Tesla (TSLA) shares fell nearly 1% in pre-market trading, adding to a 3% drop the previous session, as growing concerns over CEO Elon Musk’s political affiliations and public image weigh on the company's prospects. Investors are increasingly worried that Musk’s actions could deter potential customers, threatening to harm Tesla's (TSLA) sales.
The electric vehicle maker has faced a sharp decline in 2024 deliveries, with numbers falling by double digits. Now, market watchers are bracing for further struggles, particularly with the perception of Musk’s public persona becoming a liability.
Stifel analyst Stephen Gengaro remains somewhat positive about Tesla’s (TSLA) stock but has tempered his outlook. He reduced his price target from $492 to $474 and cut his 2025 revenue forecast by 5%, down to $116.8bn.
A key factor behind Gengaro's revised forecast is Musk’s increasing political involvement, which appears to be influencing consumer sentiment towards Tesla (TSLA). “With the so-called Department of Government Efficiency, known as DOGE, making headlines recently regarding its efforts to streamline government agencies, opinions of [Tesla’s] CEO Elon Musk have taken a turn for the worse along political affiliations,” Gengaro wrote in a note to clients.
Meanwhile, it has emerged that Musk and a group of co-investors have submitted a near-$100bn (£80.8bn) bid for the non-profit that controls OpenAI, the maker of ChatGPT.
This shift in sentiment has had an impact on Tesla's (TSLA) sales across Europe. In France, the company saw a 63% drop in sales year-on-year in January, while Germany recorded a 59.5% decline during the same period. This marked the worst January for Tesla in Germany since 2021, amid backlash linked to Musk’s support for the far-right Alternative for Germany (AfD) party.
Tesla’s (TSLA) struggles were also apparent in the UK, where sales were down, amid a rift between Musk and prime minister Keir Starmer.
In China, one of Tesla’s (TSLA) largest markets, sales slipped 11.5% in January compared to the previous year. Meanwhile, the company’s local rival BYD (1211.HK) saw a nearly 50% jump in sales during the same period.
The day traders’ favourite meme stock rose by 1% in pre-market trading, adding to a nearly 10% surge the previous session, as speculation swirled that the video game retailer could be looking to invest in bitcoin (BTC-USD).
The stock's recent rally was fuelled by a weekend post from CEO Ryan Cohen, who shared a photo of himself with Michael Saylor, co-founder of Strategy (MSTR), formerly MicroStrategy, and the largest corporate holder of bitcoin. On Monday, GameStop (GME) shares were trading at $26 each.
The image, posted on X without a caption or further details about the nature of their meeting, quickly sparked speculation that GameStop (GME) may be considering an involvement in the cryptocurrency market, particularly bitcoin.
GameStop (GME) has previously dipped its toes into the digital services arena, launching crypto wallets that allowed users to manage both their cryptocurrencies and non-fungible tokens (NFTs). However, the company shut down that service in 2023, citing "regulatory uncertainty".
Cohen, who co-founded Chewy, first purchased shares in GameStop (GME) in 2020 and joined the board in 2021. His involvement helped propel the company into the spotlight during the WallStreetBets meme stock trading frenzy.
Shares of Palantir Technologies (PLTR) surged 6% on Monday and were up 1% in pre-market trading, as the company continued to build momentum following strong earnings and the announcement of an upcoming Ask Me Anything session with CEO Alex Karp, scheduled for Wednesday on X.
The data analytics company has experienced a spike in its stock price. Shares soared 34% last week, closing at $110.85 on Friday, after Palantir (PLTR) reported robust fourth-quarter earnings and provided an optimistic outlook for the year ahead.
Palantir (PLTR) is known for its AI-powered platforms in defence and intelligence, but it has been making significant moves in the commercial sector as well. The company's expansion into this space, along with its inclusion in the S&P 500 index (^GSPC), contributed to a 340% surge in its stock price last year.
A standout in Palantir's (PLTR) recent quarterly results was a 64% increase in US commercial revenue, which outpaced the 45% gain in government revenue. This growth has fuelled investor optimism, leading Bank of America (BAC) to raise its price target on Palantir (PLTR) stock to $125 from $90, while maintaining its buy rating.
Shares in Super Micro Computer (SMCI), the artificial intelligence server maker, corrected after a strong 18% surge the previous session, as investors await a critical business update scheduled for later this Tuesday.
The 4% pullback comes amid increased investor scrutiny following recent financial accounting issues. The company faces a deadline to file its overdue financial statements by February 25th, or risk being delisted from the Nasdaq (^IXIC).
Wedbush analysts, in a note to clients on Monday, expressed confidence that Super Micro (SMCI) could successfully restate its financials and potentially request a 180-day extension. However, they remained “uncertain” about the company's near-term performance, pointing out that competitors such as HP Enterprise (HPE) have made strides in securing contracts within the rapidly growing artificial intelligence server market.
In a positive development, Super Micro (SMCI) announced last week that it is ramping up to "full production availability" of its AI data centre solutions platform, accelerated by the Nvidia (NVDA) Blackwell platform.
Shares in gambling group Entain (ENT.L) plunged 10% in Tuesday's early session after the company announced the sudden departure of its CEO, Gavin Isaacs, less than six months after he took the helm.
The owner of betting shops Coral and Ladbrokes confirmed that Isaacs was stepping down by “mutual agreement” with “immediate effect”.
His exit comes as a surprise, following the resignation of his predecessor, Jette Nygaard-Andersen, at the end of 2023, after shareholders expressed dissatisfaction with her leadership.
Entain (ENT.L) revealed that its non-executive chairwoman, Stella David, would serve as interim CEO until a permanent replacement is found. David had previously stepped in as temporary CEO following Nygaard-Andersen’s departure.
Isaacs had taken on the role in September, following a months-long search for a new leader as the company faced ongoing financial struggles.
In addition to Coral and Ladbrokes, Entain (ENT.L) also owns BetMGM and was hit with a £585m penalty in 2023, resolving charges related to alleged bribery offences in Turkey through an agreement with HMRC.
Despite leadership changes, Entain (ENT.L) recently stated it expects to report full-year earnings at the top end of its guidance range, forecasting yearly earnings before interest, tax, and other costs between £1.04bn and £1.09bn.
Other companies in the news on Tuesday 11 February
