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  • E-bike lithium battery investigated as cause of 5-alarm Bronx blaze, fire department says | CNN

    E-bike lithium battery investigated as cause of 5-alarm Bronx blaze, fire department says | CNN

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    CNN
     — 

    At least seven people have been injured in a five-alarm fire in the Bronx neighborhood of New York City thought to have been caused by a lithium-ion battery, according to fire officials.

    A civilian and an emergency services worker were seriously injured, and five firefighters received minor injuries, the New York Fire Department told CNN Sunday.

    Almost 200 firefighters have been fighting the fire, which started in the roof of the rear part of a single-level commercial building on Grand Concourse and 181st Street, according to the New York Police Department.

    FDNY Commissioner Laura Kavanagh told reporters at the scene Sunday the cause of the fire was a lithium-ion battery, which powered a scooter.

    “In all of these fires, these lithium-ion fires, it is not a slow burn there’s not a small amount of fire, it literally explodes,” Kavanagh said. “It’s a tremendous volume of fire as soon as it happens, and it’s very difficult to extinguish and so it’s particularly dangerous.”

    Kavanagh said firefighters arrived at the fire around 10.41 a.m., under four minutes after the first call. All seven of those injured in the blaze are considered stable, she said.

    “We have been able to not have a loss of life today, but there is extraordinary damage. This entire building behind me is completely destroyed,” Kavanagh said. “The roof is caved in, there’s nothing left, and it is all because of this one single bike.”

    The commissioner said more investigation needed into why the bike burst into flames. She said it may have been using an illegal battery.

    The scooter was parked inside the rear part of a grocery store. Officials said it’s not yet known who owns the bike.

    The fire department tweeted video of the fire igniting. The footage appears to be taken from a security camera and shows someone responding to the blaze and shifting the scooter before the flames intensified.

    New York City Mayor Eric Adams told Sunday’s news conference: “Our real push is to inform the public that something as simple and seen as recreational can be extremely dangerous and can take the lives of innocent people. This is a real problem we are having in the city.”

    Adams added, “A simple battery operated scooter like this, people are leaving in their homes, they’re leaving in their place of businesses, they’re leaving in their restaurants, they leave it parked for the most part in places that really they should not be parked in.”

    “The video is chilling, when you see how fast this fire started and spread, it’s just really going to give you a point of pause,” Adams said. He advised the public to only use legal lithium-ion batteries and to not place lithium-ion battery devices inside the home.

    Fire officials said the blaze has been mostly extinguished but “pockets of fire” remain. Firefighters will stay on site through the night to make sure the fire doesn’t escalate.

    On Friday, Kavanagh said there had been more than 400 fires caused by lithium-ion batteries in New York City in the past four years.

    In an opinion piece for a local website, Kavanagh said: “These fires start quickly, grow rapidly, offer little time to escape, consume everything in their path, and are very difficult to extinguish.”

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  • Fact check: Republicans at CPAC make false claims about Biden, Zelensky, the FBI and children | CNN Politics

    Fact check: Republicans at CPAC make false claims about Biden, Zelensky, the FBI and children | CNN Politics

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    Washington
    CNN
     — 

    The Conservative Political Action Conference is underway in Maryland. And the members of Congress, former government officials and conservative personalities who spoke at the conference on Thursday and Friday made false claims about a variety of topics.

    Rep. Jim Jordan of Ohio uttered two false claims about President Joe Biden. Rep. Marjorie Taylor Greene of Georgia repeated a debunked claim about Ukrainian President Volodymyr Zelensky. Sen. Tommy Tuberville of Alabama used two inaccurate statistics as he lamented the state of the country. Former Trump White House official Steve Bannon repeated his regular lie about the 2020 election having been stolen from Trump, this time baselesly blaming Fox for Trump’s defeat.

    Rep. Kat Cammack of Florida incorrectly said a former Obama administration official had encouraged people to harass Supreme Court Justice Brett Kavanaugh. Rep. Ralph Norman of South Carolina inaccurately claimed Biden had laughed at a grieving mother and inaccurately insinuated that the FBI tipped off the media to its search of former President Donald Trump’s Florida residence. Two other speakers, Rep. Scott Perry of Pennsylvania and former Trump administration official Sebastian Gorka, inflated the number of deaths from fentanyl.

    And that’s not all. Here is a fact check of 13 false claims from the conference, which continues on Saturday.

    Marjorie Taylor Greene said the Republican Party has a duty to protect children. Listing supposed threats to children, she said, “Now whether it’s like Zelensky saying he wants our sons and daughters to go die in Ukraine…” Later in her speech, she said, “I will look at a camera and directly tell Zelensky: you’d better leave your hands off of our sons and daughters, because they’re not dying over there.”

    Facts First: Greene’s claim is false. Ukrainian President Volodymyr Zelensky didn’t say he wants American sons and daughters to fight or die for Ukraine. The false claim, which was debunked by CNN and others earlier in the week, is based on a viral video that clipped Zelensky’s comments out of context.

    19-second video of Zelensky goes viral. See what was edited out

    In reality, Zelensky predicted at a press conference in late February that if Ukraine loses the war against Russia because it does not receive sufficient support from elsewhere, Russia will proceed to enter North Atlantic Treaty Organization member countries in the Baltics (a region made up of Latvia, Lithuania and Estonia) that the US will be obligated to send troops to defend. Under the treaty that governs NATO, an attack on one member is considered an attack on all. Ukraine is not a NATO member, and Zelensky didn’t say Americans should fight there.

    Greene is one of the people who shared the out-of-context video on Twitter this week. You can read a full fact-check, with Zelensky’s complete quote, here.

    Right-wing commentator and former Trump White House chief strategist Steve Bannon criticized right-wing cable channel Fox at length for, he argued, being insufficiently supportive of Trump’s 2024 presidential campaign. Among other things, Bannon claimed that, on the night of the election in November 2020, “Fox News illegitimately called it for the opposition and not Donald J. Trump, of which our nation has never recovered.” Later, he said Trump is running again after “having it stolen, in broad daylight, of which they [Fox] participate in.”

    Facts First: This is nonsense. On election night in 2020, Fox accurately projected that Biden had won the state of Arizona. This projection did not change the outcome of the election; all of the votes are counted regardless of what media outlets have projected, and the counting showed that Biden won Arizona, and the election, fair and square. The 2020 election was not “stolen” from Trump.

    NATIONAL HARBOR, MARYLAND - MARCH 03: Former White House chief strategist for the Trump Administration Steve Bannon speaks during the annual Conservative Political Action Conference (CPAC) at the Gaylord National Resort Hotel And Convention Center on March 03, 2023 in National Harbor, Maryland. The annual conservative conference entered its second day of speakers including congressional members, media personalities and members of former President Donald Trump's administration. President Donald Trump will address the event on Saturday.  (Photo by Anna Moneymaker/Getty Images)

    Bannon has a harsh message for Fox News at CPAC

    Fox, like other major media outlets, did not project that Biden had won the presidency until four days later. Fox personalities went on to repeatedly promote lies that the election was stolen from Trump – even as they privately dismissed and mocked these false claims, according to court filings from a voting technology company that is suing Fox for defamation.

    Rep. Jim Jordan claimed that Biden, “on day one,” made “three key changes” to immigration policy. Jordan said one of those changes was this: “We’re not going to deport anyone who come.” He proceeded to argue that people knowing “we’re not going to get deported” was a reason they decided to migrate to the US under Biden.

    Facts First: Jordan inaccurately described the 100-day deportation pause that Biden attempted to impose immediately after he took office on January 20, 2021. The policy did not say the US wouldn’t deport “anyone who comes.” It explicitly did not apply to anyone who arrived in the country after the end of October 2020, meaning people who arrived under the Biden administration or in the last months of the Trump administration could still be deported.

    Biden did say during the 2020 Democratic primary that “no one, no one will be deported at all” in his first 100 days as president. But Jordan claimed that this was the policy Biden actually implemented on his first day in office; Biden’s actual first-day policy was considerably narrower.

    Biden’s attempted 100-day pause also did not apply to people who engaged in or were suspected of terrorism or espionage, were seen to pose a national security risk, had waived their right to remain in the US, or whom the acting director of Immigration and Customs Enforcement determined the law required to be removed.

    The pause was supposed to be in effect while the Department of Homeland Security conducted a review of immigration enforcement practices, but it was blocked by a federal judge shortly after it was announced.

    Rep. Ralph Norman strongly suggested the FBI had tipped off the media to its August search of Trump’s Mar-a-Lago home and resort in Florida for government documents in the former president’s possession – while concealing its subsequent document searches of properties connected to Biden.

    Norman said: “When I saw the raid at Mar-a-Lago – you know, the cameras, the FBI – and compare that to when they found Biden’s, all of the documents he had, where was the media, where was the FBI? They kept it quiet early on, didn’t let it out. The job of the next president is going to be getting rid of the insiders that are undermining this government, and you’ve gotta clean house.”

    Facts First: Norman’s narrative is false. The FBI did not tip off the media to its search of Mar-a-Lago; CNN reported the next day that the search “happened so quietly, so secretly, that it wasn’t caught on camera at all.” Rather, media outlets belatedly sent cameras to Mar-a-Lago because Peter Schorsch, publisher of the website Florida Politics, learned of the search from non-FBI sources and tweeted about it either after it was over or as it was just concluding, and because Trump himself made a public statement less than 20 minutes later confirming that a search had occurred. Schorsch told CNN on Thursday: “I can, unequivocally, state that the FBI was not one of my two sources which alerted me to the raid.”

    Brian Stelter, then CNN’s chief media correspondent, wrote in his article the day after the search: “By the time local TV news cameras showed up outside the club, there was almost nothing to see. Websites used file photos of the Florida resort since there were no dramatic shots of the search.”

    It’s true that the public didn’t find out until late January about the FBI’s November search of Biden’s former think tank office in Washington, which was conducted with the consent of Biden’s legal team. But the belated presence of journalists at Mar-a-Lago on the day of the Trump search in August is not evidence of a double standard.

    And it’s worth noting that media cameras were on the scene when Biden’s beach home in Delaware was searched by the FBI in February. News outlets had set up a media “pool” to make sure any search there was recorded.

    Sen. Tommy Tuberville, a former college and high school football coach, said, “Going into thousands of kids’ homes and talking to parents every year recruiting, half the kids in this country – I’m not talking about race, I’m just talking about – half the kids in this country have one or no parent. And it’s because of the attack on faith. People are losing faith because, for some reason, because the attack [on] God.”

    Facts First: Tuberville’s claim that half of American children don’t have two parents is incorrect. Official figures from the Census Bureau show that, in 2021, about 70% of US children under the age of 18 lived with two parents and about 65% lived with two married parents.

    About 22% of children lived with only a mother, about 5% with only a father, and about 3% with no parent. But the Census Bureau has explained that even children who are listed as living with only one parent may have a second parent; children are listed as living with only one parent if, for example, one parent is deployed overseas with the military or if their divorced parents share custody of them.

    It is true that the percentage of US children living in households with two parents has been declining for decades. Still, Tuberville’s statistic significantly exaggerated the current situation. His spokesperson told CNN on Thursday that the senator was speaking “anecdotally” from his personal experience meeting with families as a football coach.

    Tuberville claimed that today’s children are being “indoctrinated” in schools by “woke” ideology and critical race theory. He then said, “We don’t teach reading, writing and arithmetic anymore. You know, half the kids in this country, when they graduate – think about this: half the kids in this country, when they graduate, can’t read their diploma.”

    Facts First: This is false. While many Americans do struggle with reading, there is no basis for the claim that “half” of high school graduates can’t read a basic document like a diploma. “Mr. Tuberville does not know what he’s talking about at all,” said Patricia Edwards, a Michigan State University professor of language and literacy who is a past president of the International Literacy Association and the Literacy Research Association. Edwards said there is “no evidence” to support Tuberville’s claim. She also said that people who can’t read at all are highly unlikely to finish high school and that “sometimes politicians embellish information.”

    Tuberville could have accurately said that a significant number of American teenagers and adults have reading trouble, though there is no apparent basis for connecting these struggles with supposed “woke” indoctrination. The organization ProLiteracy pointed CNN to 2017 data that found 23% of Americans age 16 to 65 have “low” literacy skills in English. That’s not “half,” as ProLiteracy pointed out, and it includes people who didn’t graduate from high school and people who are able to read basic text but struggle with more complex literacy tasks.

    The Tuberville spokesperson said the senator was speaking informally after having been briefed on other statistics about Americans’ struggles with reading, like a report that half of adults can’t read a book written at an eighth-grade level.

    Rep. Jim Jordan claimed of Biden: “The president of the United States stood in front of Independence Hall, called half the country fascists.”

    Facts First: This is not true. Biden did not denounce even close to “half the country” in this 2022 speech at Independence Hall in Philadelphia. He made clear that he was speaking about a minority of Republicans.

    In the speech, in which he never used the word “fascists,” Biden warned that “MAGA Republicans” like Trump are “extreme,” “do not respect the Constitution” and “do not believe in the rule of law.” But he also emphasized that “not every Republican, not even the majority of Republicans, are MAGA Republicans.” In other words, he made clear that he was talking about far less than half of Americans.

    Trump earned fewer than 75 million votes in 2020 in a country of more than 258 million adults, so even a hypothetical criticism of every single Trump voter would not amount to criticism of “half the country.”

    Rep. Scott Perry claimed that “average citizens need to just at some point be willing to acknowledge and accept that every single facet of the federal government is weaponized against every single one of us.” Perry said moments later, “The government doesn’t have the right to tell you that you can’t buy a gas stove but that you must buy an electric vehicle.”

    Facts First: This is nonsense. The federal government has not told people that they can’t buy a gas stove or must buy an electric vehicle.

    The Biden administration has tried to encourage and incentivize the adoption of electric vehicles, but it has not tried to forbid the manufacture or purchase of traditional vehicles with internal combustion engines. Biden has set a goal of electric vehicles making up half of all new vehicles sold in the US by 2030.

    There was a January controversy about a Biden appointee to the United States Consumer Product Safety Commission, Richard Trumka Jr., saying that gas stoves pose a “hidden hazard,” as they emit air pollutants, and that “any option is on the table. Products that can’t be made safe can be banned.” But the commission as a whole has not shown support for a ban, and White House press secretary Karine Jean-Pierre said at a January press briefing: “The president does not support banning gas stoves. And the Consumer Product Safety Commission, which is independent, is not banning gas stoves.”

    Rep. Ralph Norman claimed that Biden had just laughed at a mother who lost two sons to fentanyl.

    “I don’t know whether y’all saw, I just saw it this morning: Biden laughing at the mother who had two sons – to die, and he’s basically laughing and saying the fentanyl came from the previous administration. Who cares where it came from? The fact is it’s here,” Norman said.

    Facts First: Norman’s claim is false. Biden did not laugh at the mother who lost her sons to fentanyl, the anti-abortion activist Rebecca Kiessling; in a somber tone, he called her “a poor mother who lost two kids to fentanyl.” Rather, he proceeded to laugh about how Republican Rep. Marjorie Taylor Greene had baselessly blamed the Biden administration for the young men’s deaths even though the tragedy happened in mid-2020, during the Trump administration. You can watch the video of Biden’s remarks here.

    Kiessling has demanded an apology from Biden. She is entitled to her criticism of Biden’s remarks and his chuckle – but the video clearly shows Norman was wrong when he claimed Biden was “laughing at the mother.”

    Rep. Kat Cammack told a story about the first hearing of the new Republican-led House select subcommittee on the supposed “weaponization” of the federal government. Cammack claimed she had asked a Democratic witness at this February hearing about his “incredibly vitriolic” Twitter feed in which, she claimed, he not only repeatedly criticized Supreme Court Justice Brett Kavanaugh but even went “so far as to encourage people to harass this Supreme Court justice.”

    Facts First: This story is false. The witness Cammack questioned in this February exchange at the subcommittee, former Obama administration deputy assistant attorney general Elliot Williams, did not encourage people to harass Kavanaugh. In fact, it’s not even true that Cammack accused him at the February hearing of having encouraged people to harass Kavanaugh. Rather, at the hearing, she merely claimed that Williams had tweeted numerous critical tweets about Kavanaugh but had been “unusually quiet” on Twitter after an alleged assassination attempt against the justice. Clearly, not tweeting about the incident is not the same thing as encouraging harassment.

    Williams, now a CNN legal analyst (he appeared at the subcommittee hearing in his personal capacity), said in a Thursday email that he had “no idea” what Cammack was looking at on his innocuous Twitter feed. He said: “I used to prosecute violent crimes, and clerked for two federal judges. Any suggestion that I’ve ever encouraged harassment of anyone – and particularly any official of the United States – is insulting and not based in reality.”

    Cammack’s spokesperson responded helpfully on Thursday to CNN’s initial queries about the story Cammack told at CPAC, explaining that she was referring to her February exchange with Williams. But the spokesperson stopped responding after CNN asked if Cammack was accurately describing this exchange with Williams and if they had any evidence of Williams actually having encouraged the harassment of Kavanaugh.

    Sen. John Kennedy of Louisiana boasted about the state of the country “when Republicans were in charge.” Among other claims about Trump’s tenure, he said that “in four years,” Republicans “delivered 3.5% unemployment” and “created 8 million new jobs.”

    Facts First: This is inaccurate in two ways. First, the economic numbers for the full “four years” of Trump’s tenure are much worse than these numbers Kennedy cited; Kennedy was actually referring to Trump’s first three years while ignoring the fourth, which was marred by the Covid-19 pandemic. Second, there weren’t “8 million new jobs” created even in Trump’s first three years.

    Kennedy could have correctly said there was a 3.5% unemployment rate after three years of the Trump administration, but not after four. The unemployment rate skyrocketed early in Trump’s fourth year, on account of the pandemic, before coming down again, and it was 6.3% when Trump left office in early 2021. (It fell to 3.4% this January under Biden, better than in any month under Trump.)

    And while the economy added about 6.7 million jobs under Trump before the pandemic-related crash of March and April 2020, that’s not the “8 million jobs” Kennedy claimed – and the economy ended up shedding millions of jobs in Trump’s fourth year. Over the full four years of Trump’s tenure, the economy netted a loss of about 2.7 million jobs.

    Lara Trump, Donald Trump’s daughter-in-law and an adviser to his 2020 campaign, claimed that the last time a CPAC crowd was gathered at this venue in Maryland, in February 2020, “We had the lowest unemployment in American history.” After making other boasts about Donald Trump’s presidency, she said, “But how quickly it all changed.” She added, “Under Joe Biden, America is crumbling.”

    Facts First: Lara Trump’s claim about February 2020 having “the lowest unemployment in American history” is false. The unemployment rate was 3.5% at the time – tied for the lowest since 1969, but not the all-time lowest on record, which was 2.5% in 1953. And while Lara Trump didn’t make an explicit claim about unemployment under Biden, it’s not true that things are worse today on this measure; again, the most recent unemployment rate, 3.4% for January 2023, is better than the rate at the time of CPAC’s 2020 conference or at any other time during Donald Trump’s presidency.

    Multiple speakers at CPAC decried the high number of fentanyl overdose deaths. But some of the speakers inflated that number while attacking Biden’s immigration policy.

    Sebastian Gorka, a former Trump administration official, claimed that “in the last 12 months in America, deaths by fentanyl poisoning totaled 110,000 Americans.” He blamed “Biden’s open border” for these deaths.

    Rep. Scott Perry claimed: “Meanwhile over on this side of the border, where there isn’t anybody, they’re running this fentanyl in; it’s killing 100,000 Americans – over 100,000 Americans – a year.”

    Facts First: It’s not true that there are more than 100,000 fentanyl deaths per year. That is the total number of deaths from all drug overdoses in the US; there were 106,699 such deaths in 2021. But the number of overdose deaths involving synthetic opioids other than methadone, primarily fentanyl, is smaller – 70,601 in 2021.

    Fentanyl-related overdoses are clearly a major problem for the country and by far the biggest single contributor to the broader overdose problem. Nonetheless, claims of “110,000” and “over 100,000” fentanyl deaths per year are significant exaggerations. And while the number of overdose deaths and fentanyl-related deaths increased under Biden in 2021, it was also troubling under Trump in 2020 – 91,799 total overdose deaths and 56,516 for synthetic opioids other than methadone.

    It’s also worth noting that fentanyl is largely smuggled in by US citizens through legal ports of entry rather than by migrants sneaking past other parts of the border. Contrary to frequent Republican claims, the border is not “open”; border officers have seized thousands of pounds of fentanyl under Biden.

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  • Tesla’s Plans to Save Money Are Trouble for These Stocks

    Tesla’s Plans to Save Money Are Trouble for These Stocks

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    Tesla


    had bad news for producers of EV raw materials as it offered investors a look at its plans in a widely anticipated three-and-a-half hour presentation on Wednesday evening.

    Shares of the rare-earth producer


    MP Materials


    (ticker: MP) were down 11.2% in premarket trading Thursday, while stocks of companies that make semiconductors using silicon carbide took a hit as well. Futures on the


    S&P 500


    future were down 0.5%.


    Dow Jones Industrial Average


    futures gained 0.3%.

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  • Tesla’s Investor Event Is Coming. What Can Move the Stock.

    Tesla’s Investor Event Is Coming. What Can Move the Stock.

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    Tesla


    needs a lower-priced car. And the sooner the better.

    The electric-vehicle pioneer’s 2023 investor event is coming up on March 1. It’s a chance for investors to hear from CEO Elon Musk about the company’s strategy and future. This year, as EV competition ramps up, one issue looms larger than others.

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  • White House to announce Tesla will open part of its charging network in effort to expand EV access | CNN Politics

    White House to announce Tesla will open part of its charging network in effort to expand EV access | CNN Politics

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    CNN
     — 

    The Biden administration is announcing new steps Wednesday to expand the nation’s electric vehicle infrastructure, including a new partnership with Tesla that would see the electric vehicle manufacturer open a portion of its charging network to non-Tesla EVs for the first time.

    According to a fact sheet shared with CNN, Wednesday’s announcements are part of the administration’s goal to build out a nationwide EV charging network of 500,000 chargers along America’s highways while building towards their goal ensuring 50% of new car sales are EVs by 2030. As part of that goal, the administration is announcing Tesla will open at least 7,500 chargers of its EV charging network to all electric vehicles, including 3,500 new and existing 250 kW Superchargers along highway corridors.

    Per White House Infrastructure Coordinator Mitch Landrieu, the news is the product of “many, many months” of work between the Biden administration and EV manufacturers, including Tesla CEO Elon Musk, who Landrieu said was “very open [and] very constructive,” in meetings with the administration on expanding EV access.

    Last month, Reuters reported that Musk met with top White House officials in Washington to discuss expanding EV production and charging networks – a meeting the Tesla and Twitter CEO later confirmed via tweet.

    But while Biden and Musk have both taken a staunchly pro-EV stance, the two have clashed over Musk’s anti-union stance at his Tesla factories, while Musk’s tenure as CEO of Twitter has seen the tech magnate amplify right-wing talking points on a host of issues.

    Also included in Wednesday’s announcement is new funding, including $2.5 billion over five years from the Federal Highway Administration and $7.4 million across seven projects from the Department of Energy to expand publicly accessible electric vehicle charging networks for millions of Americans.

    Per the administration, to qualify for federal funding under Wednesday’s announcement, Combined Charging System (CCS) capable vehicles must be able to charge at federally funded charging ports – something Tesla has developed hardware and software solutions to accommodate.

    And the administration is linking with additional partners like car rental company Hertz and BP gas stations to bring EV fast charging infrastructure to locations across America, including major cities such as Atlanta, Austin, Boston, Chicago, Denver, Houston, Miami, New York City, Orlando, Phoenix, San Francisco and Washington, DC.

    “These recent and new commitments will make more public charges available for all EVs,” Landrieu told reporters on a call Wednesday.

    “With announcements like today’s and the overall growth we’re seeing, it’s clear that this administration is making incredible progress towards building our election future. In fact, since the president took office, EV sales have tripled – the number of publicly available charging ports has grown by over 40%, and there are currently more than 3 million EVs on the road and 130,000 public charges across the country. But our work is far from over and our progress will continue as long as we keep working hand in hand with our partners across federal state and local governments and the private sector.”

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  • Lucid Offers $7,500 ‘EV Credit’ and the Stock Drops. It’s No Longer Beating Tesla Shares.

    Lucid Offers $7,500 ‘EV Credit’ and the Stock Drops. It’s No Longer Beating Tesla Shares.

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    Electric vehicle maker


    Lucid


    was shut out of the government’s new purchase tax credits for consumers buying an EV. The company decided to do something about that.

    Investors aren’t so sure they like it. They are taking some profits after a run that had


    Lucid


    (ticker:LCID) stock outperforming


    Tesla


    (TSLA) shares.

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  • Barron’s Stock Picks Had a Good Week. Tesla and Generac Outperformed.

    Barron’s Stock Picks Had a Good Week. Tesla and Generac Outperformed.

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    Tesla shares surged 22% in the past week, making it one of the top performers in a portfolio of stocks recommended by Barron’s.


    Eric Thayer/Bloomberg

    A portfolio of stocks picked by Barron’s has enjoyed a rally in the past week, as the market anticipates the end of the Federal Reserve’s interest rate hikes. A buoyant performance from the auto industry also juiced the portfolio.

    The entire stock market has enjoyed a gain in the past week. The S&P 500 is up about 3% in that span, including a pop in the last couple of days. Wednesday, the Fed announced a small interest rate hike, but markets interpreted Chairman Jerome Powell’s comments to mean that the end of rate increases is coming soon.

    The rally has helped the average stock in the Barron’s portfolio post a 3.8% gain in the past week. The measure differs from a value-weighted index like the S&P 500, where stocks with bigger market capitalizations have bigger effects on the index.

    Almost three quarters of 86 stocks in the Barron’s portfolio are up in the past week, with some of the winners posting mammoth gains. Top performers include
    Generac
    (GNRC),
    PoolCorp
    (POOL) and
    Olaplex
    (OLPX), which gained 15%, 14% and 19%, respectively in the past week.

    Some stocks posted even larger gains.

    Tesla
    (TSLA) gained 22% since last Thursday’s close. In its fourth quarter of 2022 reported on Jan. 25, sales of $24.3 billion beat expectations for $24 billion, while earnings per share of $1.19 came in above estimates of $1.12. Wall Street is confident that, even with the company lowering prices as consumers feel the pain of higher rates, Tesla can keep boosting sales and profit growth. Analysts expect vehicle deliveries to grow 40% from a year earlier to almost 1.85 million in 2023, better than the 31% growth seen in the reported quarter.

    “The key debates from here will be on whether vehicle deliveries can reaccelerate (we expect that they will especially starting in 2Q23),” writes
    Goldman Sachs
    analyst Mark Delaney.

    Barron’s recommended Tesla stock on Jan. 6, arguing that the the worst of the company’s challenges—including delivery growth—are behind it. The stock is up 67% since then.

    Lithia Motors
    (LAD), a $7 billion by market capitalization auto dealer, has seen its stock rise 23% in the past week. It reports fourth-quarter earnings Feb 15, but the stock has risen as the picture for auto sales has improved. Tesla’s quarterly performance helped, but so did General Motors‘ (GM). The automating giant reported better-than-expected sales and EPS and said on its earnings call that 2023 will be a “strong year,” one in which analysts expect sales growth.

    Barron’s recommended Lithia Motors in April 2022, arguing that the stock was cheap and that production constraints that held sales back would soon be a thing of the past. Since then, the stock is up about 4%.

    Lucid Group
    (LCID), a $20 billion electric vehicle and battery maker, is up 39% since last Thursday. Earnings are Feb. 22, but strong auto trends already have helped. Lucid, too, is expected to lower prices and aggressively grow deliveries. The stock got a pop late in January on speculation that Saudi Arabia’s Public Investment Fund could buy the rest of the company. The fund recently invested $1.5 billion and holds just over 60% of the company.

    Unfortunately, Barron’s recommended shorting the stock in November, and it is up 17% since then.

    Write to Jacob Sonenshine at jacob.sonenshine@barrons.com

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  • These 20 stocks led the January rally

    These 20 stocks led the January rally

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    The initial version of this story had incorrect price changes for 2023. It is now updated with information as of the market close on Jan. 31.

    Investors staged a January rally, with solid gains for the S&P 500 and an even better showing for technology stocks that led the dismal downward action in 2022.

    This…

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  • Tesla posts record quarterly profit amid challenges, offers sunny outlook

    Tesla posts record quarterly profit amid challenges, offers sunny outlook

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    Tesla Inc. late Wednesday reported mixed quarterly results, with revenue slightly below Wall Street expectations, but injected some optimism in its production outlook for 2023 and promised to rein in costs faster.

    Demand is not a problem, Chief Executive Elon Musk said in a call with analysts after results. “I want to put that concern to rest,” he said, adding that January orders are stronger than ever, and demand far outstrips Tesla’s rate of production.

    “We…

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  • Elon Musk says ‘funding secured’ tweets were a way to ‘do the right thing’

    Elon Musk says ‘funding secured’ tweets were a way to ‘do the right thing’

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    Tesla Inc. Chief Executive Elon Musk on Tuesday told a San Francisco jury that “funding secured” and other tweets he fired off as he considered taking the EV maker private were a way to “do the right thing.”

    Musk was in his third day of testimony in a federal trial over alleged investor losses caused by the tweets.

    The billionaire said he…

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  • Elon Musk tells court Saudi Arabia wanted to take Tesla private; $420 ‘not a joke’

    Elon Musk tells court Saudi Arabia wanted to take Tesla private; $420 ‘not a joke’

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    Elon Musk testified Monday he believed he had funding secured to take Tesla Inc. private, both from a Saudi Arabia investment fund and from his stake in SpaceX.

    The Tesla chief executive resumed testimony in a federal trial in San Francisco over investor losses allegedly caused by tweets he fired off in 2018, including his “funding secured” tweet.

    Representatives of Saudi Arabia’s investment fund “were unequivocal about moving forward,” Musk said. He also mentioned his large stake in privately held aerospace company SpaceX, and that “alone meant funding was secured.”

    Tesla
    TSLA,
    +8.48%

    stock added to gains as Musk’s testimony got underway, and at last check was up nearly 8% and far outperforming the broader equity indexes.

    The stock traded as high as $143.50, its highest intraday since Dec. 20, and was on pace to close at its best since that date.

    The CEO told the court that the $420-a-share price on the deal “was a coincidence” as it was roughly a 20% premium over Tesla’s stock price at the time, and “not a joke.”

    In certain circles, the number 420 refers to marijuana use.

    Lead defense lawyer Nicholas Porritt also asked several questions that led Musk to say he hadn’t talked to major Tesla shareholders such as Baillie Gifford and T. Rowe Price about possibly taking Tesla private. Musk also said he couldn’t recall specifics around speaking with the board about the plan.

    Firing off the now famous “funding secured” was a way to stay ahead of a soon-to-be-run Financial Times story about the Saudi fund taking a large stake at Tesla and as a way to keep all Tesla investors informed, Musk said. Moreover, he tweeted that he was “considering” the move, “not saying that it would be done,” Musk told the court.

    Musk gave brief testimony Friday before the court adjourned for the day, taking pains to make clear that his tweets are not always taken to the letter. The trial started last week and it is expected to go into February.

    “Just because I tweet something, it does not mean people believe it, or act accordingly,” Musk said on Friday to a defense attorney.

    The trial revolves around Musk’s tweets from August 2018, including one where he told his millions of Twitter followers he was “considering taking Tesla private at $420” and then added “funding secured.” The plan later fizzled out.

    Investor Glen Littleton, the lead plaintiff in the case, alleges he lost money due to the false tweets and is seeking damages.

    U.S. District Judge Edward Chen already has ruled that Musk’s tweets about taking Tesla private were not true and that Musk acted with recklessness.

    It is still up to jurors to decide, however, if the tweets were material to investors and if the falsehoods caused investor losses.

    The CEO and Tesla each were fined $20 million in September 2018 to settle civil charges around the “funding secured” tweets and Musk was stripped of his chairman role at Tesla.

    Musk and Tesla agreed to settle the charges against them without admitting to nor denying the SEC’s allegations.

    Musk’s bid to end the SEC settlement deal over the Tesla tweets was denied last year.

    Tesla shares have lost 55% in the past 12 months, compared with losses of around 9% for the S&P 500 index.
    SPX,
    +1.58%

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  • Earnings Watch: Microsoft, Tesla and Intel are about to face the doubters

    Earnings Watch: Microsoft, Tesla and Intel are about to face the doubters

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    After one of the worst years in Wall Street’s history, investors have some serious questions for companies. As holiday returns roll in — and with them, forecasts for the months or year ahead — many have the chance to answer those questions, or avoid them.

    In the busiest week of the holiday-earnings season so far, three big names will take the stage on back-to-back-to-back afternoons. Here is what to expect:

    Microsoft Corp.

    Microsoft
    MSFT,
    +3.57%

    shed $737 billion in market value last year, the third-most of any S&P 500 company, then announced plans to lay off some 10,000 workers this month. Previously a Wall Street darling thanks to the phenomenal growth of its Azure cloud-computing offering, Microsoft now faces a cutback in enterprise spending on cloud and other products, as companies seek to cut their bills after spending wantonly during the early years of the COVID-19 pandemic.

    First Take: Big Tech layoffs are not as big as they appear at first glance

    When the company announced layoffs, Chief Executive Satya Nadella admitted customers were cutting, saying “as we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less.” Analysts believe Azure may be holding up better than rivals, however, and will expect to hear about it when Microsoft results hit Tuesday afternoon.

    “Our Azure checks were mixed, but generally better than public cloud sentiment that has turned highly negative over the past few months,” Mizuho analysts wrote. “More specifically, we have heard of increasing levels of optimization, but it is being partially offset by many organizations prioritizing digital transformation.”

    From October: The cloud boom has hit its stormiest moment yet, and it is costing investors billions

    As cloud growth slows down, expect Microsoft to point to the next big buzzword in tech: Artificial intelligence, specifically ChatGPT, the chatbot product developed by OpenAI, which Microsoft has invested heavily in and expects to incorporate into its products. D.A. Davidson analyst Gil Luria this month wrote that Microsoft’s investments in OpenAI would help it build out more AI technology, including in its search engine Bing.

    Tesla Inc.

    Tesla
    TSLA,
    +4.91%

    stock suffered a much larger percentage decline than Microsoft in 2022,as the electric-vehicle maker’s shares closed out their worst year on record with their worst quarter and month ever. After the year ended, Tesla began slashing prices in China and the U.S. in hopes of qualifying for more consumer tax incentives and reinvigorating demand, which could lead to questions about previously fat margins.

    In-depth: Tesla investors await clues on demand, board actions and weigh downside risks in 2023

    For Tesla, which reports fourth-quarter results Wednesday, the results will offer more context on production of the Cybertruck — currently set to start in the middle of the year — demand in China, competition and the impact of price cuts. Auto-information website Edmunds on Thursday said that Tesla’s decision to slash prices by as much as 20% in the U.S. and Europe led to a jump in interest in the vehicles.

    While those cuts seem likely to hurt profit, Deutsche Bank analyst Emmanuel Rosner called it “a bold offensive move, which secures Tesla’s volume growth, puts its traditional and EV competitors in great difficulty, and showcases Tesla’s considerable pricing power and cost superiority.” And a survey from Wedbush analysts found that “76% of EV Chinese consumers are considering buying a Tesla in 2023.” But Toni Sacconaghi, an analyst at Bernstein, said Tesla needed more low-cost electric-vehicle offerings, which might not ship until 2025.

    Tesla earnings preview: Price cuts in focus as stock hovers around 2-year low

    With Tesla’s stock in the gutter, some analysts have raised the possibility of a share buyback to spur investor interest, and Chief Executive Elon Musk said such a plan was being discussed in the previous earnings call. Musk is not in great favor with many investors right now, however, following some heavy selling of Tesla shares in the wake of his purchase last year of Twitter, which some on Wall Street have said has distracted him from the needs of the auto maker. Musk’s tweets have landed him in trouble elsewhere: Opening arguments began last week for a trial centered on allegations that Musk put investors at risk when he tweeted in 2018 that he was “considering” taking Tesla private and had secured the money to do so.

    ‘He broke the stock’: Why a prominent Tesla investor wants Elon Musk to put him on the board

    Intel Corp.

    Intel’s
    INTC,
    +2.81%

    questions were not fresh in 2022, as the chip maker for years has seen rivals like Advanced Micro Devices Inc.
    AMD,
    +3.49%

    and Nvidia Corp.
    NVDA,
    +6.41%

    challenge it in ways that would have been unthinkable in previous generations. Shares still dove more than 43% last year, as declining sales led to plans for $3 billion in cost cuts.

    There’s little hope for a big rebound when Intel reports Thursday afternoon. Personal-computer sales have experienced their biggest year-over-year declines ever recorded, and Intel’s long-delayed new data-center offering that is meant to answer AMD’s challenge only began selling this year.

    Opinion: The PC boom and bust is already ‘one for the record books,’ and it isn’t over

    Intel CEO Pat Gelsinger, though, has a chance to lay out his vision for a long-term Intel rebound, as he attempts to make Intel a chip-manufacturing powerhouse again after years of struggles. He was forced to trim his annual outlook multiple times last year, so it will be important for him to provide attainable numbers this time, but without reducing hopes in the path forward.

    This week in earnings

    Expectations remain low for fourth-quarter earnings season overall, with consumers squeezed by higher prices and interest rates, and hopes fading for any relief from the holiday shopping season. But even with a low bar, the fourth-quarter results from companies so far have been worse than the historical norm, with FactSet senior earnings analyst John Butters writing Friday that “the fourth-quarter earnings season for the S&P 500 is not off to a strong start.”

    So far, 11% of S&P 500 companies have reported fourth-quarter results, with roughly one-third reporting earnings better than estimates, Butters reported. That’s lower than the 10-year average of 73%.

    Still, Wall Street generally expects strong profit margins for companies in the S&P 500, as earlier price increases — which help businesses offset their own costs and test the limits of consumer demand — mix with more recent cost cuts.

    For the week ahead, 93 companies in the S&P 500 index
    SPX,
    +1.89%
    ,
    and 12 of the 30 Dow Jones Industrial Average
    DJIA,
    +1.00%

    components, are set to report quarterly results.

    Mark your calendars! Here is MarketWatch’s full earnings calendar for the week

    Among the highlights: General Electric Co.
    GE,
    +1.07%

    reports Tuesday for the first time since splitting off its GE HealthCare Technologies
    GEHC,
    +4.43%

    business. 3M Co.
    MMM,
    +1.87%

    — which makes Post-it Notes, duct tape, air filters, adhesives and coatings — also reports Tuesday, after the company in October said the costs of raw materials, a big driver of inflation, were showing signs of easing.

    And as demand for goods eases amid worries about a downturn, a number of railroad operators that ship those goods report during the week. Union Pacific Corp.
    UNP,
    +1.54%
    ,
    whose lines ship across the Western half of the U.S., reports on Tuesday, while CSX Corp.
    CSX,
    +1.46%
    ,
    which covers much of the East, reports Wednesday. Norfolk Southern Corp.
    NSC,
    +1.51%

    also reports Wednesday.

    Telecom giants Verizon Communications Inc.
    VZ,
    -0.15%
    ,
    AT&T Inc.
    T,
    +1.53%

    and Comcast Corp.
    CMCSA,
    +3.22%

    report Tuesday, Wednesday and Thursday, respectively. Results there will offer a clearer sense of the state of demand for Apple Inc.’s
    AAPL,
    +1.92%

    iPhones, as premium models suffer from production snags, and for broadband, which saw heightened demand when more people were staying home due to the pandemic.

    The call to put on your calendar

    Southwest, post-meltdown: Southwest Airlines Co.
    LUV,
    +1.67%
    ,
    which reports on Thursday, will offer executives with plenty to answer for, after bad weather and an overloaded, aging scheduling system caused thousands of flight cancellations over the holidays.

    For more: Southwest Airlines turns to repairing its reputation after holiday meltdown

    The implosion has raised questions about the air carrier’s investments in its own technology — after restarting dividend payments shortly before the disruptions — and airlines’ ability to handle the post-lockdown travel rebound. The breakdown has underscored the airline industry’s bigger issues with understaffing, after 2020’s wave of departures, as carriers try to reload flight schedules to meet pent-up travel demand.

    Scott Kirby, chief executive at United Airlines Holdings Inc.
    UAL,
    +2.25%
    ,
    said during his company’s earnings call last week that he felt the industry’s goals to expand their flight coverage this year and beyond were “simply unachievable.” And he said that airlines that tried to follow prepandemic patterns were destined to face trouble. He said manufacturers were suffering from delays in building jets, engines and other parts, and that airlines had outgrown their technology infrastructure.

    For more: United Airlines swings to profit despite ‘worst’ winter storm’

    “All of us, airlines and the FAA, lost experienced employees and most didn’t invest in the future,” he said. “That means the system simply can’t handle the volume today, much less the anticipated growth.”

    American Airlines Group Inc.
    AAL,
    +0.37%
    ,
    Alaska Air Group Inc.
    ALK,
    +0.85%

    and JetBlue Airways Corp.
    JBLU,
    +0.94%

    are also expected to report results Thursday morning, along with Southwest.

    The numbers to watch

    Visa, Mastercard and consumer spending: The return of travel and entertainment, along with rising prices, have helped prop up consumer spending. But as Visa Inc.
    V,
    +1.77%
    ,
    Mastercard Inc.
    MA,
    +2.27%
    ,
    American Express Co.
    AXP,
    +3.23%

    and Capital One Financial Corp.
    COF,
    +6.40%

    prepare to report, their finance-industry counterparts are getting nervous — and taking more steps to pad themselves against the fallout from consumers struggling to pay their bills.

    Credit-card issuer Capital One reports results on Tuesday, while card payments-network providers Visa and Mastercard report on Thursday, with Amex on Friday morning. They’ll report after shares of Discover Financial Services
    DFS,
    +4.16%

    got hit last week after the company, which also offers credit cards and loans, set aside more money to cover souring credit, and reported a bump in its net charge-off rate — a measure of debt a company thinks is unlikely to be recovered.

    Larger banks, like JPMorgan Chase & Co.
    JPM,
    +0.24%
    ,
    have also set aside more money to guard against credit losses.

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  • Earnings Watch: Microsoft, Tesla and Intel are about to face the doubters

    Earnings Watch: Microsoft, Tesla and Intel are about to face the doubters

    [ad_1]

    After one of the worst years in Wall Street’s history, investors have some serious questions for companies. As holiday returns roll in — and with them, forecasts for the months or year ahead — many have the chance to answer those questions, or avoid them.

    In the busiest week of the holiday-earnings season so far, three big names will take the stage on back-to-back-to-back afternoons. Here is what to expect:

    Microsoft Corp.

    Microsoft
    MSFT,
    +3.57%

    shed $737 billion in market value last year, the third-most of any S&P 500 company, then announced plans to lay off some 10,000 workers this month. Previously a Wall Street darling thanks to the phenomenal growth of its Azure cloud-computing offering, Microsoft now faces a cutback in enterprise spending on cloud and other products, as companies seek to cut their bills after spending wantonly during the early years of the COVID-19 pandemic.

    First Take: Big Tech layoffs are not as big as they appear at first glance

    When the company announced layoffs, Chief Executive Satya Nadella admitted customers were cutting, saying “as we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less.” Analysts believe Azure may be holding up better than rivals, however, and will expect to hear about it when Microsoft results hit Tuesday afternoon.

    “Our Azure checks were mixed, but generally better than public cloud sentiment that has turned highly negative over the past few months,” Mizuho analysts wrote. “More specifically, we have heard of increasing levels of optimization, but it is being partially offset by many organizations prioritizing digital transformation.”

    From October: The cloud boom has hit its stormiest moment yet, and it is costing investors billions

    As cloud growth slows down, expect Microsoft to point to the next big buzzword in tech: Artificial intelligence, specifically ChatGPT, the chatbot product developed by OpenAI, which Microsoft has invested heavily in and expects to incorporate into its products. D.A. Davidson analyst Gil Luria this month wrote that Microsoft’s investments in OpenAI would help it build out more AI technology, including in its search engine Bing.

    Tesla Inc.

    Tesla
    TSLA,
    +4.91%

    stock suffered a much larger percentage decline than Microsoft in 2022,as the electric-vehicle maker’s shares closed out their worst year on record with their worst quarter and month ever. After the year ended, Tesla began slashing prices in China and the U.S. in hopes of qualifying for more consumer tax incentives and reinvigorating demand, which could lead to questions about previously fat margins.

    In-depth: Tesla investors await clues on demand, board actions and weigh downside risks in 2023

    For Tesla, which reports fourth-quarter results Wednesday, the results will offer more context on production of the Cybertruck — currently set to start in the middle of the year — demand in China, competition and the impact of price cuts. Auto-information website Edmunds on Thursday said that Tesla’s decision to slash prices by as much as 20% in the U.S. and Europe led to a jump in interest in the vehicles.

    While those cuts seem likely to hurt profit, Deutsche Bank analyst Emmanuel Rosner called it “a bold offensive move, which secures Tesla’s volume growth, puts its traditional and EV competitors in great difficulty, and showcases Tesla’s considerable pricing power and cost superiority.” And a survey from Wedbush analysts found that “76% of EV Chinese consumers are considering buying a Tesla in 2023.” But Toni Sacconaghi, an analyst at Bernstein, said Tesla needed more low-cost electric-vehicle offerings, which might not ship until 2025.

    Tesla earnings preview: Price cuts in focus as stock hovers around 2-year low

    With Tesla’s stock in the gutter, some analysts have raised the possibility of a share buyback to spur investor interest, and Chief Executive Elon Musk said such a plan was being discussed in the previous earnings call. Musk is not in great favor with many investors right now, however, following some heavy selling of Tesla shares in the wake of his purchase last year of Twitter, which some on Wall Street have said has distracted him from the needs of the auto maker. Musk’s tweets have landed him in trouble elsewhere: Opening arguments began last week for a trial centered on allegations that Musk put investors at risk when he tweeted in 2018 that he was “considering” taking Tesla private and had secured the money to do so.

    ‘He broke the stock’: Why a prominent Tesla investor wants Elon Musk to put him on the board

    Intel Corp.

    Intel’s
    INTC,
    +2.81%

    questions were not fresh in 2022, as the chip maker for years has seen rivals like Advanced Micro Devices Inc.
    AMD,
    +3.49%

    and Nvidia Corp.
    NVDA,
    +6.41%

    challenge it in ways that would have been unthinkable in previous generations. Shares still dove more than 43% last year, as declining sales led to plans for $3 billion in cost cuts.

    There’s little hope for a big rebound when Intel reports Thursday afternoon. Personal-computer sales have experienced their biggest year-over-year declines ever recorded, and Intel’s long-delayed new data-center offering that is meant to answer AMD’s challenge only began selling this year.

    Opinion: The PC boom and bust is already ‘one for the record books,’ and it isn’t over

    Intel CEO Pat Gelsinger, though, has a chance to lay out his vision for a long-term Intel rebound, as he attempts to make Intel a chip-manufacturing powerhouse again after years of struggles. He was forced to trim his annual outlook multiple times last year, so it will be important for him to provide attainable numbers this time, but without reducing hopes in the path forward.

    This week in earnings

    Expectations remain low for fourth-quarter earnings season overall, with consumers squeezed by higher prices and interest rates, and hopes fading for any relief from the holiday shopping season. But even with a low bar, the fourth-quarter results from companies so far have been worse than the historical norm, with FactSet senior earnings analyst John Butters writing Friday that “the fourth-quarter earnings season for the S&P 500 is not off to a strong start.”

    So far, 11% of S&P 500 companies have reported fourth-quarter results, with roughly one-third reporting earnings better than estimates, Butters reported. That’s lower than the 10-year average of 73%.

    Still, Wall Street generally expects strong profit margins for companies in the S&P 500, as earlier price increases — which help businesses offset their own costs and test the limits of consumer demand — mix with more recent cost cuts.

    For the week ahead, 93 companies in the S&P 500 index
    SPX,
    +1.89%
    ,
    and 12 of the 30 Dow Jones Industrial Average
    DJIA,
    +1.00%

    components, are set to report quarterly results.

    Mark your calendars! Here is MarketWatch’s full earnings calendar for the week

    Among the highlights: General Electric Co.
    GE,
    +1.07%

    reports Tuesday for the first time since splitting off its GE HealthCare Technologies
    GEHC,
    +4.43%

    business. 3M Co.
    MMM,
    +1.87%

    — which makes Post-it Notes, duct tape, air filters, adhesives and coatings — also reports Tuesday, after the company in October said the costs of raw materials, a big driver of inflation, were showing signs of easing.

    And as demand for goods eases amid worries about a downturn, a number of railroad operators that ship those goods report during the week. Union Pacific Corp.
    UNP,
    +1.54%
    ,
    whose lines ship across the Western half of the U.S., reports on Tuesday, while CSX Corp.
    CSX,
    +1.46%
    ,
    which covers much of the East, reports Wednesday. Norfolk Southern Corp.
    NSC,
    +1.51%

    also reports Wednesday.

    Telecom giants Verizon Communications Inc.
    VZ,
    -0.15%
    ,
    AT&T Inc.
    T,
    +1.53%

    and Comcast Corp.
    CMCSA,
    +3.22%

    report Tuesday, Wednesday and Thursday, respectively. Results there will offer a clearer sense of the state of demand for Apple Inc.’s
    AAPL,
    +1.92%

    iPhones, as premium models suffer from production snags, and for broadband, which saw heightened demand when more people were staying home due to the pandemic.

    The call to put on your calendar

    Southwest, post-meltdown: Southwest Airlines Co.
    LUV,
    +1.67%
    ,
    which reports on Thursday, will offer executives with plenty to answer for, after bad weather and an overloaded, aging scheduling system caused thousands of flight cancellations over the holidays.

    For more: Southwest Airlines turns to repairing its reputation after holiday meltdown

    The implosion has raised questions about the air carrier’s investments in its own technology — after restarting dividend payments shortly before the disruptions — and airlines’ ability to handle the post-lockdown travel rebound. The breakdown has underscored the airline industry’s bigger issues with understaffing, after 2020’s wave of departures, as carriers try to reload flight schedules to meet pent-up travel demand.

    Scott Kirby, chief executive at United Airlines Holdings Inc.
    UAL,
    +2.25%
    ,
    said during his company’s earnings call last week that he felt the industry’s goals to expand their flight coverage this year and beyond were “simply unachievable.” And he said that airlines that tried to follow prepandemic patterns were destined to face trouble. He said manufacturers were suffering from delays in building jets, engines and other parts, and that airlines had outgrown their technology infrastructure.

    For more: United Airlines swings to profit despite ‘worst’ winter storm’

    “All of us, airlines and the FAA, lost experienced employees and most didn’t invest in the future,” he said. “That means the system simply can’t handle the volume today, much less the anticipated growth.”

    American Airlines Group Inc.
    AAL,
    +0.37%
    ,
    Alaska Air Group Inc.
    ALK,
    +0.85%

    and JetBlue Airways Corp.
    JBLU,
    +0.94%

    are also expected to report results Thursday morning, along with Southwest.

    The numbers to watch

    Visa, Mastercard and consumer spending: The return of travel and entertainment, along with rising prices, have helped prop up consumer spending. But as Visa Inc.
    V,
    +1.77%
    ,
    Mastercard Inc.
    MA,
    +2.27%
    ,
    American Express Co.
    AXP,
    +3.23%

    and Capital One Financial Corp.
    COF,
    +6.40%

    prepare to report, their finance-industry counterparts are getting nervous — and taking more steps to pad themselves against the fallout from consumers struggling to pay their bills.

    Credit-card issuer Capital One reports results on Tuesday, while card payments-network providers Visa and Mastercard report on Thursday, with Amex on Friday morning. They’ll report after shares of Discover Financial Services
    DFS,
    +4.16%

    got hit last week after the company, which also offers credit cards and loans, set aside more money to cover souring credit, and reported a bump in its net charge-off rate — a measure of debt a company thinks is unlikely to be recovered.

    Larger banks, like JPMorgan Chase & Co.
    JPM,
    +0.24%
    ,
    have also set aside more money to guard against credit losses.

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  • 7 EVs That Can Cost Less Than the Average New Car

    7 EVs That Can Cost Less Than the Average New Car

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    Electric vehicle buyers in the U.S. can now get a purchase tax credit from the government, and it has pushed the price of several high-volume EVs below the average price paid for a new car in America.

    There are currently seven high-volume EVs that cost less than the average new car, including two


    Tesla


    (ticker: TSLA) models. Buyers should look at those if they are thinking about going electric.

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  • Elon Musk takes the stand as battle lines drawn in trial over Tesla tweets

    Elon Musk takes the stand as battle lines drawn in trial over Tesla tweets

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    Tesla Inc. Chief Executive Elon Musk took the witness stand briefly late Friday in a federal trial in San Francisco over alleged investor losses caused by his “funding secured” tweet and other tweets back in 2018.

    In his roughly half-hour being questioned by a defense lawyer, Musk lauded Twitter Inc. as the most “democratic” way to communicate with Tesla investors and took a swipe at short sellers.

    His testimony is expected to resume on Monday at 11:30 a.m. Eastern. Meanwhile, Tesla shares
    TSLA,
    +4.91%

    were flat in the extended session Friday after ending the regular trading day up 4.9%.

    A defense attorney began with plumbing Musk’s Twitter habits, and that Musk sometimes bristled at the implications his tweets may carry more meaning than what he assigns them.

    “Just because I tweet something, it does not mean people believe it, or act accordingly,” Musk said, giving as example another one of its infamous tweet, in which he said Tesla stock was too high — and the stock then went higher.

    The case revolves around key tweets from August 2018, including one where Musk told his millions of Twitter followers he was “considering taking Tesla private at $420” and then added “funding secured.”

    Investor Glen Littleton, the lead plaintiff in the case, alleges he lost money due to the false tweets and is seeking damages.

    U.S. District Judge Edward Chen already has ruled that Musk’s tweets about taking Tesla private were not true and that Musk acted with recklessness.

    It is still up to jurors to decide, however, if the tweets were material to investors and if the falsehoods caused investor losses.

    During his testimony, Musk said short sellers are essentially pulling for Tesla’s demise.

    “Short sellers are basically a bunch of sharks on Wall Street,” Musk said. “(They) wanted Tesla to die, very badly” because they stood to make money for an eventual bankruptcy.

    Musk testified right after a lengthy testimony from a plaintiff expert.

    The CEO and Tesla each were fined $20 million in September 2018 to settle civil charges around the “funding secured” tweets and Musk was stripped of his chairman role at Tesla.

    Musk and Tesla agreed to settle the charges against them without admitting to nor denying the SEC’s allegations.

    Musk’s bid to end the SEC settlement deal over Tesla tweets was denied last year.

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  • Alibaba, XPeng, Goldman Sachs, and More Stock Market Movers Tuesday

    Alibaba, XPeng, Goldman Sachs, and More Stock Market Movers Tuesday

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  • Chinese EV maker Xpeng cuts prices after Tesla move

    Chinese EV maker Xpeng cuts prices after Tesla move

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    Chinese electric car maker Xpeng Inc. has cut prices for most of its vehicles by around 10%, joining other auto makers in lowering prices as competition heats up in the country’s fast-expanding electric-vehicle market.

    The company said in a statement on Tuesday that it will slash prices for multiple versions of its P7, P5 and G3i models by 20,000 yuan (US$2,970) to CNY36,000 yuan, representing about a 10% drop from current prices. In particular, the starting price for Xpeng’s
    XPEV,
    -1.19%

    best-selling P7 sedan will be reduced by 12.5%.

    The price cuts will take effect from Tuesday afternoon, the company said. Xpeng has kept prices unchanged for its new G9 model.

    For car owners who purchased Xpeng automobiles before the price cut, Xpeng said it will extend maintenance services for free as compensation.

    Xpeng’s move came after Tesla Inc.
    TSLA,
    -0.94%

    lowered its China selling prices earlier this month. EV makers have been increasingly seeking to fend off rising competition from emerging rivals and traditional car makers’ stepped-up push into the EV industry, where previously soaring sales growth is expected to cool down amid higher market saturation.

    Write to Yifan Wang at yifan.wang@wsj.com

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  • ‘Poker move’ or wake-up call? Wall Street weighs in on Tesla’s price cuts.

    ‘Poker move’ or wake-up call? Wall Street weighs in on Tesla’s price cuts.

    [ad_1]

    Tesla Inc.’s price cuts in the U.S. and Europe heightened worries on Wall Street about the electric-car maker’s margins and worsening demand at a moment when both aspects of the business seem at risk.

    Tesla overnight slashed prices of several of its models, including its cheaper Model Y compact SUV and Model 3 sedan, in the U.S. and in several European countries by about 6% to 20%.

    Tesla stock
    TSLA,
    -2.30%

    fell more than 3% by midday trading, eroding weekly gains to about 5%. Tesla shares rallied close to double-digits earlier in the week on some optimism about its coming earnings and news that it was expanding its factory in Texas.

    The stock has traded around two-year lows and lost nearly 50% in the past three months as concerns swirl about the extent of the involvement of Chief Executive Elon Musk with Twitter Inc., which Musk bought in October, and weakened demand amid a global slowdown.

    The price cuts, which also mean some Tesla EVs qualify for tax credits, may represent a gamble that until very recently Tesla thought itself insulated from.

    “Ultimately, management is following through with its strategy to sacrifice industry-leading gross margins to prop up volume demand as the health of the global consumer remains uncertain,” TPH analyst Matthew Portillo said.

    “Today’s move on pricing likely sets the table for management to be able to set more realistic guidance expectations on Jan. 25,” when Tesla is expected to report quarterly earnings, Portillo said.

    The action resulted in at least one downgrade for the stock. Guggenheim analyst Ronald Jewsikow lowered his rating on Tesla stock to sell from neutral with a price target of $89, implying downside of about 24% from current levels.

    “We see a negative catalyst path for the stock to underperform in the near and intermediate term,” Jewsikow wrote in a note.

    Jewsikow went on to forecast a “sizable gross margin miss” in the fourth quarter, mostly thanks to the price reductions and incentives. Fiscal 2023 estimates “need a reset,” the analyst said.

    Tesla is slated to report fourth-quarter earnings after market close on Jan. 25. FactSet consensus calls for adjusted earnings of $1.16 a share on revenue of $25 billion. The numbers are likely to be tweaked as it gets closer to the reporting day.

    Analyst Dan Ives with Wedbush said he was optimistic the price action could prompt more people to get their Tesla.

    Tesla now enjoys the global scale it did not have a few years ago, with more factories, and has margin flexibility to make such moves, Ives said. And there’s the added benefit that some of its vehicles are now eligible for the tax credits.

    “We believe all together these price cuts could spur demand/deliveries by 12%-15% globally in 2023 and shows Tesla and Musk are going on the ‘offensive’ to spur demand in a softening backdrop,” Ives said.

    “Margins will get hit on this, but we like this strategic poker move by Musk and Tesla,” the analyst said, keeping the equivalent of a buy rating on the stock and a $175 price target, which compares with an average $244 price target as gathered by FactSet from 45 analysts.

    Citi analyst Itay Michaeli took more of a middle road. The price cuts confirm Wall Street worries on demand outside of China and Tesla’s strategy of prioritizing volume over price, he said.

    The EV maker’s decision, though, are also part of a broader EV-industry view “that any demand pressures in 2023 would likely be met with price actions as opposed to production cuts,” Michaeli said.

    Ultimately, gaining EV market share “will prove more important than maximizing EV margins in 2023,” Michaeli said.

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  • 18 stock picks in a ‘Goldilocks’ scenario for U.S. consumers

    18 stock picks in a ‘Goldilocks’ scenario for U.S. consumers

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    It may not have been a surprise to see the consumer discretionary sector of the S&P 500 get hammered last year amid talk of a looming recession while the Federal Reserve jacked up interest rates to push back against inflation.

    But the stock market always looks ahead. Following a decline of 19.4% for the S&P 500
    SPX,
    +0.42%

    in 2022 and a 37.6% drop for the benchmark index’s consumer discretionary sector, this may be the time to begin looking for bargains.

    And now, analysts at Jefferies have lifted the sector to a “bullish” rating.

    In a note to clients on Jan. 10, Jefferies’ global equity strategist, Sean Darby, wrote: “A Goldilocks scenario might be unfolding for the U.S. consumer — falling inflation but steady employment conditions.”

    He sees consumer confidence improving, in part because “households are still sitting on [about] $1.4 trillion of Covid savings.”

    Darby pointed to a list of 18 consumer discretionary stocks favored by Jefferies analysts that was published on Jan. 6. Those are listed below, along with three stocks in the sector the analysts rate “underperform.”

    The ratings of the Jefferies analysts for individual stocks is based on their 12-month outlooks for the companies, in keeping with Wall Street tradition.

    So we have added another list further down, showing which companies in the S&P 500 consumer discretionary sector are expected by analysts polled by FactSet to increase sales the most through 2024.

    The Jefferies 18

    Here are the 18 consumer discretionary stocks recommended by Jefferies analysts with “buy” ratings on Jan. 6, sorted by how much upside the firm sees for the shares from closing prices on Jan. 9:

    Company

    Ticker

    Jan. 9 price

    Jefferies price target

    Implied 12-month upside potential

    Three-year estimated sales CAGR through 2022

    Two-year estimated sales CAGR through 2024

    Topgolf Callaway Brands Corp.

    MODG,
    -0.22%
    $20.76

    $56

    170%

    32.8%

    10.0%

    Bloomin’ Brands Inc.

    BLMN,
    +3.87%
    $22.08

    $35

    59%

    2.4%

    3.7%

    Coty Inc. Class A

    COTY,
    +1.23%
    $9.38

    $14

    49%

    -7.1%

    3.7%

    MGM Resorts International

    MGM,
    +1.71%
    $37.64

    $56

    49%

    -0.1%

    6.6%

    Chewy Inc. Class A

    CHWY,
    +1.63%
    $40.13

    $57

    42%

    28.0%

    10.6%

    Planet Fitness Inc. Class A

    PLNT,
    +0.69%
    $82.36

    $115

    40%

    10.4%

    13.9%

    Molson Coors Beverage Co. Class B

    TAP,
    +0.67%
    $50.21

    $69

    37%

    0.5%

    1.4%

    Fox Factory Holding Corp.

    FOXF,
    +3.95%
    $99.90

    $135

    35%

    28.1%

    6.6%

    Hasbro Inc.

    HAS,
    +0.99%
    $63.70

    $85

    33%

    9.1%

    3.6%

    Hostess Brands Inc. Class A

    TWNK,
    +0.33%
    $23.10

    $30

    30%

    14.2%

    5.0%

    Lowe’s Cos. Inc.

    LOW,
    +0.08%
    $199.44

    $250

    25%

    10.6%

    -1.9%

    Walmart Inc.

    WMT,
    -0.27%
    $144.95

    $175

    21%

    4.9%

    3.3%

    Dollar General Corp.

    DG,
    -0.26%
    $241.05

    $285

    18%

    10.9%

    6.7%

    Church & Dwight Co. Inc.

    CHD,
    -1.17%
    $82.25

    $97

    18%

    7.0%

    4.6%

    McDonald’s Corp.

    MCD,
    +0.39%
    $267.25

    $315

    18%

    2.4%

    4.0%

    Estee Lauder Cos. Inc. Class A

    EL,
    +0.39%
    $261.63

    $304

    16%

    2.8%

    5.8%

    Mondelez International Inc. Class A

    MDLZ,
    -0.04%
    $67.24

    $75

    12%

    6.3%

    4.1%

    Tapestry Inc.

    TPR,
    +0.73%
    $41.25

    $45

    9%

    3.3%

    3.2%

    Sources: Jefferies, FactSet

    Click on the tickers for more information about the companies.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

    The two right-most columns on the table show estimated compound annual growth rates (CAGR) for the companies over the past three calendar years and expected sales CAGR for two years through calendar 2024, based on the companies’ financial reports and consensus estimates among analysts polled by FactSet.

    (We used calendar-year numbers, some of which are estimated by FactSet for prior years, because some companies have fiscal years or even months that don’t match the calendar.)

    The stock pick with the highest 12-month upside potential, based on Jefferies’ price target, is Topgolf Callaway Brands Corp.
    MODG,
    -0.22%
    .
    This company has the highest estimated three-year sales CAGR on the list, and has the third-highest projected sales CAGR through 2024, after Planet Fitness Inc.
    PLNT,
    +0.69%

    and Chewy Inc.
    CHWY,
    +1.63%
    .

    On Jan. 6, the Jefferies analysts also listed three stocks in the sector they rated “underperform.” Here they are, sorted by how much the analysts expect the stocks to decline over the next 12 months:

    Company

    Ticker

    Jan. 9 price

    Jefferies price target

    Implied 12-month upside potential

    Three-year estimated sales CAGR through 2022

    Two-year estimated sales CAGR through 2024

    Lululemon Athletica Inc.

    LULU,
    +2.98%
    $298.66

    $200

    -33%

    26.3%

    14.6%

    Williams-Sonoma Inc.

    WSM,
    +1.75%
    $122.17

    $98

    -20%

    14.1%

    -0.3%

    Harley-Davidson Inc.

    HOG,
    +0.35%
    $43.25

    $39

    -10%

    -2.8%

    4.4%

    Sources: Jefferies, FactSet

    Screen of consumer discretionary sales growth

    A look head at which companies are expected to increase sales the most over the next two years might serve as a good starting point for your own research.

    Bear in mind that some of the companies in travel-related industries suffered declining sales for three years through 2022 because of the coronavirus pandemic. Some of those are on this new list of 20 stocks in the S&P 500 consumer discretionary sector expected to show the highest two-year sales CAGR through calendar 2024:

    Company

    Ticker

    Two-year estimated sales CAGR through 2024

    Three-year estimated sales CAGR through 2022

    Share “buy” ratings

    Jan. 9 price

    Consensus price target

    Implied 12-month upside potential

    Las Vegas Sands Corp.

    LVS,
    +1.59%
    59.2%

    -32.6%

    79%

    $52.78

    $53.53

    1%

    Norwegian Cruise Line Holdings Ltd.

    NCLH,
    +1.67%
    39.6%

    -9.3%

    44%

    $13.78

    $16.96

    23%

    Carnival Corp.

    CCL,
    +1.64%
    35.2%

    -14.7%

    30%

    $9.47

    $10.11

    7%

    Tesla Inc.

    TSLA,
    -1.83%
    34.3%

    49.7%

    64%

    $119.77

    $232.43

    94%

    Wynn Resorts Ltd.

    WYNN,
    +2.01%
    29.3%

    -17.5%

    53%

    $94.33

    $96.07

    2%

    Royal Caribbean Group

    RCL,
    +2.22%
    28.4%

    -6.8%

    53%

    $57.29

    $66.43

    16%

    Chipotle Mexican Grill Inc.

    CMG,
    -0.17%
    13.4%

    15.9%

    71%

    $1,446.74

    $1,778.81

    23%

    Amazon.com Inc.

    AMZN,
    +2.61%
    12.2%

    22.1%

    92%

    $87.36

    $133.76

    53%

    Booking Holdings Inc.

    BKNG,
    +0.37%
    11.9%

    3.9%

    63%

    $2,208.41

    $2,307.67

    4%

    Aptiv PLC

    APTV,
    +1.66%
    11.9%

    6.4%

    70%

    $97.98

    $117.23

    20%

    Starbucks Corp.

    SBUX,
    +1.28%
    11.2%

    7.2%

    42%

    $104.74

    $103.44

    -1%

    Etsy Inc.

    ETSY,
    +3.56%
    11.1%

    45.3%

    50%

    $120.99

    $124.04

    3%

    Hilton Worldwide Holdings Inc.

    HLT,
    +0.06%
    10.1%

    -2.9%

    38%

    $129.08

    $146.17

    13%

    Expedia Group Inc.

    EXPE,
    +0.39%
    9.0%

    -0.9%

    50%

    $93.77

    $125.65

    34%

    NIKE Inc. Class B

    NKE,
    +0.68%
    8.1%

    5.8%

    62%

    $124.85

    $126.15

    1%

    Marriott International Inc. Class A

    MAR,
    +0.47%
    7.5%

    -1.2%

    30%

    $152.53

    $172.81

    13%

    BorgWarner Inc.

    BWA,
    +1.82%
    7.1%

    15.3%

    53%

    $42.24

    $46.93

    11%

    Tractor Supply Co.

    TSCO,
    +1.06%
    6.8%

    19.0%

    61%

    $217.48

    $232.34

    7%

    Yum! Brands Inc.

    YUM,
    -0.76%
    6.7%

    6.4%

    47%

    $129.76

    $137.79

    6%

    Dollar General Corp.

    DG,
    -0.26%
    6.7%

    10.9%

    67%

    $241.05

    $267.54

    11%

    Source: FactSet

    Among the companies on this list that didn’t suffer sales declines from 2019 levels, Tesla Inc.
    TSLA,
    -1.83%

    is expected to achieve the highest two-year sales CAGR through 2022.

    Dollar General Corp.
    DG,
    -0.26%

    is the only company to appear on this list based on consensus sales growth estimates and the Jefferies recommended list.

    Don’t miss: These 15 Dividend Aristocrat stocks have been the best income builders

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  • CES 2023: AMD, Nvidia, auto applications get the hype, but analysts say this one chip maker ruled

    CES 2023: AMD, Nvidia, auto applications get the hype, but analysts say this one chip maker ruled

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    As CES 2023 draws to a close, much of the attention in the chip world was lauded on companies like Advanced Micro Devices Inc. and Nvidia Corp. but a lower profile chip maker appears better positioned coming out of the convention.

    Morgan Stanley analyst Joseph Moore said there’s still a lot of caution about overall chip demand especially with softness in China, but autos appear to be one of the strong themes of CES 2023, he said.

    “The areas that have been weak remain somewhat weaker – notably memory, semi cap, and generally PC and cloud builds – while the markets that have been strong (such as automotive and industrial) remain strong but with lead times clearly starting to normalize, which likely points to longer term revenue pressures particularly in a weaker economy,” Moore said.

    “Still, the longer term themes remain positive, especially for autos (which is increasingly the focus of CES),around themes such as EVs, ADAS and autonomous.”

    Such was the case when Nvidia Corp.
    NVDA,
    +4.16%

     said on Tuesday it was partnering with Hon Hai Technology Group
    2317,
    +0.41%

     , or Foxconn, best known for being the manufacturer of Apple Inc.’s
    AAPL,
    +3.68%

    iPhone, to make electric vehicles that use Nvidia’s Drive Orin chips and sensors, and bringing its GeForce Now streaming video game service to autos made by Hyundai Motor Group
    005380,
    +0.31%
    ,
    BYD
    1211,
    -2.60%
    ,
    and Swedish EV maker Polestar.

    “We generally think that Nvidia numbers are likely OK from here, though there was some caution on sell through in China for gaming, and a clear awareness that while the company’s position within cloud is very good, that pressure in cloud budgets leads to somewhat lower visibility,” Moore said. “But we would say that generally we think that they are past the worst of the pressures in their business, in contrast to most of the semiconductor group where there are still likely numbers cuts ahead.”

    Meanwhile, Advanced Micro Devices Inc.
    AMD,
    +2.62%

    used the CES keynote to introduce the Instinct MI300 chip as “world’s first data-center integrated CPU + GPU.” The  combined central processing unit and graphics processing unit meant for AI inference, the months-long process where data centers spend millions of dollars a year on electricity to train and develop artificial intelligence. AMD Chief Executive and Chair Lisa Su said the MI300 can reduce the time it takes for an inference modeling process from months to weeks.

    But one chip maker that doesn’t get a lot of attention appeared to emerge from CES best positioned for the year: ON Semiconductor Corp.
    ON,
    +4.57%
    ,
    which focuses on electric vehicles and advanced driver assistance systems as primary growth drivers, leveraging its legacy position in auto chips.

    “Most notably, the company’s push into [Silicon Carbide] remains on track, and expect to still exit the year at a run-rate where the majority of crystal driving the business is internally sourced,” Moore said. “The company remains confident that demand in the EV space will far outpace supply for a long time and have thus shifted their focus over to execution on the production side.”

    Citi Research analyst Christopher Danley lauded ON as being the most bullish chip maker of CES 2023.

    “ON remains on track to triple Silicon Carbide revenue YoY from roughly $300 million in 2022 to $1.0 billion in 2023,” Danley said. “The company stated it is sold out through 2023.”

    But ON aside, Danley said everyone at CES is “nervous” about “cracks” in data-center demand, “and they should be.”

    “There was a tone of nervousness on the data center outlook with many execs and investors cautious and talking about ‘uncertainty’ in data center outlooks from both hyperscalers and enterprise customers,” Danley said. “We continue to believe data center correction will happen given a multitude of datapoints and leading indicators.”

    Back in early December, Danley said his checks “indicate order rates from the data center end market are fading with downside from the enterprise end market (roughly 40% of the data center end market) and Facebook,” which is owned by parent company Meta Platforms Inc.
    META,
    +2.43%

    “We continue to expect a correction in the data center end market in 1H23,” Danley said.

    That said, Danley said his top pick was and continue to believe a correction there is inevitable. We remain cautious on semis until all end markets and companies correct and our top pick remains chip maker Analog Devices Inc.
    ADI,
    +3.65%

    Back to autos: Ambarella Inc.
    AMBA,
    +6.77%

    on Thursday, Ambarella said it was partnering with Continental AG
    CON,
    +2.32%

    to develop hardware and software for assisted driving using AI with the ultimate goal of an autonomous driving system. The companies hope to have systems in production in 2026.

    Moore said Ambarella’s tech “continues to impress,” and said the Continental partnership will provide software revenue that’s shared but with the larger portion going to Continental.

    At CES 2023, “the companies are showing a full L2+ ADAS implementation for a 10-camera system running on a single chip, which per AMBA was only using 8% of the compute value of the chip.”

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