Elon Musk bought around $1 billion of Tesla stock, his first purchase in over five years, amid a proposed compensation plan that could pay him nearly $1 trillion if certain ambitious performance goals are met, leading to a rise in Tesla's stock price.
Tesla's new long-term compensation plan for Elon Musk aims for a $1 trillion payout if he achieves highly ambitious goals, including reaching a $8.5 trillion market cap and numerous operational milestones, but these targets are considered unrealistic given Tesla's current poor financial performance and delayed projects, making the plan more of a fantasy than a feasible reward.
Tesla shares rose after the company launched its robo-taxi app in Austin, despite Elon Musk not attending a White House dinner with other tech CEOs, reflecting investor confidence in Tesla's autonomous vehicle progress and a focus away from Musk's political activities.
Tesla's stock rose after Elon Musk confirmed the company is dismantling its Dojo supercomputer team, which could be a strategic move that might benefit the company's future prospects.
Tesla is discontinuing its Dojo supercomputer project and shifting its focus to developing inference chips in partnership with Samsung, as Elon Musk emphasizes real-time AI decision-making for its self-driving systems and humanoid robots. The move involves disbanding the Dojo team, reallocating staff, and prioritizing AI chips like AI5 and AI6 for future vehicle and robot applications. Tesla's stock has seen modest gains amid these strategic changes and broader market fluctuations.
U.S. stock futures are slightly higher ahead of key trade talks between the U.S. and China, with Apple expected to announce new AI features at WWDC, Tesla's shares slipping amid Elon Musk and Trump feud, and Warner Bros. Discovery planning to split into two companies, reflecting ongoing corporate and geopolitical developments.
Dow Jones futures rose slightly after hours, with investors awaiting the CPI inflation report and key reports from Delta Air Lines and Nvidia chipmaker Taiwan Semiconductor. The stock market rally edged higher, with Nvidia testing support and Tesla rising on Elon Musk's robotaxi announcement. The CPI inflation report is expected to impact Dow Jones futures and Treasury yields, while Nvidia faces growing competition in the AI space. Taiwan Semiconductor will release March and first-quarter sales figures, and Delta Air Lines' earnings kick off earnings for U.S. carriers.
Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were lower ahead of Tuesday's open as Wall Street prepares for the Federal Reserve interest rate decision. Tesla stock plunged below the $200 price level, while Apple earnings and other earnings reports are anticipated this week. The stock market rallied on Monday, with the Dow Jones Industrial Average surging over 500 points. Oil prices tumbled, and the 10-year U.S. Treasury yield remained near its long-term highs. Investors are advised to remain cautious during the ongoing stock market correction.
Dow Jones futures, along with S&P 500 futures and Nasdaq futures, fell modestly as the stock market rally faced further losses. The 10-year Treasury yield spiked close to 5%, raising concerns. However, the market fear gauge, the CBOE Volatility Index (VIX), reached its highest level since late March, offering hope for a potential stock market bounce. Tesla stock plunged after weak earnings and warnings from CEO Elon Musk. Stocks to watch include Adobe, Arista Networks, Microsoft, Palantir Technologies, and Meta Platforms. The market rally is under pressure, and investors should exercise caution and be prepared for upcoming earnings reports.
The Securities and Exchange Commission (SEC) is suing Elon Musk and seeking his testimony in a Twitter probe after he skipped a scheduled appearance in September. The SEC is now asking a court to compel Musk to appear. Despite this legal action, Tesla's stock has not been significantly impacted.
Dow Jones futures, S&P 500 futures, and Nasdaq futures rose on Thursday on hopes of stimulus measures in China. However, concerns over rising yields persisted. The stock market rally experienced losses, with the Nasdaq falling below its 50-day line. Nvidia stock reversed lower despite positive analyst sentiment, while Tesla stock continued to decline due to margin-killing price cuts. Investors are advised to be cautious as major indexes break support and leading stocks show signs of damage.
The stock market rally had a mixed week, with the Nasdaq falling through key moving averages and growth names struggling. However, the Dow Jones rose slightly. While the market rally is in danger of falling into a correction, some sectors like industrials, infrastructure, housing, and energy are holding up or gaining ground. Investors should be thinking defensively, especially with regards to growth plays. Tesla and Nvidia stocks are flashing sell signals as they fall below their 10-week lines. Overall, the market rally is on the verge of a correction, but it's not there yet.