Hey Gotraders,
Tesla (TSLA) shares closed down over 5% yesterday after an article on Teslaās declining sales in China got published on The Information. The report stated that its monthly net orders fell from 18,000 cars in April to 9,800 cars in May. Thatās nearly a 50% month-over-month decline! Ouch!
Reasons for declining sales in China:
Increasing competition from local players like Nio (NIO), XPeng (XPEV) and Li Auto (LI)
So how bad is the situation? āWe see a definitive material impact on Teslaās branding, orders and deliveries for future months, although itās hard to quantify exactly to what extent the declining demand is driven by concerns on Teslaās safety features, or rising competition especially from Chinese automakersā - Junheng Li, CEO of JL Warren Capital. She goes on to say that even though Tesla hasnāt spoken about the potential impacts of its PR crisis in China, she expects they will be material.
Why is this important?Ā China is the second-largest electric vehicle market in the world, behind Europe, and is a huge growth market for Tesla. Teslaās near-term growth hinges on its ability to make and sell cars successfully in that market. Consumerās appetite for Tesla is shifting, which isnāt great news for them.
š AMC plans to issue 25 million additional shares š°
AMC (AMC) plans to ask its shareholders to approve the issuance of 25 million additional shares at its annual shareholdersā meeting which is slated to take place on July 29.
āTo successfully navigate the road ahead, we seek to assemble all of the financial tools that might help us. An important tool for any company is having shares available to issue if, and only if, the right value creation opportunity arises" - Adam Aron, CEO of AMC. Ā
Shares closed down over 20% yesterday and are down a further 7% in extended trading after a wild week of trading.
š United buys 15 supersonic jetsĀ āļø
United Airlines (UAL) plans to buy 15 supersonic jets! They would like to start flying passengers on the jets by 2029. The jets are nearly 2x as fast as today's commercial planes. Nice! This means that in the future, you could fly from New York to London in just 3.5 hours, or from San Francisco to Tokyo in just 6 hours! Amazing! š
Shares of United are up 38.67% year-to-date and closed at $57.73 yesterday.
Top movers & shakersĀ š¢
What else is making headline newsĀ š°
C3.ai (AI) stock falls as subscription growth misses, former VMware executive hired.
Bitcoin drops after Elon Musk tweets broken-heart emoji for token.
Lululemon (LULU) first-quarter sales rise 88%, topping estimates, as store traffic rebounds.
Blackrock (BLK): Investors cannot āārun awayāā from oil industry.
Thatās all from us for now.Ā
Signing out,
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The legal stuffĀ š¤
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