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Li Auto Stock Drops 7.3% Amid Tesla Price Cuts, Salesforce Retreats from Informatica Deal, and Other Market Updates

Fernanda T
Latest News
April 22 2024 8:09AM

Salesforce (NYSE:CRM), Informatica (NYSE:INFA) – Salesforce has withdrawn from negotiations to acquire Informatica due to disagreements over terms, according to Reuters. The discussions were in advanced stages, with a potential price of around $30 per share for Informatica, which has clients such as Unilever and Deloitte. Salesforce shares rose 3.4%, while Informatica shares fell 6.2%, in pre-market trading.

Tesla (NASDAQ:TSLA) – Tesla has reduced prices in several markets, including the USA, China, and Germany, in response to falling sales and competition. Elon Musk stated that prices vary to meet demand. Tesla also reduced the price of the Full Self-Driving (FSD) software to $8,000 in the USA, with Elon Musk reinforcing his commitment to autonomous driving. Musk bets that the FSD will be an important revenue source, despite regulatory challenges. Musk postponed his visit to India, including a meeting with Prime Minister Narendra Modi, due to urgent issues at Tesla. The decision follows a tumultuous week, with staff reductions and financial challenges.

Li Auto (NASDAQ:LI) – Following Tesla’s price cuts in its lineup in China, possibly initiating a new price war with Li Auto, which responded with immediate discounts. Li Auto cut prices by 6-7%, with its SUV L7 now starting at $41,700 (301,800 yuan). Li Auto’s shares, traded in the United States, recorded a 7.3% drop in pre-market trading.

Apple (NASDAQ:AAPL) – Apple is close to receiving EU antitrust regulators’ approval to open its tap-and-go mobile payment system to competitors, after adjusting terms. This would end a four-year investigation, potentially avoiding a significant fine. Apple’s proposal to share NFC technology will be reviewed by May.

Alphabet (NASDAQ:GOOGL) – On Friday, Google announced the revocation of minimum wage and benefits requirements for U.S. suppliers, aligning with practices of other companies and clarifying its role as an employer. This change follows recent labor disputes and regulatory pressures. Additionally, the Japanese antitrust regulator accuses Google of limiting competition by blocking Yahoo Japan’s access to mobile advertising technology, compromising competition. Alphabet agreed to grant access, but Japanese authorities continue to monitor the situation, reserving the right to reopen the investigation.

Cisco Systems (NASDAQ:CSCO) – Cisco Systems is adopting a new security strategy, using artificial intelligence to protect computing systems. Its Hypershield service automates security tasks, such as vulnerability patches and updates, aiming to protect against cyberattacks, while preparing the infrastructure for the AI revolution.

Nvidia (NASDAQ:NVDA) – Nvidia was showing a 2.6% increase in pre-market trading. On Friday, the shares of the artificial intelligence chip company fell 10%, marking the largest percentage drop in a single day since March 16, 2020, according to Dow Jones Market Data. This resulted in a $212 billion reduction in Nvidia’s market value, representing the largest single-day market value decline for the company.

Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) – Options investors in Taiwan Semiconductor Manufacturing Co. are pessimistic due to the chip maker’s conservative guidance and doubts about the future of artificial intelligence trade. While put options are increasing, suggestions of recovery also emerge, indicating uncertainty about the future direction of the shares.

Super Micro Computer (NASDAQ:SMCI) – Super Micro Computer shares showed a 3.4% increase in pre-market trading, after suffering a 23% drop on Friday, when the artificial intelligence hardware company announced it would release its earnings on April 30, but did not provide preliminary results for the fiscal third quarter. This disappointed investors who were expecting a positive update from the company, especially since in January, 11 days before the earnings announcement, Super Micro had significantly raised its profit and sales outlook.

Warner Bros Discovery (NASDAQ:WBD) – The annual compensation for CEO David Zaslav of Warner Bros Discovery increased nearly 27%, to $49.7 million in 2023, according to an SEC document. The increase reflects the company’s shift to prioritize debt reduction and free cash flow, driven by an 86% jump in free cash flow, to $6.16 billion. Although it is an increase from 2022, it still falls short of his record compensation of $246.5 million in 2021.

PepsiCo (NASDAQ:PEP) – PepsiCo, a key customer of Tesla, made initial payments for 100 Tesla Semi trucks in 2017, aiming to transport its products. However, only 36 out of the 100 trucks have been used to this month, highlighting Tesla’s challenges in the electric truck market.

Honda Motor (NYSE:HMC) – Honda announced an investment of $807.74 million (4.2 billion reais) in its Itirapina plant, Brazil, by 2030, aiming to develop a hybrid-flex vehicle.

Embraer (NYSE:ERJ) – Embraer announced the delivery of 25 aircraft in the first quarter of 2024, including seven commercial planes and 18 executive jets, representing a 67% increase compared to the previous year. The company recorded a firm order book of $21.1 billion, its highest level in seven years. Embraer forecasts delivering between 72 to 80 commercial aircraft and between 125 to 135 executive jets this year.

Albemarle (NYSE:ALB), Cummins (NYSE:CMI), Siemens Energy (USOTC:SIEGY) – Albemarle, Cummins, and Siemens Energy are among the companies that obtained tax credits under the U.S. Inflation Reduction Act. Thirty-five projects, spanning electrical grid improvements and electric vehicles, received a total of $1.93 billion in credits. This boost is crucial for accelerating the transition to clean and renewable energies, vital for achieving global climate goals. Albemarle will receive $9.4 million to support lithium carbonate production, Cummins obtained $10.6 million for electrolyzers in Minnesota, while Siemens Energy received $18.3 million for its first power transformer factory in the USA.

Express (NYSE:EXPR) – The fashion retailer Express filed for Chapter 11 bankruptcy in the USA, planning to close more than 100 stores. With assets and liabilities estimated between $1 billion and $10 billion, the company appointed Mark Still as the new CFO and will close Express and UpWest stores as part of the process.

Nike (NYSE:NKE) – Nike plans to lay off approximately 740 employees at its global headquarters in Oregon, as part of an effort to contain costs following a revenue decline anticipated for the first half of the fiscal year 2025. This follows a previously announced cost-reduction plan.

Lululemon Athletica (NASDAQ:LULU) – Lululemon Athletica will close its distribution center in Washington and lay off more than 100 employees by the end of the year, as part of a business restructuring due to slowing demand in North America. Some employees will be relocated to other facilities.

UBS Group AG (NYSE:UBS) – UBS plans to cut costs and jobs in five phases after acquiring Credit Suisse, starting in June, according to the SonntagsZeitung. The program aims to save over $10 billion. It is estimated that up to 35,000 jobs could be affected globally, with up to 60% of former Credit Suisse employees being laid off.

Wells Fargo (NYSE:WFC) – Wells Fargo faces charges of sexual discrimination in a lawsuit filed by Michal Leavitt, a bond saleswoman. She alleges that the bank denied salaries and promotions available to men, creating a sexist work environment.

Coinbase Global (NASDAQ:COIN), Robinhood Markets (NASDAQ:HOOD) – Shares of Coinbase Global recorded a 3.3% increase, while those of Robinhood Markets rose 1.3%, driven by an increase in Bitcoin value following the event known as halving on Friday. Bitcoin, the world’s leading cryptocurrency, was trading at $65,900 on Monday morning, representing a 1.7% increase over the last 24 hours.

Blackstone (NYSE:BX) – Blackstone made an offer of about $1.5 billion to acquire the Hipgnosis Songs Fund (LSE:SONG), outbidding Concord. Blackstone is the majority owner of the fund’s investment advisor, holding music rights of artists like Shakira and Red Hot Chili Peppers.

UnitedHealth Group (NYSE:UNH) – CEO of UnitedHealth, Andrew Witty, will testify in a U.S. House subcommittee on May 1st, addressing a cyberattack on its technology unit. The hack at Change Healthcare, on February 21st, disrupted payments to doctors and healthcare units across the country for a month.