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Tag: Automobiles

  • China extracts ‘commitment’ from Tesla, others to halt price wars: report

    China extracts ‘commitment’ from Tesla, others to halt price wars: report

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    The Financial Times has reported that Tesla Inc.
    TSLA,
    +0.91%

    and other auto makers in China have pledged to “enhance ‘core socialist values’” after the Chinese government directed the makers to curb “reckless” price wars. Chinese rival BYD was also among the 16 auto makers to make the commitment in a letter signed at a auto industry conference in Shanghai on Thursday, the newspaper reported. Tesla has cut prices on its EVs, mostly the cheaper Model 3 and Model Y vehicles, several times since late last year, in China and elsewhere, as competition in the EV space heats up. Tesla shares on Friday are poised to end the week up more than 6% and have gained 127% so far this year, compared with gains of around 15% for the S&P 500 index. Earlier this week, Tesla reported second-quarter sales that were well above Wall Street expectations.

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  • How to enjoy retirement without busting your budget

    How to enjoy retirement without busting your budget

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    The goal of many (or most) savers and long-term investors is to achieve financial independence. The combination of building up a nest egg, paying down debt and eventually receiving Social Security payments or another source of retirement income might put you in a comfortable position, but even people who have worked together to achieve financial independence may disagree on what to do after their careers end.

    Quentin Fottrell — the Moneyist — heard from one couple who are facing a quandary. They have been financially responsible, but as they near retirement, the wife wishes to be very careful with their combined investment portfolio, while the husband wants to begin spending a significant portion of it. They both make reasonable arguments. Here’s what they should do.

    From the Help Me Retire column: My 57-year-old husband works three shifts and is burned out. Can he retire?

    You have to get there first

    A behavioral study finds a correlation between having one specific type of conversation and taking action to build wealth.


    Getty Images

    Doing this even once might help encourage you or someone you know to begin saving and investing for the long term.

    The ‘Magnificent Seven’ stocks may not remain at the top

    Salesforce is among the companies passing a Goldman Sachs screen for growth of sales and earnings.


    Getty Images

    Even an index that includes hundreds of stocks can be heavily concentrated. Large technology-oriented companies have led this year’s 16% rebound for the S&P 500
    SPX,
    -0.29%
    ,
    following last year’s 18% decline (both with dividends reinvested). But the index is weighted by market capitalization, which means the “Magnificent Seven” — Apple Inc.
    AAPL,
    -0.59%
    ,
    Microsoft Corp.
    MSFT,
    -1.19%
    ,
    two common share classes of Alphabet Inc.
    GOOGL,
    -0.52%

    GOOG,
    -0.65%
    ,
    Amazon.com Inc.
    AMZN,
    +1.11%
    ,
    Nvidia Corp.
    NVDA,
    +0.95%
    ,
    Tesla Inc.
    TSLA,
    -0.76%

    and Meta Platforms Inc.
    META,
    -0.50%

    — make up 27.9% of the SPDR S&P 500 ETF Trust
    SPY,
    -0.25%
    .

    In the Need to Know column, Barbara Kollmeyer lists companies that might turn out to be among the next Magnificent Seven, based on a Goldman Sachs screen.

    Getting back to the current Magnificent Seven, you may be surprised to see which of the stocks is cheapest — by far — per one commonly used valuation metric.

    Related: Top investment newsletters aren’t bullish on tech, Tesla or Meta Platforms. Here’s what they do like.

    A thrill ride for EV makers

    An electric Rivian R1S.


    Rivian

    There has been a lot of news in the electric-vehicle space this week. Here are lists of coverage organized by topic.

    Rising unit sales among EV makers:

    Legacy automakers report sales increases, including a tremendous increase in EV unit sales for Ford
    F,

    :

    Reaction from analysts and investors:

    In other news, Mullen Automotive Inc.
    MULN,
    -12.97%

    has started to deliver electric vehicles. Further developments for the company this week included the announcement of a stock-buyback plan and possible action against naked short sellers.

    A changing job market

    The employment numbers for June from the U.S. Bureau of Labor Statistics showed the lowest level of job creation since late 2020. Then again, the demand for labor in the U.S. remains high, despite the Federal Reserve’s efforts to slow economic growth.

    If you are looking to make a career change, what does all this mean to you? Andrew Keshner points to a development in the employment market that may have you thinking twice about jumping ship.

    Threads and Twitter

    Meta’s Threads app has signed up as many as 50 million users in its first two days of operation, some reports say.


    AFP via Getty Images

    Meta rolled out its new Threads service on Wednesday to compete directly with Twitter and has already signed up 50 million users, according to some reports.

    Twitter CEO Linda Yaccarino was quick to respond.

    More reaction:

    Consumer spending may spike

    U.S. shoppers have been taking it slow during a period of high inflation, but the overall economy has been stronger than expected even as the Federal Reserve continues tightening its monetary policy.

    The coming flurry of July sales events at Amazon, Walmart Inc.
    WMT,
    -2.30%

    and Target Corp.
    TGT,
    -0.60%

    could signal a turnaround for consumers, as James Rogers reports.

    Financial crime

    Lukas I. Alpert writes the Financial Crime column. Have you ever wondered how you might steal a lot of cash from a company that is likely to have rather tight accounting controls in place? This week Alpert explains how the manager of an Amazon warehouse managed to scale the heights of criminal achievement to collect $10 million — and a 16-year jail sentence.

    Also read: Silver dealer ordered to pay $146 million in case of 500,000 missing coins

    Want more from MarketWatch? Sign up for this and other newsletters to get the latest news and advice on personal finance and investing.

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  • Rivian’s stock matches record win streak after Wedbush boosts price target by 20%

    Rivian’s stock matches record win streak after Wedbush boosts price target by 20%

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    Shares of Rivian Automotive Inc. rallied Friday for an eighth-straight session after Wedbush analyst Dan Ives boosted his stock-price target by 20%, saying he believes the electric-vehicle maker is “finally making a major turn” toward its longer-term business model.

    Ives reiterated the outperform rating he’s had on the stock
    RIVN,
    +14.25%

    since it went public, while raising his price target to $30 from $25.

    “We believe [that] after a number of ‘one step forward, two steps back’ excuses for Rivian and supply-chain headaches, the company is finally making a major turn towards executing on its longer-term business model,” Ives wrote in a note to clients. “Demand remains firm for the company’s unique EV model lineup while production appears to now be on the road to success as seen with stronger deliveries in [the second quarter].”

    Rivian’s stock powered up 14.3% to $24.70, the highest close since Dec. 13, 2022. It has rocketed 83.6% over the past eight days, to match the record eight-day win streak that ended Sept. 14, 2022.


    FactSet, MarketWatch

    Ives’s raised price target comes after Rivian’s largest shareholder, Amazon.com Inc.
    AMZN,
    +1.11%
    ,
    announced earlier this week that it was taking delivery of the first of Rivian’s new electric delivery vans in Europe.

    Rivian had also this week reported record second-quarter deliveries that nearly tripled from a year before, with production more than tripling.

    “After quarters of disappointing production speed bumps, supplier issues, and what felt like an ongoing agita situation, Rivian now appears to have its production and supply-chain issues well under control with the laser focus on getting deliveries in the hands of eagerly awaiting customers,” Ives wrote.

    Ives’s new price target, which implies 21.5% upside from Friday’s closing price, made him the third most bullish on Rivian among the 24 analysts surveyed by FactSet who cover the company.


    FactSet

    The most bullish were Wolfe Research’s Rod Lache and Canaccord Genuity’s George Gianarikas, who both had $40 price targets on the stock.

    Fourteen analysts were bullish on Rivian, eight were neutral, and two were bearish, according to FactSet. The average stock-price target was $23.55.

    Rivian’s stock has run up 70.7% over the past three months, while the Global X Autonomous and Electric Vehicles exchange-traded fund
    DRIV,
    +1.52%

    has advanced 15.1% and the S&P 500 index
    SPX,
    -0.29%

    has gained 7.2%.

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  • Mullen Automotive’s stock more than doubles in 2 days. Here’s why.

    Mullen Automotive’s stock more than doubles in 2 days. Here’s why.

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    Shares of Mullen Automotive Inc. rocketed on massive volume for a second-straight day, after the electric vehicle maker announced plans to buy back a chunk of its shares.

    The company
    MULN,
    +29.02%

    said it believes its stock is “significantly undervalued,” given its current cash position of about $235 million. Therefore, the board of directors have authorized the repurchase of up to $25 million worth of its outstanding shares through the end of this year.

    The buyback amount represents 17.1% of Mullen’s current market capitalization of about $145.8 million.

    “We are initiating this buyback program as an attractive opportunity to deploy capital and return value to our shareholders,” said Chief Executive Officer David Michery.

    The stock soared as much as 88.2% intraday, before paring gains to be up 32.8% in afternoon trading. Trading volume swelled to an already record 1.78 billion shares, compared with the full-day average over the past 30 days of about 205.0 million shares.

    On Wednesday, the stock blasted 69.4% higher, the biggest one-day gain since it ran up 145.6% on Feb. 28, 2022, on then-record volume of 1.39 billion shares. That followed the company’s announcement that it retained a law firm to combat illegal naked short selling.


    FactSet, MarketWatch

    A short sale is a way for investors to bet that prices will fall. The short seller must pay to borrow stock owned by another investor so they can sell it with the hope of buying the stock back at a lower price. If the investor who originally owned the stock sells their stock, the borrower must cover their short so they can return the stock.

    “Naked” short selling refers to the illegal act of shorting a stock without borrowing it first. While that is often blamed for what companies believe are unwarranted declines in their stock, market structure experts have often refuted those claims.

    Read: Short sellers are not evil, but they are misunderstood.

    Before the stock’s two-day bounce, it had closed Monday at a record low of 10.1 cents, even after the company reported last week that it recorded revenue for the first time, and that it received additional financing that put it in the “best financial position” in its history.

    Mullen had said on Wednesday that it “believes it may have been” targeted by naked short sellers, and therefore decided to investigate any “potential wrongdoing.”


    FactSet, MarketWatch

    The latest exchange data showed that the percent of Mullen’s public float, or shares freely available to trade, that have been shorted was 16.2%, according to FactSet data. That’s less than half what the percentage was a month ago.

    In comparison, fellow “meme” stock AMC Entertainment Holdings Inc.
    AMC,
    +0.94%

    has 23.6% of its float shorted and 20.8% of GameStop Corp.’s
    GME,
    -4.48%

    float is shorted.

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  • Tesla deliveries could spark rotation to EVs from AI as stock-market investors chase rally: analysts

    Tesla deliveries could spark rotation to EVs from AI as stock-market investors chase rally: analysts

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    Individual investors keep chasing a 2023 stock-market rally, but are showing signs of pivoting toward electric-vehicle makers and away from artificial-intelligence plays, a Wall Street research firm said Thursday.

    Investors are not only snapping up individual names but playing equity exchange-traded funds, signaling that they remain bullish on the broad market as well as specific themes, wrote analysts at Vanda Research, in a weekly note.

    “We…

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  • Mullen Automotive rallies 68% premarket in massive volume after it announces $25 million share buyback program

    Mullen Automotive rallies 68% premarket in massive volume after it announces $25 million share buyback program

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    Mullen Automotive Inc.’s stock MULN rallied 68% in premarket trade Thursday, a day after it rose 58%, after the company announced a plan to buy back $25 million of its own stock. The Brea, Calif.-based EV maker and meme stock said it believes its stock is “significantly” undervalued and trading at a big discount to its current cash position of about $235 million. “We are initiating this buyback program as an attractive opportunity to deploy capital and return value to our shareholders,” said David Michery, CEO and chairman of Mullen Automotive. Some 235 million shares had already traded in the premarket. On Wednesday,…

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  • Toyota’s stock rises after U.S. sales rise 15%, and EV sales were 26% of total sales

    Toyota’s stock rises after U.S. sales rise 15%, and EV sales were 26% of total sales

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    The U.S.-listed shares of Toyota Motor Corp. TM JP:7203 rose 0.8% in morning trading Wednesday, said U.S. sales in June rose 14.9% from a year ago. The Japan-based automaker’s North America division (TMNA) reported it sold 195,448 vehicles in the U.S. in June, on a volume and daily-selling rate (DSR) versus June 2022, as Toyota-brand sales rose 1.4% to 168,680 vehicles and Lexus-brand sales jumped 18.1% to 26,768 vehicles. Sales of electrified vehicles total 51,535, or 26.4% of total monthly sales. For the first half of 2023, U.S. sales fell 0.7% to 1,038,520 vehicles, with electrified vehicle sales representing 26.0%…

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  • Tesla’s stock jumps 6% premarket after second-quarter deliveries beat with 466,000 vehicles

    Tesla’s stock jumps 6% premarket after second-quarter deliveries beat with 466,000 vehicles

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    Tesla Inc. delivered a record number of vehicles in the second quarter, beating market estimates after the electric-car maker increased discounts and incentives, the company reported Sunday. The news sent the stock up more than 6% in premarket trade Monday.

    The Elon Musk-led electric vehicle manufacturer delivered 466,140 vehicles in the three months ended June 30 and produced 479,700 vehicles. The second quarter of 2023 marked the fifth period in a row when Tesla reported a higher level of vehicles produced compared to deliveries.

    Analysts on average had expected Tesla to deliver 445,000 cars, according to analysts polled by Refinitiv. Tesla delivered 254,695 vehicles in the year-ago quarter.

    “This was a massive delivery beat and will send the Tesla bears back into hibernation mode,” Wedbush analyst Dan Ives tweeted Sunday. “This was a trophy case quarter for Musk & Co.”

    Deliveries are a carefully watched number by Tesla shareholders and are the closest approximation of sales disclosed by the company.

    Tesla said total production rose 85.5% to nearly 480,000 vehicles in the three months ended June 30, from a year earlier.

    The company delivered 446,915 Model 3 compact cars and Model Y sport-utility vehicle, as well as 19,225 of its Model S and Model X premium vehicles.

    Tesla increased discounts for vehicles to a $1,600-to-$7,500 range and made all of its Model 3s eligible for full federal credits of $7,500 starting in June in the U.S.

    Earlier this year, Tesla cut prices globally by as much as 20% after missing Wall Street delivery estimates for 2022.

    Tesla is expected to achieve record sales yet again in China, its second-largest market after North America, despite competition from market leader BYD.

    The company said it will post financial results for the second quarter after the market close on Wednesday, July 19. 

    Earlier this year, Ford Motor
    F,
    +1.20%

    and General Motors
    GM,
    +0.94%
    ,
    as well as fast-charging equipment makers, agreed to adopt Tesla’s North American Charging Standard (NACS).

    Tesla
    TSLA,
    +1.66%

    shares closed at $261.77 on Friday ahead of the second-quarter deliveries report, and are up more than 112% year to date.

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  • Tesla beats 2nd quarter estimates with deliveries of 466,000 vehicles

    Tesla beats 2nd quarter estimates with deliveries of 466,000 vehicles

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    Tesla Inc. delivered a record number of vehicles in the second quarter, beating market estimates after the electric carmaker increased discounts and incentives, the company reported on Sunday.

    The Elon Musk-led electric vehicle manufacturer delivered 466,140 vehicles in the three months ended June 30 and produced 479,700 vehicles. The second quarter of 2023 marked the fifth period in a row when Tesla reported a higher level of vehicles produced compared to deliveries.

    Analysts on average had expected Tesla to deliver 445,000 cars, according to analysts polled by Refinitiv.

    Tesla delivered 254,695 vehicles in the year-ago quarter.

    Deliveries are a carefully watched number by Tesla shareholders and are the closest approximation of sales disclosed by the company.

    Tesla said total production rose 85.5% to nearly 480,000 vehicles in the three months ended June 30, from a year earlier.

    The company delivered 446,915 Model 3 compact cars and Model Y sport-utility vehicle, as well as 19,225 of its Model S and Model X premium vehicles.

    Tesla increased discounts for vehicles to a $1,600-to-$7,500 range and made all of its Model 3s eligible for full federal credits of $7,500 starting in June in the United States.

    Earlier this year, Tesla cut prices globally by as much as 20% after missing Wall Street delivery estimates for 2022.

    Tesla is expected to achieve record sales yet again in China, its second-largest market after North America, despite competition from market leader BYD.

    The company said it will post financial results for the second quarter after the market close on Wednesday, July 19, 2023. 

    Earlier this year Ford Motor
    F,
    +1.20%

    and General Motors
    GM,
    +0.94%
    ,
    as well as fast-charging equipment makers agreeing to adopt Tesla’s North American Charging Standard (NACS).

    Tesla
    TSLA,
    +1.66%

    shares closed at $261.77 on Friday ahead of the second-quarter deliveries report.

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  • Tesla stock surges to its 10th straight gain

    Tesla stock surges to its 10th straight gain

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    Shares of Tesla Inc. rose Thursday to a 10th straight gain, as data out of China showed that the electric vehicle giant sold more cars in May than the previous month.

    The stock
    TSLA,
    +4.58%

    surged 4.6% to $234.86, for its highest close since Oct. 6, when it closed at $238.13, and its largest one-day percentage increase since May 30, when it rose 4.14%. Shares continued rising around 3% in after-hours trading Thursday.

    It has charged up 27.3% over the past 10 days, its longest win streak since the 11-day streak that ended Jan. 8, 2021.

    The China Passenger Car Association reported overnight that May retail sales of new-energy vehicles, which includes electric and plug-in hybrids, jumped 60.9% from a year ago to 580,000 vehicles, or 33.3% of the total passenger cars sold of 1.74 million, according to a Dow Jones Newswires report.

    Tesla delivered 77,695 cars that were made at its Shanghai facility in May, the DJ report said, which is up from 75,842 cars delivered in April but down from the more than 88,800 EVs delivered in March.

    Meanwhile, shares of other China-based EV makers were mixed, as Nio Inc.’s stock
    NIO,
    +0.39%

    dropped 1.5%, but Xpeng Inc. shares
    XPEV,
    +0.95%

    climbed 0.9% and Li Auto Inc.’s stock
    LI,
    +0.66%

    tacked on 0.7%.

    See also: Tesla Model 3s now qualify for $7,500 in federal tax credits

    Tesla generated $4.89 billion in sales from China during the first quarter, or 21.0% of total sales. In 2022, the company’s China sales totaled $18.15 billion, or 22.2% of total sales for the year.

    Separately, the Associated Press reported that late Wednesday that Tesla may face a class-action lawsuit after 240 Black factory workers described racism and discrimination at the company’s plant in the San Francisco Bay Area.

    Tesla’s stock has soared 91% year to date, while the Global X Autonomous and Electric Vehicles exchange-traded fund
    DRIV,
    +0.77%

    has run up 25.4% and the S&P 500 index
    SPX,
    +0.62%

    has advanced 11.6%.

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  • April U.S. factory orders rise for fourth gain in five months

    April U.S. factory orders rise for fourth gain in five months

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    Orders for manufactured goods rose 0.4% in April, the Commerce Department said Monday. It is the fourth increase in factory-goods orders in the past five months.

    Economists surveyed by the Wall Street Journal were expecting a 0.6% rise.

    The gain was led by transportation equipment. Excluding that sector, orders were down 0.2%.

    Durable-goods orders rose 1.1% in April, unrevised from the initial estimate last week. The advance durable-goods data is always released ahead of the full report. Nondurable-goods orders fell 0.1% in April.

    Orders for nondefense capital goods, excluding aircraft, rose a revised 1.3% in April, down slightly from the prior estimate of a 1.4% increase. The gain was led by computers and machinery.

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  • Gas will be much cheaper this Memorial Day Weekend. Now, for all the bad news.

    Gas will be much cheaper this Memorial Day Weekend. Now, for all the bad news.

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    Traveling this Memorial Day Weekend? Put some deep breaths on your checklist.

    Americans should brace for jammed highways and long airport lines with more people projected to drive and fly this holiday weekend compared to last year, experts say.

    Gas is $1 cheaper than it was at the same point last year and airline passengers aren’t flinching from pricey tickets, still powered by the pent-up demand to see family and friends as the pandemic recedes.

    “The roads are going to be pretty packed,” said AAA spokeswoman Aixa Diaz. “The bottom line is, the later you wait in the day, the worse it is — unless you drive at night.”

    “If there ever was a time you wanted to get to the airport early, it’s this one,” she added.

    “Whether driving or flying, pack your patience and prepare for heavy traffic on the road and at the airport,” said Erika Richter, spokeswoman for the American Society of Travel Advisors.

    AAA is projecting that 37.1 million people will be driving at least 50 miles this upcoming weekend. That’s 2 million more people traveling by automobile compared to last year.

    AAA is projecting that 37.1 million people will be driving at least 50 miles this upcoming weekend. That’s 2 million more people traveling by automobile compared to last year.

    They’ll be driving on cheaper gas. Nationally, a gallon of gas averaged $3.57 on Thursday, down from $4.59 one year ago, AAA said.

    Read also: Why this falling fuel price is stoking recession fears even as prime gas-demand season nears

    Meanwhile, nearly 3.4 million airline passengers are projected to fly this weekend, according to AAA. That would surpass pre-pandemic levels, when 3.2 million people flew over the Memorial Day Weekend in 2019.

    All together, 42.3 million people are expected to travel this weekend via cars, planes, buses, trains, according to AAA estimates. That’s higher than the 39.6 million who traveled last Memorial Day Weekend, and just under 2019 levels.

    Three major airlines, American Airlines
    AAL,
    +4.20%
    ,
    United
    UAL,
    +1.76%

    and Delta Air Lines
    DAL,
    +2.35%
    ,
    are expected to handle nearly 60% of the flights, according to a Thursday note from TD Cowen.

    Like others, analysts at TD Cowen, a division of TD Securities, say it’s going to be a brisk summer travel season.

    “We continue to see strong demand for air travel, with this summer’s focus on international [travel]. Remember, the U.S. government did not eliminate testing until mid-June last year, after most people planned their vacations,” they wrote.

    Related: Is it possible to book a cheap summer flight? Here are 5 tricks to save money.

    When to expect the worst?

    Friday is the day when roads and airports are going to be the busiest.

    On the roads, congestion is going to peak that day from 3:00 p.m. to 6:00 p.m., according to INRIX, a traffic-data analytics firm.

    Inside airports, approximately 2.6 million people will pass through Transportation Security Administration checkpoints that day, the agency said.

    During last year’s Memorial Day Weekend, 2.38 million people passed through TSA checkpoints, the agency’s data showed.

    Teens, aged 13-17, can now go with TSA PreCheck-enrolled parents and guardians, when they are on the same reservation and when the TSA PreCheck indicator shows on the child’s pass. Children ages 12 and under can still walk through checkpoints with their enrolled parents or guardians.

    Once getting on the plane, don’t count on having a nearby spare seat. Seating capacity is currently slated to be 17% higher than last Memorial Day Weekend, according to the travel app Hopper.com.

    This weekend, last-minute tickets are averaging $273, and that’s around $100 less than ticket-price averages at the same point last year and slightly cheaper than 2019 levels, Hopper.com’s data said. International travel is a different story. Fares to Europe, for example, are more than 50% higher than last year, according to Hopper.com.

    What happens after Friday?

    On the roads, there’s little extra traffic expected on Saturday and Sunday, according to projections from INRIX, a transportation analytics company. On Monday, the worst traveling time is 12 p.m. to 3 p.m. The window for less traffic that day is before 10 a.m., INRIX noted.

    As for flights, Richter said airlines and operators “are obligated to share the latest information if it impacts your travel.”

    Downloading smartphone apps for your airline, activating the notifications and opting for text and email alerts will also help keep you abreast of any last-minute changes, she said.

    Through March, less than 2% of scheduled domestic flights have been canceled, the U.S. Department of Transportation said Tuesday. That’s below last year’s 2.7% cancellation average and the 4.1% rate for the first three months of 2022, the department noted.

    A Transportation Department dashboard shows which airline carriers have committed to passenger-friendly accommodations when delays and cancellations occur. For example, some — but not all — airlines will rebook your flight with a partner airline at no additional cost.

    But Richter said the volume and potentials for travel snags this Memorial Day Weekend could be a preview for the months to come. “Travel delays will be inevitable this summer, so make sure you are planning ahead,” she said.

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  • Harry and Meghan involved in long-running New York car chase called nearly catastrophic

    Harry and Meghan involved in long-running New York car chase called nearly catastrophic

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    NEW YORK (AP) — Prince Harry and his wife Meghan were involved in a car chase while being followed by photographers following a charity event in New York, the couple’s office said Wednesday.

    The pair, together with Meghan’s mother, were followed for more than two hours by a half-dozen vehicles with blacked out windows after leaving the event.

    Their office said in a statement that the chase “resulted in multiple near collisions involving other drivers on the road, pedestrians and two NYPD officers.” It called the incident “near catastrophic.”

    “While being a public figure comes with a level of interest from the public, it should never come at the cost of anyone’s safety,” the statement from the couple said.

    Harry’s mother, Princess Diana, died in a car crash in 1997 while being pursued by paparazzi in Paris

    From the archives (August 2017): Why all those Princess Diana conspiracy theories live on

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  • Tesla’s Elon Musk expects ‘a year of difficulty’ for the global economy

    Tesla’s Elon Musk expects ‘a year of difficulty’ for the global economy

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    Tesla Inc. Chief Executive Elon Musk said late Tuesday he foresees “a year of difficulty” for the global economy, with “lots of companies” going bankrupt, and said that the EV maker will not be immune to the downdraft, even as he teased two new products for Tesla in the future.

    “It’s is going to be a challenging 12 months, and Tesla is not immune to the global economic environment,” Musk said at the Tesla
    TSLA,
    +0.10%

    shareholder meeting in Austin, Texas, where he spoke for nearly two hours on a wide range of topics.

    The macroeconomic environment will be “difficult for at least the next 12 months,” Musk said. A turnaround, however, would come in the following 12 months, and long-term investors in Tesla will do “extremely well,” he said.

    A shareholder in the audience asked about “rumors” that Musk would be about to step down as CEO, ending with “say it ain’t so.” Musk responded with “it ain’t so,” but offered no further details.

    The executive also surprised the audience by saying that Tesla, which famously has eschewed traditional advertising, will now do it. “We will try advertising and see how it goes,” he said.

    Musk teased two new products to be unveiled in the future, and promised more details at a yet-to-be-detailed launch event. The unnamed products would be “head and shoulders above anything else” currently in the market, he said.

    Tesla has been working on a next-generation vehicle that would be cheaper than its current offerings, but nothing has been detailed.

    Musk promised a revamp for the Tesla Roadster in 2024, although he said that wasn’t a firm commitment. A new Roadster “will not be a huge contributor to revenue, but it will be sick,” he said.

    The CEO’s remarks were largely upbeat, to the applause of the shareholders at the event. Musk also spoke about autonomous driving and Tesla’s plans for alternative energy, and confirmed the Cybertruck, Tesla’s electric pickup truck which has been delayed a couple of times, is on track to be sold this year.

    “We will make as many as people want them” eventually, but the production ramp will be slow at first, he said.

    See also: Rivian, Lucid and Fisker navigate a ‘treacherous road’ as they struggle to match Tesla’s success

    Earlier, a preliminary tally indicated that shareholders voted yes on the proposals endorsed by the company, including approving the nomination of former Chief Technology Officer JB Straubel to the board.

    Some shareholders had questioned Straubel’s nomination, saying that Tesla’s board already had too many ties with Musk.

    A failed proposal, which had been introduced in previous years and called for a third-party audit into Tesla’s cobalt supply chain to prevent child and forced labor, ended up being embraced by Musk.

    “You know what, we will do a third-party audit,” although he said that Tesla products don’t use that much cobalt.

    Tesla shares gained 1.2% in after-hours trading. So far this year, Tesla has gained 35%, compared with gains of around 7% for the S&P 500 index
    SPX,
    -0.64%
    .

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  • Tesla’s Elon Musk expects ‘a year of difficulty’ for the global economy

    Tesla’s Elon Musk expects ‘a year of difficulty’ for the global economy

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    Tesla Inc. Chief Executive Elon Musk said late Tuesday he foresees “a year of difficulty” for the global economy, with “lots of companies” going bankrupt, and said that the EV maker will not be immune to the downdraft, even as he teased two new products for Tesla in the future.

    “It’s is going to be a challenging 12 months, and Tesla is not immune to the global economic environment,” Musk said at the Tesla
    TSLA,
    +0.10%

    shareholder meeting in Austin, Texas, where he spoke for nearly two hours on a wide range of topics.

    The macroeconomic environment will be “difficult for at least the next 12 months,” Musk said. A turnaround, however, would come in the following 12 months, and long-term investors in Tesla will do “extremely well,” he said.

    A shareholder in the audience asked about “rumors” that Musk would be about to step down as CEO, ending with “say it ain’t so.” Musk responded with “it ain’t so,” but offered no further details.

    The executive also surprised the audience by saying that Tesla, which famously has eschewed traditional advertising, will now do it. “We will try advertising and see how it goes,” he said.

    Musk teased two new products to be unveiled in the future, and promised more details at a yet-to-be-detailed launch event. The unnamed products would be “head and shoulders above anything else” currently in the market, he said.

    Tesla has been working on a next-generation vehicle that would be cheaper than its current offerings, but nothing has been detailed.

    Musk promised a revamp for the Tesla Roadster in 2024, although he said that wasn’t a firm commitment. A new Roadster “will not be a huge contributor to revenue, but it will be sick,” he said.

    The CEO’s remarks were largely upbeat, to the applause of the shareholders at the event. Musk also spoke about autonomous driving and Tesla’s plans for alternative energy, and confirmed the Cybertruck, Tesla’s electric pickup truck which has been delayed a couple of times, is on track to be sold this year.

    “We will make as many as people want them” eventually, but the production ramp will be slow at first, he said.

    See also: Rivian, Lucid and Fisker navigate a ‘treacherous road’ as they struggle to match Tesla’s success

    Earlier, a preliminary tally indicated that shareholders voted yes on the proposals endorsed by the company, including approving the nomination of former Chief Technology Officer JB Straubel to the board.

    Some shareholders had questioned Straubel’s nomination, saying that Tesla’s board already had too many ties with Musk.

    A failed proposal, which had been introduced in previous years and called for a third-party audit into Tesla’s cobalt supply chain to prevent child and forced labor, ended up being embraced by Musk.

    “You know what, we will do a third-party audit,” although he said that Tesla products don’t use that much cobalt.

    Tesla shares gained 1.2% in after-hours trading. So far this year, Tesla has gained 35%, compared with gains of around 7% for the S&P 500 index
    SPX,
    -0.64%
    .

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  • Import prices rise in April for first monthly gain this year

    Import prices rise in April for first monthly gain this year

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    The numbers: The cost of U.S. imported goods rose 0.4% in April, the Labor Department said Friday. This was the first increase this year.

    Economists polled by the Wall Street Journal had forecast a 0.3% gain.

    Over the past 12 months, the costs of imports has dropped 4.8%. That followed a 12.5% gain in the prior year.

    Key details: The cost of imported fuel rose 4.5% in April after a 3.9% drop in the prior month. This was the first increase since last June.

    The cost of imports excluding fuel were flat in April after a 0.5% decline in the prior month. Over the past year, nonfuel import prices are down 1.9%.

    Exports prices rose 0.2% in April. They are down 5.9% over the past year.

    Big picture: The stronger dollar last year dampened import prices and was a source of disinflation, but with the dollar softer this year, prices are firming.

    One sign perhaps of the weaker dollar is that consumer goods prices ex-autos rose 0.2% in April and are up 1.1% annualized over the past three months, said Michael Gapen, U.S. economist at Bank of America Securities.

    What are they saying? “Perhaps imported inflation is the first early signal of how brutal the fight against inflation will be in the coming months. Investors and traders should remember that the Fed’s target is 2%,” said Alex Kuptsikevich, senior market analyst at FXPro.

    Market reaction: Stocks
    DJIA,
    -0.03%

    SPX,
    -0.16%

    were lower in volatile morning trading on Friday. The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    3.468%

    rose to 3.45%.

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  • Elon Musk says he’s hired new CEO for Twitter; is it NBCUniversal’s Linda Yaccarino?

    Elon Musk says he’s hired new CEO for Twitter; is it NBCUniversal’s Linda Yaccarino?

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    Twitter Chief Executive Elon Musk says he’s found a new CEO to run Twitter and its parent company, X Corp., and “she” starts soon.

    “Excited to announce that I’ve hired a new CEO for X/Twitter. She will be starting in ~6 weeks!” Musk tweeted Thursday afternoon. “My role will transition to being exec chair & [chief technology officer], overseeing product, software & sysops.”

    Musk did not offer any clues as to the identity of Twitter’s incoming CEO, but late Thursday, the Wall Street Journal reported Linda Yaccarino, NBCUniversal’s head of advertising, was in talks to become the CEO.

    Yaccarino has worked at Comcast’s
    CMCSA,
    +1.28%

    NBCU for more than a decade, and has been an industry advocate in finding better ways to measure advertising’s effectiveness, according to the Journal.

    Yaccarino oversees global, national and local ad sales, partnerships, marketing, ad tech, data, measurement and strategic initiatives, according to her bio, which says she and her team have generated more than $100 billion in ad sales.

    “She knows metrics in advertising, and has played in different media,” Timothy Hubbard, assistant professor of management at the University of Notre Dame’s Mendoza College of Business, said in an interview. “I don’t know much about her, but she can balance Musk somewhat with her flexibility in advertising.”

    She and Musk appeared in a keynote conversation at a conference in Miami last month, according to Dateline, before NBCU and Twitter inked a major ad pact for the 2024 Olympics.

    Wedbush analyst Dan Ives said the move is good for the stock of Tesla Inc.
    TSLA,
    +2.10%
    ,
    where Musk is also CEO.

    “Musk stepping down as Twitter CEO sooner than thought is clearly good news overall for Tesla investors,” Ives said on Twitter. “Less time focused on Twitter platform and more time around Tesla SpaceX…balancing act too difficult and needed to make this move sooner rather than later.”

    In a note, Ives added: “With the tweet this afternoon, Musk’s reign as CEO of Twitter has finally come to an end and thus will be a positive for Tesla’s stock starting to finally remove this lingering albatross from the story,” and maintained Tesla’s outperform rating.

    Tesla shares advanced 1.6% in after-hours trading.

    After Musk acquired the social media giant for $44 billion, he posted a Twitter poll in December that asked if he should step down as CEO. A majority (57%) said yes, and he responded saying: “I will resign as CEO as soon as I find someone foolish enough to take the job! After that, I will just run the software & servers teams.”

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  • Ford swings to quarterly profit, guidance kept unchanged; stock slips

    Ford swings to quarterly profit, guidance kept unchanged; stock slips

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    Ford Motor Co. late Tuesday swung to a quarterly profit and reported a 20% rise in sales, but the stock fell 1.4% in the extended session as Wall Street seemed to question Ford’s unchanged guidance.

    Ford F “delivered a solid quarter while making real progress on our Ford+ growth plan,” Chief Executive Jim Farley said in a call with analysts following results.

    “I…

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  • Chicago business activity index less negative in April

    Chicago business activity index less negative in April

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    The Chicago Business Barometer, also known as the Chicago PMI, rose 4.8 index points to 48.6 in April.

    Economists polled by the Wall Street Journal forecast a decline to a 43.8 reading. 

    This is the eighth straight reading below the 50 threshold that indicates contraction territory.

    The index is produced by the ISM-Chicago with MNI. It is released to subscribers three minutes before its release to the public at 9:45 am Eastern. It is the last of the regional manufacturing indices before the national ISM data for April is released on Monday.

    So far, the regional data suggest a modest improvement this month in the manufacturing ISM. In March, the ISM factory index fell to 46.3% from 47.7% in the prior month. It was the fourth month in contraction territory.

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  • 8 value stocks that look like bargains for long-term investors

    8 value stocks that look like bargains for long-term investors

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    When is it a good time to buy stocks? Some investors would say the current negativity dominating the financial media means you are better off sitting on the sidelines. Others would say it is always a good time to buy stocks, provided you can get them for good prices.

    Count John Buckingham, editor of the Prudent Speculator, in the latter camp. He is a value investor with decades of experience. During an interview, he emphasized the importance of remaining disciplined through all market conditions. While he favors the value…

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