Monday’s Headlines: Tesla Hits Another Speedbump

Monday’s Headlines: Tesla Hits Another Speedbump

Here were the biggest movers in the MyWallSt shortlist on Friday:

Moving Up ⬆️

Nike (NKE) +15.5%

Texas Roadhouse (TXRH) +2.8%

IMAX (IMAX) +2.4%

Lemonade (LMND) +2.2%

Monster Energy (MNST) +2.2%

Moving Down ⬇️

StoneCo (STNE) -4.2%

FedEx (FDX) -3.9%

Chuy's (CHUY) -3.0% Group (TCOM) -2.8%

Stitch Fix (SFIX) -2.8%

1. Tesla (TSLA) was caught up in another safety scandal over the weekend after it had to recall more than 285,000 vehicles in China due to risks concerning its cruise control feature. According to China's State Administration for Market Regulation, the cruise control system can be activated when trying to change gears or when drivers gently touch the gear selector, resulting in accidental acceleration. The EV maker apologized on Saturday for the inconvenience and promised to keep improving to adhere to China's safety regulations. China is a major market for Tesla to crack but this event is the fifth time Chinese regulators have questioned the quality of its Shanghai-made Model 3 vehicles. Read more here

2. Over the weekend, Amazon (AMZN) went shopping and snapped up a new acquisition, — Wickr, an encrypted messaging platform used by government agencies and businesses. The buy comes as Amazon Web Services (AWS) tries to gain more lucrative government business. Amazon explained that the secure communications services offered by Wickr are in high demand due to the COVID-19 pandemic pushing governments and companies to adopt remote and hybrid working environments. The San Francisco-based firm boasts the Department of Defense and the U.S. Customs and Border Protection as its clients as Wickr describes itself as the “only collaboration service with full functionality to meet all security criteria outlined by the National Security Agency.” See more here

3. Apple (AAPL) TV+ is about to face its biggest hurdle yet as subscribers' free trials are about to run out. To get the new service off the ground, the iPhone maker gave away one year subscriptions for free to anyone who bought an Apple product. In addition, the streaming service is also often bundled with Apple packages, meaning that many subscribers are not paying anything yet. However, from July 1st, Apple customers will only get three months of Apple TV+ for free and users who receive the service in a bundle will begin being billed automatically. This is a real test for Apple to see if its streaming service venture has been successful. Read more here. (edited)