A red start to the year with Tesla and Apple

The trend on Wall Street was negative on Tuesday to start 2023, while the American rating closed yesterday for the New Year’s weekend. It lost 76% and amounted to 10,386 points. A barrel of WTI crude oil also lost value (-4%) and was 77 dollars. On the contrary, the dollar index gained 0.9% against the currency basket.

The final US Markit PMI for December came in at 46.2, in contraction territory, below 50 but in line with economists’ consensus and the December reading.

In the US, construction spending for November 2022 rose 0.2% versus the previous month’s -0.4% versus the market consensus and -0.2% versus the previous month’s revised reading, according to the government report of the day. Compared to the year, these construction costs increased by 8.5%.

In Europe, on the German inflation side for December, European adjusted CPI fell 1.2% from the previous month, rising to 9.6% year-on-year versus the FactSet consensus of 10.3% and 11.3% . for the previous month.

Meanwhile, China remains in the grip of record Covid infections, but there are signs of a recovery in mobility in major cities amid expectations that the Covid wave will peak in the coming weeks. Current growth is putting downward pressure on growth and constraining domestic supply chains. amid fears that worker absenteeism could deepen labor shortages. However, the economy could recover further in 2023 as normalization is bolstered by pro-growth policies…

Values

Tesla lost another 12.2% as Elon Musk’s group posted fourth-quarter deliveries and output to all-time highs last night, but missed consensus on deliveries. In the fourth quarter, the group produced more than 439,000 vehicles and delivered more than 405,000 vehicles. In 2022, car deliveries increased 40% year-over-year to 1.31 million, and production increased 47% to 1.37 million.
Analyst estimates were in the region of 421,000 for Tesla’s quarterly deliveries, which have steadily declined in recent weeks, according to the Bloomberg consensus. On the other hand, quarterly production of nearly 440,000 units beat market expectations (Bloomberg consensus of 438,800).
Tesla will report fourth-quarter financial results after the close on Wall Street on January 25. The group, which lost two-thirds of its share price last year in its worst year since its 2010 IPO, will hold an investor meeting on March 1, possibly with some new features. It’s actually interesting…
In addition, Tesla’s China chief Tom Zhu has reportedly been promoted to direct oversight of the electric car maker’s US assembly plants, as well as head of business operations in North America and Europe. The group mentioned by Reuters. Zhu will retain his position as group vice president for China and his duties leading business activities in the rest of Asia. The changes will make Tesla leader Tesla’s number two behind CEO and co-founder Elon Musk, as Zhu will be responsible for overseeing both sales in all of the automaker’s key markets and operations at key manufacturing sites.

Apple (-3.7%). Reuters and Bloomberg reported that December shipments from Foxconn’s iPhone factory in Zhengzhou reached 90% of original plans. Foxconn Technology Group has ramped up the world’s largest iPhone factory to about 90% of planned peak capacity and according to Bloomberg, Apple’s biggest manufacturing partner has secured enough workers despite a Covid resurgence and recent staff changes. Foxconn’s factory in central China’s Zhengzhou currently employs about 200,000 workers, the official Henan Daily reported, citing Foxconn CEO Vic Wang. This is normal. As of Dec. 30, the plant was providing 90% of the peak capacity projected early last year…
Bloomberg said the factory’s rapid recovery bodes well for production of Apple’s flagship heading into the Lunar New Year shopping season. After Beijing suddenly eased its zero-day Covid-19 restrictions, the nationwide Covid outbreak has cast a shadow over the outlook for manufacturers like Foxconn, which need armies of workers to keep factories running. The latest outbreak follows weeks of unrest at the Zhengzhou factory known as iPhone City, which produces the vast majority of high-end iPhone 14 Pro and Pro Max devices.

Nio (-1.2%), a Wall Street-listed Chinese electric car maker that rivals Tesla, reported strong sales figures for December and the fourth quarter. Nio delivered 15,815 vehicles in December 2022, up 50.8% year-on-year. The group delivered 40,052 vehicles in the three months ending December 2022, up 60% year-on-year. The Nio sold a total of 122,486 vehicles in 2022, an increase of 34%. As of December 31, 2022, the total supply of vehicles reached 289,556 units.

PayPal (+4.7%) gains ground on Wall Street, one market source, Truist Securities, revised its recommendation from ‘hold’ to ‘buy’ in a filing, saying its financial forecasts are now more reasonable.

Horizon Global surged 342% after news of its acquisition by auto supplier First Brands.

AMC is stable, while British cinema operator Cineworld has denied rumors that America is interested in taking over some of its assets.

Microsoft (stable). The Activision Blizzard soap opera (+0.4%) continues… A judge set a preliminary hearing for Tuesday between the Biden administration and Microsoft on its proposed $69 billion acquisition of video game publisher Activision Blizzard. US competition police blocked the operation last month, fearing serious competition violations.

Meta (+3.6%) is set to decide whether to allow Donald Trump to return to Facebook and Instagram, the Financial Times reports… A person familiar with the discussions told the FT that although the company said a decision would be made , January 7th is the second anniversary of Trump’s ban, which is now expected to be announced in late January. People familiar with its operations told the FT that Meta had set up a task force to focus on the issue. Whether the ban is extended or repealed, the decision will be divisive and will make it difficult for Trump to run for president again.

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