Friday’s Headlines: Tesla is Facing Further Problems
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
StoneCo (STNE) +9.3%
Stitch Fix (SFIX) +8.0%
Tesla Motors (TSLA) +5.8%
Trip.com Group (TCOM) +4.0%
Shopify (SHOP) +3.9%
Moving Down ⬇️
Avalara (AVLR) -2.4%
Bill.com (BILL) -1.9%
PagerDuty (PD) -1.5%
Calavo Growers (CVGW) -1.0%
American Tower (AMT) -0.9%
MyWallSt’s market headlines will resume on the 4th of January, 2022. But, there’s still plenty of content coming up in our app and on our blog to close out the year. Wishing all our readers a happy festive season and a prosperous New Year.
1. Despite being close to completion, Tesla’s (TSLA) Berlin gigafactory is facing further regulatory issues. Local environmental groups are concerned about Tesla’s potential huge draw on the region’s water supply. This marks the latest in a long line of hurdles faced by the electric vehicle (EV) maker regarding the construction of this facility. Further delays would greatly hamper the company’s desire to capitalize on strong European demand for its cars. Completion of the factory will enable Tesla to massively increase production and delivery across Europe and will allow it to further eat into the market share of traditional leaders such as Volkswagen. Investors will be hoping this latest issue won’t slow down the factory’s opening in early 2022. Read more here.
2. Meta (FB) has announced plans to appeal a UK ruling blocking it from acquiring GIF platform Giphy. The British Competition and Markets Authority (CMA) ruled that the deal could negatively impact competition in the display advertising space. This comes on the back of a huge antitrust crackdown across Britain and Europe which has seen Big Tech under increased scrutiny. A spokesperson for Meta stated that “the decision to block the deal is wrong on the law and the facts, and the evidence does not support the CMA's conclusions or remedy.” Meta attempted to offer potential remedies to the situation, but all were promptly rejected by the CMA. Read more here.
3. Controversial EV maker Nikola saw its stock skyrocket by almost 18% yesterday following the completion of its first ever customer delivery. This comes only days after the company finally settled a long-running fraud charge brought against it by the Securities and Exchange Committee (SEC). Nikola was forced to pay $125 million for fraudulent comments made about the capabilities of its vehicles, so yesterday’s delivery will end a troubling week on a positive note for the firm. One of the big questions for shareholders was whether or not the company was going to actually start producing and delivering vehicles. Now that the first of its trucks have gone out, investors will be eager to see exactly how the company plans to scale production. Read more here.