Tuesday's Headlines: Tesla Stock Falls Just Short Of All-Time Highs
1. Shares of Boeing fell close to 5% yesterday after the company suspended production of its 737 Max plane from next month. This decision comes after regulators said their review of the best-selling aircraft will continue on into next year, much longer than the company had hoped. The 737 Max model has been grounded since last March after being involved in two fatal crashes that claimed the lives of 346 people. Now, with no clear timeline for the review to be completed and about 12,000 workers due to be temporarily reassigned, the pressure will be on for Boeing going into 2020. More here.
2. Tesla stock is sitting close to all-time highs this morning, buoyed by positivity over the company's new factory in Shanghai. Analysts said yesterday that the company is “is implementing best practices in the new factory” and appears to be on track to reach its target of delivering 360,000 vehicles for the year. A report that House Democrats are considering a bill that would reinvigorate the federal tax credit for buyers of electric vehicles also contributed to the company's gains. Read more about this here.
3. Amazon is no longer allowing third-party sellers to use FedEx’s ground-delivery shipping, marking the latest escalation in the companies’ ongoing rivalry. The move comes after FedEx in August announced it would end its ground-delivery contract with Amazon, after halting its express U.S. shipping contract with Amazon in June. Third-party merchants now account for 58% of Amazon’s total merchandise sold and the news sent FedEx shares down as much as 1.1%. For the complete story, read here.