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Tesla Back Above $200 Ahead Of Q1 Deliveries, Lucid Hit By Recall Woes, Faraday Future Finally Gets Started And More: Biggest EV Stories Of The Week – Lucid Gr (NASDAQ:LCID), Tesla (NASDAQ:TSLA), Rivian Automotive (NASDAQ:RIVN) Benzinga
Tesla stock in 2022 had its worst year since going public
Jan 2 (Reuters) – Tesla Inc (TSLA.O) on Monday reported record production and deliveries for fourth-quarter electric vehicles, but it missed Wall Street estimates, burdened by logistics problems, slowing demand, rising interest rates and fears of recession.
The world’s most valuable automaker delivered 405,278 vehicles in the last three months of the year, compared with Wall Street expectations of 431,117 vehicles, according to Refinitiv data.
The company had delivered 308,600 vehicles in the same period a year earlier.
Tesla delivered 388,131 Model 3 compact sedans and Model Y sports utility vehicles (SUVs) compared with 17,147 Model X and Model S luxury cars.
In total, Tesla made 439,701 cars in the fourth quarter.
Reuters Graphics
As logistical bottlenecks persisted – an issue CEO Elon Musk had said in October he was working to resolve – Tesla’s fourth quarter deliveries fell about 34,000 vehicles short of production.
In the third quarter, the company deliveries were about 22,000 units fewer than production.
Delivering fewer cars than it makes has been rare for the automaker, which in previous quarters delivered more or similar numbers to the vehicles produced.
Among other headwinds for Tesla, analysts have cited demand weakness in the world’s top auto market China, as well as stiff competition from legacy automakers such as Ford Motor Co (F.N), General Motors Co (GM.N) and startups such as Rivian Automotive (RIVN.O) and Lucid Group (LCID.O).
Tesla plans to run a reduced production schedule in January at its Shanghai plant, extending the lowered output it began this month into next year, according to a Reuters report, based on a review of an internal schedule.
Tesla’s stock, which did not trade on Monday due to a New Year holiday, fell 65% in 2022, its worst year since going public in 2010. Analysts and retail shareholders feared demand issues stemming from an uncertain economy would dent the company’s target to grow deliveries by 50% annually.
“This was a disappointing delivery number and the bulls will not be happy,” said Wedbush Securities analyst Daniel Ives.
Tesla said in a separate statement that it plans to host its Investor Day on March 1 and livestream the event from its Gigafactory in Texas when it will discuss longterm plans for expansion and capital allocation.
The automaker also hinted at a “generation 3” platform to show its investors on Investor Day. Musk said in October that Tesla was working on a “next-generation vehicle” which will be cheaper and smaller than the Model 3 and Model Y cars.
(This story has been refiled to remove New York dateline)
Reporting by Akash Sriram and Baranjot Kaur in Bengaluru; Additional reporting by Akanksha Khushi; Editing by Sriraj Kalluvila, Matthew Lewis, Howard Goller and Barbara Lewis
Our Standards: The Thomson Reuters Trust Principles.
Dow Jones futures will open on Monday evening, along with S&P 500 futures and Nasdaq futures. Tesla (TSLA) deliveries hit a record in Q4, but came in below estimates for a second straight quarter. That followed December deliveries from China EV rivals Li Auto, Nio, XPeng and giant BYD.
X
Investors will be looking for a brighter stock market in 2023 after a “stay away” year, especially for growth. The Dow, S&P 500 and Nasdaq all had their biggest annual declines in 14 years. A stock market rally attempt is underway, but has a long way to go to prove itself.
The Dow Jones dipped below its 50-day moving average on Friday. The S&P 500 and especially the Nasdaq have some distance to go to their 50-day lines, with several other key resistance areas along the way.
Celsius Holdings (CELH), Deere (DE), BioMarin Pharmaceutical (BMRN), Exxon Mobil (XOM) and Medpace (MEDP) are five stocks near buy points. It’s a diverse list, reflecting possible areas of market leadership in the new year.
DE stock and Medpace are on IBD Leaderboard. Celsius stock, MEDP stock are on the IBD 50. Deere and BMRN stock are on the IBD Big Cap 20.
Deere was Friday’s IBD Stock Of The Day.
But whether these stocks work or not depends on the market trending higher. Right now it is not. Investors should remain very cautious.
The video embedded in the article discussed the recent market action in depth and discussed what investors should be doing as stock market 2023 gets going. The video also analyzed CELH stock, Deere and BioMarin.
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET on Monday, along with S&P 500 futures and Nasdaq 100 futures.
U.S. stock and bond markets will be closed on Monday, Jan. 2, in observance of New Year’s.
On Friday, the December jobs report looms large as the Federal Reserve looks for signs of a weakening job market.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Tesla Vs. BYD: Which EV Giant Is The Better Buy?
Tesla EV Deliveries
Tesla deliveries rose to 405,278 in the fourth quarter, up 31% vs. a year earlier and 18% above Q3’s record 343,800. But that came in well below lowered estimates of 418,000-420,000. Tesla offered big year-end incentives, especially in China and the U.S., to boost sales.
Q4 deliveries included 388,131 Model 3 and Model Y vehicles, with 17,147 Model S and X luxury EVs.
The figures do not include any Tesla Semi deliveries. A small number was delivered to Pepsi in December.
Q4 production swelled to 439,701 in Q4, exceeding deliveries by more than 34,000. That’s even with Tesla curbing Shanghai output on Dec. 12 and suspending production on Dec. 24. In Q3, output topped sales by just over 22,000, with deliveries also falling short that quarter.
Once again, Tesla blamed an increase in vehicles “in transit at the end of the quarter.”
In 2023, Tesla will benefit from new U.S. tax credits of up to $7,500, though the year-end incentives of $7,500 for the Model 3 or Model Y — with Model S and X vehicles added Dec. 30 — may have tapped some of that demand. A $55,000 price cap on most Model Y vehicles could limit Tesla’s EV credit boost.
Meanwhile, China ended EV subsidies. Tesla may need significant new price cuts in China, where competition continues to heat up from BYD, Nio, Li Auto, Xpeng and others. Tesla has already renewed year-end incentives for Jan. 1-Feb. 28.
Over in Europe, several countries cut or ended EV subsidies, providing another headwind for Tesla as backlogs there fade.
Tesla stock plunged 65% in 2022, its worst annual decline by far. Shares crashed 37% in December to their lowest levels since September 2022. The EV giant did rebound from midweek bear market lows to end the week roughly flat. TSLA stock volume has been very high in the past several weeks.
China EV Deliveries: BYD
BYD reported on Jan. 2 that it sold 235,197 all-electric BEVs and plug-in hybrids in December, a fourth straight record, though up just 2.1% vs. November. Sales surged 150% vs. a year earlier.
Among its 234,598 passenger vehicles, BEV sales were 111,939, up 132% from a year earlier but down slightly from 113,915 in November. PHEV sales surged 176% to 122,659, topping November’s 116,027.
BYD sold 683,440 vehicles in Q4, up 157% vs. a year earlier and 27% from Q3. For 2022, sales spiked 209% to 1,863,494 BEV and PHEVs.
At one point, December sales above 250,000 or even 260,000 seemed likely for BYD. But on Dec. 22, a top exec stated that Covid infections among workers were reducing production by at least 2,000 vehicles per day. He said full-year deliveries would be around 1.88 million, implying December deliveries around 247,000-250,000.
The actual December and full-year sales suggest a greater Covid impact than BYD anticipated on Dec. 22.
China EV Startups
BYD’s sales follow Li Auto, XPeng and Nio on Jan. 1.
Li Auto (LI) reported that it delivered 21,233 vehicles in December, with both its L8 and L9 hybrid SUVs topping 10,000. That was up nearly 50% vs. a year earlier and soaring 41% vs. the previous record of 15,034 in November. Li Auto on Friday said December deliveries of its hybrid SUVs would top 20,000.
Li Auto delivered 46,319 vehicles in Q4, up 31.5% vs. a year earlier and nearly 75% vs. Q3, as a model changeover was underway. Li Auto delivered 133,246 vehicles in 2022, up 47% from 2021.
XPeng (XPEV) EV deliveries hit 11,292 in December, down 29% vs. a year earlier. But sales leapt 94% vs. November and topped 10,000 for the first time since July. That includes 4,020 G9 SUVs, up 160% vs. November for the relatively new crossover model. Q4 deliveries came in at 22,204, down from 29,570 in Q3 and weakest showing since Q2 2021. Full-year sales climbed 23% to 120,757.
Nio (NIO) delivered 15,815 vehicles in December, up 51% vs. a year earlier and nearly 12% vs. the prior record of 14,178 set in November. Nio recently lowered its Q4 delivery guidance, citing Covid-related issues. The guidance implied December deliveries of 14,263-15,263 EVs December sales included 7,594 ET5 sedans and 4,154 ES7 SUVs, Nio’s two newest models. The ET5 is a Tesla Model 3 competitor.
Q4 sales jumped 60% vs. a year earlier to 40,052. For 2022, deliveries climbed 34% to 122,486.
Nio stock, Li Auto, Xpeng and BYD all had a tough 2022, like other EV makers and growth stocks generally. They all bottomed in October or early November, but pulled back in recent weeks.
China’s Economy Struggling
China’s economic activity is tumbling as the abrupt end of strict Covid rules spur massive waves of infections. The official manufacturing index fell 1 point in December in 47, the government said Saturday. The nonmanufacturing PMI, which covers service-sector and construction activity, dived 6.1 points to 41.6. Both are the lowest since February 2020, when Covid-19 first hit the country. Readings below 50 signal contraction.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Stock Market 2022 Ends
The stock market fell into a correction on Wednesday, but a new rally attempt began Thursday. The major indexes slipped Friday, closing out a slightly negative week.
The Dow Jones Industrial Average dipped 0.2% in last week’s stock market trading. The S&P 500 index edged down 0.1%. The Nasdaq composite fell 0.3%. The small-cap Russell 2000 lost a fraction.
For the full year, the Dow Jones retreated 8.8%, the S&P 500 slumped 19.4% and the Nasdaq tumbled 33.1%. It was their worst annual performances since 2008.
The 10-year Treasury yield jumped 13 basis points last week to 3.88% after spiking 27 basis points in the prior week. The 10-year yield ended 2021 at 1.51%.
U.S. crude oil futures rose 0.9% to $80.26 a barrel last week, the third straight weekly gain. Crude oil prices climbed 6.7% for the year, but finished well off their peaks above $130 a barrel.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.3%. The VanEck Vectors Semiconductor ETF (SMH) climbed 1%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rose 0.9% last week, but after hitting a fresh five-year low on Wednesday. ARK Genomics ETF (ARKG) declined 0.7%. TSLA stock is a major holding across Ark Invest’s ETFs, with Cathie Wood ramping up holdings in recent weeks. Ark also owns a small position in BYD stock.
SPDR S&P Metals & Mining ETF (XME) fell 1.9%% last week. The Global X U.S. Infrastructure Development ETF (PAVE) lost 1.2%. U.S. Global Jets ETF (JETS) descended 0.9%. SPDR S&P Homebuilders ETF (XHB) slipped 0.8%. The Energy Select SPDR ETF (XLE) rose 0.5% and the Financial Select SPDR ETF (XLF) advanced 0.7%. The Health Care Select Sector SPDR Fund (XLV) dipped 0.2%.
Five Best Chinese Stocks To Watch Now
Stock Market 2023: 5 Stocks To Watch
BioMarin stock dipped 0.8% to 103.49 last week, pulling back in the second half of December but holding support around its 21-day line. A strong rise from current levels might offer an aggressive entry. But investors may want to wait for BMRN stock to forge a new base, or find support at the 10-week line. BioMarin earnings are expected to triple in 2023.
Deere stock fell 1.9% to 428.76 in the past week, pulling back to the 10-week moving average, with a flat base now on a weekly chart. The official buy point is 448.50. Investors might use a 10-week line bounce as an early entry for DE stock, perhaps after retaking the 21-day line.
CELH stock retreated from record highs in December, sliding for the past four weeks, but rebounded from its 50-day line on Friday, closing at 104.04. Celsius stock could offer an early entry if it clears the 21-day line decisively, with a move above the Dec. 27 high of 109.31 as a specific trigger.
XOM stock climbed 1.5% last week to 110.30, slightly above a rising 50-day moving average. A move above the Dec. 27 high of 110.47 would offer an early entry. Exxon stock has a flat base with a 114.76 buy point, according to MarketSmith analysis.
MEDP stock rose modestly Thursday from its 50-day moving average, breaking above a downtrend line in a recent consolidation. That offered an early entry within its consolidation. On Friday, with the major indexes retreating again, Medpace stock fell back to its 50-day, but did close well.
Medpace’s move could still work, but it just shows how difficult it has been for stocks to make headway.
Stock Market Analysis
The stock market edged lower last week, even with Thursday’s strong bounce, capping a tough year.
The major indexes are off their October bear market lows but well below their December short-term highs. A rally attempt technically is underway as the 2023 stock market kicks off, but it needs a follow-through day to confirm a new uptrend.
Even then, the market would face a number of technical hurdles, with the S&P 500, Nasdaq and Russell 2000 all some distance below their 50-day and 200-day lines. The Dow Jones, the relative leader in recent months, dipped below its 50-day line to end 2022 but is above its 200-day.
Until there’s clarity on the Fed rate endgame and the economy, the market could be rangebound in choppy, sideways action.
The December jobs report on Friday, Jan. 6, will be important. Significant slowing in hiring and wage gains would reinforce expectations for further slowing in Fed rate hikes, and raise hopes that peak rates are near. But robust or accelerating job and pay growth would likely trigger a big sell-off.
Time The Market With IBD’s ETF Market Strategy
What To Do Now
On Friday’s year-end IBD Live, O’Neil Global Advisors portfolio manager Charles Harris said it was a “stay away” market in 2022. There will be great opportunities ahead, including in innovative companies and trends, but not yet.
A number of stocks are setting up nicely, including Deere, BioMarin and Medpace. The problem is that in the past few months, a lot of stocks have set up, but those setups generally haven’t worked out.
But investors should be stay engaged and be ready to act. If there’s a confirmed rally in early 2023, many stocks have the potential to quickly move solidly or sharply higher.
So work on your watchlists but enjoy the long weekend. Come back to the new year refreshed, waiting for the next bull market.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
YOU MIGHT ALSO LIKE:
Why This IBD Tool Simplifies The Search For Top Stocks
Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader
Dow Jones futures will open on Monday evening, along with S&P 500 futures and Nasdaq futures. Tesla (TSLA) and China EV makers such as Nio, Li Auto and BYD will report year-end and 2022 deliveries over the New Year’s holiday weekend.
X
Investors will be looking for a brighter stock market in 2023 after a “stay away” year, especially for growth. The Dow, S&P 500 and Nasdaq all had their biggest annual declines in 14 years. A stock market rally attempt is underway, but has a long way to go to prove itself.
The Dow Jones dipped below its 50-day moving average on Friday. The S&P 500 and especially the Nasdaq have some distance to go to their 50-day lines, with several other key resistance areas along the way.
Celsius Holdings (CELH), Deere (DE), BioMarin Pharmaceutical (BMRN), Exxon Mobil (XOM) and Medpace (MEDP) are five stocks near buy points. It’s a diverse list, reflecting possible areas of market leadership in the new year.
DE stock and Medpace are on IBD Leaderboard. Celsius stock, MEDP stock are on the IBD 50. Deere and BMRN stock are on the IBD Big Cap 20.
Deere was Friday’s IBD Stock Of The Day.
But whether these stocks work or not depends on the market trending higher. Right now it is not. Investors should remain very cautious.
The video embedded in the article discussed the recent market action in depth and discussed what investors should be doing as stock market 2023 gets going. The video also analyzed CELH stock, Deere and BioMarin.
China’s Economy Struggling
China’s economic activity is tumbling as the abrupt end of strict Covid rules spur massive waves of infections. The official manufacturing index fell 1 point in December in 47, the government said Saturday. The nonmanufacturing PMI, which covers service-sector and construction activity, dived 6.1 points to 41.6. Both are the lowest since February 2020, when Covid-19 first hit the country. Readings below 50 signal contraction.
China EV Deliveries
Nio (NIO), Li Auto (LI) and XPeng (XPEV) are on tap to report December, fourth quarter and full year EV deliveries on Sunday, Jan. 1. Li Auto on Friday said December deliveries of its hybrid SUVs would top 20,000, crushing November’s record 15,034. Nio recently lowered its Q4 delivery guidance, citing Covid-related issues. The guidance implied December deliveries of 14,263-15,263 EVs, which would slightly top November’s record 14,178. Xpeng should see deliveries rise after several month-to-month declines, but its model lineup is struggling.
BYD will likely report its December sales on Jan. 3, before the U.S. market open Tuesday. The EV and battery giant recently stated that Covid infections among workers was reducing production by at least 2,000 vehicles per day. Full-year deliveries of all-electric BEVs and plug-in hybrids should be around 1.88 million, BYD recently said. That implies December deliveries around 247,000-250,000, which would still be a record.
Nio stock, Li Auto, Xpeng and BYD all had a tough 2022, like other EV makers and growth stocks generally. They all bottomed in October or early November, but have pulled back in recent weeks.
Tesla Vs. BYD: Which EV Giant Is The Better Buy?
Tesla EV Deliveries
Tesla is expected to release fourth-quarter EV production and delivery figures on Jan. 2. Analysts expect Q4 Tesla deliveries of 418,000, though the consensus has been slipping in recent days amid further China weakness. Tesla offered big year-end incentives, especially in China and the U.S., to boost sales. That didn’t provide a huge boost in China, but did appear to clear inventory in the U.S.
In 2023, Tesla will benefit from new U.S. tax credits of up to $7,500, though the year-end incentives of $7,500 for the Model 3 or Model Y — with Model S and X vehicles added Dec. 30 — may have tapped some of that demand. A $55,000 price cap on most Model Y vehicles could limit Tesla’s EV credit boost.
Meanwhile, China is ending EV subsidies. Along with a massive Covid wave, that could further chill sales for EV makers there, including Tesla. Tesla may need significant new price cuts in China, where competition continues to heat up from BYD, Nio, Li Auto, Xpeng and others.
Over in Europe, several countries are cutting or ending EV subsidies, providing another headwind for Tesla as backlogs there fade.
Tesla stock plunged 65% in 2022, its worst annual decline by far. Shares crashed 37% in December to their lowest levels since September 2022. The EV giant did rebound from midweek bear market lows to end the week roughly flat. TSLA stock volume has been very high in the past several weeks.
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET on Monday, along with S&P 500 futures and Nasdaq 100 futures.
U.S. stock and bond markets will be closed on Monday, Jan. 2, in observance of New Year’s.
On Tuesday, investors will get the December ISM manufacturing index. On Friday, the December jobs report looms large as the Federal Reserve looks for signs of a weakening job market.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Stock Market 2022 Ends
The stock market fell into a correction on Wednesday, but a new rally attempt began Thursday. The major indexes slipped Friday, closing out a slightly negative week.
The Dow Jones Industrial Average dipped 0.2% in last week’s stock market trading. The S&P 500 index edged down 0.1%. The Nasdaq composite fell 0.3%. The small-cap Russell 2000 lost a fraction.
For the full year, the Dow Jones retreated 8.8%, the S&P 500 slumped 19.4% and the Nasdaq tumbled 33.1%. It was their worst annual performances since 2008.
The 10-year Treasury yield jumped 13 basis points last week to 3.88% after spiking 27 basis points in the prior week. The 10-year yield ended 2021 at 1.51%.
U.S. crude oil futures rose 0.9% to $80.26 a barrel last week, the third straight weekly gain. Crude oil prices climbed 6.7% for the year, but finished well off their peaks above $130 a barrel.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.3%. The VanEck Vectors Semiconductor ETF (SMH) climbed 1%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rose 0.9% last week, but after hitting a fresh five-year low on Wednesday. ARK Genomics ETF (ARKG) declined 0.7%. TSLA stock is a major holding across Ark Invest’s ETFs. Cathie Wood’s Ark also owns a small position in BYD stock.
SPDR S&P Metals & Mining ETF (XME) fell 1.9%% last week. The Global X U.S. Infrastructure Development ETF (PAVE) lost 1.2%. U.S. Global Jets ETF (JETS) descended 0.9%. SPDR S&P Homebuilders ETF (XHB) slipped 0.8%. The Energy Select SPDR ETF (XLE) rose 0.5% and the Financial Select SPDR ETF (XLF) advanced 0.7%. The Health Care Select Sector SPDR Fund (XLV) dipped 0.2%.
Five Best Chinese Stocks To Watch Now
Stock Market 2023: 5 Stocks To Watch
BioMarin stock dipped 0.8% to 103.49 last week, pulling back in the second half of December but holding support around its 21-day line. A strong rise from current levels might offer an aggressive entry. But investors may want to wait for BMRN stock to forge a new base, or find support at the 10-week line. BioMarin earnings are expected to triple in 2023.
Deere stock fell 1.9% to 428.76 in the past week, pulling back to the 10-week moving average, with a flat base now on a weekly chart. The official buy point is 448.50. Investors might use a 10-week line bounce as an early entry for DE stock, perhaps after retaking the 21-day line.
CELH stock retreated from record highs in December, sliding for the past four weeks, but rebounded from its 50-day line on Friday, closing at 104.04. Celsius stock could offer an early entry if it clears the 21-day line decisively, with a move above the Dec. 27 high of 109.31 as a specific trigger.
XOM stock climbed 1.5% last week to 110.30, slightly above a rising 50-day moving average. A move above the Dec. 27 high of 110.47 would offer an early entry. Exxon stock has a flat base with a 114.76 buy point, according to MarketSmith analysis.
MEDP stock rose modestly Thursday from its 50-day moving average, breaking above a downtrend line in a recent consolidation. That offered an early entry within its consolidation. On Friday, with the major indexes retreating again, Medpace stock fell back to its 50-day, but did close well.
Medpace’s move could still work, but it just shows how difficult it has been for stocks to make headway.
Stock Market Analysis
The stock market edged lower last week, even with Thursday’s strong bounce, capping a tough year.
The major indexes are off their October bear market lows but well below their December short-term highs. A rally attempt technically is underway as the 2023 stock market kicks off, but it needs a follow-through day to confirm a new uptrend.
Even then, the market would face a number of technical hurdles, with the S&P 500, Nasdaq and Russell 2000 all some distance below their 50-day and 200-day lines. The Dow Jones, the relative leader in recent months, dipped below its 50-day line to end 2022 but is above its 200-day.
Until there’s clarity on the Fed rate endgame and the economy, the market could be rangebound in choppy, sideways action.
The December jobs report on Friday, Jan. 6, will be important. Significant slowing in hiring and wage gains would reinforce expectations for further slowing in Fed rate hikes, and raise hopes that peak rates are near. But robust or accelerating job and pay growth would likely trigger a big sell-off.
Time The Market With IBD’s ETF Market Strategy
What To Do Now
On Friday’s year-end IBD Live, O’Neil Global Advisors portfolio manager Charles Harris said it was a “stay away” market in 2022. There will be great opportunities ahead, including in innovative companies and trends, but not yet.
A number of stocks are setting up nicely, including Deere, BioMarin and Medpace. The problem is that in the past few months, a lot of stocks have set up, but those setups generally haven’t worked out.
But investors should be stay engaged and be ready to act. If there’s a confirmed rally in early 2023, many stocks have the potential to quickly move solidly or sharply higher.
So work on your watchlists but enjoy the long weekend. Come back to the new year refreshed, waiting for the next bull market.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
YOU MIGHT ALSO LIKE:
Why This IBD Tool Simplifies The Search For Top Stocks
Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader
Tesla CEO Elon Musk kicks off deliveries of the company’s heavy-duty truck, the Semi, at the Gigafactory in Sparks, Nevada.
Tesla Inc.
Tesla CEO Elon Musk kicked off deliveries of the company’s first few production Semi trucks on Thursday, speaking on stage at the company’s factory in Sparks, Nevada, with Dan Priestly, the company’s senior manager for Semi truck engineering.
As CNBC previously reported, Tesla set up lines and started production of the Semi outside of Reno this year at the site where it primarily makes the battery cells, drive units, and battery packs that power its cars. Musk and Tesla did not say on Thursday how many Semis it is delivering.
Tesla originally showed off the Semi design in Dec. 2017. Production got delayed by the Covid pandemic and battery cell supply issues, among other things.
During the deliveries kick-off event, Musk briefly alluded to the tumult of the past five years and quipped, “Sorry for the delay.”
He later thanked and the handed the mic to representatives from PepsiCo Frito Lay, which is Tesla’s first customer to receive and use production Semi trucks.
One major difference between Tesla’s Class 8 offering and other heavy-duty trucks is the location of the steering wheel and the driver’s seat. Rather than using the left side (or right side in Europe), Tesla designed the Semi with the steering wheel in the center of the cab with touchscreens positioned on both sides of the driver.
While the Tesla Semi was in development, other fully electric heavy-duty trucks launched into the market.
Volvo-owned Renault Trucks and Daimler haveproduced and delivered electric heavy-duty trucks to customers before Tesla Even beleaguered Nikola — whose founder was ousted and convicted of fraud in recent months — started production of a battery electric truck in March.
But Tesla boasts some high-tech features not available elsewhere, including a new, fast-charging system, and a battery with greater range than competitors. The DC fast-charging system delivers up to 1MW, and employs a water-based coolant to ensure it’s safe in delivering that power. Tesla says that the Semi can travel 500 miles on a single charge while fully loaded.
The new fast-charging tech will eventually be installed at Tesla SuperCharging stations and used to power up Cybertrucks, the consumer pickup truck Tesla is planning, Musk revealed. The company plans volume production of the sharp-edged heavy pickup at its new factory in Austin, Texas.
A return to form
The Tesla Semi event may provide relief to fans worried about his commitment to and focus on the electric vehicle business.
Musk has recently taken on new responsibilities as owner and CEO of Twitter, the social media giant, which he acquired in a leveraged buyout for $44 billion in October. He sold some of his considerable Tesla shares to finance that deal. Since taking over Twitter, he has been embroiled in multiple conflicts and controversies around that platorm.
Musk returned to form on Thursday, speaking to Tesla’s environmental mission and the company’s vehicle tech.
In the U.S., he said, there are something like 15 million passenger vehicles and around 200,000 heavy duty trucks. “It seems like a small percentage,” he said, but the semi trucks represent a large portion of harmful vehicle emissions because of their size, weight, and the fact they are driven around the clock.
Those emissions can have dastardly health effects on people who live near warehouses, ports, and other roadways with lots of trucking activity.
According to transportation and air quality research by the American Lung Association, medium- and heavy-duty vehicles (such as delivery vans, short- and long-haul trucks) represented about 6% of the on-road fleet in the U.S. as of 2020. These vehicles generate an outsized amount of pollution, including 59% of ozone and particle-forming nitrogen oxide emissions, and 26% of the greenhouse gas emissions from transportation.
Musk said that the Semi would not only help combat climate change, but “It’s also quiet, will improve the quality of your air, and will improve the health of people living near freeways.”
The same can be said of other electric, heavy-duty trucks that displace diesel trucks.
Musk and other execs did not discuss Tesla’s driver assistance systems, which are marketed as Autopilot and Full Self-Driving Capability, at the Semi deliveries event. In 2017, when Musk debuted the Semi, he touted a driverless trucking future.
Nor did they discuss how many trucks they plan to produce in the next year, nor how they will obtain the additional battery cells and raw materials to produce those.
Shares in Elon Musk’s auto business closed flat ahead of the event, at $194.70, and did not move appreciably in after-hours trading.
Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures. Investors will turn to the November jobs report Friday morning.
X
A Tesla Semi truck delivery event took place Thursday night with Tesla (TSLA) archrival BYD set to release booming EV sales numbers.
The stock market rally showed solid action on Thursday, with the indexes mixed but consolidating Wednesday’s huge gains on Fed chief Jerome Powell’s comments. Thursday’s PCE inflation report, the Fed’s favorite price gauge, showed smaller-than-expected monthly increases with overall and core inflation cooling slightly once again.
Ulta Beauty (ULTA) headlined earnings reports Thursday night. ULTA stock was little changed overnight after reporting strong earnings and raised guidance. Shares of the beauty products retailer are already at record highs, extended from buy points. Veeva Systems (VEEV) beat fiscal Q3 views, but Q4 guidance was slightly below the midpoint of consensus. VEEV stock fell modestly in extended trade. Shares closed above the 200-day line, right around an early entry.
Meanwhile, Dow giant Caterpillar (CAT) continues to look strong, with CAT stock just below a buy point. Cybersecurity leader Palo Alto Networks (PANW) and Marriott International (MAR) are also flashing buy signals.
Boeing stock is on SwingTrader. Caterpillar was Thursday’s IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures sank 0.3%. Nasdaq 100 futures declined 0.4%.
Dow futures, Treasury yields and more will swing on the November jobs report, due out at 8:30 a.m. ET.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Jobs Report
Economists expect the November jobs report to show a nonfarm payrolls gain of 200,000, down from 261,000 in October. Pay attention to the household survey, which showed jobs down by 328,000 in October. The jobless rate, based on the household survey, is expected to hold steady at 3.7%, with the labor force participation rate edging up to 62.3%.
Other labor data this week has generally pointed to gradual slowing. Initial jobless claims unexpectedly fell, but continuing claims rose yet again. ADP reported a sharp slowdown in private-sector hiring last month, while the October JOLTS survey saw a modest decline in job openings.
Tesla Semi Delivery Event
A Tesla Semi model truck delivery event kicked off shortly after 5 p.m. PT.
Tesla CEO Elon Musk will hand over some Tesla Semi EVs to PepsiCo (PEP) on Thursday night. Speaking of late, the Tesla Semi was first unveiled six years ago and was supposed to enter production in 2020.
Musk says that the Tesla Semi, which will use the same Plaid drive units as the high-end Model S, has a 500-mile range on a single charge. Investors will be looking for precise specs on price, range and cargo. That will be important as the Tesla Semi takes on big-rig EVs already on the market from Volvo, Nikola (NKLA), BYD (BYDDF) and more.
Another big question is what will Tesla Semi production be in the coming months. Musk didn’t provide clarity on that front.
Meanwhile, Tesla is now offering $3,750 discounts for the Model 3 and Model Y in the U.S. this month. The idea is to encourage people to take delivery now. On Jan. 1, new U.S. tax credits of $7,500 come into effect, subject to certain price and income limits, spurring many would-be buyers to wait. The tax credits should apply to most Model 3 sedans and Model Y crossovers, though the government hasn’t provided clarity yet.
Tesla stock closed flat at 194.70 Thursday. On Wednesday, TSLA stock surged 7.7%, retaking its 21-day line, amid the big market rally and as China EV stocks soared.
Tesla Vs. BYD: Which EV Giant Is The Better Buy?
BYD Sales
China EV giant BYD is expected to release November deliveries on Friday or Saturday, with yet another record seen. BYD is expected to be China’s No. 1 auto brand for the month, overtaking Volkswagen (VWAGY). VW Group will likely remain No. 1 including Audi.
BYD stock fell 2.2% to 25.07 but it’s still above its 50-day line. BYDDF vaulted 9.9% on Wednesday, along with other China EV stocks.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Stock Market Rally
The stock market rally had a 30-minute tumble Thursday morning, but gradually improved to mixed, a solid performance following Wednesday’s big gain.
The Dow Jones Industrial Average fell 0.6% in Thursday’s stock market trading, with Salesforce.com (CRM) a big negative. The S&P 500 index dipped 0.1%. The Nasdaq composite rose 0.1%. The small-cap Russell 2000 retreated 0.2%.
U.S. crude oil prices rose 0.8% to $81.22 a barrel.
The 10-year Treasury yield plunged 17 basis points to 3.53%, the lowest since late September. In the wake of Fed chief Powell’s comments and the PCE inflation report, markets are close to locking in a 50-basis-point Fed rate hike on Dec. 14, ending a four-meeting string of 75-basis-point moves. Further, there’s now a 50-50 chance of just a quarter-point Fed rate hike in February.
The dollar, moving with yields, tumbled to the lowest level in nearly three months.
Stocks Near Buy Points
CAT stock dipped 0.3% to 235.69. Shares are pausing around a still-valid 238 buy point from a cup base going back to April, according to MarketSmith analysis. Investors could see 239.95 as another buy point, either as a high handle to the seven-month cup base or as a traditional handle to a larger consolidation starting in June 2021.
Cybersecurity firm Palo Alto Networks’ stock climbed 5% to 178.40, jumping above its 200-day line, retaking that key level for the first time since mid-September. That comes after it rebounded from its 50-day line intraday Wednesday, shrugging off a big earnings sell-off in peer CrowdStrike (CRWD). Investors could view PANW stock as having a big, double-bottom base with a 193.01 buy point. But shares are already actionable from clearing the 200-day line and a downward-sloping trendline from the April peak.
MAR stock dipped 0.1% to 165.19, staying above the 164.99 handle buy point from a bottoming base starting Aug. 16. On Wednesday, Marriott stock rebounded from its 200-day line, rising 2.5% in heavy volume.
ETFs
Among the best ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) climbed 1.1%, even with major holding CRM stock selling off. The VanEck Vectors Semiconductor ETF (SMH) dipped 0.3%.
SPDR S&P Metals & Mining ETF (XME) fell 0.8% and the Global X U.S. Infrastructure Development ETF (PAVE) edged up 0.1%. U.S. Global Jets ETF (JETS) dipped 0.4%. SPDR S&P Homebuilders ETF (XHB) climbed 1.25%. The Energy Select SPDR ETF (XLE) declined 0.3% and the Financial Select SPDR ETF (XLF) sank 0.6%. The Health Care Select Sector SPDR Fund (XLV) advanced 0.3%
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rose 1.1% and ARK Genomics ETF (ARKG) climbed 0.6%. Tesla stock is a major weight across Ark Invest’s ETFs. Cathie Wood’s Ark also has a small position in BYD stock.
Five Best Chinese Stocks To Watch Now
Market Rally Analysis
The stock market rally showed constructive action on Thursday, essentially holding onto Wednesday’s big gains.
The S&P 500 index rebounded intraday from a pullback to its 200-day moving average, after finally retaking that key level on Wednesday. The Russell 2000 also held its 200-day line. The Nasdaq still has work to do to get back to its 200-day.
The Dow Jones gave up only a portion of Wednesday’s gains, largely due to Salesforce. Several Dow Jones stocks, including Caterpillar, Boeing and UNH stock, are showing strength. That reflects broader strength in industrials, financials, health services and more.
The October PCE inflation report was slightly better than expected. After Wednesday’s powerful market rally on Fed chief Jerome Powell — who frankly didn’t sound especially dovish — just holding onto those gains Thursday was constructive.
Friday’s jobs report is yet another hurdle. If the employment data points to some labor market slack, it could provide a further tailwind for stocks. But a hot labor market could trigger a big sell-off.
Treasury yields and the dollar have fallen hard the past two days and the past few weeks, providing a big tailwind for stocks. A rebound in yields and the greenback wouldn’t be a surprise.
Keep in mind that the market rally has had a number of big one-day gains, followed by sideways or sliding action. That’s made it tricky for investors to make headway even as the indexes trend higher over the past several weeks.
Time The Market With IBD’s ETF Market Strategy
What To Do Now
There were reasons to buy or stand pat on Wednesday’s big move. On Thursday, investors could have added a little exposure, but the jobs report is a big question mark.
A Friday market rally on the November jobs report could trigger a number of buying opportunities. But don’t cheat on promising stocks ahead of big news. Instead, work on your watchlists so you’re ready to act. But also be ready to reduce exposure if the market or your holdings head sharply south.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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Xpeng said deliveries of its newly launched G9 SUV surged in October from September, despite a drop in the brand’s overall monthly deliveries.
China News Service | China News Service | Getty Images
BEIJING — Chinese electric car startup Xpeng delivered about half the number of cars that rivals Nio and Li Auto did in October, according to company statements Tuesday.
While the two other startups reported monthly deliveries of more than 10,000 each, Xpeng said it delivered just 5,101 cars — a third-straight month of decline.
Xpeng shares fell by 3% in U.S. trading overnight. Nio’s rose by 0.4% and Li Auto shares jumped by 6.9%.
China’s electric car market is highly competitive. Older automakers BYD and Tesla lead monthly deliveries by far, while new entrant Huawei claims its Aito brand has topped the 10,000-a-month mark less than a year since launch.
Deliveries of Xpeng’s best-selling model, the P7 sedan, halved from September to October, with just over 2,100 units delivered last month. The company’s newly launched G9 SUV saw deliveries surge from 184 units in September to 623 units in October.
Xpeng said mass deliveries of the G9 began on Oct. 27. The company has said it expects the new model to become its best-selling car next year.
Nio
Nio, which has targeted a higher price range for both SUVs and sedans, said it delivered 10,059 vehicles in October. That marked a slight decline from September, but marked a fifth-straight month of deliveries that topped 10,000.
“Vehicle production and delivery were constrained by operation challenges in our plants as well as supply chain volatilities due to the COVID-19 situations in certain regions in China,” Nio said in a press release.
The company said its October deliveries included vehicles sold in Europe, but not those offered under a local subscription program.
Li Auto
Li Auto delivered 10,052 vehicles in October. Since May, the company has delivered more than 10,000 cars every month, except in August.
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After having only one model on the market since 2019, Li Auto has launched three new models in the last few months — the L9 which began deliveries in August, the L8 which is set to begin deliveries this month and the L7 which is set to reach consumers early next year.
Unlike Xpeng and Nio, Li Auto’s vehicles are not purely electric as they come with a fuel tank to charge the battery and extend driving range.
Among the three companies, Li Auto’s U.S.-listed shares have held up the best in a year of broad market declines. The stock is down by about 55% so far this year, while Nio shares have dropped by 69% and Xpeng is down by 87%.
