'Musk is not helping himself': Roth's Irwin on Tesla stock falling after Trump feud reignites
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Yahoo
26 minutes ago
- Yahoo
Tesla stock pops after Q2 vehicle production tops forecasts, deliveries fall 13% from year ago
Tesla stock (TSLA) climbed nearly 3% early Wednesday after the EV maker reported global electric vehicle deliveries that came in below Wall Street's low projections but produced more cars than expected. Tesla said Wednesday it delivered 384,122 EVs in the second quarter, less than the 389,407 projected by Wall Street analysts tracked by Bloomberg consensus estimates. The company's deliveries for the period marked a 13% drop from the prior year but an increase from the 336,681 vehicles delivered in the first quarter. Tesla reported production of 410,244 vehicles across its global plants in the second quarter, a jump from the 400,082 expected and roughly in line with the 410,843 produced a year ago. The company also reported it deployed 9.6 gigawatt-hours (GWh) of energy storage products, up from 9.4 GWh in the same quarter last year. Read more about Tesla's stock moves and today's market action. Earlier on Wednesday, shares had risen fractionally after fresh data showed Tesla's sales in China climbing for the first time in nine months. Tesla stock is down more than 25% for the year as CEO Elon Musk's controversial foray into politics has damaged both his own and Tesla's reputation and exposed the "Musk premium" in the stock, just as the company fends off fierce competition from rapidly growing Chinese EV companies such as BYD (BYD) and Xiaomi. New data on Tuesday also showed Tesla's sales dropped for the sixth straight month in Sweden and Denmark in June. Last week, separate data showed sales falling in the European region for the fifth month in a row. But investor bets on Tesla hinge largely on lofty promises from Elon Musk over the company's robotaxi future rather than its EV business. Tesla launched its robotaxis in Austin, Texas, on June 23. What first appeared to be a successful debut that sent shares up 8% turned out to be somewhat rocky. A day after the launch, the stock fell as videos showed Tesla robotaxis violating traffic laws in incidents noted by the National Highway Traffic Safety Administration. Musk has said he expects to put "millions" of Tesla robotaxis on US roads, but the CEO has a history of making highly ambitious predictions that have not come to fruition. Read more: How to avoid Tesla car insurance sticker shock Meanwhile, on Tuesday, Elon Musk and President Trump's feud reignited on social media, sending the stock down 5%. Trump threatened to cancel subsidies for Musk's businesses, including Tesla and SpaceX, after a series of posts from Musk slamming the president's "big, beautiful" tax and spending bill. The Senate passed the bill on Tuesday, with the draft signaling it would end electric vehicle tax credits, an incentive for Tesla customers, on Sept. 30. The elimination of the credits would shave an estimated $1.2 billion from Tesla's annual profit. The feud between Musk and Trump began early last month, erasing more than $150 billion in value from Tesla in a single day as Musk and Trump traded insults. Musk has been highly critical of Trump's megabill since he left his role in D.C. running the newly created federal Department of Government Efficiency (DOGE), which aimed but ultimately failed to eliminate government debt with highly controversial and legally contested spending cuts. Investors had previously seen Trump and Musk's friendship as a boon to Tesla's robotaxi ambitions and Musk's broader business interests. Pras Subramanian contributed reporting. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Post
30 minutes ago
- New York Post
Microsoft to slash 9,000 jobs in latest brutal cut amid AI push: report
Microsoft said Wednesday that it will lay off about 9,000 workers in the software giant's latest round of brutal cuts this year. The layoffs will impact less than 4% of Microsoft's global workforce, impacting workers across different teams with varying levels of experience, a source familiar with the matter told CNBC. Microsoft has already slashed thousands of positions this year as it focuses on cutting layers of management and shifting resources toward the artificial intelligence race. Advertisement Microsoft CEO Satya Nadella speaking at a conference in May. AFP via Getty Images Bloomberg reported last month that Microsoft was planning job cuts in its sales division. 'We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,' a Microsoft spokesperson told CNBC. Meanwhile, Microsoft reported nearly $26 billion in net income and $70 billion in revenue in the most recent quarter, far outperforming Wall Street estimates. Advertisement Microsoft did not immediately respond to The Post's request for comment. Its most recent layoff round in May slashed more than 6,000 jobs, or about 3% of its global workforce, as it eradicates middle management roles. The layoffs announced Wednesday similarly seek to reduce the layers between individual contributors and top executives, a source familiar with the matter told CNBC. Advertisement Microsoft said it will lay off about 9,000 workers. AP In January, the software giant axed less than 1% of its workforce based on performance in an attempt to keep up with cutthroat tech rivals, mimicking Elon Musk's 'hardcore' approach. As of last summer, the company employed 228,000 workers. It cut 10,000 roles throughout 2023. Microsoft has led mammoth layoff rounds in the past, axing 18,000 roles in a single sweep in 2014 after acquiring Finnish telecommunications firm Nokia. Advertisement The company is projecting strong revenue growth of 14% year-over-year as it expands its Azure cloud business and corporate software subscriptions. Shares in Microsoft have risen more than 17% so far this year. Meanwhile, the company is reportedly weighing whether to abandon its breakthrough partnership with Sam Altman's OpenAI. It has considered pausing talks with the ChatGPT maker if the two parties are not able to agree on the size of Microsoft's future stake in OpenAI, the Financial Times reported last month. The company will rely on its existing contract with OpenAI through 2030, according to the report. Several other software companies have trimmed their workforces this year, including homework helper Chegg and CrowdStrike, which suffered a massive outage last year that disrupted airlines, banks and the hospitality industry.
Yahoo
34 minutes ago
- Yahoo
Tesla's quarterly deliveries fall sharper than analysts' estimates
STORY: Tesla reported a sharper-than-expected fall in second-quarter deliveries on Wednesday (July 2). The electric vehicle giant has faced intense competition and backlash against CEO Elon Musk's political stance. Both factors have hit global demand for its aging electric-vehicle lineup. The automaker said it delivered more than 384,100 vehicles in the second quarter. That's down 13.5% from a year ago and below analyst forecasts. The plummeting deliveries comes despite Musk saying in April that sales had turned around. Tesla refreshed its top-selling Model Y crossover earlier this year to boost demand. But the redesign forced a production halt and led some buyers to delay purchases as they waited for the updated version. Most of Tesla's revenue and profit comes from its core EV business. Much of its trillion-dollar valuation hangs on Musk's big bet on turning its vehicles into robotaxis. Tesla rolled out a robotaxi service in limited parts of Austin, Texas last month. It was for a select group of invitees and came with several restrictions, including having a safety monitor in the front passenger seat. Its shares have shed more than a quarter this year, but rose 3% Wednesday as the latest update proved less severe than the bleakest analyst projections. Sign in to access your portfolio
