Good Evening! The US stock market exhibited a stable performance as investors processed a series of corporate earnings reports.
The S&P 500 index remained relatively stable at 0.01%, whereas the Dow Jones experienced a decline of 0.23%. The Nasdaq Composite concluded the trading session up 0.03%.
CYPERTRUCK IN 2023?
Tesla (TSLA) has experienced a decline subsequent to the company’s report of minor revenue and profit shortfalls. The gross margin also decreased to 19.3%, falling below the 20% mark, due to the impact of recent price reductions on profitability.
- Revenue: $23.33 Billion vs. $23.35 Billion expected
- Earnings Per Share: $0.85 vs. $0.86 expected
Update on the price cuts… According to Reuters’ calculations, Tesla has reduced the prices of its base Model 3 and Model Y by 11% and 20%, respectively, within the current year. The recent reduction in prices coincides with the federal government’s decision to restrict the electric vehicle tax credit to a limited number of vehicles. As a result, Tesla’s base Model 3 RWD has experienced a 50% reduction in its tax credit, now standing at $3,500.
How is 2023 looking for Telsa? Tesla anticipates achieving a global production of 1.8 million vehicles in 2023 while maintaining a long-term delivery growth rate of 50%. Also, according to Tesla, the production of Cybertruck is scheduled to commence later this year at Giga Austin, and the company is currently manufacturing preliminary test versions of the vehicle, known as “Alpha.”
APPLE REACH WIDENS - PART 2
The CEO of Apple, Tim Cook (aka Time Apple), opened the first Apple Retail Store in Mumbai yesterday, and a second Apple Store is scheduled to commence operations in Delhi tomorrow. The initiation of Apple’s brick-and-mortar stores in the two largest cities of India is a significant event for both the corporation and the thriving nation.
Why India? According to data provided by the United Nations, it is anticipated that India’s population will exceed that of China in the current year. Apple perceives a vast potential market in India, which has a user base of over 600 million smartphone users. The iPhone’s is not the preferred choice for the majority of Indians. However, the Apple brand is becoming more prevalent in the self-portraits of India’s middle and upper socioeconomic groups.
It doesn’t stop there… India is also involved in their production. The most recent iteration of the iPhone is manufactured in India, by Foxconn. Foxconn recently allocated $700 million toward an Indian manufacturing plant.
Of course, it’s not only Apple… Google and Samsung are also increasing their production capabilities in India.