Tesla Stock Slips Following Chinese Sales Numbers
50 minutes ago
Various news services overnight reported that Tesla’s (TSLA) October auto sales in China fell to their lowest level in three years, about 26,000, citing the China Passenger Car Association. The reports indicated sliding market share in China, though also rising shipments of Teslas made in China to other markets.
That’s weighing on Tesla’s shares, which were recently down more than 2%. Investor attention has been largely elsewhere recently: The shares jumped yesterday alongside U.S. stocks, lifted by optimism about a possible end to the government shutdown, and late last week they retreated in part on a sell-the-news reaction to a shareholder vote approving a big new pay package for CEO Elon Musk.
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The vote removed a possible overhang—will Musk stick around for the next phase of Tesla’s growth or won’t he?—and formalized the company’s commitment to a set of targets upon which the CEO’s payout hinges. Several of them signal Tesla’s commitment to evolution into a business powered by robotaxis and robots.
But car sales remain important. For one, they still make up the lion’s share of Tesla’s revenue. And one of the targets requires the company to deliver a total of 20 million vehicles; another requires 10 million active subscriptions to Tesla’s self-driving software, which can’t happen without vehicle sales.
On a quarter-to-quarter basis, investors still care about the “old-school” Tesla business. Deliveries in the latest quarter came in higher than expected, though the expiration of U.S. subsidies likely pulled forward demand for it and other automakers.
AMD Expected to Lay Out AI Roadmap Today
2 hr 45 min ago
Traders will be on the lookout for updated financial targets from Advanced Micro Devices as it hosts an investor day later today.
AMD’s (AMD) shares climbed more than 4% Monday ahead of the event, which some analysts have suggested could be a positive catalyst for the chipmaker’s stock. The stock, which has doubled since the start of the year, was down about 1% in recent premarket trading.
Analysts at Bank of America, Citi, and Jefferies said they’ll be watching for an updated outlook and financial targets from AMD’s analyst day event. CEO Lisa Su is widely expected offer more details on the company’s artificial intelligence roadmap. (You can watch the stream, scheduled for 1 p.m. ET, here.)
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A bigger estimate of AMD’s total addressable market, thanks to booming AI demand, might help boost confidence in the stock, the analysts said, following a strong run this year driven lately by a string of big AI deals, including one with ChatGPT maker OpenAI.
Last week, AMD posted record quarterly results and an upbeat outlook on surging demand for its data center chips, though the stock was little changed following the results amid some worries about an AI bubble.
Heading into the event, Wall Street analysts lean more bullish on the stock, with seven of the 10 with current ratings compiled by Visible Alpha calling it a “buy,” compared to three neutral ratings. Their mean target around $269 would suggest nearly 10% upside from Monday’s close.
Major Stock Index Futures Down Slightly
4 hr 30 min ago
Futures tied to the S&P 500 were down 0.2%.
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Nasdaq 100 futures fell 0.4%.
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Dow Jones Industrial Average futures rose fractionally.
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