Following an effort to cut pricing, the world’s largest manufacturer of electric vehicles, Tesla, announces record second-quarter vehicle deliveries. Apple is apparently cutting its manufacturing goals for the Vision Pro headset, while the fate of Microsoft’s proposed megamerger with Activision Blizzard is in the hands of a crucial San Francisco judgement.
Tesla deliveries outperform forecasts
Tesla (NASDAQ:TSLA) reported that deliveries in the second quarter increased to a record 466,140, suggesting that Elon Musk’s decision to lower vehicle pricing may be increasing demand.
The number was 83% greater than it was during the same time last year, and shareholders view it as the most accurate indicator of sales that Tesla provides. Additionally, it exceeded the consensus forecast of 448,350 shipments from Bloomberg.
In order to increase sales, the business announced discounts earlier this year. According to Musk, high prices have deterred a “vast number” of potential customers from buying a Tesla vehicle.
based in Austin, Texas Additionally, Tesla is seeking new technology in an effort to lower the cost of its vehicles and fend off heightened competition in the market for autos that use renewable energy .In early Monday trade, the stock soared more than 6% higher.
As the second half of 2023 begins, futures are mixed.
Investors were focused on the second half of a year that has already been marked by significant gains on Wall Street, so U.S. stock futures were subdued on Monday before a short trading week.
The Dow futures contract fell 36 points, or 0.10%, at 05:11 ET (09:11 GMT), while the S&P 500 futures rose 2 points, or 0.06%, and the Nasdaq 100 futures rose 42 points, or 0.27%.
The major indices all had growth in the first half of 2023. The Nasdaq Composite stood out as the top performer, rising to its highest first half since 1983 in part due to a spike in interest in breakthroughs in artificial intelligence.
During that time, the Dow Jones Industrial Average and S&P 500 both increased.
The U.S. stock markets will close early on Monday at 13:00 ET in observance of the Independence Day holiday. Tomorrow they will likewise be closed.
Apple lowering manufacturing goals for Vision Pro – FT
According to various sources with knowledge of the issue, Apple (NASDAQ:AAPL) is lowering its output targets for its mixed reality Vision Pro headset. This information was provided by the Financial Times.
The complexity of the product has already compelled the tech giant to cut its production goals and delay plans for a more cost-effective version of the device, according to the newspaper.
Luxshare (SZ:002475), the Chinese company hired to construct the Vision Pro, did not respond to a request for comment. Apple declined to comment to the Financial Times.
The Vision Pro was first revealed on June 5 amid much enthusiasm. According to some analysts, the product could be just as important to the company’s success as its wildly successful iPhone. Since then, Apple’s value has surpassed $3 trillion.
But There are still concerns about how its high $3,500 price would affect demand. Apple has also stated that the Vision Pro won’t go on sale until the beginning of next year, a delay that some experts have attributed to supply chain difficulties.
A crucial decision about the massive merger of Microsoft and Activision is imminent.
If a San Francisco judge issues the anticipated decision on a Federal Trade Commission request to temporarily prohibit the tie-up, it could determine the destiny of Microsoft’s (NASDAQ:MSFT) $75 billion bid to acquire “Call of Duty” creator Activision Blizzard (NASDAQ:ATVI).
In order to delay Microsoft’s completion of the merger until its own internal administrative court has had a chance to rule on the arrangement, the FTC is requesting a preliminary injunction.
In a hearing that attracted considerable attention last week, the FTC and Microsoft’s attorneys each gave their last arguments to the judge. Microsoft has disputed the regulator’s assertion that the merger will reduce competition in the gaming industry.
Legal authorities cited by numerous news sites claim that the judge’s decision, which might come The outcome of the deal might be decided as soon as Monday.
Oil turbulent due to supply projections and worries about interest rates
On Monday, the outlook for supply and the possibility of further Federal Reserve interest rate increases caused oil prices to fluctuate.
The Fed wants to drive inflation back down to its goal level of 2%, so any increases in borrowing costs might have a negative impact on the global economy and oil demand, according to analysts cited by Reuters. Additionally, a stronger dollar can make it more expensive for owners of other currencies to purchase goods.
Other analysts, however, contend that because Saudi Arabia, a significant exporter, promised to reduce output in July, supplies will likely become more scarce later this year.
U.S. oil futures were trading 1.46% higher at $71.67 a barrel by 05:12 ET, while the Brent contract increased To $76.56 per barrel, up 1.52%.