But first, we got off the path.
If this has been forwarded to you, register here.
The big story
Problem with Tesla
Tesla is facing a new phase of growth, CEO Elon Musk said. A robotaxi is part of his solution. Steve Granitz/FilmMagic; Scott Olson/Getty Images; Adobe Stock; Chelsea Jia Feng/BI
The wheels come from one of the most prominent car manufacturers in the world.
Tesla’s horrible 2024 got even worse this week when the company cut spending 10% of its workforceAnd a major leader resigned after 18 years at the electric vehicle maker.
Fears of layoffs at Tesla have increased Wall Street’s Growing Concerns. Everything accelerated after the company announced decreasing delivery figures earlier this month.
In the wake of budget cuts, market observers wonder what’s next for Teslawrites Business Insider’s Graham Rapier.
Tesla will release its results next week, but we already have an idea of one of Elon Musk’s big ideas: robotaxis. Amid all the bad news last week, Tesla CEO said the long-awaited robotaxis will be revealed in August.
But as Graham points out, robotaxis are not a new concept for Tesla, which has been offering them for years. And rolling them out would mean improvements to Tesla’s Full Self-Driving software, which lags behind its competitors.
Slaven Vlasic/Getty Images for The New York Times; Chelsea Jia Feng/BI
Meanwhile, Tesla shares continue to fall.
Shares of the electric vehicle maker have fallen more than 35% this year, giving back much of the massive gains seen in 2023. Meanwhile, most of its Magnificent 7 peers have continued their hot streak into 2023.
Tesla has been good to its long-time investors. It is up more than 900% over the past five years, far outpacing the S&P 500 Index (72%). And the stock has already rebounded from the volatility. Tesla’s incredible 2023 was preceded by a 65% share price decline in 2022.
But external factors make this year’s comeback even more daunting.
Demand for electric vehicles in the United States slows downand China is proving to be a greater rival than Musk previously believed. Even worse, people looking for electric vehicles are not necessarily interested in Teslas.
Big and expensive electric vehicles are not what customers want. And that’s a problem for a company whose newest vehicle is a large, expensive electric vehicle.
Yet despite a long list of recent setbacks, there is some good news buried amid the carnage: EV sales data shows Tesla is ahead of all its competitors in the US electric vehicle market in recent times, increasing its market share to 51.3%.
Meanwhile, Musk is at the center of everything. The polarizing billionaire is involved in several quarrelsincluding with Tesla. And now his latest attempt, a Getting started with AIwould be drawing talent away from the electric vehicle manufacturer.
3 things about the markets
Andy Sieg has led Merrill Lynch since 2017. Merrill Lynch, Abanti Chowdhury/BI
The Andy Sieg era is underway in Citi’s wealth management business, and it involves massive changes. The Merrill Lynch veteran has only led the unit since September, but nearly a dozen executives have left since he arrived. here is a current list of those who have left so far.
Nothing can stop this bull market. Despite geopolitical concerns and continued high interest rates, some Wall Street veterans don’t see an end to the bull market. Whether it’s explaining high inflation data or explaining why we’re in a period of buying the dip, four experts give their optimistic opinion.
Truth Social users are disheartened by Trump Media’s falling stock price. The ex-president’s social media platform has fallen more than 60% since its IPO in late March. Truth Social is concerned about the sharp drop in the titlesome “truthers” claiming its shares have been artificially devalued.
3 things in technology
Many young people aren’t using the VR headsets they own, according to a new survey from Piper Sandler. DAVID SWANSON
Children are bored with VR glasses. A new survey found that 56% of teens with VR devices rarely use them. This is bad news for companies like Apple and Meta, which are banking on the technology of the future.
Silicon Valley’s favorite new social media platform is an invite-only audio app. Airchat, a application marketed as a “social walkie-talkie” is taking off among tech and creator economy insiders. But can it stay?
Microsoft is preparing for the AI boom. The tech giant data center capacity has increased rapidly in recent quarters, according to an internal presentation consulted by BI. It plans to increase its capacity even more quickly over the remainder of 2024, the document said.
3 things in business
Juanjo Gasull for BI
The new American dream ? Leave the United States. With the cost of living rising in the United States, more and more Americans are deciding that the only way to get ahead financially is to pay off debt and save for retirement. it’s moving abroad.
The Australian retirement model could inspire that of the United States. While U.S. retirement plans rely on worker contributions to accounts like 401(k)s, Australia’s retirement system requires employer-funded retirement contributions. Adopt something similar could improve The retreat of the Americans.
New York uses AI to challenge wealthy remote workers. CNBC reported that the state tax department is send hundreds of thousands of AI-generated letters looking for income. It primarily targets wealthy remote workers and those who need a change of tax residency, according to the outlet.
In other news
What’s happening today
The Insider Today team: Dan DeFrancesco, associate editor and presenter, in New York. Jordan Parker Erb, editor-in-chief, in New York. Hallam Bullock, editor, in London. George Glover, journalist, in London.
businessinsider
