TSLA
AA
HUT
Tesla (NASDAQ: TSLA) has reduced prices worldwide amid declining sales and increasing competition. Meanwhile, Bitcoin has risen following its much-anticipated halving event. Crude oil prices have fallen, as U.S. stocks are poised to open higher, with key earnings from the Big Tech sector on the agenda for this week.
Last week, both the S&P 500 and Nasdaq Composite faced significant declines, dropping 3.05% and 5.52%, respectively. The Nasdaq took a notable hit on Friday, falling 2% largely due to a 10% drop in Nvidia. In contrast, the Dow Jones Industrial Average, with less exposure to tech, remained relatively stable. This week, investors will keep an eye on crucial economic updates and earnings, with GDP figures scheduled for release on Thursday and a major inflation report due on Friday.
Tesla Inc. reduces prices in China and Germany
Tesla (NASDAQ: TSLA) shares fell more than 4% in premarket trading on Monday following the electric car leader's decision to slash prices on its vehicles in key markets such as China and Germany.
Concurrently, Chinese EV competitor Li Auto (NASDAQ: LI) hit an 11-month low after it too reduced its prices. Tesla's cuts amounted to 14,000 yuan, approximately $1,900, while Li Auto's reductions on specific models reached up to 30,000 yuan, about $4,000. The competition in China's EV market continues to intensify as automakers roll out new technologies and aggressive pricing strategies.
Oil prices:
Crude prices dropped significantly on Friday, continuing last week’s downturn amid easing tensions between Iran and Israel, which lessens the risk of major supply disruptions from the region. By early morning, U.S. crude futures were down 1.6% at $80.88 a barrel, and Brent crude fell 1.5% to $86.00 per barrel. Both benchmarks saw about a 3% decline last week, their largest since February, after Iran suggested it would not escalate conflict following an Israeli drone strike. Market focus is shifting back to economic concerns, including persistent high U.S. interest rates and inflation that could weaken global oil demand. Additionally, rising U.S. crude inventories and reports that OPEC+ may increase output from July are putting further pressure on oil prices. OPEC+ members had previously agreed to maintain output cuts until the end of June.
Market Movers
| Company | Change | Details |
|---|---|---|
| NIO, XPEV | down >2% | U.S. shares slipped in tandem with other Chinese electric vehicle makers. |
| VZ | up 1.5% | Earnings per share exceeded expectations, $1.15 a share in Q1, but revenue was slightly under forecasts. |
| Crypto stocks (COIN, MSTR) | up 2.2%, >4%, >4% | Moved higher following the Bitcoin halving event. |
| AA | up 1.2% | Morgan Stanley upgraded shares, citing improved risk-reward and profitability prospects. |
| EEFT | up 1.7% | Citi upgraded to buy, optimistic about meeting or exceeding earnings forecasts. |
| HUT | up 2.6% | Benchmark initiated coverage with a buy rating, citing diversified business model and bitcoin holdings. |
Today's Earnings:
SAP, VZ, HDB, TFC
It's a significant week for earnings, with nearly 30% of the S&P 500 companies set to report their results. According to FactSet, over 73% of companies reporting this quarter have surpassed estimates, although overall Q1 growth is expected to be flat year-over-year. Major companies like Meta Platforms, Tesla, and General Motors are among those reporting, aiming to impress investors.
