WEEKLY RECAP
IN TECH
- Meta’s Threads app releases with a bang—and a lawsuit threat.
- On Friday, Meta Platforms (NASDAQ:META) CEO Mark Zuckerberg announced that its new Threads app, dubbed the “Twitter killer,” had 70 million signups after its Wednesday-night debut, thanks to its massive Instagram user base.Semafor got a letter from Twitter attorney Alex Spiro threatening to sue Meta a day after the launch.Meta is accused of creating a “copycat” app by unlawfully poaching numerous ex-Twitter employees and assigning them to develop the Threads app using Twitter’s trade secrets and intellectual property. The letter requests Meta stop using that information immediately.Meta’s communications director Andy Stone announced on the new app that no Threads team member is a former Twitter employee.
- Alibaba surges on lower China fine
- Alibaba (NYSE:BABA) shares rose 8% Friday after the Chinese government fined its fintech affiliate Ant Group a lower-than-expected 7.12 billion yuan ($985M). Alibaba (HK:9988) finished 3.4% higher.Reuters reported that Ant would be fined at least 8B yuan (approximately $1.1B).The penalty, the largest on a Chinese internet company since regulators fined ride-sharing app Didi Global (OTC:DIDIY) $1.2B last year, concludes the People’s Bank of China’s multiyear revamp of Ant after the fintech firm’s 2020 $37B flotation was scrapped.
- Rivian’s wild week
- Rivian Automotive (NASDAQ:RIVN) rose last week on better-than-expected production data, Amazon (NASDAQ:AMZN) deploying its first Rivian vans in Europe, and Wall Street analyst optimism.First, Rivian rose more than 17% on Monday after reporting 13,992 automobiles, a 59% year-over-year increase, beating Street estimates for 12,640. The supply-chain-challenged firm reiterated its annual manufacturing target of 50,000 units.On Wednesday, Amazon said that 300 vehicles will drive in Munich, Berlin, and Düsseldorf in the coming weeks. Rivian’s first overseas commercial shipments.Amazon, Rivian’s largest shareholder, ordered 100,000 vans last year and began distributing them in many U.S. cities. Amazon wants 100,000 Rivian vans worldwide by 2030.
IN EV SPACE
EV giants boost production
Last week, several automakers reported 2Q production and deliveries.
Tesla (NASDAQ:TSLA) set another quarterly record with a 9% rise in production to 479,700 vehicles and a 10% increase in deliveries to 466,140 vehicles. The China Passenger Car Association (CPCA) reported that the EV behemoth sold 93,680 vehicles in June, gaining 18.72% year-over-year.
BYD (SZ:002594) (OTC:BYDDY) The Texas-based company’s China sales were second only to BYD (SZ:002594) (OTC:BYDDY), which sold more than 250,000 EVs in June, up 88.16% year over year, according to the CPCA.
Li Auto Inc (NASDAQ:LI) In June 2023, Chinese startup Li Auto Inc (NASDAQ:LI) delivered 32,575 vehicles, exceeding the 30,000 monthly delivery threshold for the first time. This is 150.1% higher than last year. The company’s second-quarter deliveries rose 201.6% to 86,533 automobiles. These impressive numbers exceed Li Auto’s 2022 vehicle deliveries.
Nio (NYSE:NIO) delivered 10,707 automobiles in June, down 17.4% from last year but up 74% from May. 23,520 automobiles in 2Q.
Xpeng Inc (NYSE:XPEV), a Chinese automaker based in Guangzhou, Guangdong with headquarters in California, delivered 8,620 EVs in June, increasing its 2Q total to 23,205, a 27% increase. Xpeng supplied nearly 300,000 EVs by June 30, 2023.
Ford (NYSE:F) combustion engine trucks topped the U.S. Detroit’s electric vehicle sales also rise. Ford reported 25,709 EV sales, down 2.8% from last year but up 11.9% year-to-date. The Mustang Mach-E’s second-quarter sales fell 21.1% to 8,633 (down 20.6% year to date) due to plant problems. After retooling its Cuautitlán Izcalli facility, Mach-E sales increased in June, suggesting third-quarter growth.
Andrew Frick, vice president, sales distribution, and trucks, said EV sales are rising. “After retooling our plant earlier this year, Mustang Mach-E inventory flow improved at the end of Q2, which helped June sales climb 110%.”
General Motors (NYSE:GM) sold 1.3 million automobiles in the first half, up 19% year-over-year. The firm sold 36,322 electric vehicles, including 33,659 Bolt and Bolt EUV models.
GM’s EV revolution faces bureaucracy.
GM dominates U.S. auto sales, but authorities may challenge it. The business warned Wednesday that the EPA’s planned auto emissions rules and other state and federal regulations may pose compliance issues.
GM told the EPA that six state and federal regulations “could require each automaker to exceed 50% EVs in at least a dozen vehicle averaging sets in the approximate 2030 timeframe.”
Rivian’s price dispute
Rivian (NASDAQ:RIVN), another American EV firm, was informed Monday that Sjunde AP-Fonden would sue on behalf of stockholders from Nov. 10, 2021 through March 10, 2022.
The suit claims the electric automaker underpriced its vehicles to stay afloat, forcing unpleasant price hikes.
U.S. District Judge Josephine Staton said stockholders can argue that Rivian, although being unprofitable, knew it would have to boost pricing on its R1S SUV and R1T pickup truck owing to higher materials costs.
Outlook for the week on energy and precious metals
- Oil Prices
- Sunil Kumar Dixit, chief technical strategist at SKCharting.com, expects WTI to retest breakout points this week.However, consolidation could confine U.S. crude to the 50-day EMA, or Exponential Moving Average, of $71.70, which, if violated, could lead bears to push for a decline back to $70.30 or perhaps $68.
- Gold: Forecast
- Gold’s acceptance over the Daily Middle Bollinger Band of $1,931 and the 5-week EMA of $1934 will pave the way for a further rise to the 50-day EMA of $1,945, according to SKCharting’s Dixit. He stated that it would match the 50% Fibonacci retracement from $1,804 to $2081.Dixit said the 100-day SMA of $1,948 and the Weekly Middle Bollinger Band of $1,952 are the next resistance points.
- Gas Price Forecast
- Dixit of SKCharting said natural gas might consolidate further in a natural correction from breakout zone retests.Dixit stated Daily Stochastics at 34/43 suggests additional declines, while Daily RSI at 51 is above neutrality, limiting fall to the 100-day SMA of $2.38.
Weekly Earnings Calendar
Monday,
WD-40 Company (WDFC) and PriceSmart Inc. (PSMT)
Tuesday
No earningss
Wednesday
Washington Federal Inc. (WAFD), Winmark Corp. (WINA), and MillerKnoll Inc. (MLKN)
Thursday
PepsiCo. (PEP), Cintas Corp. (CTAS), Fastenal Company (FAST), Delta Air Lines (DAL), and ConAgra Brands Inc. (CAG)
Friday,
UnitedHealth Group (UNH), JPMorgan Chase (JPM), Wells Fargo & Company (WFC), BlackRock (BK), Citigroup (C), State Street Corporation (STT), and Ericsson (ERIC)