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Tag: Motor Vehicles

  • 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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  • Parenting 101: Quick alternatives to screen time

    Parenting 101: Quick alternatives to screen time

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    It can be hard to keep the kids away from screens, especially in summer when they have so much free time on their hands. Kids are constantly reaching for remotes and devices… and parents are constantly chiming, “No more!”

    So here are some quick alternatives to screen time. 

    Set up a craft table. Just as you have a homework station during the school year, it can be really handy to have an area stocked with paper, markers, scissors, glue, stickers, old magazines, etc. 

    Get outdoors. Start up a pick-up game of soccer or Frisbee, go on a family bike ride, plan a picnic, set up the sprinkler, throw some building toys (even simple spoons and bowls) into the yard or garden and get digging – fresh air always trumps being indoors.

    Go to the library. A quick trip to your local library can spark all kinds of interest in magazines, books, and more. Check out a kid’s cookbook and plan a family meal, or get a cool science experiment book for lots of exploration fun.

    Put the kids in change of an activity. Forget dictating to them what they should do in lieu of playing with electronics and instead out them in the driver’s seat and ask them to choose a family activity. You might be surprised by what they come up with.

    Create something from “trash.” Go through your recycling bin in search of items you can use to build a small playhouse, pirate ship or mechanic’s garage. Grab that bin of spare nuts and bolts from the garage and make your own robots. See which family member can get the most creative with their creations.

    Do something for others. Maybe you could make it a family project to roll those spare coins that have accumulating in that plastic bank in the closet, which could be given to a charity. Or you could start a canned food drive around your neighborhood. Build a little “take a book, leave a book” library outside your home for neighbours. Figure out a family project that will benefit others, and work on it together.

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  • EV stocks get a broad boost after Tesla, Rivian, Nio report upbeat deliveries data

    EV stocks get a broad boost after Tesla, Rivian, Nio report upbeat deliveries data

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    Shares of electric vehicle makers got a broad boost Monday, after upbeat delivery and production data from a host of companies, including industry leader Tesla Inc. and those based in China.

    The Global X Autonomous and Electric Vehicles exchange-traded fund
    DRIV,
    +1.08%

    jumped as much as 1.7% intraday, before paring gains to close up 1.1%. It has climbed 5.7% amid a five-day win streak. The ETF outperformed the broader stock market by a wide margin, as the S&P 500 index
    SPX,
    +0.12%

    inched up 0.1% and the Nasdaq Composite
    COMP,
    +0.21%

    edged up 0.2%.

    The ETF’s most-active component was Tesla’s stock
    TSLA,
    +6.90%
    ,
    which climbed 6.9% to $279.82, the highest close since Sept. 28, 2022. It has run up 16.1% amid a five-day win streak.

    The rally comes after Tesla revealed over the weekend a blowout deliveries report, in which the EV leader said it delivered a record 466,000 vehicles in the most recent quarter, well above expectations of 449,000.

    The ETF’s second-most active member was Rivian Automotive Inc.’s stock
    RIVN,
    +17.41%
    ,
    which shot up 17.4% to its highest close since Feb. 17, and rocketed 45.4% amid a five-day win streak.

    The company reported second-quarter EV production that was more than triple that of a year ago, and deliveries that nearly tripled.

    Nio Inc.’s U.S.-listed stock
    NIO,
    +3.51%

    rallied 3.5% to $10.03, the first close above the $10 mark since March 31, after the Shanghai-based EV maker reported June deliveries that jumped 74% from May, but were down 17.4% from a year ago.

    Among its China-based peers, the U.S.-listed shares of Xpeng Inc.
    XPEV,
    +4.17%

    advanced 4.2% to the highest close since Sept. 26, 2022, of Li Auto Inc.
    LI,
    +3.42%

    hiked up 3.4% to the highest close since July 21, 2022 and of Boyd Co. Ltd.
    BYDDY,
    +3.07%

    rose 3.1%.

    Elsewhere, Lucid Group Inc. shares
    LCID,
    +7.26%

    charged 7.3% higher to a record sixth-straight gain and the highest close since May 31, as the EV sector’s rally helped offset an effective downgrade at Citi Research.

    Mullen Automotive Inc.’s stock
    MULN,
    -6.31%

    bucked the trend, as it sank 6.3% toward a record low close of 10.1 cents, even after the EV maker reported last week that it recorded revenue for the first time, and that it was in the “best financial position” in its history.

    In an interview on YouTube channel “Financial Journey,” as disclosed on Friday, Mullen Chief Executive Officer David Michery said he doesn’t believe the stock’s price reflects the true value of the company.

    He said he expects manufacturing of the Mullen One class 1 last-mile delivery cargo vans to begin in August with “sellable” vehicles available in September.

    For the Mullen Three class 3 trucks, with a gross vehicle Weight Rating (GVWR) of 11,000 pounds, Michery said manufacturing will start “right around the corner” in July, with sellable vehicles in August and September.

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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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  • Li Auto, XPeng, and NIO Deliver Record Number of EVs in June

    Li Auto, XPeng, and NIO Deliver Record Number of EVs in June

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    Deliveries in June from Chinese electric-vehicle producers


    Li Auto



    XPeng


    and


    NIO


    were great but uneven. The results hold a couple of lessons for investors ahead of


    Tesla


    ‘s closely watched delivery report due Sunday.

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  • Aston Martin Says It Is on Track to Meet Financial Targets; Plans $2.5 Bln in New Investment

    Aston Martin Says It Is on Track to Meet Financial Targets; Plans $2.5 Bln in New Investment

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    By Joe Hoppe

    Aston Martin Lagonda Global Holdings said Tuesday that it is on track to deliver on its 2024-25 financial targets and set out a range of new targets for 2027-28, and said it expects to invest around 2 billion pounds ($2.54 billion) over the next five years.

    The luxury car maker said ahead of its capital markets day that it expects to meet its near-term targets of GBP2 billion in revenue and around GBP500 million in adjusted earnings before interest, taxes, depreciation and amortization by 2024-25. The company said it expects to achieve the targets in 2024, and with persistent momentum, is likely to exceed them in 2025.

    The company also set out new midterm targets, aiming for revenue of around GBP2.5 billion, and an adjusted Ebitda of around GBP800 million for 2027-28, among others.

    Aston Martin expects to invest GBP2 billion from 2023-27 into its long-term growth and the transition to electricification, comprising GBP1.8 billion of capital expenditure and around GBP200 million in technology access fees.

    On Monday, Aston Martin said it had agreed preliminary terms for a deal with U.S. electric-vehicle maker Lucid Group, for the creation of ultra-luxury high-performance electric vehicles.

    “With the heavy lifting now behind us, I have never been as confident in our future,” Executive Chairman Lawrence Stroll said.

    Write to Joe Hoppe at joseph.hoppe@wsj.com

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  • Billionaire killed in race car crash | CNN Business

    Billionaire killed in race car crash | CNN Business

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    Washington, DC
    CNN
     — 

    James Crown, a billionaire businessman who held several leadership roles including board member of JPMorgan Chase, died Sunday in a racing accident in Colorado.

    Crown, who also turned 70 on Sunday, died in the single-vehicle crash after colliding with an impact barrier at Aspen Motorsports Park in Woody Creek, Colorado, The Colorado Sun reported.

    Among his many roles, Crown was chairman and CEO of his family business, the investment firm Henry Crown and Company. In addition to serving on the JPMorgan board, he was also a board director at General Dynamics. Crown had served on JPMorgan’s board since the early 1990s.

    “We extend our deepest condolences to Jim’s family and loved ones during this incredibly difficult time,” Jamie Dimon, CEO of JPMorgan Chase, said in a statement. “Our thoughts are also with all of you who knew and loved Jim, as much as I did. He was an integral part of JPMorgan Chase and our lives, and his presence will be deeply missed.”

    “The Crown family is deeply saddened by the sudden passing of Jim Crown,” a family representative said in a statement to media. “The family requests that their privacy be respected at this difficult time.”

    Crown lived in Chicago but frequently traveled to Colorado, and he held additional positions at organizations in both states. He was a managing partner of Aspen Skiing Co., chair emeritus of the Aspen Institute and a trustee at three institutions: the Museum of Science and Industry, the Civic Committee and the University of Chicago. In 2014, President Barack Obama appointed Crown to the President’s Intelligence Advisory Board.

    Local officials are currently investigating the crash.

    “The official cause of death is pending autopsy although multiple blunt force trauma is evident. The manner is accident,” the Pitkin County Coroner’s Office said in a news release.

    Forbes estimated the Crown family’s wealth at $10.2 billion in 2020.

    Crown is survived by his wife, four children and his parents.

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  • Nvidia Stock Is Down. Blame Tesla.

    Nvidia Stock Is Down. Blame Tesla.

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    Shares of newly minted $1 trillion company


    Nvidia


    were taking it on the chin Monday, and investors searching for a reason should look to


    Tesla


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  • OpenAI, Google, Apple chiefs to discuss innovation with Biden and Modi at White House

    OpenAI, Google, Apple chiefs to discuss innovation with Biden and Modi at White House

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    The heads of prominent U.S. and Indian companies will meet at the White House on Friday with President Joe Biden and Indian Prime Minister Narendra Modi to discuss investment in areas including artificial intelligence.

    Those attending include Sam Altman, CEO of OpenAI, as well as Apple
    AAPL,
    +0.04%

    CEO Tim Cook and Google
    GOOG,
    -0.49%

    GOOGL,
    -0.41%

    CEO Sundar Pichai. Indian company executives include Mukesh Ambani, chair of Reliance Industries, and Anand Mahindra, chair of Mahindra Group.

    “The president and Prime Minister Modi of the Republic of India will meet with senior officials and CEOs of American and Indian companies gathered to discuss innovation, investment, and manufacturing in a variety of technology sectors, including AI, semiconductors, and space,” the White House said.

    Friday’s meeting is part of Modi’s high-profile visit to Washington, which included a state dinner at the White House and the announcement of a number of business deals.

    Now read: Jet engine, drone deals unveiled as Biden meets India’s Modi

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  • Ford Venture Gets Record $9.2 Billion Government Loan for EV Batteries

    Ford Venture Gets Record $9.2 Billion Government Loan for EV Batteries

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    Ford Venture Gets Record $9.2 Billion Government Loan for EV Batteries

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  • This Bud’s for investors. Buy the stock even if Bud Light sales never recover, says analyst.

    This Bud’s for investors. Buy the stock even if Bud Light sales never recover, says analyst.

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    The summer haze settling over stocks doesn’t look ready to budge Thursday, with the S&P 500 index
    SPX,
    -0.52%

    in the throes of its longest losing streak since May.

    On the bright side, the index is looking at a 6% gain for the June quarter, whose end is just a few days away.

    In other corners of the market, the quarter has been less forgiving. Consumer staples, those things you can’t live without, have lost over 1%, perhaps reflecting the tougher economic times we are living in. Within that sector, though, is beer and one name that has indeed had a quartarius horriblis.

    Anheuser-Busch InBev’s
    ABI,
    +1.82%

    BUD,
    -0.05%

    U.S.-listed shares are down about 15%, as Bud Light sales have tumbled following consumer backlash to a social-media campaign featuring trans activist Dylan Mulvaney in April.

    But our call of the day from Deutsche Bank says it’s time to buy this unloved stock, even if those Bud Light sales never recover. A team of analysts led by Mitch Collett have upgraded Anheuser-Busch shares to buy from hold and lifted their price target to €60 euros from €59 euros (they didn’t offer an ADR price target).

    Recent underperformance of the stock “implies a permanent reduction in ABI’s U.S. business. Our proprietary survey data suggests these headwinds are likely to fade even if we do not expect the U.S. business ever to fully recover from its current challenges,” said Collett.

    The analysts pointed to recent Nielson data that showed ABI’s U.S. business currently down 12%, with Bud Light sales off 24% and the rest of its portfolio down 7%. But an analysis of distribution data shows ABI itself isn’t “losing shelf presence” as sales velocity is the primary driver of the decline, which bodes well if consumer sentiment improves, said Deutsche Bank.

    Those declines are about a 12% headwind to ABI’s annual net income, which is in line with European underperformance seen by the stock, added Collett and the team.

    Read: Bud Light dethroned as top-selling beer by Modelo, as boycott cuts into sales

    Deutsche Bank conducted its own survey that showed 24% of Bud Light consumers are no longer buying that brand, with 18% buying less, but 21% buying more and 37% buying the same amount. Those findings are largely consistent with Nielson;s, said the analysts.

    Deutsche Bank’s own survey also showed that 42% of Bud Light drinkers expect to be buying Bud Light again in three to six months, versus 29% who see that as unlikely. And 50% expect that battered beer’s reputation will recover in time, versus 30% who says it won’t. “We believe this bodes well for the brand, recapturing some of its lost share,” said Collett and the team.

    Analysts at RBC Capital also recently pushed back on the selloff for the stock, saying the hit to the shares and forecasts for the stock are “excessive,” as they don’t see Bud Light’s troubles hurting AB InBev outside the U.S.. They said AB InBev is a “nerve-racking buying opportunity.”

    Ahead of Thursday’s open, U.S.-listed Bud shares were up about 1.3%, tracking gains from its Belgian shares.

    The markets

    U.S. stock index futures
    ES00,
    -0.25%

    YM00,
    -0.27%

    NQ00,
    -0.31%

    are drifting lower, with bond yields
    TMUBMUSD02Y,
    4.730%

    TMUBMUSD10Y,
    3.743%

    on the rise and oil prices
    CL.1,
    -1.82%

    also weaker. The Norwegian krone
    USDNOK,
    -0.80%

    is up 1.5% against the dollar after the country’s central bank hiked interest rates 50 basis points. Switzerland also hiked rates, but the Swiss franc is steady
    USDCHF,
    +0.12%
    .
    The British pound
    GBPUSD,

    is higher after the Bank of England also hiked interest rates by 50 basis points. The Turkish lira was falling slightly after the central bank, under new management, hiked interest rate to 15% from 8.5%, against forecasts for a hike to 20%.

    China markets were closed for a holiday, with losses elsewhere, such as Japan
    NIK,
    -0.92%

    and Australia
    XJO,
    -1.63%
    .

    For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily.

    The buzz

    Federal Reserve Chair Jerome Powell’s second day of testimony on Capitol Hill kicks off at 10 a.m. Eastern. On Wednesday, he said higher interest rates should be expected , but didn’t offer any clues on timing. U.S. weekly jobless benefit claims and current account data are due at 8:30 a.,m. ET, with leading indicators also at 10 a.m., alongside a speech from Cleveland Fed President Loretta Mester. Richmond Fed President Tom Barkin will speak at 4:30 p.m.

    The Bank of England will announce an interest-rate decision at 7 a.m. ET and after worse-than-expected inflation data on Wednesday, a 50 basis-point hike hasn’t been ruled out.

    Darden Restaurants
    DRI,
    +0.36%

    will report ahead of the open, with Smith & Wesson
    SWBI,
    +0.52%

    due after the close.

    Tesla stock
    TSLA,
    -5.46%

    is down 2% in premarket trading on the heels of the EV maker’s worst loss in two months.

    Joining recent actions by other big stakeholders cashing in on big gains for Nvidia
    NVDA,
    -1.74%
    ,
    a board member just sold $51 million in stock.

    Best of the web

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    The Biden administration is reportedly exploring whether it can mount a campaign against Chinese tech giants like Alibaba and Huawei.

    A giant drilling machine is moving Stockholm toward an emissions-free future

    Wife of missing Titanic exploring sub pilot Stockton Rush is reportedly a descendant of two first-class passengers who died on the ship.

    The tickers

    These were the top searched tickers on MarketWatch as of 6 a.m. :

    Ticker

    Security name

    TSLA,
    -5.46%
    Tesla

    MULN,
    +24.24%
    Mullen Automotive

    NVDA,
    -1.74%
    Nvidia

    AMC,
    -1.31%
    AMC Entertainment

    APE,
    -2.30%
    AMC Entertainment preferred holdings

    NIO,
    -2.99%
    Nio

    PLTR,
    -7.28%
    Palantir Technologies

    MANU,
    +1.11%
    Manchester United

    SPCE,
    -4.99%
    Virgin Galactic Holdings

    AAPL,
    -0.57%
    Apple

    Random reads

    Are Elon Musk and Mark Zuckerberg ready for a cage match?

    It’s summertime. Let your kids get bored.

    Tokyo streets now offer the chance to snuggle an alpaca

    Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern.

    Listen to the Best New Ideas in Money podcast with MarketWatch reporter Charles Passy and economist Stephanie Kelton.

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  • Tesla’s stock suffers deepest loss in two months

    Tesla’s stock suffers deepest loss in two months

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    Shares of Tesla Inc. ended more than 5% lower Wednesday in the wake of a downgrade by Barclays.

    The electric-vehicle maker’s
    TSLA,
    -5.46%

    stock notched its worst one-day percentage drop since April 20, when it fell 9.75%.

    Earlier Wednesday, analyst Dan Levy at Barclays said that for all that Tesla has been a momentum stock often “driven by more than fundamentals,” the surge that started in April, in which Tesla shares have gained about 70%, is likely “too sharp” against “challenging” near-term trends.

    The analyst downgraded his rating on Tesla shares to the equivalent of hold.

    Tesla shares have been on a tear in recent weeks, boosted by news that major U.S. automakers such as Ford Motor Co.
    F,
    -1.41%

    and General Motors Co.
    GM,
    -0.83%

    have forged agreements that will allow their EV owners to use Tesla’s fast-charging network, which has stations located alongside major highways.

    On Tuesday, EV startup Rivian Automotive Inc.
    RIVN,
    -6.88%

    announced a similar deal. The agreements have made Tesla’s EV fast-charging connector type, which it calls the North American Charging Standard, or NACS, the de facto standard in North America.

    See also: Tesla’s EV charging standard is becoming widely adopted, in another boost for the stock

    Shares of Tesla have more than doubled this year, up 111%, compared with gains of around 14% for the S&P 500
    SPX,
    -0.52%

    in the same period. The stock is also in the black for a 12-month span, up 10%, while the S&P 500 has advanced 16%.

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  • Cathie Wood Sold More Tesla Stock. She Might Not Be Done.

    Cathie Wood Sold More Tesla Stock. She Might Not Be Done.

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    Cathie Wood Sold More Tesla Stock. She Might Not Be Done.

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  • This Pennsylvania city hopes Biden’s infrastructure law can help revitalize its downtown | CNN Politics

    This Pennsylvania city hopes Biden’s infrastructure law can help revitalize its downtown | CNN Politics

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    Reading, Pennsylvania
    CNN
     — 

    Reading, the fourth-largest city in Pennsylvania, may be most recognized for the iconic Monopoly board game’s Reading Railroad property.

    The railroad was one of the first in the US and was one of the biggest companies in the world in its heyday, connecting northeast Pennsylvania’s coal region with Philadelphia and the rest of the country.

    But the Reading Railroad went bankrupt in 1971. The last passenger train left Reading a decade later, and the city found itself detached from the rest of the country.

    Now Reading, a working-class city, is looking to regain its footing with a big investment in a new iteration of transportation: electric vehicle charging stations.

    City officials have a multimillion-dollar plan to install dozens of EV charging stations, with high hopes of revitalizing the city by making it easier for more workers and visitors to go to Reading and perhaps attract a new, younger generation of residents as well.

    To help make it happen, city officials are seeking federal money provided by the massive infrastructure law passed by Congress in 2021. The law not only provides funding for roads and bridges but also allocates billions of dollars to build a nationwide network of plug-in electric vehicle chargers – a key climate priority for the Biden administration.

    The measure garnered bipartisan support, despite facing some backlash from a handful of Republicans. After many previous administrations had failed to get a comprehensive infrastructure package through Congress, the Biden administration celebrated the law as a huge legislative win.

    In late May, Reading submitted an application for a new grant known as the Charging and Fueling Infrastructure program. The program will provide $2.5 billion over the next five years to local governments – and Reading officials hope to get a piece of that pie.

    The city recently exited a state oversight program for “financially distressed” cities after nearly 13 years, and seeking federal and state funding for a variety of projects is key to helping it rebuild.

    “We don’t give up,” said Mayor Eddie Moran, noting that it was a no-brainer for the city to apply for the federal grant.

    “We know these opportunities exist that can give us a better future,” he said.

    Mayor Eddie Moran speaks during the State of the City address at the DoubleTree by Hilton in Reading, Pennsylvania, on January 28, 2022.

    An electric vehicle revolution could be on the horizon, but there are reasons to be skeptical.

    EVs made up just 5.8% of new car sales last year, according to Kelley Blue Book.

    In addition to being expensive, it’s not always easy for drivers to find a charging station when they need one. There are currently only about 63,000 EV chargers publicly available in the US. Tesla has an extensive nationwide network, including a handful at a hotel in Reading, but those chargers are currently only compatible with Tesla vehicles.

    And let’s face it: EV plug-in chargers are of no use to people who don’t own electric vehicles. But Moran argues Reading’s proposed EV charger plan is an “encouragement” for people to buy EVs.

    There is federal money available for drivers too. The Inflation Reduction Act – a sweeping, federal climate and health care law passed last year – revamped a federal EV tax credit worth up to $7,500 for consumers who purchase certain vehicles.

    The Biden administration has also proposed ambitious new car pollution rules that could require electric vehicles to account for up to two-thirds of new cars sold in the US by 2032.

    “Electric vehicles still have a long way to go; there’s still a lot of bugs that need to be worked out,” said Donna Reed, president of the Reading City Council.

    “But if you’re going to be an economic development leader or political leader, you always have that eye to the future,” she said.

    And while the number of EVs on the road is small, it’s been growing.

    In 2022, the number of registered electric and hybrid vehicles jumped more than 75% compared with the prior year in Berks County, where Reading is the county seat, according to data from the Pennsylvania Department of Transportation.

    Other than the Reading Railroad, there’s another fun fact about the city. A seven-story pagoda atop Mount Penn overlooks the city. Originally meant to be a luxury hotel when it was built in 1908, the unique landmark now serves as a symbol of Reading – and is one of the seven locations where city officials have proposed installing EV chargers.

    Overall, Reading has asked for nearly $2.6 million from the federal grant program to help install more than 30 public electric vehicle chargers and expects to find out later this year whether it will receive the grant money.

    The city will be on the hook for covering at least 20% of the project, but it can use other grants and in-kind contributions, such as land value and city workers’ salaries, to make up that amount.

    The Pagoda in Reading, Pennsylvania.

    The plan calls for two mobile charging trailers that would be tested at the pagoda. The site draws visitors to the area, and there’s access to hiking and biking trails nearby. The road up the mountain is also home to two annual hill-climb races in which cars race up Duryea Drive, named for an automobile maker who used the road to test his cars in the early 1900s.

    But building the needed infrastructure up the mountain could prove challenging. The mobile chargers will help the city evaluate whether there is demand for permanent EV chargers at that location.

    Permanent EV chargers are planned for two city parks and Albright College’s campus.

    The GoggleWorks Center for the Arts, the former site for a safety goggles manufacturer, is another proposed location for EV chargers. It features dozens of resident artists, holds workshops and has a number of studios for trades such as ceramics, woodworking and photography.

    The GoggleWorks Center for the Arts is a community art and cultural resource center located in Reading, Pennsylvania.

    City officials expect chargers at city hall and the public works department to be the first ones up and running, operable in late 2024. Installation at these locations may move the quickest because existing electricity sources can be utilized.

    Currently, Reading spends about $800,000 annually on fuel for city-owned vehicles – a cost that could be reduced with the pivot to electric vehicles, according to Jamar Kelly, the city’s director of finance and deputy managing director.

    Additionally, the EV chargers could help the city reach its sustainability goals.

    The grant would be “instrumental in us starting and leading the City of Reading and the County of Berks to a safer, healthier, ecofriendly community,” the application reads.

    Whenever a massive federal spending law is enacted, there’s concern over whether the money will go out fairly – reaching small towns, rural areas and urban metropolises alike.

    While there may be plenty of money to go around, smaller cities may lack the staffing needed to prepare and submit applications. The infrastructure law offers nearly 400 different funding programs.

    For Reading, a boot camp offered by the Local Infrastructure Hub – which helps cities access the funds provided by the federal infrastructure law – was invaluable. It provided tips on how to apply, the ins and outs of how EV chargers work, and how other cities have had success or challenges installing chargers previously.

    “Seeing how people in other places have already addressed these issues allows us to be able to write a better grant,” said Lisa Unrath, Reading’s former grant coordinator.

    She learned how to structure the grant so that if Reading receives the money, it can complement projects funded by other grants. The city can apply for more money from the same federal grant again over the next five years, creating an opportunity for the city to plan for the future now.

    The Local Infrastructure Hub is sponsored by a variety of groups, including Bloomberg Philanthropies and the Kresge Foundation, as well as the National League of Cities and the US Conference of Mayors, among others.

    “Working with already more than 950 municipalities across the US, we’re placing a concentrated focus on America’s traditionally underserved areas who each have ambitious dreams, but need the expertise, resources, and network the Hub offers to put forward competitive applications,” said James Anderson, who leads the government innovation programs at Bloomberg Philanthropies.

    “It’s about getting as many of the so-called left-behind places a once-in-a-generation foothold in the new economy – and we’re well on our way,” he added.

    This headline has been updated.

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  • Tesla Stock’s Winning Run Analyzed by Wall Street. Here’s What Drove It.

    Tesla Stock’s Winning Run Analyzed by Wall Street. Here’s What Drove It.

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    Tesla Stock’s Winning Streak Ended. Wall Street Says Ford, GM, AI Made It All Happen.

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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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  • Milwaukee school bus goes up in flames seconds after driver safely evacuates all 37 students | CNN

    Milwaukee school bus goes up in flames seconds after driver safely evacuates all 37 students | CNN

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    CNN
     — 

    School bus driver Imunek Williams was just two blocks away from dropping a group of students off at the Milwaukee Academy of Science on Wednesday morning when she suddenly smelled something burning. Minutes later, the bus was engulfed in flames.

    Williams, 24, has been a bus driver for a little under a year. With a 1-year-old and another little one on the way, she credits her motherly instincts for what she did next.

    “I had the driver window down and thought the smell was coming from another car at first but then the smoke started coming through my heater so I pulled over,” Williams told CNN. Putting her fears aside, Williams calmly evacuated all 37 students, ranging from elementary to high school, from the smoking bus. “Fifteen to 30 seconds after the last child got off the bus, I turned around and the bus was up in flames,” Williams said.

    Some students pulled out their cellphones to record the blazing bus while others stood in shock until another bus came to take them to school.

    First responders arrived on the scene, putting water hoses through the bus windows to put out the fire. Williams, who is expecting a baby boy in August, was transported to a local hospital as a precaution.

    “I’m fine, the baby is fine. I’m just thankful I was able to help those kids,” she said. “If my son was on that bus, I would want the driver to protect the kids at all costs.”

    Williams has received an outpouring of love and appreciation from her community. Thanks to her heroic act, all 37 bus riders involved are safe and out on summer vacation.

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  • Rivian stock has ‘clear opportunity’ to pull ahead, Barclays says

    Rivian stock has ‘clear opportunity’ to pull ahead, Barclays says

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    Rivian Automotive Inc.’s recent “clear improvements” reinforce investor’s confidence that the EV maker is on path to break even next year, presenting an opportunity for the stock.

    That’s from analysts at Barclays, led by Dan Levy, who said in a note Friday that they recently visited Rivian’s
    RIVN,
    -0.69%

    plant in Normal, Ill.

    “Our clear takeaway is that [Rivian] has moved past the many challenges/fire fights which deeply challenged operations in 2022,” the Barclays analysts said.

    Don’t miss: U.S. car sales are stronger than a year ago, but rising interest rates could hit demand

    The EV maker now has the bandwidth to address its manufacturing process improvements and cost-cutting goals.

    “There is much low hanging fruit, much runway, and clear improvements are being made … we see improved confidence on the path to reaching gross margin breakeven in 2024,” they said.

    The analysts reaffirmed their rating on Rivian stock at the equivalent of buy, with a price target of $22. That represents upside of about 59% over Rivian share prices on Friday.

    The automaker is not “out of the woods yet,” however.

    Related: Ford EVs will be able to use Tesla charging stations under new agreement

    “There is much work ahead, and execution is a key question. We believe demand is increasingly emerging as a question – just as it is for other EV automakers. And we see significant capital needs ahead,” the Barclays analysts said.

    Yet with that improved confidence that Rivian is on track to break even, and the company’s “great” products and the strength of Rivian’s vertical integration, “we see clear opportunity ahead for the stock,” they said.

    Rivian shares have lost 20% so far this year, contrasting with gains of around 12% for the S&P 500 index.

    The automaker last month reported a narrower-than-expected first-quarter loss and stuck with its production outlook for the year, in contrast with guidance cuts for two other EV startups.

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