Good Evening. Investors face a hectic week replete with critical economic data that might position the Fed to act more aggressively on plans to raise interest rates. U.S. equities closed higher Monday, building on two weeks of gains.
The S&P 500 went up by 0.71%. The DOW ended at 0.27% higher, and the NASDAQ finished 1.31% up.
BUSINESS
Porsche traditionalist, prepare to grab your nitroglycerin pills. If you still lament the bygone era of air-cooled 911s, do we have bad news for you. Porsche is purportedly collaborating with QuantumScape Corporation (QS), a U.S. lithium metal battery company, to produce an electric version of their 911 vehicle powered by solid-state batteries.
Following news of the deal, QuantumScape’s stock soared. As of closing, the company’s stock was up 6.88% to $18.48 per share.
Porsche AG, a sports car manufacturer with nearly a century of experience, has recently shifted its focus to more electric vehicles. It began its EV transition with the popular Taycan model, which was followed by the all-electric Macan, another highly recognized vehicle.
So why would Porsche potentially anger all those 911 purists? In a recent conference call, Porsche CEO Oliver Blume stated that out of 300,000 Porsches delivered globally in 2021, 41,296 were all-electric Taycans, which outsold the Porsche’s vanguard model, the 911. As we told you last month, Porsche is eyeing an IPO. Bringing more electric options to its fleet should help Porsche be more competitive with Tesla (TSLA) and other manufacturers.
STOCK SPLIT
Tesla Inc. (TSLA) is preparing to split its stock for the second time in two years. In order to permit the split, the electric-car maker would ask shareholders to vote at this year’s annual meeting to authorize extra shares, the firm revealed in a tweet early Monday.
The news sent the stock up more than 8% to trade at $1,091.84 per share as of closing
“On March 28, 2022, Tesla, Inc. announced its plan to request stockholder approval at the upcoming 2022 Annual Meeting of Stockholders for an increase in the number of authorized shares of common stock through an amendment to the Company’s Amended and Restated Certificate of Incorporation in order to enable a stock split of the Company’s common stock in the form of a stock dividend. Tesla’s Board of Directors has approved the management proposal, but the stock dividend will be contingent on final Board approval,” a subsequent filing by Tesla with the Securities and Exchange Commission (SEC) said.
Tesla has joined the ranks of other tech behemoths such as Amazon, Alphabet, and Apple in announcing a stock split
THE WEEK AHEAD
Budget: Today, President Biden will submit his fiscal year 2023 budget to Congress. Along with the billionaire’s minimum tax, he’ll ask for $813.3 billion in national security spending, up 4% over last year’s estimates.
Jobs report: The monthly jobs report is no longer the most important economic event of the month since inflation data has taken its place. However, when it comes out Friday, Wall Street will be paying close attention. According to economists, 460,000 jobs were added in March, bringing the unemployment rate down to 3.7%.
Booster 2.0: The FDA could approve a second booster shot for some individuals in the United States as soon as this week. According to reports, the Biden administration is considering making a fourth shot available to everyone over the age of 50.