letter. Tesla has managed to avoid collective bargaining agreements with its roughly 127,000 workers, and CEO Elon Musk has been vocal about his opposition to unions. Tesla, which has revolutionised the electric car market, says its Swedish employees have as good or better terms than those the union is demanding. The company did not immediately respond to a request for comment. (Reporting by Terje Solsvik, Jacob Gronholt-Pedersen and Johan Ahlander; editing by Louise Rasmussen and Sharon Singleton) ((terje.solsvik@thomsonreuters.com; +47 918 666 70;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	When it comes to electric vehicles (EVs), most investors probably think of car companies such as Tesla and Rivian, and for good reason. EVs are becoming more popular across the globe. But what if EVs weren't limited to the road? There are actually a number of companies investing heavily in electric air taxis, such as the Cathie Wood favorite Archer Aviation (NYSE: ACHR). Wood is the CEO of Ark Invest, an investment management firm known for taking big bets on emerging technology. While Archer Aviation's electric air taxis may sound like something from the future, the technology could be closer than you realize. With the stock trading below $10 per share, now could be a lucrative opportunity to buy into this little-known EV disruptor. Is the air taxi market just hype? It's understandable to be incredulous about the applications of air taxis. After all, what's wrong with traditional modes of transportation like cars, busses, and trains? Well, for starters, one of the biggest use cases air taxi companies are looking to tackle is road traffic. In fact, a company called Blade Air Mobility is already solving this challenge thanks to its on-demand helicopters and jets. The challenge here is accessibility. Blade Air Mobility offers more of a luxury service and isn't as affordable as ride-hailing services such as Uber and Lyft. Image source: Getty Images. The $1 trillion air mobility industry The air mobility market is comprised of many different types of aircraft, including drones, supersonic jets, and electric vertical take-off and landing (eVTOL) vehicles. Archer Aviation is focusing on eVTOL aircraft for both military operations and alternative urban mobility services. According to a recent report from management consulting firm McKinsey, the total backlog for air mobility vehicles eclipsed $100 billion as of June. It's important to note that this figure excludes commercial airplanes. Moreover, Wall Street estimates that the urban air mobility market could be worth $1 trillion by 2040. Invest in the future of mobility: Urban Air Mobility is projected to be a $1+ trillion market by 2040. Sign up for updates to learn more about Archer. FOOTNOTE: According to Morgan Stanley -- Archer (@ArcherAviation) March 25, 2023 Given these demand undercurrents, investors might not be surprised to learn that the market is garnering the support of institutional investors. For example, venture capital investors have poured hundreds of millions of dollars into a unicorn start-up and Archer competitor called Volocopter. When it comes to Archer, the company has no shortage of impressive investors. In addition to Wood, Archer's backers include Stellantis, United Airlines, and Boeing. United Airlines, for its part, has a vested interest in Archer's success with a purchase order in place of up to $1.5 billion. Additionally, the relationship with Boeing makes a lot of sense given its heavy investments in urban air mobility company Wisk. Working closely with Wisk and earning the financial support of Boeing should be a major catalyst for Archer's vision of commercial electric taxis. Is Archer Aviation stock a good buy? ACHR Cash and Equivalents (Quarterly) data by YCharts The chart above might appear a little misleading. Investors can see that for the last couple of years Archer has been operating at a net loss on a consistent basis, and yet its cash balance has remained fairly robust save for a noticeable dip last summer. The company's mounting losses can be attributed to two primary factors. The first is that Archer is pre-revenue. The second is that building aircraft is expensive. The combination of heavy capital requirements and a sales operation that is not yet operating at scale has required the company to continue raising funds. While this may not spark much confidence, consider that multiple banks on Wall Street are bullish on Archer stock, with one believing the stock is currently undervalued. At the time of this writing, Archer stock trades for roughly $6.70 per share. This reflects a healthy uptick from its all-time lows earlier this year. ACHR data by YCharts At the end of the day, there are several reasons to believe that Archer Aviation could be a lucrative stock to buy. Given the positive outlook of the size of urban air mobility's total addressable market coupled with the surging demand for non-commercial aircraft, it seems obvious that Archer could be onto something big. Moreover, the steadfast support of some of the most recognized mobility brands in the world could suggest that Archer Aviation is a leader in commercial eVTOL transportation. For investors who are looking for additional exposure to the EV space, Archer Aviation could represent a unique opportunity. With the company's commercialization efforts beginning as early as 2025, now could be a good chance to scoop up shares before they take flight. Should you invest $1,000 in Archer Aviation right now? Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Archer Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 7, 2023 Adam Spatacco has positions in Tesla. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	With a trailing-10-year return of 2,420%, Tesla (NASDAQ: TSLA) has been an outstanding stock for investors to own. A relatively small $1,000 investment in December 2013 would be worth a whopping $25,000 today. Right now, the stock sits 42% below its all-time high in November 2021. Opportunity-seeking investors might want to pull the trigger and buy the dip. But if you're thinking of buying Tesla shares today, first take the time to understand the following important factors about this business. Industry landscape Tesla's huge lead in the electric vehicle (EV) industry has propelled it to an enviable position. Its cars represent half of all new EVs sold in the United States. Growth over the past decade has been spectacular. Revenue of $23 billion in the 2023 third quarter (ended Sept. 30) was 5,236% higher than in the same period of 2013. And this year, Tesla is on pace to produce 1.8 million vehicles. For comparison's sake, the business delivered 22,000 cars in 2013. However, outsize success doesn't go unnoticed, and capitalism invites competition. There are now numerous car manufacturers in the EV market, which will surely make it more difficult for Tesla to post the same level of rapid growth over the next 10 years. This year, the main story in the industry has been price cuts. Even the almighty Tesla hasn't been able to escape this pressure. In the process, the company's margins have decreased. Tesla's premium brand status and robust manufacturing capabilities have helped the company generate positive GAAP net income since 2020, an achievement that smaller rivals only dream of. This advantage gives Tesla more wiggle room to engage in ongoing price wars while maintaining profitability. Macro headwinds Tesla trades at a price-to-earnings (P/E) ratio of 76.7. That's extremely expensive compared with legacy auto stocks such as Ford and General Motors. It even represents a sizable premium to luxury-car brand Ferrari. Investors have labeled Tesla as a tech company based on its disruptive and innovative potential. But the macro backdrop has revealed that there are some things this business just isn't immune to. Just look at rising interest rates. Since the Great Recession, interest rates had until recently been at historically low levels, spurring demand from borrowers for things like auto loans. Now that interest rates are elevated, Tesla was able to post only single-digit revenue growth in the latest quarter. "If the macroeconomic conditions are stormy, even the best ship is still going to have tough times," CEO Elon Musk said on the Q3 2023 earnings call. Musk's ambitions A decade from now, Tesla could look like a totally different company from what we're accustomed to today. Musk is fully focused on developing autonomous driving capabilities so that one day, Tesla can launch a robotaxi service. The hope is that people won't want to own cars anymore, since using this service would be incredibly cost-effective for a consumer looking to get from one place to another. Ark Invest, headed by Cathie Wood, is typically extremely bullish with its forecasts. The company, which owns a significant chunk of Tesla stock, believes that by 2029, the global robotaxi market will generate annual sales of $9 trillion, from basically nothing today. Tesla is positioning itself to be at the forefront of this opportunity. Find out why Tesla is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed their ten top stock picks for investors to buy right now. Tesla is on the list -- but there are nine others you may be overlooking. Click here to get access to the full list! *Stock Advisor returns as of November 29, 2023 Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	Technology has turned out to be the most profitable sector in 2023, driven by the artificial intelligence (AI) boom, easing inflation, a surge in “Magnificent Seven” stocks and a crypto rally. Additionally, bets that the Fed’s aggressive interest rate hiking campaign might be nearing an end powered the rally in the sector in recent weeks. Together, the seven stocks — Apple AAPL, Microsoft MSFT, Alphabet GOOG, Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms (META) — are up around 70% this year. Meanwhile, bitcoin, the world's largest cryptocurrency, soared more than 150% this year and surged past the $42,000 mark for the first time since April 2022 before retreating to near 40,000 levels. The massive rally came on the back of broad Enthusiasm about U.S. interest rate cuts and the imminent regulatory approval for Bitcoin ETFs (read: Bitcoin Reaches $42,000: 5 ETFs More Than Double in 2023). Given the broad-based rally across sectors, we have highlighted five best-performing ETFs from different industries that have made technology the best performer. These are VanEck Vectors Digital Transformation ETF DAPP, Valkyrie Bitcoin Miners ETF WGMI, ARK Next Generation Internet ETF (ARKW), VanEck Vectors Semiconductor ETF SMH and SPDR NYSE Technology ETF XNTK. More Rally Ahead? Finally, the Fed, in the latest FOMC meeting, hinted at three rate cuts for the next year while keeping the rates steady for this year. The central bank will cut rates by 75 bps next year, up from the previous forecast of two rate cuts in 2024. Markets are now pricing in a nearly 60% chance that the Fed will begin to cut rates in its March meeting, up from 40% the day prior, per data from the CME Group. As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for initiatives when interest rates are low. The reductions in interest rates, coupled with the ongoing rise of AI, will act as a major tailwind for the next year. Higher spending across the software, semiconductors, and digital media consumer sectors will provide a further boost to the sector. The expansion of AI applications holds the promise of ushering in fresh opportunities for growth within the sector. The global digital shift has accelerated e-commerce for everything, ranging from remote working to entertainment and shopping, thereby bolstering strength in the sector. The rapid adoption of cloud computing, big data, the Internet of Things, wearables, VR headsets, drones, virtual reality, machine learning, digital communication, blockchain and 5G technology will continue to fuel a rally. Further, the tech titans have strong balance sheets, durable revenue streams and robust profit margins, making them attractive investments. They are better positioned to withstand a possible economic downturn and have demonstrated improved cost discipline. VanEck Vectors Digital Transformation ETF (DAPP) – Up 191.8% VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 22 securities in its basket. It charges 50 bps in annual fees and has accumulated $64.3 million in its asset base. Valkyrie Bitcoin Miners ETF (WGMI) – Up 190.8% Valkyrie Bitcoin Miners ETF is an actively managed ETF that invests at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining. Valkyrie Bitcoin Miners ETF holds 22 stocks in its basket, with a double-digit concentration on the top four firms. It has amassed $33 million in its asset base and charges 75 bps in annual fees. ARK Next Generation Internet ETF (ARKW) – Up 84.5% ARK Next Generation Internet ETF is an actively managed fund focusing on companies expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 35 stocks in its basket. ARK Next Generation Internet ETF has amassed $1.6 billion in its asset base and charges 88 bps in annual fees (read: 5 Tech ETFs That Outperformed XLK in the Past Week). VanEck Vectors Semiconductor ETF (SMH) – Up 65.7% VanEck Vectors Semiconductor ETF offers exposure to the companies involved in semiconductor production and equipment. SMH follows the MVIS US Listed Semiconductor 25 Index, which measures the overall performance of companies involved in semiconductor production and equipment. VanEck Vectors Semiconductor ETF holds 26 stocks in its basket. SMH has managed assets worth $10.9 billion and charges 35 bps in annual fees and expenses. It has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: Semiconductors Lead Decade's Top Gainers: 3 ETFs Up At Least 550%). SPDR NYSE Technology ETF (XNTK) – Up 64.8% SPDR NYSE Technology ETF provides exposure to 35 leading U.S.-listed technology-related companies by tracking the NYSE Technology Index. Semiconductors take the largest share at 26%, while systems software, application software, application Software and broadline retail round off the next four spots. SPDR NYSE Technology ETF has amassed $625.1 million and charges 35 bps in annual fees. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	By Shristi Achar A and Johann M Cherian Dec 14 (Reuters) - U.S. stock index futures gained on Thursday, a day after the Federal Reserve hinted an end to its recent aggressive rate hikes and signaled that borrowing costs would be lower next year. The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view". The Fed had raised its policy rate by a market-punishing 525 basis points since March 2022 in an effort to curb decades-high inflation. On Wednesday, 17 of 19 Fed officials projected the policy rate would be lower by end-2024. The dovish pivot in the central bank's statement triggered a rally in equities on Wednesday and sent the Dow Jones Industrial Average Index .DJI to a record closing high. "Continuing disinflationary pressures has offered the Fed room to maneuver. Further, there are signs that rate hikes are loosening the labor market," said Emin Hajiyev, senior economist at Insight Investment. "If the Fed can bring inflation down without these measures deteriorating much further, it strongly improves the central bank’s prospect of achieving a 'soft landing' and avoiding a recession." Money markets now see an 88.6% chance of at least a 25-basis-point rate cut in March 2024, up from about 50% before the policy decision, while fully pricing in another cut in May, according to CME Group's FedWatch tool. Treasury yields also fell to multi-month lows following Wednesday's events, with the yield on the benchmark 10-year Treasury note US10YT=RR last standing at 3.9675%.US/ The falling yields further cushioned equities, with megacap stocks like Alphabet GOOGL.O, Tesla TSLA.O and Nvidia NVDA.O inching up between 0.8% and 1.0% before the bell. Investors will now parse the retail sales data for November and the weekly jobless claims number, both due at 8:30 a.m. ET, for more clues on softening inflation. At 7:01 a.m. ET, Dow e-minis 1YMcv1 were up 93 points, or 0.25%, S&P 500 e-minis EScv1 were up 12.75 points, or 0.27%, and Nasdaq 100 e-minis NQcv1 were up 59.5 points, or 0.35%. AdobeADBE.O shed 4.5% after the Photoshop maker forecast annual and quarterly revenue below estimates. ModernaMRNA.O advanced 6.1% after an experimental messenger RNA cancer vaccine it developed along with Merck MRK.N cut the chance of recurrence or death from melanoma by half after three years, when paired with Merck's Keytruda. Occidental PetroleumOXY.N added 2.0% after Warren Buffett's Berkshire Hathaway BRKa.N acquired nearly 10.5 million shares of the oil giant for about $588.7 million. Foot Locker FL.N rose 3.6% after Piper Sandler upgraded the sportswear retailer to "overweight" from "neutral". Stocks love the Fed again https://tmsnrt.rs/3v4nD2u (Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	It's been another wonderful year for Tesla (NASDAQ: TSLA) investors, with shares up almost double through early December. In this video, Motley Fool contributors Jason Hall and Jeff Santoro break down two other stocks up a lot this year they're ready to buy before Tesla. Stocks discussed include Trex (NYSE: TREX) and Meritage Homes (NYSE: MTH). Stock prices used were from the afternoon of Dec. 5, 2023. The video was published on Dec. 13, 2023. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market. They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Jason Hall has positions in Meritage Homes and Trex. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Trex. The Motley Fool recommends Meritage Homes. The Motley Fool has a disclosure policy. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	Consumer stocks advanced late Wednesday afternoon with the Consumer Staples Select Sector SPDR Fund (XLP) climbing 1.6% and the Consumer Discretionary Select Sector SPDR Fund (XLY) adding 1%. In corporate news, PGT Innovations' (PGTI) board turned down an all-cash bid of $38 per share from Miter Brands, Reuters reported. PGT Innovations shares jumped neary 5%. Farfetch (FTCH) shares jumped 17%. The company is in talks to secure emergency funding from Apollo Global Management (APO) in a move to bolster its finances, Sky News reported. Etsy (ETSY) said Wednesday in a regulatory filing it will be reducing its workforce by 11%, or 225 employees, as part of a restructuring plan. Its shares fell 2.5%. Tesla (TSLA) rose 0.5%, a day after the company said its Model 3 Rear-Wheel Drive and Long Range vehicles will no longer qualify for a $7,500 federal tax credit starting Dec. 31, under new battery production rules from the US Inflation Reduction Act. Meanwhile, Tesla is recalling more than 2 million vehicles for a software update amid concerns that autopilot controls aren't enough to prevent driver misuse, the National Highway Traffic Safety Administration said. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	InvestorPlace - Stock Market News, Stock Advice & Trading Tips The list of companies that have stopped advertising on platform X (formerly known as Twitter) because Elon Musk endorsed an antisemitic post continues to grow. It’s become so long that you could construct an excellent portfolio from all the names abandoning the social media platform and its volatile billionaire owner. Interestingly, most companies that have dropped ads from X use corporate speak to avoid calling Musk an outright racist, which remains debatable. I think he enjoys stirring the pot, much like Donald Trump. What these two men actually believe, I doubt anyone will ever know. The latest large-cap stock to drop X was Walmart (NYSE:WMT), which dropped the platform from its advertising plan on Dec. 1. “We aren’t advertising on X as we’ve found other platforms to better reach our customers,” a Walmart spokesperson said. According to media reports, the number of brands bailing on X is more than 100. Here are three smart stock picks from the carnage Musk created by his lonesome. Microsoft (MSFT) Source: The Art of Pics / Shutterstock.com According to The New York Times, Microsoft (NASDAQ:MSFT) pulling its ads from X could be worth more than $4 million in lost revenue to Musk. That might not seem like a lot, given the billionaire paid $44 billion for the platform formerly known as Twitter. However, in 2022, X generated $4.4 billion in revenue, most of it from ads. At the end of November, the Times said the number of brands leaving the platform was more than 200. $2 million per advertiser is $400 million in lost revenue or about 10% of its annual sales. X CEO Linda Yaccarino tried to convince customers Musk’s views on free speech were something to get behind. After what happened to Bud Light this past summer, there is no way any CEO is going anywhere near X. That would be career suicide. “It doesn’t resonate at all,” Ruben Schreurs, the chief strategy officer at Ebiquity, a marketing and media consulting firm said, The Times reported. Schreurs added that the spending pauses seemed to be “turning into a termination of advertising on X.” Only Musk’s sale of the platform will get these brands back. As for Microsoft, there is no way it has any appetite for mixing it up with Elon Musk. After going through a stressful couple of weeks with OpenAI, it can find plenty of places to spend $4 million in ad revenue. Netflix (NFLX) Source: TY Lim / Shutterstock.com According to The Times, Netflix (NASDAQ:NFLX), pulled $3 million in ads. The paper doesn’t specify over what period. However, assuming 90% of X’s $4.4 billion in 2022 revenue was for ads, daily ad spending on the platform exceeds an estimated $10.8 million. The revenue damage becomes far more real annualized over a year. According to Statista, Netflix spent $1.59 billion in 2022 on advertising expenses. That was down slightly from $1.67 billion a year earlier. Since 2014, the most it’s ever spent was in 2019, when it dished out $1.88 billion. If Netflix spent $3 million per week on X, which is hard to imagine, Elon Musk’s proverbial goose is undoubtedly cooked. Even if $3 million per week were accurate, Netflix has ad-supported plans to grow. It can use the money not spent on X to reinvest in its ad business. To me, and probably to Netflix shareholders, that is a much better return on investment. Elon’s loss is Netflix’s gain. Airbnb (ABNB) Source: Kaspars Grinvalds / Shutterstock The last of the three is Airbnb (NASDAQ:ABNB). It’s reported to have pulled $1 million in ads from X. The optics of a service such as Airbnb supporting the rantings of a madman would upset not only its users but also its hosts, which drive the company’s revenues. Airbnb doesn’t exist without its hosts. CEO and co-founder Brian Chesky knows this firsthand because he was the company’s first host. Today, more than four million hosts provide over seven million listings in 220+ countries. Sure, you also have to have guests, but if they didn’t stay at an Airbnb, they’d stay at a hotel or resort or sleep in a tent at a campground. Inventory is critical to the business. Interestingly, co-founder Joe Gebbia serves on Tesla’s (NASDAQ:TSLA) board, which he joined in 2022. That would be an awkward conversation at the next Tesla board meeting. Hopefully, Musk doesn’t use the exact words he did with Walt Disney (NYSE:DIS) CEO Bob Iger. At least, in Iger’s case, he wasn’t in the room. Of these three names, Airbnb had the biggest reason to pull their ads. It isn’t an excellent look to support an alleged racist when you’re selling an inclusive type of experience. I continue to like ABNB stock. On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Smart Stock Picks in the Wake of Platform X’s Ad Exodus appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 0.22%, S&P 0.29%, Nasdaq 0.41% Dec 14 (Reuters) - U.S. stock index futures gained on Thursday, a day after the Federal Reserve hinted an end to its recent aggressive rate hikes and signaled that borrowing costs would be lower next year. The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view". The Fed had raised its policy rate by a market-punishing 525 basis points since March 2022 in an effort to curb decades-high inflation. On Wednesday, 17 of 19 Fed officials projected the policy rate would be lower by end-2024. The dovish pivot in the central bank's statement triggered a rally in equities on Wednesday and sent the Dow Jones Industrial Average Index .DJI to a record closing high. "Continuing disinflationary pressures has offered the Fed room to maneuver. Further, there are signs that rate hikes are loosening the labor market," said Emin Hajiyev, senior economist at Insight Investment. "If the Fed can bring inflation down without these measures deteriorating much further, it strongly improves the central bank’s prospect of achieving a “soft landing” and avoiding a recession." Money markets now see a 95.2% chance of at least a 25-basis-point rate cut in March 2024, up from about 50% before the policy decision, while fully pricing in another cut in May, according to CME Group's FedWatch tool. Treasury yields also fell to multi-month lows following Wednesday's events, with the yield on the benchmark 10-year Treasury note US10YT=RR last standing at 3.95%. US/ The falling yields further cushioned equities, with megacap stocks like Alphabet GOOGL.O, Tesla TSLA.O and Nvidia NVDA.O inching up between 0.8% and 1% before the bell. Investors will now parse the retail sales data for November and the weekly jobless claims number, both due at 8:30 a.m. ET, for more clues on softening inflation. At 5:30 a.m. ET, Dow e-minis 1YMcv1 were up 81 points, or 0.22%, S&P 500 e-minis EScv1 were up 14 points, or 0.29%, and Nasdaq 100 e-minis NQcv1 were up 69.5 points, or 0.41%. Among single stocks, Occidental PetroleumOXY.N added 1.7% premarket after Warren Buffett's Berkshire Hathaway BRKa.N acquired nearly 10.5 million shares of the oil giant for about $588.7 million. AdobeADBE.O shed 6.0% after the Photoshop maker forecast annual and quarterly revenue below estimates. Foot Locker FL.N rose 3.6% after Piper Sandler upgraded the sportswear retailer to "overweight" from "neutral". Stocks love the Fed again https://tmsnrt.rs/3v4nD2u (Reporting by Shristi Achar A in Bengaluru; Editing by Pooja Desai) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	By Chris Prentice Dec 14 (Reuters) - The U.S. Securities and Exchange Commission will face off with lawyers for Elon Musk in a San Francisco court on Thursday as it tries to force the billionaire to testify again for its probe of his $44 billion takeover of Twitter. The SEC sued Musk in October to compel him to testify as part of an investigation into his 2022 purchase of social media giant Twitter, which he subsequently renamed X. Musk refused to attend a September interview for the probe, the SEC said. The agency is examining whether Musk, the world's richest person, followed the law when filing the required paperwork with the agency about his purchases in Twitter stock, and whether his statements in relation to the deal were misleading. The court hearing is the latest spat in a years-long feud between Musk and the top U.S. markets regulator, dating back to 2018 when he tweeted that he had "funding secured" to take the electric carmaker private. The SEC has been probing Musk's Twitter takeover since April 2022, when he first disclosed he had purchased stock in the company. Musk gave the SEC documents for its probe and testified via videoconference for two half-day sessions that July, the SEC said in its filing. SEC attorneys said they have more questions for Musk after receiving new documents, and had sought additional testimony in September, but Musk would not comply. In response to the SEC's October lawsuit, Musk's lawyers urged U.S. Magistrate Judge Laurel Beeler to deny the SEC's request, calling the probe misguided. "The SEC's pursuit of Mr. Musk has crossed the line into harassment," they wrote in a filing last month. They argued that individual SEC attorneys do not have the legal authority to issue subpoenas for testimony. The SEC rejected those claims, saying agency officials have legal authority to seek additional testimony as probes evolve. On Thursday, the judge is expected to hear arguments from both sides in a hearing scheduled for 9:30 a.m. PST (1730 GMT). The SEC will need to show that the probe falls within its authority, that it has followed procedural requirements, and that the evidence it is seeking is relevant and material. Legal experts have said they think the judge is likely to side with the SEC, although she could impose some conditions. TWITTER TAKEOVER Musk and the SEC have been sparring since his "funding secured" tweet in 2018. The SEC settled that case but the commission sued Musk again in 2019 for allegedly breaching a that settlement. The tweets also prompted a shareholder lawsuit. A jury in February found Musk was not liable for misleading investors. Over the years, the agency has opened multiple other probes into Musk and Tesla. On April 4, 2022, Musk disclosed he had acquired a 9.2% stake in Twitter. It was 11 days after the SEC's deadline for such disclosures. Musk initially indicated via that regulatory filing that he planned to be a passive stakeholder, meaning he did not plan to take over the company. Later that month, however, he announced plans to buy Twitter for $44 billion. He subsequently tried to get out of the deal, alleging Twitter was not disclosing the full extent of bot activity on its platform. After being sued to complete the deal, Musk closed his acquisition of Twitter in late October 2022. (Reporting by Chris Prentice; Additional reporting by Jody Godoy in New York; Editing by Michelle Price and David Gregorio) ((christine.prentice@thomsonreuters.com; +1 (202) 843-6464;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	By Joseph White DETROIT, Dec 14 (Reuters) - General Motors GM.N CEO Mary Barra has made many bold moves during a decade on the job to lift the automaker's share price: jettisoning money-losing operations in Europe, promising to outsell Tesla TSLA.O in the electric-vehicle market and betting billions on developing a profitable robotaxi business. Investors are unmoved. GM shares are trading close to the $33 a share at which they went public in 2010 following the company's government-financed bankruptcy. Since hitting $63 a share in November 2021, GM shares have fallen 47%. Warren Buffett's Berkshire Hathaway BRKa.N sold all its GM shares without explanation during the third quarter as the price slid to a two-year low during tough contract bargaining in the U.S. with the United Auto Workers. Now, as she heads toward her 10th anniversary on Jan. 15, Barra is overhauling GM again. On Wednesday, GM said Barra has named new heads for key areas of vehicle development and EV manufacturing. The moves come after production technology problems caused GM to fall well short of EV output goals. "We didn't execute well this year as it relates to demonstrating our EV capability and the capability of Ultium," Barra told investors and analysts in a Nov. 29 call, referring to the automaker's EV battery technology. "So I'm disappointed in that." GM has begun overhauling its EV strategy, delaying planned factories and product launches, and is reconsidering whether to offer hybrids in the North American market after abandoning the technology in favor of an all-EV strategy. Barra and GM's board last month launched a $10 billion share repurchase program to buy back the equivalent of a quarter of the automaker's market capitalization - a bid for support from shareholders who want more of the cash generated by the company's highly profitable North American combustion truck business. Most shareholders, although disappointed with the company's stock performance, are happy with Barra's leadership for now. Kyle Martin, an analyst with Westwood Group, said Barra is doing better than her rivals and is not in any trouble as the sector is challenging for everyone. "At the end of the day, the market is the best arbiter," he said. "That the share price has gone nowhere is an indictment of what she's doing and to be fair what her competitors are doing as well. You only need a few things to go right to really see a rebound in the stock." Officials familiar with Barra's thinking said the CEO wants to see GM safely through the EV transition. Barra signaled that on Wednesday. "In the next couple of years, it’s our years to really execute this new strategy so I’m energized," she said at the Washington Economic Club. "As long as I have the opportunity to do that ... it's great," she added about being CEO. During a Dec. 4 onstage interview, she deflected a question about how long she plans to stay in her position. "It feels like it hasn't been 10 years," Barra said. "We're in the midst of this really once-in-a-generation transformation. And there's so much that can be done and so I'm more forward-looking." HISTORY-MAKING CEO Barra's place in GM's history is secure. The first woman to lead a global automaker, Barra has now held the top job at the automaker longer than anyone other than Alfred P. Sloan, the architect of GM's rise to become the world's largest industrial corporation during the mid-20th century. Sloan and his immediate successors faced no serious challenges from Japanese or European automakers and no demands from regulators to abandon fundamental technology. Competition and regulation have forced Barra to put sustaining profits over defending a sprawling global empire. Barra sold or closed GM's money-losing operations in Europe, Australia and Southeast Asian markets. GM's market share and profit in China have fallen as the world's largest auto market has shifted to EVs made by Tesla and by BYD 002594.SZ and other Chinese automakers. GM is still No. 1 in U.S. sales volume, but Tesla is by far the more valuable company with a market capitalization of $775 billion to GM's $46 billion. Like Roger Smith, who led GM during the 1980s, Barra has tried to revive investor interest by repositioning GM as a technology enterprise. She told investors in October 2021 that GM could double its annual revenue by 2030 to $280 billion by adding EVs, expanding sales of digital subscriptions, ramping up the Cruise robotaxi operation, supplying vehicles to the U.S. military and developing a new electric van delivery service. But during the second half of 2023, key elements of Barra's growth strategy stalled. The biggest trouble is at Cruise, which has lost $8 billion since GM acquired it in 2016. Barra has told investors Cruise could generate $50 billion a year in revenue by 2030. Cruise's future is now uncertain after regulators charged officials with misrepresenting details of an accident in which a Cruise driverless car dragged a pedestrian 20 feet (6.1 m )before stopping. The Cruise incident has put Barra back in the role of crisis manager. Shortly after she took over as CEO in 2014, she faced a scandal over GM's mishandling of deadly ignition switches. Barra resolved that in part by commissioning an outside law firm to investigate GM's mishandling of safety recalls. She embraced the firm's scathing critique of GM's culture. Barra has again engaged an outside law firm and technical experts to investigate Cruise's response to the accident. Cruise's CEO, Kyle Vogt, has left the company. The unit's new leaders, including GM's chief counsel Craig Glidden, have pledged to cooperate with regulators. Meanwhile, GM is trying out new ways to appeal to skeptical investors. The company has hired a Meta executive as new vice president for artificial intelligence and launched a new website to showcase GM's use of AI - the new hot area for technology investors. (Reporting by Joseph White in Detroit Additional reporting by David Shepardson in Washington, Ben Klayman in Detroit and Jonathan Stempel in New York Editing by Matthew Lewis) ((benjamin.klayman@thomsonreuters.com; 313-600-2277; Reuters Messaging: benjamin.klayman.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	PARIS, Dec 14 (Reuters) - About 60 electric car (EV) models are eligible for France's revamped incentive scheme that is set to favour cars made in Europe, according to a list issued by the country's Ministry of Ecological Transition on Thursday. Among the models eligible for the scheme, the list mentions Tesla TSLA.O Y model, but not the Tesla 3, alongside five models made by France's Renault RENA.PA and 24 by Franco-Italian Stellantis STLAM.MI Dacia's Spring model and SAIC's MG4, imported from China, are not on the list. (Reporting by Elizabeth Pineau, Gilles Guillaume, writing by Piotr Lipinski, editing by Richard Lough) ((piotr.lipinski@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	Few investors get as much attention as Cathie Wood, and it's easy to see why. Wood's 2018 call that Tesla (NASDAQ: TSLA) would hit a pre-split price of $4,000 per share in the next five years seemed outlandish at the time, but it turned out to be true in 2021, the year after Wood's flagship fund Ark Innovation ETF (NYSEMKT: ARKK) jumped 100%. It's also helped that Ark's funds publicly share their daily trading activity and research papers, and actively post and engage on social media, while most investment funds are more secretive about their activities. Shares of Ark Innovation ETF have pulled back since then, but the exchange-traded fund (ETF) is rallying again and is set to cap off a strong performance in 2023. Through Dec. 11, the ETF is up 55% this year, easily outpacing both the S&P 500 and the Nasdaq Composite. Is it worth investing in the ETF now? Let's take a closer look at Ark Innovation ETF, its prospects heading into 2024, and whether it can make you a millionaire. Image source: Getty Images. What is Ark Innovation ETF? Ark Innovation is an actively managed ETF that aims for long-term growth by investing in companies with disruption innovation. Ark defines disruptive innovation as companies that are introducing "a technologically enabled new product or service that potentially changes the way the world works." The fund's top-five holdings are Coinbase Global (NASDAQ: COIN), Roku (NASDAQ: ROKU), UiPath (NYSE: PATH), Tesla, and Zoom Video Communications (NASDAQ: ZM). Together, those five stocks make up roughly 40% of the Ark Innovation ETF. Coinbase is a leading cryptocurrency exchange, and Wood is fond of the asset class. Her funds also invest in Bitcoin, which she said would reach $1.48 million per token by 2030, a gain of more than 30 times from its current price. Roku is the leading streaming distribution platform. UiPath is known for robotics-process automation. Tesla is the well-known leader in electric vehicles (EVs), and Zoom is the popular video-communications platform. Those companies are all known as disruptors, and many of the stocks in the Ark Innovation ETF have some association with artificial intelligence (AI). Whether those stocks are rightly called winners or not depends on your investment time horizon. All five are down substantially from their peaks during the pandemic when investors seemed convinced that the pandemic-driven boom in stocks like Zoom would persist. Can the Ark Innovation ETF make you a millionaire? Despite the hoopla surrounding Ark Innovation ETF, the fund's performance since its inception isn't as spectacular as you might think. It's only slightly outperformed the S&P 500 since it started in 2014, excluding dividends, and it's lagged the Nasdaq Composite by a significant margin. ARKK data by YCharts. As you can see from the chart above, Ark Innovation shares skyrocketed early in the pandemic before crashing in the sell-off in tech stocks during the reopening. Historically, Ark Innovation has behaved like a high-beta version of the Nasdaq exchange, meaning it moves in a similar direction to the broad-based, tech-centric index but is more volatile. That makes sense as many of the stock's top holdings are volatile and speculative. Coinbase's business, for example, is highly dependent on interest in trading in crypto, and that stock crashed in 2022 as crypto prices tumbled. Wood's bull case for Tesla rests largely on the company's investments in AI, but the company has yet to make full self-driving vehicles available outside of a long-running beta test, so her price target of $2,000 by 2027 seems like a reach. If you're investing in Ark Innovation ETF with the hopes that it will make you rich, it does have the potential to deliver big gains if the market cooperates, interest rates fall, and AI takes off, but Ark Innovation ETF also remains a high-risk investment. With many of its top holdings minimally profitable or even unprofitable, the ETF is likely to get whacked in another market crash or a recession. Risk-tolerant investors may benefit from exposure to Wood's flagship fund as it could be a multibagger again, but be wary of the downside risks as the ETF could see a similar boom/bust cycle to what it experienced during the pandemic. Should you invest $1,000 in Ark ETF Trust-Ark Innovation ETF right now? Before you buy stock in Ark ETF Trust-Ark Innovation ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ark ETF Trust-Ark Innovation ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Jeremy Bowman has positions in Ark ETF Trust - Ark Innovation ETF, Roku, and Zoom Video Communications. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Roku, Tesla, UiPath, and Zoom Video Communications. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	Rivian (NASDAQ: RIVN) was the first company to launch an electric pickup truck, but that space is quickly becoming more crowded. With the Ford F-150 Lightning and now the Tesla Cybertruck available, Rivian isn't the only kid on the block. Still, it's an exciting investment because it's a young and growing company with a great product. But could it be the best EV stock for 2024? Let's find out. Rivian's product figures have steadily risen Rivian's lineup currently consists of two vehicles: the R1T (T for truck) and the R1S (S for SUV). It also owns the contract to make Amazon's electric delivery vans. However, it plans on launching an R2 model in 2026 that is slated to be more economical. Rivian's vehicles aren't the cheapest EV options, so having a cheaper model that's more attractive to the masses will be key for expanding. Still, Rivian has been expanding at a healthy rate. In Q3, it produced 16,304 vehicles, its best quarter ever. It also raised its 2023 production guidance number to 54,000, up from the 52,000 figure it updated investors on in Q2. So Rivian isn't just executing; it's also getting better. This is great news, as Rivian is racing against the clock to turn a profit. Every vehicle Rivian makes, it loses more money Despite generating $1.34 billion in revenue in Q3, it cost $1.81 billion to generate that revenue. That means Rivian isn't just unprofitable from an operational standpoint; it's losing money from a production standpoint. Believe it or not, that's a massive improvement over the past year. QUARTER REVENUE GROSS PROFIT GROSS MARGIN Q3 2022 $0.536 billion ($0.917 billion) (171%) Q4 2022 $0.663 billion ($1.000 billion) (151%) Q1 2023 $0.661 billion ($0.535 billion) (81%) Q2 2023 $1.121 billion ($0.412 billion) (37%) Q3 2023 $1.337 billion ($0.477 billion) (36%) Data source: Rivian. So, while Rivian has made significant improvements, it's still a ways away from generating any profit on the vehicles it produces, and that doesn't include any operational expenses. If you include those, Rivian lost $1.44 billion in Q3. Few companies can sustain that level of cash burn for an extended period. With about $9 billion in cash and equivalents on its balance sheet, Rivian will need to continue progressing toward profitability or risk needing to raise more capital. Rivian did that once in 2023, but it didn't go well. It raised $1.5 billion through a convertible debt offering, which caused the stock to plummet nearly 25% to offset the dilution that the increased share count caused. If Rivian has to return to the public market to raise more money, investors shouldn't be surprised if there is a similar response. But even if Rivian succeeds, is there more room for the stock to run? Rivian stock is already valued at a premium At its current levels, Rivian has a market cap of about $18 billion, about half the size of legacy automaker Ford at $44 billion. It's well documented that the legacy automakers trade at dirt cheap valuations, while Tesla trades at a much higher premium. While Rivian is unprofitable, if we assigned Tesla's profit margins to Rivian (11% over the past 12 months), Rivian would be producing about $416 million in profits. That would value Rivian stock at around 44 times earnings if it achieves Tesla's profit levels. While that's cheaper than Tesla's 77 times earnings, it's still far more expensive than Ford's 7.3 times. However, Rivian is a ways away from getting to this profitability level. With its current margins, it may not even make it there. As a result, I think Rivian is still a risky investment, as it's already expensive. Even if Rivian can reach full production levels and break even, it's already expensively valued. As a result, I don't think Rivian will be 2024's top EV stock. Should you invest $1,000 in Rivian Automotive right now? Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Keithen Drury has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cathie Wood, the CEO of Ark Invest, is one of the most prominent investors in the innovation space. While her performance has varied widely over the years, I expect it to only improve when interest rates begin to pull back in the new year. That being said, let’s take a look at some of the top Cathie Wood stocks investors may want to consider. Palantir (PLTR) Source: Poetra.RH / Shutterstock.com Palantir (NYSE:PLTR) constitutes about 1.19% of Ark Invest’s total holdings at the moment. That was after her funds picked up another 1.57 million shares, bringing the total PLTR holdings to 9.89 million. Palantir has been having a great year. Earlier in the year, for example, the company posted its first quarter of profitability. That was a significant catalyst for the company and continues to propel it higher. Helping further, Palantir has invested heavily in artificial intelligence which, of course, has been the topic of the year. In other words, Palantir is well positioned at this time. Tesla (TSLA) Source: Khairil Azhar Junos/Shutterstock.com Tesla (NASDAQ:TSLA) has been a big winner for ARK Invest and is among the top Cathie Wood stocks to consider. Over its lifetime, ARK Invest has spent $352 million buying Tesla’s shares and sold them for $990 million. That equates to a return of 181%. Her firm has reduced its position by more than a million shares over the last two quarters. Especially with the EV sector facing substantial difficulties. However, Tesla is focused on reducing prices to grab a larger market share. That said, there’s a logical argument to be made in favor of investing in Tesla at this time. The markets expect rate cuts beginning sometime in early 2024 which will reduce lending costs. In turn, that could spur rising demand for EVs overall. Nvidia (NVDA) Source: Evolf / Shutterstock.com Wood, like many other investors, has found a winner in Nvidia (NASDAQ:NVDA). The average buying price at which her firm has acquired its shares is just above $81. Those shares currently trade for $475 a piece having multiplied in value several times over the past two years, making it another one of the top Cathie Wood stocks to consider. ARK Invest has also sold Nvidia to make a profit. That doesn’t necessarily mean that other investors should follow suit. After all, there’s little reason to assume that Nvidia’s shares should pull back in 2024, especially with its newest chip being released. That should propel it higher and further cement its position as the leader in the artificial intelligence space. UiPath (PATH) Source: dennizn / Shutterstock.com UiPath (NASDAQ:PATH) is an enterprise automation firm. Automation is one of the primary focus areas of innovation in general as firms of all sizes continue to push to reduce costs. The company sells a software platform that helps Enterprises automate their business processes. It’s very clear to see why Wood and her firm have invested in UiPath. The firms that win in the race for automation, be it through software or hardware, are going to see strong demand. Firms of all sizes will pay a great deal of money in order not to pay the high costs of human labor. UiPath Is the second largest holding within ARK Invest overall. It constitutes more than 7% of the firm’s entire holdings and the company owns more than 10% of UiPath’s total equity. That said, it hasn’t been a successful investment for ARK Invest to date. The company has purchased those shares at a price very near $45 and they currently trade for roughly $23. To date, the investment has resulted in a 48% loss on a total investment valued at $2.13 billion. Archer Aviation (ACHR) Source: T. Schneider / Shutterstock.com Archer Aviation (NYSE:ACHR) is one of the top “flying car” stocks to consider. Granted, it’s not making ‘flying cars’ per se. Instead, it is developing electric vertical takeoff and landing vehicles (eVTOLs) that look somewhat like a helicopter and are colloquially known as flying cars. Wood and her company are substantial investors in Archer Aviation’s outstanding shares. Currently, ARK Invest owns 9.28% of Archer Aviation’s outstanding stock. To date, the investment has resulted in a 5.3% loss overall. ARK Invest substantially increased its position during the third quarter snatching up 14.6 million shares overall. Investors looking to mimic the firm’s strategy should probably just establish a position at this time. The future of the company and the stock is very difficult to accurately assess. The company has forged relationships both on the private and public side. It secured investment from the US Military and major transportation firms including Stellantis (NYSE:STLA). What those Investments yield remains to be seen but those seeking innovation and its strong potential returns could do a lot worse than Archer Aviation. Cameco (CCJ) Source: shutterstock.com/RHJPhtotoandilustration Cathie Wood’s recently bought $337,000 worth of Cameco (NYSE:CCJ) for about $35.37. Presently, those shares are worth $45.65. As many of you are aware, uranium is used in the production of nuclear power and is part of a broader innovation strategy aiming to reduce carbon emissions. It’s a powerful green energy idea. In addition, I fully expect uranium to get more attention as the world goes green. Iridium Communications (IRDM) Source: rafapress / Shutterstock.com Iridium Communications (NASDAQ:IRDM) Is a telecommunications firm and stock that ARK Invest has been buying and selling since 2019. Most recently, the firm has upped its position over the second and third quarters of 2023. Iridium Communications currently has more than 2.2 million customers and reported $197.6 million in revenue in the most recent quarter. However, the company did post a net loss of $1.64 million during the period. The company was profitable throughout 2022 which was marked by lower rates overall. Thus, it’s reasonable to anticipate that the company could again return to profitability in 2024 as rate cuts are enacted. On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Cathie Wood’s Playbook: 7 Stocks to Mimic Her Rate Hike Strategy appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	TSLA	The biggest market story of the year is the outsized role of the Magnificent Seven stocks in the market rally. Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, NVIDIA NVDA, Meta Platforms META and Tesla TSLA now account for almost 29% of the S&P 500. The tech-heavy Nasdaq 100 index had to undergo a special rebalancing earlier this year when the weight of these seven stocks went over 55% of the index. The weight of the top 10 stocks in the broad index has now increased to 32%, versus the average of 20% over the last 35 years. During the dot-com bubble, the total weight of the top 10 stocks topped out at 25%, according to Goldman Sachs. Unlike during the tech bubble, these companies are highly profitable, and their valuations, though elevated, are comparable to those seen in recent history. They have stable cash flows and low leverage and could continue to do well if the economy slows down while interest rates stay at elevated levels for an extended period. We have seen a broadening of the rally lately. Since bottoming in late October, all sectors except Energy are up. Areas like Real Estate, Financials, and Consumer Discretionary have significantly outperformed the Technology sector over the past month. The Invesco S&P 500 Equal Weight ETF RSP has outperformed the market-cap-weighted index since its inception in 2003. Investors who are worried about a handful of stocks dominating funds tracking market-cap-weighted indexes have poured $9.5 billion into this ETF year-to-date. To learn about RSP, First Trust NASDAQ-100 Equal Weighted ETFQQEW, Direxion NASDAQ-100 Equal Weighted Index Shares QQQE and iShares MSCI USA Equal Weighted ETF: EUSA, please watch the short video above. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports iShares MSCI USA Equal Weighted ETF (EUSA): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	Below is Validea's guru fundamental report for TESLA INC (TSLA). Of the 22 guru strategies we follow, TSLA rates highest using our Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance. TESLA INC (TSLA) is a large-cap growth stock in the Auto & Truck Manufacturers industry. The rating using this strategy is 68% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: FAIL COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL INSIDER HOLDINGS: PASS CASH FLOW FROM OPERATIONS: PASS PROFIT MARGIN CONSISTENCY: PASS R&D AS A PERCENTAGE OF SALES: NEUTRAL CASH AND CASH EQUIVALENTS: PASS INVENTORY TO SALES: PASS ACCOUNTS RECEIVABLE TO SALES: PASS LONG TERM DEBT/EQUITY RATIO: PASS "THE FOOL RATIO" (P/E TO GROWTH): FAIL AVERAGE SHARES OUTSTANDING: FAIL SALES: FAIL DAILY DOLLAR VOLUME: FAIL PRICE: PASS INCOME TAX PERCENTAGE: FAIL Detailed Analysis of TESLA INC TSLA Guru Analysis TSLA Fundamental Analysis More Information on Motley Fool Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services. Additional Research Links Top NASDAQ 100 Stocks Top Technology Stocks Top Large-Cap Growth Stocks High Momentum Stocks High Insider Ownership Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	The NASDAQ 100 Pre-Market Indicator is up 40.53 to 16,394.78. The total Pre-Market volume is currently 47,727,789 shares traded. The following are the most active stocks for the pre-market session: Shattuck Labs, Inc. (STTK) is +2.2 at $4.31, with 11,885,590 shares traded. As reported in the last short interest update the days to cover for STTK is 16.162017; this calculation is based on the average trading volume of the stock. C4 Therapeutics, Inc. (CCCC) is +0.43 at $2.77, with 11,217,260 shares traded. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock. Pfizer, Inc. (PFE) is -1.74 at $26.84, with 5,480,819 shares traded. PFE's current last sale is 72.54% of the target price of $37. ProShares UltraPro QQQ (TQQQ) is +0.31 at $47.39, with 2,080,655 shares traded. This represents a 194.35% increase from its 52 Week Low. Ares Capital Corporation (ARCC) is unchanged at $20.12, with 2,012,736 shares traded. As reported in the last short interest update the days to cover for ARCC is 8.193096; this calculation is based on the average trading volume of the stock. ProShares UltraPro Short QQQ (SQQQ) is -0.1 at $14.80, with 1,402,949 shares traded., following a 52-week high recorded in prior regular session. Tesla, Inc. (TSLA) is -2.66 at $234.35, with 1,248,903 shares traded. TSLA's current last sale is 93.74% of the target price of $250. Gaotu Techedu Inc. (GOTU) is +0.23 at $3.67, with 1,120,494 shares traded. GOTU's current last sale is 159.57% of the target price of $2.3. NIO Inc. (NIO) is -0.06 at $7.21, with 663,680 shares traded. NIO's current last sale is 69.33% of the target price of $10.4. Helix Energy Solutions Group, Inc. (HLX) is +0.38 at $9.62, with 655,338 shares traded. As reported by Zacks, the current mean recommendation for HLX is in the "buy range". Palantir Technologies Inc. (PLTR) is +0.0597 at $17.56, with 438,625 shares traded. PLTR's current last sale is 109.75% of the target price of $16. Ford Motor Company (F) is -0.02 at $11.14, with 378,673 shares traded. F's current last sale is 79.57% of the target price of $14. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	By Shristi Achar A and Johann M Cherian Dec 13 (Reuters) - U.S. stocks were poised for a higher open on Wednesday as fresh data signaled signs of cooling inflation ahead of the Federal Reserve's final policy decision of the year, where it is widely expected to leave interest rates unchanged. The Labor Department's report showed the Producer Price Index (PPI) for final demand rose 0.9% on an annual basis in November. Economists polled by Reuters had estimated a 1% advance. On a month-on-month basis, producer prices were unchanged, against estimates of a 0.1% increase. The recent slew of reports, including the consumer price index (CPI) data on Tuesday, have cemented expectations that interest rates have peaked, with traders also estimating potential rate cuts next year. The upbeat sentiment led Wall Street's main indexes to close at fresh 2023 highs on Tuesday. "The numbers are more or less in line with expectations and continue to show that inflation is headed in the right in the right direction," said Peter Cardillo, chief market economist at Spartan Capital Securities. All eyes are now on the central bank's interest rate decision at the end of its two-day meeting, due at 2:00 p.m. ET. Focus will also be on Fed Chair Jerome Powell's comments after the policy announcement and the release of the "dot plot", which could provide a glimpse into monetary policy trajectory. Money markets have almost fully priced in the Fed holding rates at the current level of 5.25%-5.50% later in the day. Traders now see possible monetary easing next year, estimating a nearly 79% chance of at least a 25-basis-point rate cut in May 2024, according to the CME's FedWatch tool. "They're (Fed) not going to declare victory on inflation and that means any early rate cuts that the market seems to be forecasting is likely to be disappointing," Cardillo said. The European Central Bank and the Bank of England are also scheduled to deliver their policy decisions later this week. Meanwhile, nearly $5 trillion in U.S. stock options are due to expire on Friday, set to be the largest on record, which strategists said is likely to keep market volatility in check. Among single stocks, TeslaTSLA.O slid 0.9% before the bell as the electric-vehicle maker will lose up to $7,500 federal tax credit for some Model 3 vehicles. PfizerPFE.Ndropped 6.4% after the drugmaker forecast 2024 revenue below Wall Street expectations, while Southwest AirlinesLUV.Nslipped 2.0% after the carrier raised its forecast for fourth-quarter fuel costs. Take-Two Interactive SoftwareTTWO.O added 2.3% as the video-game maker is set to be included in the Nasdaq 100 index .NDX, effective December 18. (Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	Consumer stocks were muted but leaning higher pre-bell Wednesday. The Consumer Staples Select Sector SPDR Fund (XLP) was 0.1% higher, while the Consumer Discretionary Select Sector SPDR Fund (XLY) was up 0.1%. In company news, Tesla (TSLA) slipped 0.9%, a day after saying that its Model 3 Rear-Wheel Drive and Long Range vehicles will no longer qualify for a $7,500 federal tax credit starting Dec. 31, under new battery production guidelines from the US Inflation Reduction Act. NuZee (NUZE) soared 9%, a day after saying it has appointed Randell Weaver to the additional roles of president and chief operating officer, effective immediately. Cal-Maine Foods (CALM) said Tuesday it has temporarily halted production at one of its facilities in Kansas after the site tested positive for highly pathogenic avian influenza. The company's shares were down 0.02%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	(RTTNews) - Tesla Inc. is recalling more than 2 million vehicles in the United States to fix safety issues in its Autopilot advanced driver-assistance system. The recall, by the luxury car maker founded and headed by billionaire Elon Musk, involves four different Tesla models made between 2012 and 2023. The recall reportedly includes almost all Tesla vehicles sold in the U.S. since the Autopilot feature was launched in 2015. The action follows a two-year probe by the National Highway Traffic Safety Administration or NHTSA into crashes involving Tesla vehicles with driver-assistance technology. In its investigation, the U.S. regulator found that Autopilot's driver monitoring system was partly defective. The vehicles require modification of the driver assistance feature. Tesla said it would install new safeguards to prevent the misuse of its Autopilot advanced driver-assistance system. This will adequately ensure that drivers pay attention when using the driver assistance system. Tesla plans to deploy an over-the-air software update that will incorporate additional controls and alerts to those already existing on affected vehicles to further encourage the driver to adhere to their continuous driving responsibility whenever Autosteer is engaged. The agency had opened the probe into Tesla Autopilot in August 2021, after more than a dozen crashes involving Tesla vehicles. NHTSA now said it is keeping its defect investigation open, and monitoring remedies provided. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	Dec 13 (Reuters) - Tesla will recall 193,000 vehicles in Canada to address concerns about safeguards for its driver assistance system Autopilot after announcing a recall of 2.03 million vehicles for the issue in the United States, Transport Canada said Wednesday. Tesla said in a filing with U.S. regulators that it was deploying an over-the-air software update to "incorporate additional controls and alerts" to better ensure drivers pay attention when using Autopilot. (Reporting by David Shepardson; editing by Jonathan Oatis) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	By Shristi Achar A and Johann M Cherian Dec 13 (Reuters) - The benchmark S&P 500 and the Nasdaq gained on Wednesday as fresh data indicated inflation pressures were easing ahead of the Federal Reserve's final policy decision of the year, where it is widely expected to leave interest rates unchanged. The Labor Department's report showed the Producer Price Index (PPI) for final demand rose 0.9% on an annual basis in November. Economists polled by Reuters had estimated a 1% advance. On a month-on-month basis, producer prices were unchanged, against estimates of a 0.1% increase. The recent slew of reports, including the consumer price index (CPI) data on Tuesday, have cemented expectations that interest rates have peaked, with traders also estimating potential rate cuts next year. The upbeat sentiment led Wall Street's main indexes to close at fresh 2023 highs on Tuesday. "The numbers are more or less in line with expectations and continue to show that inflation is headed in the right direction," said Peter Cardillo, chief market economist at Spartan Capital Securities. All eyes are now on the central bank's interest-rate decision at the end of its two-day meeting, due at 2:00 p.m. ET. Focus will also be on Fed Chair Jerome Powell's comments after the policy announcement and the release of the "dot plot", which could provide a glimpse into monetary policy trajectory. Money markets have almost fully priced in the Fed holding rates at the current level of 5.25% to 5.50% later in the day. Traders now see possible monetary easing next year, estimating a nearly 80.7% chance of at least a 25-basis-point rate cut in May 2024, according to the CME's FedWatch tool. Meanwhile, nearly $5 trillion in U.S. stock options are due to expire on Friday, set to be the largest on record, which strategists said is likely to keep market volatility in check. PfizerPFE.N dropped 9.6% to a 10-year low, after the drugmaker forecast 2024 revenue below Wall Street's expectations. Eight of the S&P 500's 11 major sectors advanced, though the materials sector .SPLRCM shed 0.7%, as base metal prices declined. MET/L At 9:46 a.m. ET, the Dow Jones Industrial Average .DJI was down 34.31 points, or 0.09%, at 36,543.63, the S&P 500 .SPX was up 2.49 points, or 0.05%, at 4,646.19, and the Nasdaq Composite .IXIC was up 37.17 points, or 0.26%, at 14,570.57. Among other stocks, TeslaTSLA.O slipped 1.1% after the automaker said it would recall more than two million vehicles in the U.S. fitted with its Autopilot system. The company will also lose up to $7,500 in federal tax credit for some Model 3 vehicles. Southwest AirlinesLUV.N slipped 4.9% after the carrier raised its forecast for fourth-quarter fuel costs. Johnson & JohnsonJNJ.N limited gains on the blue-chip Dow, shedding 1.7% after Wells Fargo downgraded the drugmaker to "equal weight" from "overweight". Take-Two Interactive SoftwareTTWO.O added 3.2% as the video-game maker is set to be included in the Nasdaq 100 index .NDX, effective December 18. Advancing issues outnumbered decliners by a 1.02-to-1 ratio on the NYSE and by a 1.06-to-1 ratio on the Nasdaq. The S&P index recorded 42 new 52-week highs and one new low, while the Nasdaq recorded 61 new highs and 64 new lows. Monthly change in US Producer Price Index https://tmsnrt.rs/41mN8IC (Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	The "Magnificent Seven," a select group of the world's largest technology companies, has been the story of Wall Street this year. These stocks have seen gains of between 50% and 219% since in 2023. Such gains aren't typical for stocks, especially those that are already among the largest market cap companies on the planet. It's fair to wonder whether the party will end in 2024. Unfortunately, these types of gains probably won't go on forever. However, there could be one exception, one of the "Magnificent Seven" that's just getting started. A year for the ages If you're unfamiliar with the Magnificent Seven, they are Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). They are not only leaders in their fields but have massive revenue and profits, are trusted brands, and have the attention of investors and consumers. It's been a great year if you've been holding these stocks. The most popular stocks don't always perform well, but 2023 was an extraordinary year. AAPL data by YCharts. Investors must always put things in context, and this is no exception. While these stocks have gone to the metaphorical moon, their valuations have mostly followed. Their forward price-to-earnings ratios have risen by as much as 160%, except for one. AAPL PE Ratio (Forward) data by YCharts. Chip company Nvidia's forward earnings valuation actually fell despite its massive share price growth this year. That's because Nvidia is at the front of a generational growth opportunity, similar to what the internet or cloud technology did for the modern economy. A $2 trillion industry in the making Nvidia emerged as a force in artificial intelligence (AI). AI models require a ton of computing power to process immense amounts of data quickly. The hardware that provides that power is what allows users to type complex questions into large language models like ChatGPT and get detailed answers in seconds. Nvidia specializes in chips designed for these high-compute workloads. Analysts estimate that it has a market share of between 70% and 95% in that slice of the chip market, dominating an industry with billions of dollars of investment pouring in. That shows up in Nvidia's financials, too, where its revenue growth has taken off in 2023. NVDA Revenue (Quarterly YoY Growth) data by YCharts. This could only be the beginning. Lisa Su, CEO of rival Advanced Micro Devices, has predicted the AI chip market will balloon to over $400 billion in the coming years. Researchers at Statista believe the global AI market opportunity will be worth as much as $2 trillion by 2030. Even if AMD and other competitors chip away at Nvidia's market share, the growth of the pie could offset a lot of what they take from it. Remember, Nvidia's companywide revenue is at $45 billion today. A $400 billion chip market that Nvidia dominates should translate to years of revenue growth. Somehow, Nvidia stock is still affordable If these predictions are remotely accurate, you can make the case that Nvidia is still cheap today. Analysts believe Nvidia's earnings per share will come in at around $12.29 for the year. That gives it a price-to-earnings ratio of 38. Growth expectations rocketed higher as Nvidia's growth accelerated and showed the impact AI could have on its business. NVDA EPS LT Growth Estimates data by YCharts. For a business growing earnings at 39%, a price-to-earnings ratio of 38 is a fine valuation. There are risks, in that Nvidia must live up to these high expectations. The stock has also risen by more than 200% since January, and any stock on that kind of a tear can cool off, so investors should expect some volatility. But when all is said and done, AI would have to be a complete fluke for the long-term trend to point anywhere but up. Nvidia controls most of the market's AI chips, the building blocks of this new technology. That's a great driver's seat for the company and an opportunity for investors to ride Nvidia higher. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Pfizer at 10-yr low after bleak 2024 revenue forecast Tesla down, to lose consumer tax credits on some models US Nov PPI softer than expected Fed monetary policy verdict due at 2:00 p.m. ET Indexes up: Dow 0.05%, S&P 0.16%, Nasdaq 0.14% Updated at 11:34 a.m. ET/ 1634 GMT By Shristi Achar A and Johann M Cherian Dec 13 (Reuters) - Wall Street's main indexes gained on Wednesday afternew data indicated inflation pressures were easing, ahead of the Federal Reserve's final monetary policy decision of the year, where it is widely expected to leave interest rates unchanged. The Labor Department's report showed the Producer Price Index (PPI) for final demand rose 0.9% on an annual basis in November. Economists polled by Reuters had estimated a 1% advance. On a month-on-month basis, producer prices were unchanged, against an estimated 0.1% increase. The recent slew of reports, including the consumer price index (CPI) data on Tuesday, have cemented expectations that interest rates have peaked, with traders also estimating potential rate cuts next year. All eyes are now on the central bank's interest-rate decision at the end of its two-day meeting, due at 2:00 p.m. ET. Focus will also be on Fed Chair Jerome Powell's comments after the policy announcement and the release of the "dot plot", which could provide a glimpse into monetary policy trajectory. "We don't think they (Federal Reserve) will go from a tightening bias to an easing bias," said Jim Smigiel, chief investment officer at SEI Investments. "There would have to be a few meetings in between where Chair Powell would want to get the message across that they are now neutral, and we haven't really seen that yet." Money markets have almost fully priced in the Fed holding rates at the current level of 5.25% to 5.50% later in the day. Traders now see a possible monetary easing next year, estimating a nearly 78% chance of at least a 25-basis-point rate cut in May 2024, according to the CME's FedWatch tool. Meanwhile, nearly $5 trillion in U.S. stock options are due to expire on Friday, set to be the largest on record, which strategists said is likely to keep market volatility in check. PfizerPFE.N dropped 9.6% to a 10-year low, after the drugmaker forecast 2024 revenue below Wall Street's expectations. However, the health sector .SPXHC gained 0.4% overall, buoyed by a 9.7% rise in Vertex PharmaceuticalsVRTX.O, after the drugmaker's nerve-pain treatment succeeded in a mid-stage trial. TeslaTSLA.Ofell 3.2% as the automaker will lose up to $7,500 in federal tax credits for some Model 3 vehicles. It also said it would recall more than two million vehicles in the U.S. fitted with its Autopilot system. Among other stocks, Southwest AirlinesLUV.N slid 5.8% after the carrier raised its forecast for fourth-quarter fuel costs. Advancing issues outnumbered decliners by a 1.36-to-1 ratio on the NYSE and by a 1.14-to-1 ratio on the Nasdaq. The S&P index recorded 56 new 52-week highs and one new low, while the Nasdaq recorded 91 new highs and 108 new lows. Inflation gauges https://tmsnrt.rs/3RBw4LD (Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	Tesla (NASDAQ: TSLA) stock has served investors well in 2023. The electric-car maker's shares have soared more than 90% year to date. Indeed, the growth stock's performance has been so staggering that investors are now regularly referencing the stock's membership in the elite club called the "Magnificent Seven." The group features seven large technology companies that collectively trounced the S&P 500's returns this year. With such strong performance from Tesla in 2023, the growth stock once again became a Wall Street darling. Are more big returns ahead for the stock in 2024 and beyond? Or has the stock become overvalued? Let's explore whether the stock looks more like a buy, hold, or sell today. Big growth drivers There's no denying the array of strong growth drivers Tesla has supporting its business. First, there's the secular momentum it's seeing from increasing demand for electric cars. This has played a big role in the company's 42% year-over-year growth in trailing-12-month deliveries. Of course, Tesla is also seeing incredible momentum in its energy storage business as utilities are turning to the company's utility-scale battery pack systems to stabilize the grid, prevent outages, and reduce costs. Its energy storage deployments, measured in gigawatt hours, soared 90% year over year in Q3. Additionally, the automaker delivered the first units of its new all-electric Cybertruck in late November. While deliveries of the vehicle likely won't ramp up to any meaningful volume until sometime around the end of 2024, the vehicle importantly gives Tesla access to the massive and lucrative pickup truck market. Finally, investors shouldn't underestimate the potential of Tesla's full self-driving software. While the software is still in beta, it already has formidable pricing power with consumers. Even in beta, the software upgrade costs Tesla owners a whopping $12,000. Despite the high price tag, tons of customers are opting in. Impressively, Tesla's vehicle fleet has already cumulatively driven more than 0.5 billion miles using full self-driving software, giving Tesla a massive set of data and analytics to rapidly improve the artificial intelligence (AI) supporting the software. It would be difficult to overstate the importance of Tesla's self-driving efforts to management. "We will continue to invest significantly in AI development as this is really the massive game changer," said Tesla CEO Elon Musk during the company's third-quarterearnings callwhen discussing its full self-driving technology development. "... success in this regard, in the long term, I think, has the potential to make Tesla the most valuable company in the world by far," Musk said. Undeniable headwinds With all of this said, three undeniable headwinds for the stock make it a hold at its current price rather than a buy. Tesla stock's high valuation of more than 75 times earnings arguably already prices in significant success, leaving very little room for error. High interest rates have made vehicle affordability more difficult and Tesla has had to respond by lowering prices (there's no telling how long interest rates could remain elevated). There's always a risk that investors are underestimating how costly it will be for Tesla to execute on its growth plans. For these three reasons, Tesla stock should be viewed more like a hold at its current valuation than a buy despite its business momentum and its long runway for further growth. However, if shares took a 25% to 30% haircut, it might be time to accumulate shares of this disruptive innovator. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	Quickly rising to become the most valuable automaker, Tesla's (NASDAQ: TSLA) journey has been nothing short of historic. Since making its public debut 14 years ago, Tesla's remarkable success has made it synonymous with the electric vehicle (EV) industry, paving the way for a more sustainable future. While the company's ability to mass-produce EVs lies at the core of its success, there are several other technological frontiers Tesla is pioneering that will ensure it remains on its historic trajectory. Let's take a look at what the future holds for Tesla and where it could be in the next 10 years. Image source: Getty Image. EV growth continues Thanks to its vertically integrated supply chain, strategic location of factories, and embrace of technology, Tesla has scaled its manufacturing process to become the top producer of EVs in the world. This unique business model has helped it go from producing just under 250,000 vehicles in 2018 to around 1.8 million in 2023. While there are concerns that an increasing number of competitors are joining the EV race, they face an uphill battle to unseat Tesla. With the addition of a new factory in Mexico and possible future locations in Thailand and India, CEO Elon Musk seems to be set on accomplishing his ambitious goal of producing more than 20 million EVs in a year by 2030. Image source: The Motley Fool. Although this goal might be a bit overzealous, there is no doubt Tesla will increase its production capacity over the coming years and is still in a prime position to benefit from exponential growth of EV adoption. With estimates projecting that two-thirds of global auto sales will be EVs by 2030, I'd be willing to bet Tesla still reigns supreme over the market 10 years from now. Creating the autonomous future As it currently stands, Tesla generates the bulk of its profits from EVs. But should all go to plan, Musk believes the company's pursuit of autonomous driving will create a new lucrative business endeavor -- robotaxis. Although Tesla still has some progress to make before completely eradicating the need for drivers, the company has made significant progress. Thanks to a major breakthrough with its full self-driving software, the launch of a robotaxi fleet is less of an if and more of a when. Musk thinks that when robotaxis become a reality, it will be a moment talked about 100 years from now and the catalyst that could send Tesla to a $10 trillion valuation. And he isn't alone in this thinking. Based on a report from Ark Invest, analysts estimate that robotaxis could make up more than half of total revenue and bring in around $450 billion to $600 billion, a dramatic increase from Tesla's $80 billion in revenue today. Musk predicts full autonomy for vehicles will be achieved in 2024. This is probably a bit optimistic, but based on Tesla's track record of achievement, it seems like a safe bet that the company will solve the autonomy problem in the next 10 years and eventually launch its robotaxi fleet. A real long-term growth opportunity Tesla has become the most valuable automaker and the seventh most valuable company globally for many reasons. With the ability to generate positive cash flow in the notoriously capital-intensive auto industry, Tesla is reinvesting profits to push technological boundaries, widen its economic moat, and cement its spot at the top. Although recent economic challenges like inflation and high interest rates have dampened growth prospects in the near term, these will prove to be minor speed bumps on Tesla's journey. Few other companies hold as much long-term upside as Tesla. Don't be surprised if it becomes the most valuable company in the world a decade from now. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 RJ Fulton has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	Although EVs may represent the future of mobility and transportation, the intense competition in the space clouds the investment narrative of alternative providers like Stellantis (NYSE:STLA). While the automotive company might be arriving a bit late to the party, it commands brand leverage that could tilt the odds in its favor amid the bitter industry war. I am bullish on STLA stock for its potential ability to pull off a surprise. Brand Distinction May Play a Massive Role for STLA According to accounting and consulting firm Ernst & Young, nearly half of U.S. car buyers intend to purchase an electric-powered car. In addition, Pew Research Center noted that among consumers considering making the transition, 72% state that helping the environment makes up the core incentive. Therefore, it’s not terribly surprising that EVs tend to look rather boring. That’s where STLA stock might connect with its first big punch. Stellantis brands, such as Dodge, have never been shy about their brash, Detroit muscle heritage. However, replicating that hubris on the electric canvas seems odd. After all, we’re really talking about completely different kinetic paradigms. Yet, leave it to Dodge to break free from the unimaginative prison that many automakers have subjected themselves to. Instead, the company will soon introduce its Charger EV, a vehicle that looks almost exactly like a mean muscle car straight out of the Fast and Furious movie franchise. The only dead giveaway is the lack of exhaust pipes. Fundamentally, Dodge will replicate as much as possible the experience – including artificially generated exhaust notes – of a Detroit-bred, V8-engined rocket ship on wheels. It’s a risk, given that Dodge will be facing entirely new demographics of younger millennials and Generation Z members. However, if the automaker can tap into possible underlying machismo – along with capturing the attention of sustainability-oriented baby boomers – the Charger would represent a breath of fresh air. In turn, STLA stock could rise higher. And let’s also not forget that Stellantis has many other brands that it can electrify, including Alfa Romeo, Chrysler, and Jeep. Stellantis Marches Toward Its Vision Another factor that could distinguish Stellantis from the heightened competition in the EV ecosystem is its strategic vision. Specifically, the company operates under a directive that by 2030, half of its U.S. passenger cars and light trucks will be powered by electric motors. To help make this plan economically feasible, the company seeks vertical integration for developing its EV battery packs. This approach will encompass design, development, testing, and production. Further, the main basis of the overall strategy focuses on delivering superior consumer-centric performance stats. To get the ball rolling, Stellantis has invested in a dual chemistry strategy to cover all customer needs. Through efficient design and assembly of the EV battery packs, the economies of scale may allow the automaker to deliver multiple products under one baseline platform. To be fair, STLA stock presents risks regarding its bullish narrative, particularly the late entry. While other legacy automakers saw the writing on the wall and began shifting their production lines toward EVs, Stellantis has generally been dragging its feet. That said, Stellantis notes on its website that it leverages a community of more than 160 nationalities. Further, it operates in more than 30 countries and enjoys customers in more than 130 markets. It’s not as if Stellantis represents a relative unknown. So, when a brand with which people are already familiar decides to transition to the electric route, that would arguably be a more credible pathway than attempting to convince a consumer to buy a brand from scratch. Discounted Opportunity Beckons At the moment, the market prices STLA at a trailing-year earnings multiple of 3.4x. In contrast, the automotive industry runs an average price-earnings ratio of 16.7x. To drive home the point further, Tesla (NASDAQ:TSLA) shares run a hot earnings multiple of 78.4x. In fairness, a low PE ratio doesn’t guarantee anything. However, for STLA stock, the multiple could be deflated due to broader skepticism, such as the late EV sector entry. Nevertheless, that argument also ignores the rich potential of Stellantis being able to electrify its legacy portfolio. Plus, the company daring to be different deserves a second look. Is STLA Stock a Buy, According to Analysts? Turning to Wall Street, STLA stock has a Strong Buy consensus rating based on 13 Buys, one Hold, and zero Sell ratings. The average STLA stock price target is $25.60, implying 13.2% upside potential. The Takeaway: STLA Stock Could Enliven a Stale Market Stellantis' brand leverage and vision make it a compelling, undervalued alternative in the crowded EV space. With unique offerings like the Dodge Charger EV catering to younger demographics, its diversified portfolio, and strategic vertical integration plans, STLA stock presents a potential surprise play in the EV market. Trading at a discount compared to the industry average, STLA offers value investors an attractive entry point. Disclosure The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	Tesla (TSLA) closed the most recent trading day at $237.01, moving -1.14% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.46%. On the other hand, the Dow registered a gain of 0.48%, and the technology-centric Nasdaq increased by 0.7%. Prior to today's trading, shares of the electric car maker had gained 7.17% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 8.55% and outpaced the S&P 500's gain of 4.85% in that time. The upcoming earnings release of Tesla will be of great interest to investors. The company's upcoming EPS is projected at $0.74, signifying a 37.82% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $25.8 billion, up 6.09% from the year-ago period. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.17 per share and a revenue of $97.54 billion, indicating changes of -22.11% and +19.74%, respectively, from the former year. It's also important for investors to be aware of any recent modifications to analyst estimates for Tesla. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.7% lower. Currently, Tesla is carrying a Zacks Rank of #5 (Strong Sell). With respect to valuation, Tesla is currently being traded at a Forward P/E ratio of 75.71. For comparison, its industry has an average Forward P/E of 9.94, which means Tesla is trading at a premium to the group. It's also important to note that TSLA currently trades at a PEG ratio of 3.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices. The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 147, finds itself in the bottom 42% echelons of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. 4 Oil Stocks with Massive Upsides Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold." Zacks Investment Research has just released an urgent special report to help you bank on this trend. In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations. Download your free report now to see them. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Battery stocks present somewhat overlooked opportunities amid the world’s transition to clean energy sources. While some of these companies are marquee brands, others don’t receive the attention they deserve, as battery stocks are part of a complex ecosystem that makes trends like the electrification of vehicles possible. So in this article, we’ll detail three of the best battery stocks that investors should pay attention to. These companies have bright futures ahead of them due to their high margins and optimistic analyst ratings. Here are the three stocks to consider. Tesla (TSLA) Source: Roschetzky Photography / Shutterstock.com Tesla’s (NASDAQ:TSLA) advancements in battery technology could make it a strong contender in the battery market. Indeed, there have been some developments to suggest that this could be the case. TSLA produces about 80 MWh worth of 4680 battery cells per week, which is enough to potentially power over 1,200 vehicles weekly. The 4680 battery cell is crucial for powering some of its newer models, such as its Cybertruck. TSLA is one of those battery stocks to consider because it’s heavily bringing down its cost basis to produce these batteries. Some analysis predicts that it could halve its cost basis as production ramps up, due to the fixed costs of production being spread over more units. At the same time, the company also released information that suggests that its batteries are also very robust at maintaining power levels, losing only about 12% of capacity after 200,000 miles on average. Tesla is then one of those battery stocks leading the way in efficiency and longevity. Contemporary Amperex Technology (CATL) Source: Olivier Le Moal/ShutterStock.com Contemporary Amperex Technology (OTCMKTS:CATL) is a Chinese company and one of the largest manufacturers of lithium-ion batteries for electric vehicles. CATL, too, is making significant developments as a robust battery stock in the Asian market. Its strength comes from its Shenxing battery, which features fast charging capabilities. CATL’s batteries are made with lithium iron phosphate (LFP) and can reportedly drive 400 kilometers on a 10-minute charge and 700 kilometers on a full charge. These batteries would give them a significant leg up over their peers due to providing quicker charging times and longer driving ranges. The company gave guidance that the batteries could become commercially available as soon as 2024. While the battery production is poised to be conducted in China, CATL is investing over HK$1 billion (US$128 million) in a new headquarters and research and development center in Hong Kong. The R&D center will focus on developing patents that can be licensed to other companies. This is expected to accelerate its own efforts in developing market-leading batteries but could also open up new streams of revenues as well. Panasonic (PCRFY) Source: testing/Shutterstock.com Panasonic (OTCMKTS:PCRFY) has long been a battery industry player, especially known for its collaboration with Tesla. But not to be overshadowed by its partnership with the automaker, Panasonic is making some serious moves in the market on its own accord. Specifically, the company announced plans to significantly increase its annual production capacity for EV battery cells, aiming to reach 200 7GWh by March 2031. This would effectively quadruple its battery production. The growing EV market was cited as one tailwind, but Panasonic is also exploring other battery solutions, including cobalt-free options and cells with an energy density of 1,000 Wh/l. With this development in mind, there’s good reason to suggest that Panasonic could be trading at undervalued levels. Its margins are robust, with an EBITDA margin of 9.32% on 58.10B of annual revenue. If it maintains the same profitability level while boosting its top line, there could be a significant implied upside for its stock price as it trades at only 7.51 times earnings. On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Battery Stocks to Turn $10,000 Into $1 Million: December 2023 appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	By Kylie Madry MEXICO CITY, Dec 12 (Reuters) - Electric automaker Tesla has received land-use permits from Mexico's federal environment ministry to build a planned "gigafactory" in the northern border state of Nuevo Leon, the state government announced on Tuesday. The state government on Tuesday said the land designated for the plant spans around 261 hectares (645 acres). The automaker in March announced plans for a new factory in Mexico without providing a timeline for construction. The Nuevo Leon government has estimated it would cost more than $5 billion but Tesla is yet to share a capital cost forecast. CEO Elon Musk said in October that he was hesitant to go "full tilt" on plans for a factory in Mexico given the uncertain economy. After his comments, Nuevo Leon said the government would spend more than $130 million on infrastructure to support construction. Mexico has touted the Tesla project as proof the "nearshoring" trend is taking off as companies seek to move production away from Asia and set up operations closer to the United States. In October, a state official told Reuters that approvals from the environment ministry would allow Tesla to begin construction on the site. Tesla and a spokesperson for Nuevo Leon did not immediately respond to a request for comment. (Reporting by Kylie Madry; Editing by David Alire Garcia) ((Kylie.Madry@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Pfizer down after bleak 2024 revenue forecast Tesla slips after losing consumer tax credits for some vehicles US Nov. PPI awaited at 8:30 a.m. ET Fed monetary policy verdict due at 2:00 p.m. ET Futures up: Dow 0.14%, S&P 0.13%, Nasdaq 0.24% Updated at 7:00 a.m. ET/1200 GMT By Shristi Achar A and Johann M Cherian Dec 13 (Reuters) - U.S. stock index futures edged higher on Wednesday, as the Federal Reserve was widely expected to leave interest rates unchanged at its final monetary policy meeting of the year. The recent slew of reports, including the consumer price index (CPI) data on Tuesday, have cemented expectations that interest rates have peaked, with traders also estimating potential rate cuts next year. The upbeat sentiment also led Wall Street's main indexes to close at fresh 2023 highs on Tuesday. All eyes are now on the producer price index (PPI) data for November, scheduled to be released at 8:30 a.m. ET, before the central bank's interest rate decision at the end of its two-day meeting, due at 2:00 p.m. ET. Focus will also be on Fed Chair Jerome Powell's comments after the policy announcement and the release of the "dot plot", which could provide a glimpse into monetary policy trajectory. "We expect Powell to push back on the aggressive rate cuts priced in. While the slowdown in inflation would be a welcome, we think it's too soon for the Fed to declare victory over inflation," said Mohit Kumar, chief economist Europe at Jefferies. "Powell is likely to keep a balanced tone, stressing the data-dependent nature of Fed's decision-making, and argue that it would be too soon to discuss rate cuts." Money markets have almost fully priced in the Fed holding rates at the current level of 5.25%-5.50% later in the day. Traders now see possible monetary easing next year, estimating a 76.6% chance of at least a 25-basis-point rate cut in May 2024, according to the CME's FedWatch tool. The European Central Bank and the Bank of England are also scheduled to deliver their policy decisions later this week. Meanwhile, nearly $5 trillion in U.S. stock options are due to expire on Friday, set to be the largest on record, which strategists said is likely to keep market volatility in check. At 7:00 a.m. ET, Dow e-minis 1YMcv1 were up 51 points, or 0.14%, S&P 500 e-minis EScv1 were up 6.25 points, or 0.13%, and Nasdaq 100 e-minis NQcv1 were up 39.25 points, or 0.24%. Among single stocks, TeslaTSLA.O slid 1.1% before the bell as the electric-vehicle maker will lose up to $7,500 federal tax credit for some Model 3 vehicles. PfizerPFE.Ndropped 7.0% after the drugmaker forecast 2024 revenue below Wall Street expectations, while Southwest AirlinesLUV.Nslipped 1.4% after the carrier raised its forecast for fourth-quarter fuel costs. Take-Two Interactive SoftwareTTWO.O added 3.1% as the video-game maker is set to be included in the Nasdaq 100 index .NDX, effective December 18. Ford F.Ndipped 0.5%, after Exane BNP Paribas downgraded the automaker to "neutral" from "outperform". (Reporting by Shristi Achar A in Bengaluru; Editing by Pooja Desai) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	Adds details on the control issue in paragraph 2 Dec 13 (Reuters) - Tesla TSLA.O will roll out an over-the-air update to 2.03 million vehicles to fix an autopilot control issue, the National Highway Traffic Safety Administration (NHTSA) said on Wednesday. In situations when Autosteer is engaged and the driver does not maintain responsibility for vehicle operation and is unprepared to intervene or fails to recognize when Autosteer is canceled or not, there may be an increased risk of a crash, the NHTSA said. Tesla will roll out the update to certain Model S, X, 3 and Y vehicles as a remedy, the agency said. The electric automaker did not immediately respond to a request for comment. (Reporting by Mrinmay Dey and Aditya Soni in Bengaluru; Editing by Arun Koyyur) ((Mrinmay.Dey@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 0.10%, S&P 0.10%, Nasdaq 0.13% Dec 13 (Reuters) - U.S. stock index futures edged higher on Wednesday, with the spotlight squarely on the year's final monetary policy meeting where the Federal Reserve is expected to leave interest rates unchanged. The recent slew of reports, including the consumer price index (CPI) data on Tuesday, have cemented expectations that interest rates have peaked, with traders also estimating potential rate cuts next year. The upbeat sentiment also led Wall Street's main indexes to close at fresh 2023 highs on Tuesday. All eyes are now on the producer price index (PPI) data for November, scheduled to be released at 8:30 a.m. ET, before the central bank's interest rate decision at the end of its two-day meeting, due at 2:00 p.m. ET. Focus will also be on Fed Chair Jerome Powell's comments after the policy announcement and the release of the "dot plot", which could provide a glimpse into monetary policy trajectory. "We expect Powell to push back on the aggressive rate cuts priced in. While the slowdown in inflation would be a welcome, we think it's too soon for the Fed to declare victory over inflation," said Mohit Kumar, chief economist Europe, at Jefferies. "Powell is likely to keep a balanced tone, stressing the data-dependent nature of Fed's decision-making, and argue that it would be too soon to discuss rate cuts." Money markets have almost fully priced in the Fed holding rates at the current level of 5.25%-5.50% later in the day. Traders now see possible monetary easing next year, estimating a 76.6% chance of at least a 25-basis-point rate cut in May 2024, according to the CME's FedWatch tool. The European Central Bank and the Bank of England are also scheduled to deliver their policy decisions later this week. Meanwhile, nearly $5 trillion in U.S. stock options are due to expire on Friday, set to be the largest on record, which strategists said is likely to keep market volatility in check. At 5:29 a.m. ET, Dow e-minis 1YMcv1 were up 37 points, or 0.1%, S&P 500 e-minis EScv1 were up 4.75 points, or 0.1%, and Nasdaq 100 e-minis NQcv1 were up 21.75 points, or 0.13%. Among single stocks, TeslaTSLA.O slid 1.5% before the bell as the electric-vehicle maker will lose up to $7,500 federal tax credit for some Model 3 vehicles. Take-Two Interactive SoftwareTTWO.O added 4.3% as the video-game maker is set to be included in the Nasdaq 100 index .NDX, effective December 18. Ford F.N slipped 0.6% after Exane BNP Paribas downgraded the automaker to "neutral" from "outperform". (Reporting by Shristi Achar A in Bengaluru; Editing by Pooja Desai) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	Warren Buffett is known for picking the right stocks, and his choices have produced billions of dollars in returns and double-digit percentage gains over time. As chairman of Berkshire Hathaway, Buffett has delivered compound annual growth of more than 19% over 57 years. That's compared to 9.9% for the S&P 500. So, it's clear investors are right to pay close attention to the stocks he buys. But Berkshire Hathaway actually doesn't own tons of stocks. There are only 45 names in the portfolio now -- and most of its value comes from just a few favorites. One of them is tech giant Apple (NASDAQ: AAPL), which accounts for almost half of the portfolio. And right now, Buffett has reason to be happy about this investment since Apple has climbed by almost 50% this year. But for investors who haven't yet bought Apple and would like to follow in Buffett's footsteps, is it too late? After such a gain, should you still buy this top stock? Apple as a long-term investment A look into the past shows us that Apple has proven its ability to be a great long-term investment. The company has increased earnings over time and has grown key financial metrics. High levels of free cash flow show us the company can afford to keep paying its dividends -- making Apple a player you can count on for passive income as well as share price growth. AAPL Return on Invested Capital data by YCharts. And its gains in return on invested capital show the company has been benefiting from its investments, indicating that Apple has deployed its cash wisely. All of this is thanks to a stellar collection of products -- from the iPhone to the Apple Watch -- that have helped the company build a rock-solid brand -- one that consumers prefer and won't abandon for a rival. This brand strength is Apple's moat, and it's the reason it has been able to grow product revenue over the years and why growth is continuing today. In its fiscal Q4 2023 (which ended Sept. 30), Apple's total installed base of devices reached an all-time high across products and geographic areas. And iPhone sales set a fiscal Q4 record. The company also set fiscal Q4 records in several countries across the globe. Apple demonstrated in the quarter that its gains in revenue aren't just due to its established customers, but also to growth in new customers. About half of Mac and iPad buyers in the quarter were new to those products. Apple's services business So, the mix of brand strength, returning customers, and new customers should keep Apple's earnings climbing -- but something else may actually be its biggest growth driver. I'm talking about Apple's services business, which depends on those who use Apple devices and subscribe for access to digital content, cloud storage, and more. Apple this year reached a level of more than 1 billion paid subscriptions. And this could be the element that will kick off a whole new era of growth at Apple, an era you probably won't want to miss. Services revenue reached a record high in the most recent quarter, and gains aren't likely to stop there. Apple has a huge subscriber base right now, and as it launches new services or boosts old ones, it can grow its revenue just with today's subscriber base -- but it's likely its subscriber base will expand too. Finally, what's great about subscription revenue is it's recurrent. You may not buy a new iPhone often, but once you own one, you'll likely sign up for services that ensure Apple a regular stream of revenue. Is Apple cheap? All of this sounds great, but is Apple, after this year's gain, still worth the investment? Here, it's time to look at valuation. Apple trades for about 29 times forward earnings estimates, a lower ratio than many other growth stocks, and the shares look reasonable considering the company's track record and prospects. AAPL PE Ratio (Forward) data by YCharts. Yes, Apple shares have advanced quite a bit this year, and they probably won't continue upward at this pace without interruption. But they have what it takes to climb higher over time as consumers flock to Apple products, and their subscriptions progressively drive even more growth for the company year after year. So, it isn't too late for you to follow billionaire investor Warren Buffett and pick up shares of this top-performing stock. Apple shares have plenty of room to run, and like Buffett, if you buy it and hold on, you may reap the rewards. Should you invest $1,000 in Apple right now? Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Tesla. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	TSLA	In the current investment landscape, the focus has shifted from the FANG stocks, and a new set of influential stocks, known as the Magnificent Seven Stocks, has emerged. These stocks include Alphabet GOOGL, Apple (AAPL), Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. These companies are considered the new leaders in the stock market. There is a pureplay ETF called Roundhill Magnificent Seven ETF MAGS on this theme. The ETF has surged more than 30% this year. Individually, Apple, Alphabet and Microsoft are up more than 50% each, Meta shares are up about 165%, Amazon has gained 70%, Nvidia has skyrocketed about 233% and Tesla is up nearly 118% this year. But there are three tech stocks — Vertiv VRT, IonQ IONQ and Applied Optoelectronics AAOI — that have beaten even the best of Magnificent Seven, i.e., Nvidia. Inside the Dominance of Magnificent Seven The Magnificent Seven stocks have a significant impact on the Nasdaq index, as they collectively account for a major portion of its total weighting. Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index mainly due to their meaningful positions in the Artificial Intelligence (AI) space. The AI boom made them stars in 2023. What About Other Tech Jewels? Even in the narrow market breadth, some tech companies shined. With the Fed expected to go slow on its rate hike spree in 2024 (or even cut rates in late 2024), overall tech space should do well as the area thrives better in a low-rate environment. Already, market breadth has continued to broaden, and smaller tech companies are likely to excel. Plus, the AI boom is ongoing, which is expected to push the space to another height next year. Stock to Watch Below, we highlight those winning tech stocks that trumped even Magnificent Seven in 2023. Since these stocks have a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), these winners have more room for growth going into 2024. Applied Optoelectronics (AAOI) – Up 888.3% YTD Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. The Zacks Rank #3 company belongs to a top-ranked Zacks sector (top 31%). IonQ IONQ– Up 268.8% YTD IonQ Inc. provides a quantum system through the cloud on Amazon Braket, Microsoft Azure and Google Cloud, as well as through direct API access. IonQ Inc., formerly known as dMY Technology Group Inc. III., is based in COLLEGE PARK, Md. The Zacks Rank #2 company hails from a top-ranked Zacks industry (top 36%) and sector (top 31%). Vertiv VRT – Up 271.7% YTD Vertiv Holdings Co provides digital infrastructure and continuity solutions. It offers hardware, software, analytics and ongoing services. The Zacks Rank #1 company belongs to a top-ranked Zacks industry (top 21%) and sector (top 31%). Two out of three analysts upped their earnings estimates for the upcoming quarter over the past one month. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports Vertiv Holdings Co. (VRT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	InvestorPlace - Stock Market News, Stock Advice & Trading Tips The electric vehicle (EV) industry saw price drops amid changes, but the recent demand dip is expected to be temporary. With critical mass achieved, a steep demand increase is imminent. This makes it a prime time to invest in solid-state battery stocks. The need for lithium in current and future batteries adds to the investment potential. Investors shifting to a net-zero carbon world can diversify beyond EV, hydrogen fuel cell, and solar stocks with battery stocks. Advanced battery tech is crucial for the fossil fuel transition. However, careful stock selection is necessary for potential profitability, as seen in the following recommended battery stocks to buy now. Li Auto (LI) Source: Robert Way / Shutterstock.com Li Auto (NASDAQ:LI) stands out amid EV makers cutting production targets, thriving despite inflation and low demand. In Q3, it achieved a remarkable $4.75 billion in revenue. This is up 271% year over year (YOY), with a net income of $385.5 million. Delivering 105,108 vehicles, a 296% YOY increase, Li Auto aims for 125,000 to 128,000 deliveries in Q4. In fact, it has already delivered 81,452 cars in the last two months. And, on a social networking site, Li Auto’s Chairman and CEO Li Xiang addressed market concerns about marketing costs. He asserts that LI AUTO has the lowest such rates among all Chinese car brands. Li claimed that the only company globally with a lower rate is Tesla (NASDAQ:TSLA). In other recent LI news, Li Xiang claimed LI has the lowest marketing expense ratio among Chinese automakers. This sparked online discussions. Also, NIO executive Ma Lin shared details on Li Auto’s Douyin platform advertising expenses. Ma Lin emphasizes the importance of research and development costs and cost-effectiveness. So, this places Li Auto in a brighter light. Nio (NIO) Source: Piotr Swat / Shutterstock.com Nio (NYSE:NIO), the EV manufacturer, is now listed in a Chinese industry ministry database allowing vehicle production. Details whether or not Nio received a manufacturing license were not provided. Further, this move addresses uncertainties linked to Anhui Jianghuai Automobile Group’s plans to sell assets from the factories producing Nio EVs. This is a situation Nio previously stated wouldn’t impact its future production activities Also, Nio witnessed a substantial 59.8% increase in vehicle deliveries to 16,074 in October. Acknowledging the need to address losses, the company opted to trim its workforce by 10%. This targets labor cost reductions, a critical fixed expense. Nio remains a promising investment, emphasizing automation and AI-automated robots to cut labor costs further. These aim for a 1/3 reduction in workforce by 2027. Finally, NIO demonstrates strength where Tesla faced challenges. Deliveries increased by 12.6% YOY, totaling 15,959 vehicles. In fact, NIO is notably more cost-effective than TSLA. With a P/S ratio of 1.90 compared to TSLA’s 7.91, it has a market cap of $12.72 billion versus TSLA’s $759.22 billion. Despite being unprofitable, NIO’s robust sales growth suggests potential as a better value pick for investors seeking optimized risk-adjusted returns. Surge Battery Metals (NILIF) Source: Just_Super / Shutterstock.com Finally, Surge Battery Metals (OTCMKTS:NILIF) emerges as a key player in lithium mining in North America. The company’s Nevada project, quietly gaining attention, revealed high-grade lithium clay in 2022 drilling. Surge Battery Metals has submitted plans for its lithium discovery. And, the 2023 program aims to extend the strike length beyond 11,480 feet, pending full assay results. In October 2022, Surge Battery Metals uncovered a 5,300-foot lithium-rich clay zone at its Nevada North Lithium Project. CEO Greg Reimer prioritized sustainability, collaborating with Kautz Environmental Consultants. Positive stock signals, including a key buy indicator, were noted. Regulatory approval from M3 Metals Corp (OTCMKTS:MLGCF) for Surge’s October option agreement allowed a potential 20% interest in M3M Lands, with an extra 10% possible through added payment and share issuance. Thus, this places NILIF in a good position for the coming years. On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective. More From InvestorPlace Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 High-Voltage Battery Stocks to Ride EV Growth HIgher appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	The Vanguard Russell 3000 ETF is seeing unusually high volume in afternoon trading Tuesday, with over 152,000 shares traded versus three month average volume of about 34,000. Shares of VTHR were up about 0.2% on the day. Components of that ETF with the highest volume on Tuesday were Advanced Micro Devices, trading up about 3% with over 61.6 million shares changing hands so far this session, and Tesla, down about 1.9% on volume of over 51.3 million shares. Icosavax is the component faring the best Tuesday, higher by about 48.8% on the day, while Loop Media is lagging other components of the Vanguard Russell 3000 ETF, trading lower by about 14.6%. VIDEO: Tuesday's ETF with Unusual Volume: VTHR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	By Shristi Achar A and Johann M Cherian Dec 12 (Reuters) - Wall Street's main indexes edged higher on Tuesday, following inflation data that kept expectations of a rate cut in May intact, while investors awaited the Federal Reserve's policy decision later in the week. November Consumer Price Index (CPI) rose 3.1% on an annual basis, in line with estimates from economists polled by Reuters. Core prices, excluding volatile items such as food and energy costs, also matched expectations, rising 4% annually. On a month-on-month basis, consumer prices rose 0.1% last month, compared with estimates of it remaining unchanged. Traders pared earlier bets that the Fed could start interest rate cuts as soon as March and are now expecting the U.S. central bank's May meeting as the likeliest start for rate reductions. Bets of at least a 25-basis point rate cut in March went down to 43.7%, from about 50% before the data, according to the CME Group's FedWatch tool. "They've (Fed) already taken rates up a lot...they will keep rates up in that range for longer than what the market is currently expecting," said Jason Pride, chief of investment strategy and research at Glenmede, adding that markets do not expect more hikes and are instead focused on rate cuts. "It sets the equity markets up for a little bit more difficult of a time on a near term horizon." All eyes are now on the Fed's interest rate verdict at the end of its two-day meeting on Wednesday, as well as the producer price index (PPI) data for November. The European Central Bank and the Bank of England are also scheduled to deliver their policy verdicts later this week. OracleORCL.N fell 11.1% as the cloud services provider forecast third-quarter revenue below estimates on slowing demand for its cloud service. The energy sector .SPNY was a laggard, shedding 1.4% as crude prices slid over 3%. O/R Google-parent Alphabet GOOGL.O lost 0.8%, after "Fortnite" maker Epic Games prevailed in its high-profile antitrust trial over the company. Other growth stocks were mixed, with Tesla TSLA.O down 1.8%, while Meta Platforms META.O gained 1.2%. Chipmaker Broadcom's AVGO.O shares also boosted the benchmark index, adding 3.5% and hitting a fresh record-high level. At 11:43 a.m. ET, the Dow Jones Industrial Average .DJI was up 116.21 points, or 0.32%, at 36,521.14, the S&P 500 .SPX was up 5.53 points, or 0.12%, at 4,627.97, and the Nasdaq Composite .IXIC was up 30.94 points, or 0.21%, at 14,463.42. Among other movers, LucidLCID.O was down 9.4% after the electric-vehicle maker's CFO Sherry House stepped down. Airbnb ABNB.O fell 2.0% as Barclays downgraded the rental firm's shares to "underweight" from "equal weight". Declining issues outnumbered advancers for a 1.33-to-1 ratio on the NYSE and for a 1.46-to-1 ratio on the Nasdaq. The S&P index recorded 63 new 52-week highs and one new low, while the Nasdaq recorded 81 new highs and 108 new lows. (Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Arun Koyyur, Shounak Dasgupta and Shinjini Ganguli) ((Shristi.AcharA@thomsonreuters.com; https://twitter.com/ShristiAchar)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	In this podcast, Motley Fool analyst Bill Barker and host Deidre Woollard discuss: If we are already in a Santa Claus rally. The challenges facing big automakers. If cybersecurity's challenges will fade. Motley Fool host Mary Long and analyst David Meier discuss the "second acts" of BlackBerry and Garmin, and take a look at three other stocks in the midst of a turnaround. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video. 10 stocks we like better than Walmart When our analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of 12/8/2023 This video was recorded on Nov. 30, 2023. Deidre Woollard: Who says there's no such thing as second act, Motley Fool Money starts now. Welcome to Motley Fool Money. I'm Deidre Woollard here with Motley Fool Analyst Bill Barker. Bill, how's it going? Bill Barker: It's well thanks. Deidre Woollard: Good. Well, I know you like to keep an eye on the macro like I do. I heard you talk on the morning show the other day about the revised GDP. Today we've got the PCE, the Personal Consumer Expenditures Index came out today right in line with expectations around 0.2%. This is they call it the Fed's favorite indicator. So seems pretty good. Are we out of the woods? Can we just heave a sigh of relief? Hikes are over. It's done. Bill Barker: I could complicate the answer. I'm just going to go with yes today. Deidre Woollard: Wait, I want the complicated answer. Bill Barker: Well, you never know. It's a complex world. infinite possibilities exist out there in the multiverse. But inflation is now if you go to your favorite Inflation Nowcast Site, which is probably the Cleveland Fed, the numbers for November and for the fourth quarter, whether you're talking about CPI core, CPI PC, core PC. They start with two's or three's and it's becoming more two's than three's now. We all know the magic number is two. Deidre Woollard: Yes. Bill Barker: Two point zero zero, 2%, 2.9 not good enough. Deidre Woollard: Powell has been very clear on that. Bill Barker: I think there's some discussion from some intelligent people about it. We got to get to two to establish credibility but maybe in the future, we can talk about three. Let's not make two this holy grail that we always have to chase if there's nothing particularly meaningful about two and three and the damage that you might do to pursue two is greater than the benefits. Anyway, this is all, as I said, the complicated, boring answer that should have just been yes, it's the inflation is at an acceptable level today, but for the declaration that it must be two. That's pretty good news and the interest rate is now expected in the betting markets to not go up and to go down starting in the spring, sometime. Deidre Woollard: I'm a little less clear that that's going to happen. I definitely think that we're probably at the end of the rate hikes, but I don't know how fast we're going to start with the cuts. But overall, at the end of November, it's been great. It's been a really good month for stocks and we always hear about the Santa Claus rally. Do you have an opinion on the Santa Claus rally? Is that just something that we are attached to it? I mean, I'm not sure that the data fully bears that one out. Bill Barker: No, it's one of those things that's just got a name. Deidre Woollard: Yeah. Bill Barker: So people keep bringing it up. [laughs] Deidre Woollard: We just like to talk about Santa, it's fine. Bill Barker: I don't know. Did we start the Santa Claus rally? Is this part of it? Have we already anticipated it. The Dow's hitting 2023 high today. I would say that whatever rally you're hoping for has already been delivered by Santa and you shouldn't ask for so many presents this year. You already got tons of them. [laughs] That's what I would say. That sounds a little Grinch. I'm reminding people of how much Santa and, or whoever else works with him has brought already. Deidre Woollard: We do start Black Friday earlier, let's just start the Santa Claus Rally earlier too. Speaking of other things that seem semi-mythical, today is supposedly the first real delivery for Tesla's cybertruck. The media is just going nuts about this. The actual event itself takes place I believe at three o'clock on whatever we're calling Twitter now X. I don't know, I'm not so excited about the cyber truck. Will we be surprised? Will there be something amazing that Musk is going to pull out of his hat? Bill Barker: You wish that I were cool enough to have driven enough trucks [laughs] to have an informed opinion about what this model would do? Are you such a cool person, drive a lot of trucks? Deidre Woollard: I don't drive a lot of trucks. Bill Barker: Just with one couple, whatever? Deidre Woollard: I tend to be a very small car person. I used to have a smart car, so I'm the opposite of a truck person. Bill Barker: A smart car. Deidre Woollard: Yeah. Bill Barker: So like the thing that trucks eat? Deidre Woollard: Yes. Bill Barker: Got it. Yeah, it's a very futuristic-looking item. It's an interesting bet on truck purchasers or traditional truck purchasers buying something that looks nothing like what they like [laughs] and use. I can't handicap whether that's going to work out. Now, Tesla has got a certain embedded clientele early adopters. They've got lots of orders ahead of time, only you need to have thrown down $100 to have a reservation on this. So whether those end up getting filled or not, I don't know. I think that it's not something that the business is going to live or die based on the success of this. So I think it's additional potential upside, there's a huge market there whether Tesla is addressing it in the right way is something for cooler truck-driving people to opine upon. Deidre Woollard: Yeah, it doesn't seem like it solves any problems that any truck drivers might have other than it looks cool and may be impervious to corrosion and things like that but maybe not. We saw how it worked out with the glass thing, so who knows? Bill Barker: Yeah, Who knows? I think it's a great media event. Musk hasn't been in the spotlight for several minutes now actually he has. He's never out of the spotlights. Deidre Woollard: It just follows him around. Bill Barker: Yes. That's where part of the Musk's spotlight will be shining for part of today. Deidre Woollard: [laughs] He probably needs a little distraction. Well, let's keep it on cars and trucks because Jim released their updated guidance yesterday. They announced 10 billion in stock buybacks. Which means they think the price right now is too low. You discussed that on our morning show for Motley Fool members yesterday. They're also scaling back their robo-taxi ambitions with crews after an unfortunate accident and the CEO recently left. How should we be feeling about the robo-taxi thing in general? Are we getting close to that not working out? I feel they're not giving up on it fully, but they're definitely pulling energy and money away from it. Bill Barker: They certainly are and they're scaling back their timetables and it's not really entirely up to them. Unlike some companies and their products, this has a lot of regulatory hurdles to clear and to keep having to clear. Every single accident that happens and there will be more and there have been some, gets an amount of attention that is disproportionate to auto accidents that don't involve robo-driving, automated driving. I think that the regulatory hurdles are very high and it's worth pursuing, but not pursuing at great cost and I think the costs are being scaled way back at this point. Deidre Woollard: Yeah. It's interesting because Ford released their updated guidance today, because both of these companies they had to pause their guidance because of the strikes. The other thing that I'm taking away from this is that they're digesting that disruption, but they're also changing their EV strategies a bit. But it's really confusing because they're trying to play both sides. They're scaling back some of the factories, but they're still saying, this is the future we're building toward it. This just seems like such a tough spot. Because, I mean, if you're Tesla, you're only in one direction. But if you're Ford or GM, you're doing gas-powered, you're doing hybrid, you're doing EV. It seems like a lot to straddle. Bill Barker: Yeah, and I would imagine that if you could track the enthusiasm of their discussion about EV adoption on their own platforms, that it probably would have peaked somewhere around the time that oil peaked. The oil at $76 or whatever it is the second compared to 123 last summer 2022, I think that's a different equation in terms of what the demand for EV is going to be. There's a price at which it becomes much more interesting to car owners, and there's a price at which the cost upfront cost for the vehicle is not that interesting depending on their usage and the cost of gas. That is part of it and the demand increases slower than some have predicted and hoped, and that's also a function of the price of oil in part also in terms of government incentives. Right now not all of those tailwinds are behind EV they were and they will be again at some point, I'm sure that oil will be higher at some points in the future than it is right now. Deidre Woollard: Yeah, definitely. We know where things are going it's a question of when we get there. I think the other thing is the charging problem still has not been solved. The range anxiety thing is real, a co-worker of ours went up to Boston over Thanksgiving and an eight-hour, nine-hour drive actually took him like 12 hours partly because he had to stop and try to find a charging station. I feel like until we solve that problem it's not going to be full steam ahead, there's still a lot of concern I think about that for potential buyers. Bill Barker: Certainly, Americans are used to long distances compared to many other countries in terms of how far apart families live and the willingness of Americans to relocate to different parts of the country and have friends in different parts. I think that the drive distances are greater here on the average holiday trip and for other trips, so I think the range if they all could do make up whatever number you want 700 miles. I made that one up now it's your turn [laughs] make up a different number. Deidre Woollard: I think most people would be happy with 500. Bill Barker: Five hundred, yes. [laughs] When they can reliably give you 500 miles under all conditions that will help, that will help a lot. That's enough to cover all the driving you're probably going to want to do in most days. Deidre Woollard: Yeah, no doubt. I'm going to switch to talking a little bit about tech. Not either of us are not [laughs] an expert on that, but there's something you said about the EV and the hype cycle and I feel like right now we're in a little bit of the cybersecurity and AI combo hype cycle of, we have to go in this direction, companies have to spend on it, they've got no choice. I don't know I've been through so many booms and busts that I'm very cynical, and one of the things I think about is that you don't ever know when the cycle is going to end. I'm thinking about cybersecurity at some point don't these companies catch up with this and it and we're ever escalating, like there's a hack and then we fix it and then there's another hack. Does that eventually stop? Bill Barker: No. Deidre Woollard: Does it get any better? [laughs] Please tell me it get better, let's just dream it gets better. Bill Barker: I would think you're taking two concepts that have relation and mixing them together makes for a particularly potent potential trouble cybersecurity and AI. You throw AI at creating more security issues it'll be used by good and bad, and so you can throw more AI to find more ways to penetrate to cybersecurity and then you could throw AI at more ways to prevent that happening and that keeps escalating. I think it's a good field I would say. I can't imagine from the exquisitely little I know about cybersecurity that it can be cured. Deidre Woollard: I don't think it can be cured but I do think that the current expansion of these businesses won't last forever, because it just can't there's only so far you can grow. But I think it's an interesting time to watch these businesses, the one that I'm concerned about not because of their numbers but because their security breach is Okta. They had this breach they announced it happened in October, we found out yesterday it's way worse than they thought. How do you deal with that moment in a business when there's this like loss of faith and you don't know how big it's going to be. Bill Barker: Preferably you're honest about what and I'm not sure that Okta delivered the information in September in a way that is going to increase trust, given what appears to be the scope of the problem here. That is a big problem for a security company and it's reflected in the stock, it's no higher today than it was five years ago. Business has increased in the last five years dramatically but not Okta's price and that is on them. It doesn't appear to be a particularly impenetrable cybersecurity program that they offer. Deidre Woollard: Not at this point they've got work to do. In the second half of the show we've got a conversation between Mary Long and David Meier about businesses with second acts. Salesforce feels like one of those to me right now because of course, it started off as CRM database company, its ticker is CRM. Lost their way a little bit with so many acquisitions including Slack which they still haven't fully harnessed in my opinion, then they got religion gained financial focus at the same time the AI trend hit and really gassed everything for them and they were able to capitalize on that with their Einstein and with their data Cloud. Stock is up about 70% of the year I don't know if this is luck or skill, does it even matter which one it is? Bill Barker: Certainly. The skill would be the one you would want to choose in terms of [laughs] increasing your business over time. The 70% is a function of at least as much luck as skill. That being the bad luck of last year's returns, creating stock prices going into January 1st of this year, that were ones that the entire industry has benefited from. I think when NASDAQ is up maybe 36% as of some time today, from the beginning of the year, Salesforce at 70% has both outperformed and probably underperformed last year. I don't have the number in front of me on what they did in terms of the stock, but I think that was part of it. That's a part of the cycle that you get into with any investment in the market. But if they stay away from the acquisitions, major acquisitions at premium prices, which Slack seems to be an example of, that was not something that the market wanted to see more of. They seem to have heard that and adjusted toward what is something relatively new, which is to focus on profitability rather than growth. It's nice when you have the levers that they have, the size that they have to say, well, let's just get better at margins, and to see dramatically improved profitability from pursuing something today that you haven't been pursuing previously. Deidre Woollard: I think they were able to move really quickly into the AI space because they were well-prepared which was helpful. With Slack, it's interesting to me because they just went through another CEO switch. Their previous CEO wasn't there even a full year, I think, before she went on Bumble. I love Slack as a tool, we use it here at the Fool. I want to see it integrated into things. I'm not sure that they've fully figured it out yet. What do you think? Bill Barker: I am one of those people that doesn't see Slack is all that much more valuable than the things which preceded it [laughs] including email. Their net is a little bit more valuable and I could probably be better in my usage of it. It's here for us, but $28 billion for it seems bizarrely high to me. I think that was a function of the prices back at that point in time. As you say, it doesn't seem to have been integrated in a way that makes it indispensable at all. Deidre Woollard: I'm not sure if it's in this. I think it's certainly the idea of it is indispensable. Whether Slack itself is, who knows? Bill Barker: Well, I think that there are competitors that do things which are probably very competitive. I don't know what the moat really is here. There's some switching costs, but they don't seem all that great to me. If we just used a different system, people would have to create the channels that are created now, and some of the conversations historic would be lost in the process, but it doesn't seem because of the ease of use of both it and its competitors, that the switching costs are enough to justify. As I say, the bright look it's certainly worth something. Just I don't think it's worth the price they paid. Deidre Woollard: We will always find a way to communicate. Thanks for breaking it down with me today, Bill. Bill Barker: Thank you. Deidre Woollard: The analysts you hear on the show have a whole other day job providing premium coverage and recommendations for the Motley Fool suite of stock investing services, giving our listeners a discount on Motley Fool's flagship service. It's called Stock Advisor. If you're interested in more analysis from our team, two stock recommendations per month, and access to Stock Advisor's Fool scorecard of companies, visit www.fool.com/mfmdiscount. Once upon a time, Blackberry and Garmin were at the top of the world. Then came the iPhone. Mary Long and David Meier talk about two very different turnaround stories and lessons learned from each that investors can apply to stock hunting today. Mary Long: David, I've been thinking a lot about the early 2000s. Back then when I heard cellphone, I thought Blackberry or Motorola Razor, but that's a different story. [laughs] When I heard GPS, I thought Garmin, and I have very vivid memories from the back seat of my parents' car to prove it. Today, both of those companies, Blackberry and Garmin, technically live on. But I'd argue very different ways than they once did. I want to talk about that transition. That second act of each company. First, let's hop in the time machine. Let's go back to the early 2000s, and talk a bit about that first act of each company. Way back when what made each company so great? David Meier: A lot was happening in the early 2000s. A whole heck of a lot in terms of technology, and Blackberry was at the forefront of secure mobile communications. Basically, their claim to fame at the time was you as a business executive and all your employees could communicate back and forth securely. No one was going to interrupt your message. No one was going to steal anything from you only if you used a Blackberry, and they made a huge name for themselves in that. But if you go over to Garmin, Garmin has a little bit of a, we'll call it a less sexy beginning. They wanted to help planes navigate through the air better, and so they were at the forefront of GPS-enabled devices. They started with airplanes, they started with boats. Their first customer was actually the military. They have come to very different places in their life, [laughs] as we'll get to. Mary Long: Maybe our best move is to get the bad news out of the way first because as you said, both these companies ended up in pretty different spots. We'll start with Blackberry. In 2007, 2008, they had a market cap of $83.2 billion. Today, that's $2 billion. Does not take a pro to understand that that is a bad slump. [laughs] They're also no longer a mobile phone maker. Instead, they specialize in enterprise mobility management suites [laughs]. Can you translate, a, what that means, then talk a bit about why and how this pivot happened? David Meier: Yes. That is a fancy way of saying cybersecurity [laughs] with an emphasis on what is called endpoint security. If we think about it, it's actually not a bad pivot for them. Because again, what they became successful at was securing mobile devices. There were tons of phones out there, and they made sure that no one could get into them and no one could steal data from them. That's exactly what endpoint security is. The problem is, is that pivot happened way too late. That's a mature part of cybersecurity. David Meier: There's plenty of competition within there and as you and I have talked about before, when you get a one-stop shop like a Palo Alto, who says by the way we'll throw in endpoint security [laughs] as a part of the package. It's difficult for them to take what they've been successful at and retransfer that into a different market. Essentially that's the issue. They have not been able to actually pivot into something new or an extension or pivot successfully into an extension of their technology. Mary Long: As of the most recent quarter 59% of Blackberry's revenue. So $79 million out of 132 million total, came from the cybersecurity portfolio. They've been talking about this turnaround for forever. But is there a world in which this company comes back from the dead by becoming a more legitimate or a more serious player in the cybersecurity market? David Meier: I won't go so far as to give it 100%. No, there's no chance that it is going to happen. But again, it's very difficult. They're late to the game. They're coming at it without the benefit of having proper salesforce, proper marketing. The current that they're swimming against upstream is just so fast that I just don't see it happening. Mary Long: So now we'll go to a happier story. Garmin leaned into what it knew well. And has become I would say a premier company for GPS-enabled navigation communication devices. They make fitness wearables, chest strap, heart monitors, fish finders and sonar applications, aviation navigation tools, auto infotainment systems. The list goes on. It's pretty extensive. In 2008 right around the same time that smartphones and the ubiquity of Google Maps were starting to take place. Garmin was effectively declared dead in the water. David Meier: Yeah. Mary Long: All of those trends did not paint a pretty picture for its future. November 2008, Garmin is trading for about $17 a share. Today it's about $120 so up just over 7X. Much prettier happier story than what happened with Blackberry. How did this turnaround happen? David Meier: This is a really interesting question because one, this turnaround took a long time. Two, it was not glamorous at all. So let me give some context about what was going on. You're exactly right. Garmin known for GPS was really seeing tremendous sales growth during that time. And then more and more people got into the GPS business. That had an impact on Garmin, as one would expect. We have to remember Garmin wasn't in the business of selling a smartphone or selling you a smartwatch as we know it today. They had their devices. They had the backing of the GPS location-based technology. The software that they had developed. The mapping technology of how to use, and they were figuring out other things that they could do as an extension of their brand. They were just getting into wearables, but they had the base of the aircraft market GPS location, as well as marine boats and things like that. Quite frankly, the biggest thing that management did was not do something stupid. What do I mean by that? The company let their sales actually shrink and some of it was market forces, but what they did was they made sure that their company was generating cash. And all throughout that time, they were paying a dividend and they were raising their dividend. So let's think about that for a second. Here's a technology company that did not go out and make a whole bunch of acquisitions with the capital that it had. It started returning capital to shareholders and then started thinking about. Let's try this, let's try this product. Let's try that product. Let's see what catches on. Where else can we extend our technology base into, and slowly by slowly, I mean over a decade. They just kept at it, kept going and going and going and whatever money they didn't need, they returned to shareholders. Again, this is the most unglamorous turnaround you have ever seen [laughs]. But it worked and the way it worked because the business stayed healthy. Mary Long: This pivots away from Blackberry and Garmin. Are there any companies you're looking at today that are in the middle of a turnaround and that could go the way of either of these companies? David Meier: Yes. I have three that I've been looking at for a little while and they're in different stages and I look forward to talking a little bit more about them. So the first one is ZipRecruiter. This company has been communicating with its shareholders like look, job listings are down. Companies are pulling their job listings. That's hurting our business. The business has suffered, the stock has suffered. I'm looking at that as one potential turnaround. Another turnaround. A company that I've been very familiar with is called Everbridge. What they do is they put out emergency communications. They have software that allows businesses, and municipalities and things like that to say, hey, there's an issue, you all need to know about it, and here's what you need to do about it. Their CEO abruptly left and basically forced the company into a panic. They've also had some follow on issues with that, but that's a little bit of a different turnaround. Teledoc is another one that I'm looking at. This is a company that basically started pioneering telemedicine. They started making a whole bunch of acquisitions. We're going to get big, we're going to cover all the healthcare verticals, and that just stopped working. Now, I still believe in telehealth. I think it is part of the future. But the question is how long, what has to happen in order for Teledoc to turn its business around and be successful? Those are three types of turnarounds. I think you're probably going to ask me, what's the difference between the three? What am I looking for? [laughs] Mary Long: Exactly. It's one thing we've been talking about, black bear and garmin. It's one thing to look back after 10+ years and say, this is why one succeeded and the other just couldn't make it happen. David Meier: Yes. Mary Long: When you're in the middle of it, [laughs] what are you looking for? David Meier: Yes. Let me quickly walk through, you know what I'm thinking for each. So I think with the ZipRecruiter turnaround, that's probably one that's most straightforward. You will get labor market data, will get communications from management that say, "Hey, you know, job listings have started to return". That's a very simple way of looking as is ZipRecruiter turning around. I don't think this business is damaged. There's no one in there who is disrupting ZipRecruiter at the time. We just need the macro data that influences ZipRecruiter revenue to get better. We can see that. We can see that one happen. So we're just waiting for the data to get better, or since we're confident that's what it is, we're waiting for the price to get super cheap. Okay, I'm willing to take a risk and wait 6 months for the data to get better, or 12 months or whatever, but it's probably not a 10-year venture. Everbridge. Oh my goodness. What did they have to do? They had to get an interim CEO, then they had to find a new CEO. Then they had to figure out, well, has my business been damaged in any way? Because maybe some potential customers decided not to do some deals with us because we didn't have a CEO, a regular CEO at the time. This one's a little more difficult I have to figure out, has this company's business, its business model, has it been damaged to the point where people are saying, no, we'll look for different alternatives, or can they get their magic back, if you will, and really start growing. We're talking here maybe a 2 to 3 year time frame. ZipRecruiter 6 to 12 months. Everbridge, maybe 2 to 3 years. Teledoc, is telemedicine has that been commoditized? Is there basically the answer or what you can infer from a question like that is. Will Teledoc ever get its mojo back? I don't know. This could take a very long time and the stock could really do nothing or even in fact, you know, decline further if there's difficulties along the way. Real quick to bring this to a framework, it depends on the situation. Is there an immediate near-term catalyst that I can see? You have to ask how badly has a company's business model been damaged by a situation and then that's the Everbridge. Then with Teledoc, is this going from a disruptor basically into a business that's been commoditized. At which point the thesis is broken. Just there's no amount of time that I'm going to wait. I'm just going to move on to the next thing. Deidre Woollard: As always, people on the program may have interest in the stocks they talk about and the motley fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Deidre Woollard. Thanks for listening. We'll see you tomorrow. Bill Barker has no position in any of the stocks mentioned. David Meier has no position in any of the stocks mentioned. Deidre Woollard has no position in any of the stocks mentioned. Mary Long has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Everbridge, Garmin, Okta, Palo Alto Networks, Salesforce, and Tesla. The Motley Fool recommends BlackBerry, Bumble, and General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investors know that the current expectations project rate cuts as early as March. The news is a major positive for the economy overall and suggests that we have avoided a recession. It affects stocks, including everything from value to growth to meme stocks. That’s where we’ll be focusing today in this article: meme stocks. Generally speaking, meme stocks are becoming more attractive because they are riskier and growth-oriented. Those kinds of firms tend to do well in lower-rate environments. However, investing is never as simple as that. So, let’s look at seven of the more prominent shares in that conversation. GameStop (GME) Source: shutterstock.com/EchoVisuals I think the outlook for GameStop (NYSE:GME) remains the same whether interest rates are high or low. I don’t think any investors should run the risk inherent in owning GameStop. The company just released earnings, which weren’t good. GameStop’s revenues were worse than expected. However, bullish Investors are taking heart in the company’s announcement that it will alter its investment strategy. The company announced that it will now invest in equities, whereas it had previously directed its cash toward primarily government securities. Investors should ignore this as a purported positive catalyst. Hardware and software sales fell by roughly $30 million during the period. GameStop continues to head in the wrong direction. The only positive for the company really was that its net loss narrowed from $94.7 million to $3.1 million during the period. However, that was only a result of the drastic decline in SG&A expenses. Even with rate cuts that promise to pull everything higher in 2024, GME stock remains one to avoid. AMC (AMC) Source: rblfmr / Shutterstock.com If you mention GameStop and its stock, you must also mention AMC (NYSE:AMC). While some meme investors will continue to remain bullish on AMC, I think it’s also wise to avoid it along with GameStop. Not much has happened since AMC last reported results in early November. Investors who remain curious about AMC should simply look at those earnings results and the company’s decisions immediately after that release. The results themselves were arguably positive. AMC generated a small profit of $12.3 million and an eight-cent EPS. Revenues increased by 45.2%, reaching $1.405 billion. Yet, AMC shares continue to move lower after the earnings report. That’s partially explicable by decisions in the immediate wake of those earnings. AMC announced an additional stock offering that further dilutes current shareholder value. Further, movie attendance is still 16% lower than it was before the pandemic. That strongly suggests that the movie theater experience is not as attractive as it formerly was, which bodes very poorly for AMC. AMD (AMD) Source: JHVEPhoto / Shutterstock.com AMD (NASDAQ:AMD) is going to continue what it does and challenge the competition for artificial intelligence market share. Pundits will continue to argue whether AMD has any realistic chance of catching its main rival, Nvidia. My advice, for what it’s worth, would be to avoid that argument and invest in both. AMD recently announced its Instinct M1 300x accelerators at an event in San Jose. The company states that the new chips surpass Nvidia’s H100 chips in many respects. AMD claims that its chips will exceed application specifications for large language models (LLMs) but at a fraction of the price. So, what should investors take away from the news? The answer is simple: AMD will continue to challenge Nvidia and its dominant position in the generative AI space and AI in general. Yes, Nvidia’s chips and its talent are very likely better overall. That doesn’t mean there isn’t much room for AMD and others to carve out significant, profitable niches within the AI boom. Tesla (TSLA) Source: Khairil Azhar Junos/Shutterstock.com Discussion about Tesla (NASDAQ:TSLA) and its stock is currently being dominated by news regarding the Cybertruck. Deliveries of the much anticipated electric truck have begun in California and Texas. The company announced that deliveries in further states are to follow in 2024. It looks like those deliveries are for the top-of-the-line ‘Cyber Beast’ version. It also appears that those deliveries cost just above $122,000. It was previously expected that the top-of-the-line Cybertruck would cost just under $100k. At the same time, investing in Tesla is really about whether to invest in the company as its profitability decreases. Tesla has slashed the prices on various models throughout 2023. The company is moving toward a model that relies heavily on volume to capture a more significant market share. I don’t think that invalidates Tesla as an investment at all. It remains a straightforward question: are there any better EV stocks? The answer is no. Nvidia (NVDA) Source: Evolf / Shutterstock.com As mentioned in my discussion of AMD, I believe in Nvidia (NASDAQ:NVDA) and its stock. It isn’t a case of choosing A or B about the discussion of AMD and Nvidia. Choose both. Nvidia has skyrocketed in 2023 because it is the leading chip manufacturer concerning the generative AI boom. The company’s H100 and A100 chips have been in high demand because they are the best. AMD’s new chips promise to challenge those chips and their dominance in data center applications. Of course, Nvidia also recently announced its h200 chips, an improvement upon its h100 chips. Those chips are expected to be commercially available sometime in the second quarter of 2024. AMD’s new chip is also expected to be commercially available around the same time. Both companies will continue to compete for market share in the sector. Nvidia h100 chips are in Greater demand, but AMD and its shares have not faltered at the same time. That means that the market understands that AMD is very much a competitor in the space. In other words, invest in both Nvidia and AMD for a chance at continued gains due to generative AI and large language models. WeWork (WEWKQ) Source: bbernard / Shutterstock WeWork (OTCMKTS:WEWKQ) is and was a poorly run company in weak stock that investors should avoid. Sometimes, you have to laugh at the statements that come out of the mouths of the company’s management. The company very recently filed for Chapter 11 bankruptcy and is currently in the process of restructuring. It has failed. It is hardly the time to make bold, arguably arrogant statements regarding its strengths. Yet CEO David Tolley Continues to refer to WeWork as the “leader in flexible work.” WeWork is a leader in the space, but it’s a space that includes very few other firms. The company took on more than 4 billion dollars in debt to develop areas for remote workers for which demand never materialized. Now, the company Is rejecting 60 of those leases to slash its debt by roughly $3 billion. The only thing we work has proven to investors is that it’s phenomenally inept. No one should believe in the company, its leaders, or its forward vision. Peloton (PTON) Source: MIA Studio / Shutterstock.com Peloton (NASDAQ:PTON) continues to deliver losses to investors. The entire purpose of a stock is to increase in value, have growing earnings, and provide value overall to investors. Peloton is not going to do that, which is why investors must avoid it. Investors need to do nothing more than look at the company’s fundamentals to understand why it is a poor investment. The company’s membership numbers continue to decline. The number of Peloton members fell by 1% quarter over quarter. While that isn’t a significant decline and suggests that the membership losses are near zero, it’s still not a reason to invest. Peloton reported a net loss of $159.4 million this quarter. Evidently, the company expanded too fast to take advantage of pandemic shutdowns and doesn’t have a sound business. There’s not much more to say about it Other than to reiterate that investing in PTON shares is a bad idea. On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing. More From InvestorPlace Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Rate Cut Reactions: 7 Meme Stocks to Buy or Sell Now appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Joby Aviation’s (NYSE:JOBY) flying taxis have achieved FAA certification for testing, and the company is now targeting commercial flights by 2025. As a top electric vertical takeoff and landing (eVTOL) aircraft maker, JOBY stock has seen its share of volatility this year. However, most of the stock’s momentum has been up and to the right, which is great news for growth investors betting on a stock that’s still relatively cheap compared to its potential. Joby’s potential stems from several recent developments worth diving into. The company successfully flew in New York and received grants from California and Dayton, Ohio. This indicates growing interest from both the private and public sectors. Governments foresee economic benefits, competing for Joby’s production sites, reminiscent of Tesla’s (NASDAQ:TSLA) gigafactories race. Indeed, if this is the next big thing, investors will want to get in early, as they did with Tesla. That’s at least a good chunk of the thesis about why this stock has recently surged. That said, the question is whether the momentum can continue into 2024. Let’s dive into why this stock could be a big winner next year and potentially in the years to come. Progressive Financial Standing At the time of writing, Joby Aviation held $4.5 billion in market capitalization, ranking in the 80th percentile in the aerospace and defense industry. With negative earnings over the last 12 months, it lacks meaningful valuation ratios to base an investment decision. Accordingly, this is a stock that investors aren’t buying for its cash flow, dividend, or earnings right now. Rather, investors look further to the company’s longer-term growth prospects and those future fundamentals. The company’s success will likely be driven by continued execution of its ongoing growth strategies. In this regard, I think Joby is a stock worth considering. Such a view is furthered by the American Association of Individual Investors’ outlook for the Aerospace and defense industry over the next 12 months. Expected growth in U.S. defense spending may boost earnings for defense businesses, but ongoing challenges in commercial aerospace could offset gains. Thus, it’s a question of which segments Joby targets and how the company positions itself for growth over time. President Biden proposed a 2% defense budget increase in April 2021; in July, the Senate Armed Services Committee voted for a 5% increase in the FY 22 defense budget. Approximately 35% of A&D revenues come from commercial aerospace, which faces challenges due to lingering low demand post-pandemic. Joby and ANA Holdings and Nomura Real Estate Partnership Joby Aviation, ANA Holdings, and Nomura Real Estate (NRE) recently announced a collaboration to develop urban air taxi services in Japan, starting with metropolitan areas like Tokyo. Joby will be a technical advisor for the Tokyo Bay eSG Project, showcasing multi-modal mobility solutions, including a floating landing port. The partnership expands gradually to include various urban areas across greater Japan. Joby and ANA HD initially joined forces in 2022, and NRE, a prominent real estate developer, joined to support the development of air taxi services. The partners work with local stakeholders to promote technology benefits and community acceptance. Joby and ANA HD are members of Japan’s Public-Private Conference for the Future Air Mobility Revolution, contributing to accelerating the adoption of aerial ridesharing. In 2022, Joby sought FAA-type certification, subsequently applying for validation from the Japan Civil Aviation Bureau. Collaborating with JCAB officials, Joby aimed to pave the way for its air taxi’s commercial launch in Japan. The electric air taxi accommodates a pilot and four passengers, achieving speeds of 200 mph while minimizing noise and emissions. Buy JOBY Stock Now Joby Aviation posted strong quarterly results, propelling its stock 24% higher, along with gains for other companies in the flying car sector. Joby achieved breakthroughs in certification and delivered the first electric air taxi to the U.S. Air Force, indicating industry progress. While investing in JOBY is speculative, it’s worth considering a small position. I believe this company could certainly provide big gains alongside some significant volatility. Of course, any financial crisis or economic calamity would not bode well for its stock, so I’d tread carefully for now. But for those with a higher-risk portion of the portfolio one is looking to dollar cost average into, this is a stock I’d put on that list right now. On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post JOBY Stock: Why Joby Aviation Could Dominate the Skies in 2024 and Beyond appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shortly before he died last month, Charlie Munger told CNBC, “My game in life was always to avoid all standard ways of failing […] I’ve avoided a lot because I’m so cautious.” Caution drove much of his investment strategy, which informed his personal stakes. It also drove his decision-making as part of Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B). Still, despite the cautious attitude, Charlie Munger gambled on a handful of moonshot stocks. Some of them paid off, while some didn’t. But remember, you often learn more from examining losers than you do winners. Charlie Munger remained transparent about those losers. That demonstrates the refreshing honesty and transparency that Munger exemplified. You can learn a lot about investing by examining how legendary investors allocate capital. Munger is decidedly one of the greats. Luckily, investors can easily find a wealth of resources, interviews, and articles where he happily details the why and how behind his decisions. These are just a few snippets from his lengthy notes and talks. Still, each offers massive insight into Charlie Munger’s stock picks. BYD Company (BYDDY) Source: shutterstock.com/JLStock It’s tough to find a stock Charlie Munger loved more than BYD Company (OTCMKTS:BYDDY) – literally. During his 2023 Daily Journal Corporation (NASDAQ:DJCO) meeting (Daily Journal is Munger’s “other” holding company), he told investors, “I would say that I’ve never helped do anything at Berkshire that was as good as BYD — and I only did it once.” But what made Munger so bullish on this electric vehicle (EV) company, especially compared to a homegrown competitor like Tesla (NASDAQ:TSLA)? Most of Munger’s sentiment comes from his focus on China as an emerging investment hub. He told investors that, specifically compared to Tesla, “We’re direct competitors. BYD is so much ahead of Tesla in China, it’s almost ridiculous.” Munger did note that, at the time of the meeting, BYD was a pricy stock trading at 50x earnings. Since then, BYD’s per-share pricing dipped substantially and currently trades at 20x earnings. Munger would probably call this stock a Buy at that valuation. If you didn’t know, note that BYDDY is an American Depository Receipt (ADR) stock. That means that it’s structured somewhat differently than standard stocks and introduces additional risk, including exchange rate and political risk. Costco (COST) Source: Shutterstock Munger would probably call Costco (NASDAQ:COST) his second favorite stock, considering his enthusiastic endorsement in the same February shareholder meeting. He called Costco “a perfect damn company [with] a marvelous future” and “a wonderful culture […] run by wonderful people.” Munger’s stake in Costco reflected his love for the stock, and he owned the second-largest individual position in the company when he died. Like his investment strategy, Munger’s thesis for Costco’s strength and durability focused on its value. In fact, he thought that – from a value perspective – Costco’s ongoing entry into eCommerce posed a threat to online retail juggernaut Amazon (NASDAQ:AMZN). Munger didn’t live to see Costco unseat the eComm giant. But the thesis holds true, particularly as strained household economics make value a core consumer buying focus. Despite stakeholder activism, Costco recognizes that fact, and the company is even stalling membership fee hikes in light of inflationary pressure. Wells Fargo (WFC) Source: shutterstock.com/marozhka studio Wells Fargo (NYSE:WFC) represented a splinter between Warren Buffet and Charlie Munger, as Berkshire Hathaway slashed (and eventually exited) its position at the same time Munger’s Daily Journal Corporation kept holding. Of course, in a 2021 Daily Journal meeting, Munger reminded shareholders that he and Buffett were allowed to have differences of opinion and exercise those opinions through investments. Munger pointed to two divergent points that fed his preference for WFC compared to Buffett: tax considerations and fallout from Wells Fargo’s 2016 cross-selling scandal. He didn’t dive deeply into his tax strategy but expounded upon his bank stock thesis. He summed up his outlook quickly, saying “I think I’m a little more lenient. I expect less out of bankers than [Buffett] does.” While that isn’t too reassuring, he did explain further by discussing how banks are tough to run, and short-term earnings emphasis can cloud executives’ judgement and impact long-term strategic vision. Since Munger made those remarks, shares in WFC nearly doubled – indicating he made the right call by holding when Buffett sold. Bank of America (BAC) Source: FabrikaSimf / Shutterstock Bank of America (NYSE:BAC) is Daily Journal’s largest holding (as of September 30th), showing that this bank stock was easily Charlie Munger’s favorite. In the 2021 meeting, he told shareholders he thinks “that a properly run bank is a great contributor to civilization.” And Bank of America is one of the paragons of well-run banks. Across the spectrum of profitable banking services – investment banking, credit cards, and retail and commercial banking – BAC stands within the top five nationally for each. Higher rates put downward pressure on BAC, as they did for all bank stocks. But Bank of America maintains a more prudent financial approach than others, keeping cash in reserve. That’s clear from their current payout ratio, just 25% of excess earnings. Alternately, look at Goldman Sachs (NYSE:GS), which allocated nearly 50% of excess earnings as dividends or stock buybacks. By comparison, they’re leaving far less in reserve to react to shifting economic winds. That conservative approach to operational management is a cornerstone of Munger’s business outlook. US Bancorp (USB) Source: Africa Studio / Shutterstock.com US Bancorp (NYSE:USB) was Munger’s fourth-largest position, one he opened in 2013 and refused to sell since. That represents another divergence from Buffett, who loved Peter Lynch’s quote, “Selling your winners and holding your losers is like cutting the flowers and watering the weeds.” Since Munger opened his USB position, shares are down slightly (about 1%) compared to the S&P 500’s whopping 210% return over the same period. But Munger was a conviction-based investor and thought USB remained a quality stock for the duration of his holding. In one interview, he (indirectly) parried Buffett’s quote by saying, “Psychologically, I don’t mind holding a company I like and admire and I trust and know that it will be stronger than now after many years.” Today, USB seems overpriced from my perspective, even as it has fallen nearly 20% over the past five years. Shares trade at 1.36x book value, whereas the industry average is slightly below 1. Would I invest in USB today? No. But I’m not Charlie Munger, nor nearly as rich. Alibaba Group (BABA) Source: zhu difeng / Shutterstock.com As I mentioned at the top, Munger loved China. Alibaba Group (NYSE:BABA) was another inroads into the rapidly emerging market. Munger was so bullish on the stock that he did something rare (for him). He used leverage to expand his position. Amid 2022’s rate hikes, he was forced to sell as part of the position became untenable. Confronted with the paradox, Munger said, “Recently, I did use a little bit of leverage here and in another place because the opportunities were so ridiculously good that I thought it was desirable to do that.” Of course, a confluence of factors forced him to halve his Alibaba position. Still, he remained bullish on Chinese stock prospects. Confronted with further concern over geopolitical and political risk, he told investors, “[the] Chinese have behaved very shrewdly in managing their economy, and they’ve gotten better results than we have in managing our economy. I think that that will probably continue.” BABA shares are down 50% over the past five years and nearly 75% from their 2021 highs. Unfortunately, it seems as though Munger might have missed the mark on this stock pick. Daily Journal Corporation (DJCO) Source: wutzkohphoto / Shutterstock If you want to invest in Munger’s strategic vision, it’s hard to beat his holding company, Daily Journal Corporation (NASDAQ:DJCO). While not a direct parallel, it’s easy to think of DJCO as a smaller sister organization to Berkshire Hathaway. Both operate similarly by buying and operating multiple subsidary businesses alongside stock positions. DJCO’s top four holdings are those Munger endorsed heartily – WFC, BAC, BABA, and USB. Shares of DJCO climbed nearly 50% over the past year. Compare that to Berkshire Hathaway, which returned 13% over the same period. For some, it seems as though Munger’s unique outlook might be better suited to today’s economic conditions than Warren Buffett’s. Despite the outperformance, shares of DJCO seem somewhat undervalued by most estimates, trading at just 2x book value and around 22x earnings. Still, valuation aside, if you want to invest in Munger’s memory, DJCO is the best way to do so. On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post In Memory of a Legend: 7 Stocks That Charlie Munger Loved appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	Below is Validea's guru fundamental report for TESLA INC (TSLA). Of the 22 guru strategies we follow, TSLA rates highest using our Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance. TESLA INC (TSLA) is a large-cap growth stock in the Auto & Truck Manufacturers industry. The rating using this strategy is 55% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: FAIL COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL INSIDER HOLDINGS: PASS CASH FLOW FROM OPERATIONS: PASS PROFIT MARGIN CONSISTENCY: PASS R&D AS A PERCENTAGE OF SALES: NEUTRAL CASH AND CASH EQUIVALENTS: PASS INVENTORY TO SALES: PASS ACCOUNTS RECEIVABLE TO SALES: PASS LONG TERM DEBT/EQUITY RATIO: PASS "THE FOOL RATIO" (P/E TO GROWTH): FAIL AVERAGE SHARES OUTSTANDING: FAIL SALES: FAIL DAILY DOLLAR VOLUME: FAIL PRICE: PASS INCOME TAX PERCENTAGE: FAIL Detailed Analysis of TESLA INC TSLA Guru Analysis TSLA Fundamental Analysis More Information on Motley Fool Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services. Additional Research Links Top NASDAQ 100 Stocks Top Technology Stocks Top Large-Cap Growth Stocks High Momentum Stocks High Insider Ownership Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	Dec 11 (Reuters) - U.S. automaker Tesla Inc TSLA.O on Monday said it has a "moral obligation" to continue improving its Autopilot driver assistant system and make it available to more consumers based on data that showed stronger safety metrics when it was engaged. In response to a Washington Post investigation of serious crashes involving Autopilot on roads where the feature could not reliably operate, the company said its data showed it was saving lives and preventing injuries. The Post report said the newspaper had identified at least eight crashes between 2016 and 2023 where Autopilot could be activated in situations it was not designed to be used, and said Tesla had taken few definitive steps to restrict its use by geography despite having the technical capability to do so. Autopilot is "intended for use on controlled-access highways" with "a center divider, clear lane markings, and no cross traffic," the Post said, adding Tesla's user manual advises drivers the technology can also falter on roads if there are hills or sharp curves. The Post said regulatory bodies like the U.S. National Highway Traffic Safety Administration (NHTSA) had not adopted rules to limit the technology to where it is meant to be used despite opening investigations into the software after identifying more than a dozen crashes in which Tesla vehicles hit stationary emergency vehicles. NHTSA did not respond immediately to a request for comment from Reuters outside normal business hours. The agency told the Post it would be too complex and resource-intensive to verify that systems like Autopilot were used within the conditions for which they are designed, and it potentially would not fix the problem. Last month, a Florida judge found "reasonable evidence" that Tesla Chief Executive Elon Musk and other managers knew the automaker's vehicles had a defective Autopilot system but still allowed the cars to be driven unsafely. The ruling came as a setback for Tesla after the company won two product liability trials in California this year over the Autopilot system. (Reporting by Jyoti Narayan in Bengaluru; Editing by Jamie Freed) ((Jyoti.Narayan@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	By David Shepardson Dec 11 (Reuters) - The United Auto Workers union said Monday it filed unfair labor practice charges against Honda Motor 7267.T, Hyundai Motor 005380.KS and Volkswagen VOWG_p.DE, citing aggressive anti-union campaigns to deter workers from organizing. The union's filings with the National Labor Relations Board and a video address Monday evening by UAW President Shawn Fain are the latest steps by the union to draw attention to its effort to organize workers at Tesla and foreign-owned U.S. auto plants. In his video address, Fain said UAW faces challenges organizing at employers that have successfully resisted the union for decades. The UAW wants to see support from 70% of a plant's workforce before pushing for an organizing vote, Fain said. Fain said he met last week with workers at Toyota Motor's 7203.T Georgetown, Ky assembly plant. The UAW president said no single company is the union's first priority. "They're all the target," he said. "We will use every tool in our tool box" to overcome company opposition to unionization efforts, Fain said. The UAW said last month it was launching a first-of-its-kind push to publicly organize the entire nonunion auto sector in the U.S. after winning new record contracts with the Detroit Three automakers. Last week, the UAW said more than 1,000 factory workers at Volkswagen's Chattanooga, Tennessee, assembly plant have signed union authorization cards, or more than 30% of workers. The UAW filed charges over actions by Honda in Indiana, Hyundai in Alabama, and Volkswagen in Tennessee. A Honda worker said management illegally told workers to remove union stickers from hats, the UAW said. Hyundai illegally polled employees about their support for the UAW and confiscated union materials and barred their distribution in non-work areas, the union charged. Honda said in a statement it "encourages our associates to engage and get information on this issue. We have not and would not interfere with our associates’ right to engage in activity supporting or opposing the UAW." Hyundai said employees in Alabama "may choose to join a union or not as is their legal right, and this has been true since our plant opened in 2005... The union’s characterization of events in its press statement do not present an accurate picture." The UAW said Volkswagen threatened and coerced employees "from exercising rights to engage in protected activity by prohibiting employees from discussing unionization during working time and restricting employees from distributing union materials." Volkswagen said on Monday it "respects our workers' right to determine who should represent their interests in the workplace... We take claims like this very seriously and will investigate accordingly." The Detroit-based UAW said last month workers at 13 nonunion automakers were announcing simultaneous campaigns across the country to join the union, including at Tesla TSLA.O, Toyota 7203.T, Volkswagen, Honda, Hyundai, Rivian RIVN.O, Nissan 7201.T, BMW BMWG.DE and Mercedes-Benz MBGn.DE. The UAW's deals with General Motors GM.N, Ford Motor F.N and Stellantis STLAM.MI included an immediate 11% pay hike and 25% increase in base wages through 2028, cuts the time needed to reach top pay to three years from eight years. Many foreign automakers have recently boosted pay and benefits in response. (Reporting by David Shepardson; Editing by Marguerita Choy, Stephen Coates and Aurora Ellis) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	By Heekyong Yang SEOUL, Dec 12 (Reuters) - Under pressure from clients eager to diversify away from China, South Korean makers of automotive batteries have pledged to develop a more affordable type of battery chemistry favoured by their Chinese rivals. But LG Energy Solution (LGES) 373220.KS, SK On and Samsung SDI 006400.KS say it will be hard to go full steam ahead with lithium iron phosphate (LFP) batteries as they can't yet compete on price, executives and company officials familiar with their business strategies said. Feeding their worries is slowing growth in electric vehicle sales and the potential for changes in U.S. subsidies should President Joe Biden lose the 2024 election, they said. The firms - which until two years ago had solely pushed nickel-based lithium-ion batteries for electric vehicles - are also reluctant to undermine their efforts to develop cheaper nickel-based batteries, the sources added. South Korean battery makers have long argued that nickel-based batteries are better due to greater energy density that provides longer driving ranges as well as being smaller and lighter. But global automakers are now pressuring them to develop LFP batteries, according to the sources. "Our automotive customers have told us: 'We would like to buy batteries from your firm - LFP batteries for our smaller cars and nickel batteries for our more premium cars'," said an executive at a major Korean battery maker. Six battery industry sources spoke to Reuters for this article. They were not authorised to speak to media and declined to be identified. The three firms said in statements to Reuters that they planned to build LFP batteries which are better than existing products, enhancing energy density and other features. Samsung SDI also said it plans to secure LFP cost competitiveness through product design and by improving processes and facilities. Automakers are not only eager to cut costs, but those looking to sell in the United States want to take advantage of electric vehicle subsidies made available under the Biden administration's Inflation Reduction Act. For example, Ford Motor F.N, which uses LFP batteries made by CATL in China in its Mustang Mach-E SUV, has said the model currently in dealer showrooms was unlikely to qualify for federal tax credits from January. At present, none of the three major South Korean suppliers - which account for nearly half of global automotive battery supply excluding the Chinese market - make LFP automotive batteries. LGES does, however, manufacture other types of LFP batteries. TALL ORDER All three firms have recently said they are accelerating LFP development. LGES and Samsung SDI are targeting mass production in 2026, while SK On says it has completed development and is in talks with customers about commencing supply. But matching their Chinese rivals in cost will be a tall order, the sources said. "While we are aware of the growing need for our own LFP battery production, we have to do it in a way that works for us and our clients, meaning we need to price LFP batteries competitively with Chinese products and we also need to make a profit," the executive at the major battery firm said. Building an LFP supply chain will take time. For a start, there are no makers of cathodes for LFP batteries in South Korea, so the three firms will have to source those cathodes from China. Chung Wonsuk, an analyst at Hi Investment & Securities, estimates any Korean-made LFP batteries would likely be 17% more expensive than Chinese products and that could jump to 40% if the batteries were produced in the U.S. due to higher labour and infrastructure costs. Over the past year, the three South Korean battery firms have announced a combined $44 billion in investments to expand production capacity - mainly in the U.S. to qualify for subsidies. Aggressively investing to build or retool plants for LFP production could be difficult in the next two to three years, the sources said, especially given slower EV sales that are partly due to a spike in auto financing costs for consumers. "We might not see blockbuster investment announcements like we have had in the past few years," said an executive at another Korean battery firm. General Motors GM.N, Ford and Tesla TSLA.O, which all source batteries from South Korean firms, have recently said they will delay EV-related spending, citing slower sales. "Recently, automaker customers have slowed their battery orders to manage their EV inventories...this is the first time the battery sector has faced such a pause since the EV renaissance of the past few years," the first executive said. Korean battery makers are also conscious that Donald Trump, the leading Republican candidate in the upcoming U.S. presidential election, plans to sharply cut EV subsidies. "Making batteries in the U.S. doesn't really generate much profit in the first place," said Cho Hyunryul, a senior analyst at Samsung Securities. "If U.S. subsidies were significantly reduced, then South Korean battery makers might consider...diverting their resources to other regions." Global auto battery market excluding China https://tmsnrt.rs/47M9ANL (Reporting by Heekyong Yang in Seoul; Additional reporting by Joe White in Detroit; Editing by Miyoung Kim and Edwina Gibbs) ((Heekyong.Yang@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	By Shristi Achar A and Johann M Cherian Dec 11 (Reuters) - Wall Street was set for a subdued open on Monday in the run-up to an action-packed week that includes the Federal Reserve'spolicy meeting and inflation data, both of which will test investor optimism about interest rates being cut next year. The upbeat sentiment around stabilizing interest rates and robust quarterly earnings caused equities to rebound towards the end of the year, with the benchmark S&P 500 .SPX within hailing distance of its highest intra-day level of the year at 4,607.07 points, earlier hit in July. The S&P 500 and Nasdaq .IXIC also notched their highest closing since early 2022 on Friday, after data showed nonfarm payrolls were higher than expected, underscoring hopes that the world's largest economy could control inflation without slipping into recession. At 8:25 a.m. ET, Dow e-minis 1YMcv1 were up 13 points, or 0.04%, S&P 500 e-minis EScv1 remained unchanged, and Nasdaq 100 e-minis NQcv1 were down 16.5 points, or 0.1%. Focus now shifts to the Consumer Price Index (CPI) data due on Tuesday, which is expected to show headline inflation remaining unchanged in November, and the Fed's last interest rate decision of the year on Wednesday. "Investors are thinking how long this advance will last and if it is the beginning of a new meaningful leg higher," said Sam Stovall, chief investment strategist at CFRA Research. "The CPI data tomorrow should confirm that the trend in inflation is downward and that the quantitative tightening is causing inflationary trends to decline, while at the same time not throwing us into recession." While money markets have almost fully priced in a rate-hike pause in the upcoming meeting, bets of a rate cut next year have been seeping in, with traders seeing a 39% chance of at least a 25-basis-point cut in March 2024 and a 71.4% chance in May, according to the CME Group's FedWatch tool. Elsewhere, the European Central Bank and the Bank of England, among others, are also scheduled to deliver their interest rate decisions later this week. Pressuring futures tracking Nasdaq, megacap stocks, including Alphabet GOOGL.O, Tesla TSLA.O and Amazon.com AMZN.O, edged lower between 0.7% and 1% before the bell. Among other major movers, Macy'sM.N soared 15.4% after an investor group consisting of Arkhouse Management and Brigade Capital made a $5.8 billion offer to take the department store chain private, according to a source familiar with the matter. Peers Kohl's KSS.N and Nordstrom JWN.N also rose about 4.5% and 4.3%, respectively. CignaCI.N jumped 13.6% after the health insurer ended its attempt to negotiate an acquisition of rival Humana HUM.N, according to sources, and announced plans to buy back $10 billion worth of shares. Crypto stocks like Riot Platforms RIOT.O, Coinbase COIN.O and Marathon Digital MARA.O slid between 3.2% and 5.3% as bitcoin BTC=BTSP fell to a week's low. (Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar; johann.mcherian@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	We are now approaching the end of 2023, and while the S&P 500 Index ($SPX) briefly entered into a correction in October, it has not only rebounded from those levels but also hit new 2023 highs recently. Specifically, growth stocks - which bore the brunt of the market crash in 2022 - have shown strength this year. As background, growth stocks tend to underperform in a rising interest rate environment, as the earnings of these companies are skewed towards the future - and these earnings become less valuable in current dollar terms when discounted at a higher rate. Meanwhile, even as the Fed continued its rate hike spree into 2023, and the yields on the 10-year Treasury hit 5% for the first time since 2007, investors still warmed up to growth stocks amid hopes that the Fed’s tightening cycle is now at its tail end. Cathie Wood of ARK Invest is among the most well-known growth-oriented fund managers, and an analysis of ARK funds can show us how growth stocks have performed in 2023. While her flagship ARK Innovation ETF (ARKK) has risen 57% so far in 2023, the Fintech Innovation ETF (ARKF) has risen 76% - both outperforming the Nasdaq Composite ($NASX) by a good margin. Growth stocks have already had a good rally in 2023, but I believe EV stocks Xpeng Motors (XPEV) and NIO (NIO) are two names that could go on to double in 2024. Here’s why. 2024 Could be a Transformational Year for Xpeng Motors This was a pivotal year for Xpeng Motors, as it launched its SEPA 2.0 platform - which it says will significantly reduce manufacturing costs. The company also launched its G6 SUV, which has received a good response and is the market leader in its category Xpeng also partnered with Volkswagen (VWAGY), which not only took a stake in the company, but the two will also jointly co-develop vehicles for the Chinese market. Under another agreement, Chinese ride-hailing app Didi took a stake in Xpeng in exchange for its self-driving business. As part of the agreement, Xpeng will launch a new electric vehicle (EV) brand under the “MONA” project - which will produce EVs priced in the ballpark of $20,000. XPEV stock topped $20 earlier this year, but now trades near $15, which is still a YTD gain of about 57%. www.barchart.com Meanwhile, 2024 could be a transformational year for Xpeng Motors for the following reasons: Market share gains: Xpeng Motors’ deliveries have exceeded 20,000 for two consecutive months, and the company’s sales should increase sharply in 2024. During the company’s Q3 2023 earnings call, CEO He Xiaopeng said, “we're ready to gain considerable market share in 2024, achieving a high growth target that is significantly above the industry average.” New Models: Xpeng Motors will start delivering its X9 MPV in January and is targeting more models based on the SEPA 2.0 platform. It is also working to launch the first model under the “MONA” brand in Q3 2024. During the Q3 2023earnings call management said that it is nearing a “milestone” on its joint development with Volkswagen soon - while adding that it also exploring international collaboration with the German auto giant. XPEV is working on several cost-cutting initiatives to lower expenses by 25% or more next year. Also, management said that X9 would be a high-margin product and its 2024 margins would be much higher than in 2023. Xpeng posted positive free cash flows in Q3, and expects its free cash flows to rise further in Q4, which is no small feat considering the perennial cash burn of its EV peers. Some Analysts Expect NIO Stock to Double in 2024 NIO bulls might be disappointed in 2023, as not only did the stock’s returns trail that of its Chinese EV peers, but the stock is still in the red and looks on track to deliver negative returns for the third consecutive year. NIO stock is quite popular among retail investors and sell-side analysts, at least two of whom expect the stock to double in 2024. Morgan Stanley analyst Tim Hsiao, for instance, has a target price of $18.70 on NIO - about 151% above current levels. Even NIO’s mean target price of $12.30 is a premium of 65% from here, while the Street-high target of $19.20 - from Citi - implies an expected upside of 157%. www.barchart.com Several factors should support a rally in NIO stock in 2024. These include: Margin expansion: NIO expects its gross margins to rise to 15% in Q4, and the margins are expected to strengthen further in 2024. It also expects vehicle margins to range between 15%-18% in 2024, compared to 11% in Q3 2023. Rise in deliveries: NIO has already launched all its current models on the NT 2.0 platform, and is next looking to launch the mass-market brand ALPS in 2024. As its deliveries rise in 2024, the stock should also see some traction. Move to self-manufacturing: NIO has acquired some manufacturing plans from JAC, but hasn’t yet divulged whether it will move to self-manufacturing. During the Q3 earnings call, the company said that if it moves everything in-house, it would lower manufacturing costs by 10%. A move to self-manufacturing now looks imminent for NIO, which should support an expansion in margins. Low valuations: Finally, in terms of valuations, NIO is probably the cheapest among quality EV plays, and trades at a next-12-month price-to-sales multiple of a mere 1.29x - which, for context, is less than a fifth of Tesla’s (TSLA). Overall, if the macro conditions remain supportive, NIO and Xpeng Motors are two growth stocks that have the potential to double from these depressed levels if they can deliver on the forecasts that they have made. On the date of publication, Mohit Oberoi had a position in: NIO , XPEV , ARKK . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	The “Magnificent Seven” or “Mag 7” stocks refer to a select group of high-performing companies known for their market dominance and robust financial health. These companies are often leaders in their respective industries, with strong brand recognition, substantial market capitalization, and consistent revenue growth. The composition of Mag 7 stocks can vary over time, reflecting changes in market trends and company performance. Investing in Mag 7 stocks comes with a set of advantages. These stocks are typically associated with stability and reliability, making them attractive to investors seeking long-term, steady growth. They often pay dividends, providing an additional income stream. However, there are disadvantages to consider. The size and established nature of these companies might limit their growth potential compared to smaller, more agile firms. High valuations of these stocks can also mean limited upside potential and greater susceptibility to market corrections. When considering Mag 7 stocks, investors should balance their portfolios with a mix of assets. While these stocks can be a safe bet for steady returns, diversification is key in managing risk. It’s also important to stay updated on market trends and individual company performance. If this still has you keen on investing in Mag 7 stocks, here are three to watch in the stock market today. Magnificent Seven Stocks To Watch Now Amazon.com Inc. (NASDAQ: AMZN) Tesla Inc. (NASDAQ: TSLA) Alphabet Inc. (NASDAQ: GOOGL) Amazon (AMZN Stock) Starting us off, Amazon.com Inc. (AMZN) is a multinational technology company primarily known for its e-commerce platform, which has transformed the retail industry. Amazon has diversified its business to include cloud computing services (AWS), digital streaming, and artificial intelligence. At the end of October, Amazon reported a beat for its third quarter 2023 financial results. Diving in, the tech giant posted a Q3 2023 earnings of $0.85 with revenue of $143.08 billion. This is compared to analysts’ consensus estimates for the third quarter which were an EPS of $0.58 and revenue estimates of $141.47 billion. Moreover, revenue increased by 12.57% versus the same period, the prior year. In the last month of trading, shares of Amazon stock have gained slightly by 1.12%. Meanwhile, during Monday morning’s trading session, AMZN stock opened lower by 2.14%, trading at $144.26 a share. [Read More] Best Dow Jones Stocks To Buy Today? 2 In Focus Tesla (TSLA Stock) Second, Tesla Inc. (TSLA) is an automotive and energy company renowned for its electric vehicles (EVs) and renewable energy products. Tesla has been a pivotal player in the push toward sustainable transportation. Beyond EVs, the company’s product line extends to battery energy storage, solar panels, and solar roof tiles, emphasizing its commitment to renewable energy technologies. Back in October, Tesla announced its Q3 2023 financial results. Diving in, the company reported earnings of $0.64 per share, on revenue of $23.35 billion for the third quarter of 2023. This is versus Wall Street’s estimates which were an EPS of $0.75, and revenue estimates of $24.26 billion. Looking at the past month of trading activity, shares of Tesla stock are up 8.19%. While, during Monday morning’s trading session, TSLA stock opened slightly red on the day so far by 0.73% at $242.07 a share. [Read More] 2 Quantum Computing Stocks To Watch In December 2023 Alphabet Inc. (GOOGL Stock) Last but not least, Alphabet Inc. (GOOGL) is the parent company of Google, a multinational conglomerate known for its dominance in Internet-related services and products. Alphabet encompasses a range of subsidiaries, including the Google search engine, YouTube, and various initiatives in areas like artificial intelligence, cloud computing, and hardware. Also in October, Alphabet reported better-than-expected third-quarter 2023 financial results. In the quarter, the company posted earnings of $1.55 per share, with revenue of $76.69 billion. Wall Street analysts had their consensus estimates at an EPS of $1.45 and revenue of $75.91 billion. Additionally, revenue advanced by 11.00% versus the same period, the previous year. In the last month of trading, Alphabet stock is trading modestly higher by 0.42%. Meanwhile, during Monday morning’s trading action, shares of GOOGL stock opened the day red by 1.70%, currently trading at $132.70 a share. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	With a trailing-10-year return of 2,560%, it goes without saying that Tesla (NASDAQ: TSLA) has been one of the best investments anyone could've made. Even this year, shares are up a whopping 98%, crushing the broader market by a wide margin. This electric vehicle (EV) stock currently trades 41% below its peak price of $410, which was established in November 2021. But some bullish investors might have their sights set on $500 per share. This lofty target would imply a more than 100% gain from today's price. Tesla's stellar past performance means that this milestone might not be out of the question, even as soon as 2024. Let's see what needs to happen for the stock to hit $500 by the end of next year. Investors want to see fundamental improvements Over the long term, a stock's returns are based on how well the underlying business is performing. In Tesla's case, throughout its history, growth has been the key driving force. Spearheading the EV movement not only in the U.S. but across the world has led to rapidly increasing sales. But things have slowed down noticeably in 2023. In the latest quarter (Q3 2023 ended Sept. 30), Tesla's revenue increased by just 9%, a far cry from the monster double-digit growth the company has typically registered. Elon Musk blames the unfavorable macroeconomic environment. Buying a new car is much less affordable when interest rates are higher. General uncertainty about what direction the economy is heading in is also weighing on consumer sentiment, especially for big-ticket items. Besides an acceleration of revenue growth, I also believe that for Tesla's stock to continue marching higher, the company will need to show some progress as it relates to profitability. And this area has taken a huge hit due to intense competition and ongoing price cuts to maintain market share. During the third quarter, Tesla posted an operating margin of 7.6%, which was less than half the 17.2% reported in the year-ago period. Margins will really need to improve throughout the course of 2024 for the stock to do well. Based on recent history, it's not easy to be optimistic about this outcome. One critical factor to keep in mind But strong revenue and earnings growth likely still won't be enough to push Tesla's shares toward $500 in the next year. The missing piece of the puzzle is to consider what will happen with the valuation. As of this writing, Tesla's stock trades at a steep price-to-earnings (P/E) ratio of 78. Some might think this is justified given the company's market share, disruptive and innovative potential, and industry-leading profitability. However, it's worth pointing out that Tesla's stock has gained 98% this year mainly due to the fact that the P/E multiple rose by 105% during the same time. In other words, investors have grown more enthusiastic about the business over the course of 2023, which is reflected in the stock price. This could be viewed as a serious headwind for prospective shareholders looking for outsized returns going forward. In my opinion, it's probably accurate not to assume that Tesla's valuation can keep rising over the next 12 months. Market sentiment is unpredictable, and for Tesla, expectations already seem to be sky high. And in an environment of higher interest rates and elevated inflation, fundamental performance really matters to shareholders. Therefore, the company will need to post incredible financial results, particularly a doubling of earnings per share between 2023 and 2024, for the stock to hit $500 by the end of next year. Due to recent trends, like a slowdown in revenue growth as well as compressing margins, I don't believe that this bullish scenario will happen. And for that reason, it's best if investors temper expectations they might have with Tesla. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	Rivian Automotive (NASDAQ: RIVN) stock has been all over the place in the last year -- as low as $11.68 per share and as high as $29.27 per share. However, Rivian currently finds itself closer to the lower end of that range and down over 5% year to date. Rivian needs to slow down its cash burn, continue its production growth, and chart a path toward profitability. Here's the effect these improvements could have on the growth stock in 2024. Image source: Getty Images. Reducing cash burn Rivian ended 2021 with $18.1 billion in cash, but just $11.6 billion by the end of 2022. As of third-quarter 2023, Rivian has $7.9 billion in cash. So, the cash burn has slowed, but it is still significant. The good news is that Rivian reduced its gross loss per unit delivered every quarter so far this year. The company said it expects to achieve positive gross profit by the end of 2024. Rivian is racing against the clock to achieve positive free cash flow so it doesn't have to rely on cash from the balance sheet to grow its business. Even though things are looking better, there's still a good chance $7.9 billion won't be enough, especially given that Rivian put off some of the capital expenditures it was expecting this year. It originally forecasted $2 billion in 2023 capex, but is now guiding for just $1.1 billion. Rivian can always turn to capital markets to raise more cash. Debt financing isn't ideal in today's high-interest-rate environment. But interest rates could come down by the time Rivian really needs the cash (probably not till 2026). Another scenario is that Rivian's valuation increases, making it more attractive to use equity to raise cash instead of debt. Either way, Rivian is doing a good job reducing its cash burn, and investors should keep a close eye on Rivian to see if it continues that trend next year. A quarter or two of unexpected cash burn won't make or break the company, because it has time before it may need more cash. Sustaining production growth Rivian is still years away from booking a positive net income. Most concerning are its sales, general, and administrative expenses and its stock-based compensation. However, the company produced 16,304 vehicles and delivered 15,564 vehicles in Q3, which is well over 1,000 vehicles per week. Here's a look at how those numbers stack up since Rivian has gone public. METRIC Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Production 16,304 13,992 9,395 10,020 7,363 4,401 2,553 1,003 Deliveries 15,564 12,640 7,946 8,054 6,584 4,467 1,227 909 Data source: Rivian. It's worth mentioning that Rivian doesn't just build R1T electric pickup trucks and R1S electric SUVs. Amazon published an article in October that said it has received at least 10,000 electric delivery vans from Rivian. Exposure to consumers and fleets differentiates Rivian from other electric vehicle companies. Given the production capacity of its existing plants and planned expansions, Rivian should be able to sustain a 50% or so annual production increase over the medium term. If it hits its goal of 54,000 vehicles produced in 2023 and grows at 50% per year, it will reach 182,250 vehicles by 2026. The company's facility in Illinois can produce 150,000 vehicles and may expand to 200,000 vehicles when needed. In October, Rivian announced plans to move forward on its 400,000-vehicle plant in Georgia, with construction beginning next year. Needless to say, manufacturing capacity shouldn't be the issue. Rather, the challenges come down to demand, competition from other manufacturers, cost management, and supply chain management. Investors should be on the lookout for around 81,000 vehicles produced in 2024. That would represent 50% growth from forecasted full-year 2023 numbers. A path toward profitability Reducing cash burn and ramping production to reduce the relative effect of fixed costs are essential if Rivian wants to become profitable one day. But reaching a positive bottom line annual number, let alone producing a profitable quarter, seems unreachable in the short term. What steadfast investors likely want to see, more than anything, is a timeline of when Rivian will reach profitability and what it would take to get there. It's all speculation at this point. But if Rivian could become profitable and free cash flow positive, and produce 400,000 vehicles or more in 2028, I would consider that a success -- especially given all the unknowns that come with medium-term forecasting. Anything before that would be a resounding success. Such a long and hazy timeline may not appeal to some investors. So the sooner Rivian can make specific profitability goals, the more confidence long-term investors can have in holding the stock through periods of volatility. Rivian stock is worth the risk Rivian entered the public markets as an extremely overvalued growth stock. Since its valuation has come down and its fundamentals have improved, it has become much more appealing as a worthwhile long-term investment. Rivian is still in that stage where it is mostly going up against itself, since it is targeting a rather niche customer base and producing a relatively small number of cars. Even if Rivian gets to 400,000 vehicles in five years, it is still not that much compared to the major automakers -- but it isn't nothing. For context, Tesla produced just over 430,000 vehicles in Q3. Rivian enters 2024 with a great deal of unknowns. But it's the kind of company that could compound in value if it plays its cards right, updates its medium-term expectations, and hits those expectations to Wall Street's liking. Given all the uncertainty, you should only consider Rivian stock if you are OK with a bumpy ride. 10 stocks we like better than Rivian Automotive When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Rivian Automotive wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 4, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Daniel Foelber has the following options: short December 2023 $17 puts on Rivian Automotive. The Motley Fool has positions in and recommends Amazon and Tesla. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Dow 0.04%, S&P 0.09%, Nasdaq 0.18% Dec 11 (Reuters) - U.S. stock index futures were muted on Monday in the run-up to an action-packed week that includes the Federal Reserve's interest rate meeting and inflation data, both of which will test investor optimism about a soft landing for the economy. The upbeat sentiment around stabilizing interest rates and robust quarterly earnings caused equities to rebound towards the end of the year, with the benchmark S&P 500 .SPX within a hailing distance of its highest intra-day level of the year at 4,607.07 points, earlier hit in July. The S&P 500 and Nasdaq .IXIC also notched their highest closing since early 2022 on Friday, after data showed non-farm payrolls were higher than expected, underscoring hopes that the world's largest economy could control inflation without slipping into recession. Focus now shifts to the Consumer Price Index (CPI) data due on Tuesday, which is expected to show headline inflation remaining unchanged in November, and the Fed's last interest rate decision of the year, due on Wednesday. While money markets have almost fully priced in a rate-hike pause in the upcoming meeting, bets of a rate cut next year have been seeping in, with traders seeing a 43.7% chance of at least a 25-basis-point cut in March 2024 and a 76.2% chance in May, according to the CME Group's FedWatch tool. However, analysts say markets have pinned their hopes on an overly optimistic scenario. "We think that the market is right not to expect a rate hike in December, but too many rate cuts are discounted next year in the market," said RBC Wealth Management's Frédérique Carrier, head of investment strategy in the British Isles. "There are some signs that the labor market might be losing steam a bit, but there isn't that weakness, which in our view, would be necessary for the Fed to be a lot more aggressive in its rate cuts." Elsewhere, the European Central Bank and the Bank of England, among others, are also scheduled to deliver their interest rate decisions later this week. Pressuring futures tracking Nasdaq, megacap stocks, including Alphabet GOOGL.O, Tesla TSLA.O and Amazon.com AMZN.O, edged lower between 0.6% and 1% before the bell. At 5:33 a.m. ET, Dow e-minis 1YMcv1 were down 13 points, or 0.04%, S&P 500 e-minis EScv1 were down 4 points, or 0.09%, and Nasdaq 100 e-minis NQcv1 were down 29.25 points, or 0.18%. Among other movers, Macy'sM.N soared 19.1% in premarket trading after an investor group consisting of Arkhouse Management and Brigade Capital made a $5.8 billion offer to take the department store chain private, according to a source familiar with the matter. Peers Kohl's KSS.N and Nordstrom JWN.N also rose about 4.5% and 6.4%, respectively. CignaCI.N jumped 12.4% after the health insurer ended its attempt to negotiate an acquisition of rival Humana HUM.N, according to sources, and announced plans to buy back $10 billion worth of shares. (Reporting by Shristi Achar A and Shashwat Chauhan in Bengaluru; Editing by Pooja Desai) ((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	TSLA	By Joseph White DETROIT, Dec 11 (Reuters) - This was the year the auto industry's race toward an all-electric future took a detour. Heading into 2023, automakers were gearing up to invest $1.2 trillion by 2030 to move electric vehicles from niche products to mass-market models - many with batteries and software developed in-house, according to a Reuters analysis. As the year closes, legacy automakers as well as Tesla TSLA.O, Rivian RIVN.O and other EV startups are throttling back investments and reworking product strategies. Legacy automakers are appealing to policymakers for more help to offset the high costs of the EV transition, on top of billions of dollars already pumped into EV subsidies. Consumer demand for EVs is growing worldwide. But EV adoption is not happening as fast or as profitably as industry executives anticipated, especially in the United States. High interest rates have pushed many EVs out of reach for middle-income consumers. Lack of charging infrastructure is a deal-breaker for buyers used to adding hundreds of miles of gasoline driving range in just a few minutes. "EVs are going to be the future of the passenger automobile business," said Jeff Parent, COO of AutoNation AN.N, the U.S. auto dealership chain. But because of consumer concerns about price and charging, he said, "the next three to four years, things are going to be bumpy." Industry CEOs are amplifying hedges on their goals of shifting to all-electric fleets by the middle of the next decade. "We’ll adjust to where the customer is," General Motors GM.N CEO Mary Barra told the Detroit Automotive Press Association earlier this month when asked if GM still aims to be all-electric by 2035. THE F-150 LIGHTNING: HIGH HOPES, THEN DISAPPOINTMENT Ford's F.N F-150 Lightning electric truck shows how bullish forecasts got corralled. Buoyed by enthusiastic early demand for the Lightning, Ford in August added a third work crew at its historic Rouge assembly complex in Dearborn, Michigan, to triple the production rate of the electric pickup truck to 150,000 vehicles a year. But in October, Ford cancelled the third shift, conceding that demand for electric F-150s was not enough to sustain the planned production pace. About 700 workers were furloughed. In China, Europe and the United States - the main EV markets - electric-vehicle demand is still growing faster than demand for vehicles overall. Global EV production is on track to triple by 2030 to 33.4 million vehicles, about a third of total production, according to AutoForecast Solutions. Much of that growth will happen in China, where government subsidies and a price war led by Chinese EV market leader BYD 002594.SZ and Tesla are making EVs more affordable than combustion vehicles, according to an analysis by JATO Dynamics. In North America, production of battery-electric vehicles could increase sixfold to nearly 7 million vehicles by 2030, according to AFS. That is equivalent to roughly 40% of the projected U.S. market - but well short of the Biden administration's goals. LOBBYING FOR RELIEF Industry executives are lobbying the Biden administration to back away from emissions rules that effectively require EVs to account for two-thirds of U.S. new-vehicle sales by 2032. Looking ahead, industry executives raise two concerns about the challenge of expanding the EV market beyond adventurous early adopters of technology: Affordability and access to charging. The slow pace of charging infrastructure development forced major legacy automakers to cut deals this year with Tesla to allow buyers of their EVs to use Tesla's Supercharger network - a competitive coup for Tesla. "The automakers' capitulation to the (Tesla) standard is a clear signal that they are realizing that demand is held back by fears on charging," said Mark Wakefield, co-leader of consultancy AlixPartners' automotive practice. "Affordability" is industry code for convincing mainstream, middle-income consumers to pay enough for an EV to cover higher production costs and still yield a profit. For most legacy automakers, that has so far proven impossible. Even Tesla, which makes money on EVs, has been forced to cut prices to keep assembly lines running at full speed in China and the United States. "If our car cost the same as a (Toyota 7203.T) RAV4, no one would buy a RAV4, or, at least, they would be very unlikely to," Tesla CEO Elon Musk told analysts in October. “Our car is still much more expensive than a RAV4." RAV4 models start at $28,475. Model Y's start at $43,990, and until Dec. 31 come with $7,500 tax credits. Tesla has warned those credits could be reduced as tougher domestic content rules kick in. Ford shares fall after pulling full-year forecast, wider losses in EV unit FACTBOX-More automakers plug into Tesla's EV charging network Tesla joins GM, Ford in slowing EV factory ramp as demand fears spread (Reporting by Joe White in Detroit Editing by Matthew Lewis) ((Joe.White@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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