Shares of electric car maker Tesla Inc. rose about 6% on Monday but fell in premarket trading the following day as investors focused on the company’s quarterly production and delivery report.
Wall Street brokerage Wells Fargo added the stock to its “tactical ideas” watchlist ahead of the data release but maintained an “underweight” rating on the stock as other companies close in on the EV market in key regions.
For example, China’s BYD (1211.HK) announced that its electric vehicle sales rose 21% in the second quarter, selling 426,039 electric vehicles in the April-June period, according to a Reuters report.
Last week, Tesla announced it was recalling most of its Cybertrucks due to defects in windshield wipers and exterior trim, marking the fourth time the vehicle has been recalled in the US.
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According to the disclosed information, the number of vehicles affected by the recall is 11,688, which includes vehicles in use and in transit to customers, so it is the same number as the Cybertruck sales. Tesla has not officially released Cybertruck sales figures in its quarterly delivery reports, so it is noteworthy to understand the Cybertruck sales figures early.
To put some numbers into perspective, Tesla could deliver around 23,500 Cybertrucks this year. But at its annual shareholder meeting two weeks ago, CEO Elon Musk revealed that Tesla has hit a weekly production record of 1,300 Cybertrucks, with a stretch goal of 2,500 per week by the end of 2024.
Meta shares were barely shaken by news of new regulatory challenges in Europe as the European Commission prepares to implement a new Digital Markets Act.
The European Commission said Instagram’s “pay or accept” advertising model, which requires users to either consent to personalized ads or pay to remove them, violates the law. The regulator said this “either-or” advertising choice does not comply with the Digital Markets Act.
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But Meta is poised to fight back, arguing that its EU advertising model is compliant.
“Our ad-free subscriptions are DMA compliant as instructed by the European Supreme Court,” a Meta spokesperson said.
If Meta is found to be in violation of these laws, the company could be fined up to 10% of its global revenue.
Pet food retailer Chewy has been hit by a meme-stock rally this week, with its shares falling 6.6% during U.S. trading hours on Monday after notorious trader Keith Gill (aka Roaring Kitty) revealed to the Securities and Exchange Commission (SEC) that he owns a 6.6% stake in the company.
The company’s holdings were seen as a show of support, and retail investors flocked to the company, sending the stock up 18% in premarket trading on Monday. But the stock plummeted when the market opened. The stock recovered slightly when the market opened on Tuesday, with shares up 1.8% in premarket trading.
Ryan Cohen is the CEO of another meme stock, GameStop (GME), and the founder of Chewy.
Sainsbury’s (SBRY.L)
British grocer Sainsbury’s said it saw “sustained grocery momentum” in the first quarter despite the bad weather.
The chain reported a 3% increase in same-store sales excluding fuel in the 16 weeks to June 22. The figure does not include the closure of its Argos operations in Ireland.
Total food sales increased 4.8% on strong volume growth, but this was the slowest growth in several quarters as food inflation slowed sharply.
Despite the seemingly strong numbers, the company’s shares plunged in early trading on Tuesday, dropping about 3.6% in the first few hours of trading.
“We are pleased with our outperforming market grocery performance and the progress we are making on the early stages of our Next Level Sainsbury’s plan,” Sainsbury’s chief executive Simon Roberts said. “More and more people are choosing Sainsbury’s for their big weekly shoppers, and we have continued to beat our competitors every month for 15 months.”
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Victoria Scholar, investment director at Interactive Investor, said Sainsbury was struggling to differentiate itself from rivals amid stiff price competition from German discounters Aldi and Lidl, while its premium range was not as good as that offered by Waitrose or Marks & Spencer (MKS.L).
“Yet Sainsbury’s continues to gain market share against its rivals as inflationary pressures ease, the recent return of summer sunshine and excitement around the euro mean there is potential for further growth,” she said.
“Sainsbury’s was able to maintain its full year guidance of underlying operating profit of £1.01 billion/£1.06 billion, representing growth of 5% to 10%.”
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