Thursday’s Headlines: Tesla Probes Continue

Thursday’s Headlines: Tesla Probes Continue

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Bumble (BMBL) +9.8%

Upstart Holdings (UPST) +6.0% Group (TCOM) +4.7% (BILL) +4.1%

Tesla Motors (TSLA) +3.5%

Moving Down ⬇️

Duluth Trading (DLTH) -4.2%

Hain Celestial (HAIN) -4.2%

Redfin (RDFN) -3.7%

Boston Beer Co. (SAM) -3.7%

FactSet (FDS) -3.6%

1. Tesla (TSLA) was confronted with more bad news yesterday when two Democratic senators asked the Federal Trade Commission to investigate the advertising of its Autopilot and Full Self-Driving (FSD) technology. Just days after the National Highway Traffic Safety Administration opened a formal investigation into Tesla’s Autopilot system, senators Richard Blumenthal and Ed Markey sent a letter to the commission asking it to probe Tesla for “potentially deceptive and unfair practices” as its marketing messages may not be fully representing Autopilot and FSD’s capabilities. Tesla also made the headlines yesterday for the long delivery delays its buyers are experiencing, with some waiting weeks or months. Despite all the bad press, Tesla stock jumped 3.5% yesterday. See more on the story here

2. Five former Netflix (NFLX) employees have been charged with insider trading in a long-running, multi-million-dollar scheme. On Wednesday, the SEC announced that the insiders illegally profited over $3 million by using confidential information about the platform's subscriber growth. Between 2016 and 2019, those charged were found to be trading shares ahead of 13 of Netflix's earnings releases by sharing stock tips through encrypted messages. Netflix has declined to comment on the scandal but the SEC has confirmed that the company treats its subscriber growth numbers as confidential information and prohibits employees from trading Netflix securities based on such information. Long-term shareholders should not be overly concerned with the news as it will not impact Netflix's future potential as an investment. Check out the full story here

3. A warning of slowing growth sent Robinhood (HOOD) shares tumbling yesterday after it reported its first earnings release as a publicly traded company. Its revenue soared over 131% year-over-year to $565 million, with cryptocurrency sales making up over half of all transaction-based revenue of $451 million. However, after a record quarter, the commission-free trading app now expects growth to slow down, which has spooked some investors. Another concern being expressed is if cryptocurrency can continue to provide such a tailwind again given how volatile the markets have been. CEO, Vlad Tenev, spoke about the growth of its product with women investors in particular and explained that its ‘IPO Access’ addition, which allows users to invest in companies at their opening price, has been a success. See the full report here.

There is one company on the MyWallSt shortlist that will report earnings today:

Baozun (BZUN)

Get this week’s full earnings calendar here


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