By Stock futures are indicating a mostly positive start to the new trading year, with investors eagerly awaiting the release of U.S. employment data during this holiday-shortened week. The S&P 500 ended 2023 on a high note, posting gains for nine consecutive weeks and closing the year with a 24% increase.
Tesla’s Record-Breaking Fourth-Quarter Deliveries
Analysts anticipate that Tesla will announce fourth-quarter deliveries ranging between 475,000 and 480,000 units, surpassing the company’s previous record set in the second quarter of 2023. After delivering 435,000 units in the third quarter, this rebound is significant for the electric-vehicle manufacturer. Tesla’s stock is up by 0.9% in premarket trading. It is worth noting that previous delivery reports have caused significant volatility in Tesla’s shares, with an average fluctuation of about 7% following the last eight reports.
BYD Emerges as a Leading Seller of Electric Vehicles
Chinese electric vehicle giant BYD reported fourth-quarter deliveries of approximately 526,000 all-electric vehicles, up from about 432,000 units delivered in the previous quarter. If Tesla meets market expectations, BYD will secure its position as the largest seller of all-battery electric vehicles globally. However, BYD’s shares dipped by 2.3% in Hong Kong trading.
Mixed Results for Other Chinese EV Makers
Li Auto, NIO, and XPeng, three prominent Chinese EV manufacturers listed in the U.S., experienced declines in their stock prices after releasing their December delivery numbers. Li Auto’s shares fell by 4.1%, despite reporting a remarkable increase of 137.1% in deliveries compared to the previous year. NIO saw a decline of 1.4%, while XPeng experienced a slight dip of 0.4%.
Setback for ASML as Dutch Government Blocks Export to China
ASML, a major chip-equipment manufacturer, suffered a 1.1% decline in its stock price after the Dutch government restricted its exports of lithography systems to China. These systems are vital for the production of advanced microprocessors. The Wall Street Journal reported that the Netherlands, Japan, and the U.S. reached an agreement to impose such restrictions. However, ASML remains confident that these developments will not have a significant impact on its financial outlook for 2023.
Upcoming Earnings Reports
This week’s earnings calendar includes reports from Conagra Brands, Lamb Weston, Walgreens Boots Alliance, and Constellation Brands.
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