Tesla’s Delivery Numbers Fall Short:
Tesla’s latest report detailing its vehicle production and deliveries for the first quarter has sent ripples through the market, marking a significant downturn. With an 8.5% decrease from the same period last year and about a 20% drop from the fourth quarter, Tesla encountered its first year-over-year decline since the challenging days of the second quarter of 2020. This downturn prompted a sharp 5% fall in Tesla’s stock on Monday, contributing to a staggering 30% decrease in the company’s share value so far this year. Analysts at Wedbush have starkly labeled this period as “an unmitigated disaster,” signaling a crucial moment for CEO Elon Musk to course-correct or face potential long-term repercussions for the company.
Market and Analyst Reactions:
The broader U.S. stock market is showing signs of consolidation, awaiting further guidance from a series of Federal Reserve speakers, including Chair Jerome Powell. With futures indicating a cautious approach amid a strong start to the year, the financial community remains on edge. Notably, Wedbush views Tesla’s current predicament as pivotal, while Bernstein analysts attribute the shortfall to demand issues, rather than production challenges, forecasting a continued decline.
Global Events and Market Impact:
In addition to Tesla’s woes, global events are shaping market dynamics. A significant earthquake in Taiwan has raised concerns about potential disruptions in semiconductor production, impacting major tech firms. Intel has also made headlines with its deepening losses in its semiconductor manufacturing business, underscoring the challenges within the tech sector. Meanwhile, oil prices are experiencing fluctuations, with traders closely monitoring U.S. inventory levels and geopolitical tensions in the Middle East, potentially affecting global supply.
Looking Ahead:
As the market navigates these turbulent times, all eyes are on the Federal Reserve’s upcoming decisions and corporate earnings reports. The recent economic data, alongside Tesla’s unexpected downturn and global events, underscores the interconnected nature of today’s financial landscape. Investors and analysts alike are bracing for the impacts of these developments on future market directions and the long-term narratives of key industry players like Tesla.
$TSLA- JPMorgan lowered the firm’s price target on Tesla to $115 from $130 and keeps an Underweight rating on the shares. The analyst slashed estimates and the price target for Tesla after updating for the company’s Q1 deliveries, which tracked materially softer than its expectations. The delivery report “could spell trouble for investor confidence in the company’s long-term growth outlook that is so critical to sustaining the stock’s rarified valuation multiple,” the analyst tells investors in a research note. The firm says that while its price target implies 31% downside from yesterday’s close, Tesla shares “could fall much further still” should the company not be successful in quickly restoring unit volume and revenue growth. JPMorgan thinks investors could elect to no longer assign the stock its “still hyper growth company valuation multiple.”
Cathie Wood’s ARK Investment bought 235K shares of Tesla yesterday
$META-
Meta (META) is denying it gave Netflix (NFLX) access to users’ private messages, a claim that began circulating on X that references a court filing that emerged during the discovery process in a class-action lawsuit over data privacy practices, Sarah Perez of TechCrunch reports. The document alleges Netflix and Facebook had a special relationship, with Facebook cutting its spending on its video service to not compete with Netflix. The document also alleges Netflix had access to Meta’s “Inbox API” that offered access to private Facebook message inboxes. $DIS-
The fight over Disney’s board seats by Nelson Peltz’ Trian Partners and Blackwells Capital will come to a head on Wednesday and may be a closer contest than originally expected, Brooks Barnes of The New York Times reports. Originally, at first it appeared CEO Robert Iger would easily defeat Trian. In recent days, however, the activists have received some support, from advisory firms such as ISS and Egan-Jones.
Internet & Cloud Analyst Kessler, along with Jason Eichenholz, SVP-Global Head of Ecosystems & Partnerships at Wipro, discuss 1Q24 Cloud spending trends and 2024 outlook, market share shifts among Hyperscalers (AWS, MSFT, GOOG) and other trends in players in cloud ecosystem (relevant companies (ORCL IBM) on an Analyst/Industry conference call to be held on April 3 at 12 pm.
See you all in chat…. Oh, and huge OP Lotto this week…. $1 BILLION!
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