Tesla is slumping after Elon Musk addressed the problem Wall Street is obsessing over (TSLA) - Business Insider

Lucy Nicholson / Reuters

• Tesla shares fell Wednesday after the company held its annual shareholder meeting the evening prior and CEO Elon Musk told investors that "there is not a demand problem." 
• Wall Street analysts have grappled with Tesla demand issues for months, and shares have slumped 35% this year.
• Musk, who has in the past made promises that have not panned out, also said it "won't be long before we have a 400-mile range car."
• Watch Tesla trade live.

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Tesla shares fell by nearly 3% early Wednesday after CEO Elon Musk addressed underlying vehicle demand at the company's shareholder meeting the evening prior. 

Demand is a core theme that analysts have for months said is a major issue for the automaker, leading firms up and down Wall Street to cut their earnings estimates, price targets, and investment ratings.

"I wanted to clear, there is not a demand problem, okay? Absolutely none," Musk said, according to a Thomson Reuters transcript.

"The — sales have far exceeded production, and production's been pretty good. So we're actually doing well. We have a decent shot at a record quarter on every level. If not, it's going to be very close, but we've got a shot at a record quarter. And 90% of orders are coming from nonreservation holders, so these are new customers."

Read more: Elon Musk just said Tesla has a good shot of setting a record for deliveries this quarter

Tesla's stock has plunged 35% this year, setting the name up for its worst annual performance since its 2010 initial public offering. 

However, shares have seen a resurgence in the last week, rallying 23% since touching a 2 1/2-year low earlier this month. The upside comes as analysts in recent weeks have grown increasingly optimistic — a departure from sentiment that hit rock bottom. 

Musk, who has in the past made promises about the company that have not fully panned out, also said during the meeting it "won't be long before we have a 400-mile range car." As it stands, the longest-range Model S that Tesla offers can achieve 370 miles when fully charged.

He also declared that Tesla might make a move into mining. "We might get into the mining business. I don't know," Musk said.

Read more: Elon Musk just said Tesla might get into the mining business to make sure it can make enough batteries for future vehicles

Some analysts applauded Musk for his executive-like posture and for speaking about demand. 

"Musk was calm, confident, and articulate in a way that we haven't seen in his last several public appearances," Gene Munster, a longtime analyst and managing partner at Loup Ventures, wrote in a note following the meeting. "He was less combative and more measured in his remarks about Tesla's roadmap, even admitting, 'I'm often too optimistic about time frames.'"

"In the past, when Tesla has been struggling, Musk has been visibly troubled himself, and we didn't see that today," Munster said, adding that while demand commentary was encouraging, "investors will continue their wait and see posture." 

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https://markets.businessinsider.com/news/stocks/tesla-stock-price-up-after-elon-musk-addresses-demand-concerns-2019-6-1028273652

2019-06-12 14:13:10Z
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nflation tame: Consumer prices rise 0.1% in smallest bump in 4 months, CPI shows - MarketWatch

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Consumer prices rose slightly in May, but inflation more broadly remains quite low

The numbers: Falling gasoline and used-vehicle prices held inflation in check in May and inflation pressures more broadly eased again, potentially making it easier for the Federal Reserve to reduce the cost of borrowing soon if the U.S. economy weakens any further.

The consumer price index rose a scant 0.1% in April, the Bureau of Labor Statistics said Wednesday, matching the MarketWatch forecast. It was the smallest increase since January.

More notably, the increase in the cost of living over the past 12 months slowed to 1.8% from 2%. The rate of inflation has tapered off from nearly 3% since last summer.

Another closely watched measure of inflation that strips out food and energy also advanced a meager 0.1% last month.

The yearly increase in the so-called core rate slipped to 2% from 2.1% — right in line with the Federal Reserve’s target for inflation.

Read: Weak unions, globalization not to blame for shrinking slice of income pie for workers

What happened: The cost of food advanced 0.3% in May and accounted for nearly half of the increase in the consumer price index. Medical care increased 0.3%, rents rose 0.2% and airline tickets also went up.

Gasoline prices fell 0.5% in May, however, after a nearly 6% increase in April. With the cost of oil falling, gas prices might go even lower for the time being.

Used-vehicle prices also dropped 1.4% to mark the fourth straight drop.

The price of clothes was unchanged following two declines in a row.

After adjusting for inflation, hourly wages increased 0.2% in May. They’ve risen a modest 1.3% in the past year.

Big picture: Waning inflation largely reflects the lower cost of energy and more moderate increases in health care.

Yet there’s some evidence the recent downtrend could come to a halt soon, leaving inflation close to the Fed’s 2% goal. Rents continue to rise with the housing market tight, for one thing, and the cost of health care no longer appears to be falling.

If inflation stabilizes around 2%, the Fed would have more leeway to determine when it needs to cut interest rates. So long as the economy expands at a steady pace and ongoing trade wars don’t throw it off kilter, the central bank can stand pat. But if the economy dips again the Fed will act quickly.

Read: ‘Whiff of U.S. recession’? It’s in the air again, but strong labor market the antidote

What they are saying?: “Except for rents, there is an awful lot of nothing going on in the CPI,” said chief economist Chris Low of FTN Financial, who thinks the Fed should cut interest rates.

“Inflation at the current run rate neither prevents nor forces action on rates,” said senior U.S. economist Eric Winograd of AllianceBernstein. “It is low enough to allow for rate cuts but not so low as to require them.” Yet Winograd thinks the Fed will cut rates once or twice this year.

Market reaction: The Dow Jones Industrial Average DJIA, -0.09% and S&P 500 SPX, -0.18% rose slightly in Wednesday trades. Stocks fell on Tuesday to break a five-day winning streak.

The 10-year Treasury yield TMUBMUSD10Y, -1.06% slipped to 2.12%.

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https://www.marketwatch.com/story/consumer-inflation-rises-01-in-may-smallest-bump-in-4-months-cpi-shows-2019-06-12

2019-06-12 13:57:00Z
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Ford recalling 1.2 million Explorers over suspension issue - CNN

The recalled SUVs are from model years 2011 through 2017. Ford (F) said that cars frequently ride over rough terrain may experience a fractured toe link on their rear suspension, which can affect steering and increase the risk of an accident. Ford said one customer reported hitting a curb when the toe link broke, but it is not aware of any related injuries.

Ford said it will spend about $180 million to fix the problem, which will be done at no cost to the cars' owners.

Ford also announced three other smaller recalls. One is a recall of 12,000 Ford Taurus and Flex cars as well as Lincoln MKS and MKT vehicles sold in Canada. They have a similar problem with their toe links. Ford said it is aware of one crash involving minor injuries associated with the problem. The affected vehicles range from model year 2009 through 2017.

Ford is also recalling 123,000 Ford F-150 pickups from 2013 with 6-speed automatic transmissions that could potentially downshift into first gear unintentionally. And it is recalling 4,300 Ford Econoline vehicles from model years 2009 to 2016 which are used as ambulances or school buses. Those vehicles have a weld in the clutch that could fail, preventing them from moving.

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https://www.cnn.com/2019/06/12/business/ford-explorer-recall/index.html

2019-06-12 13:59:00Z
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Ford recalls 1.3M vehicles for suspension, transmission woes - WITI FOX 6 Milwaukee

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Ford recalls 1.3M vehicles for suspension, transmission woes  WITI FOX 6 Milwaukee

DEARBORN, Mich. — Ford is recalling over 1.3 million vehicles mainly in North America to fix rear suspension and transmission control software problems.

View full coverage on Google News
https://fox6now.com/2019/06/12/ford-recalls-1-3m-vehicles-for-suspension-transmission-woes/

2019-06-12 13:41:00Z
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Ford issues 4 safety recalls covering more than 1.2 million vehicles - WDIV ClickOnDetroit

Ford Motor Company issues three safety recalls for North America and another one in Canada.

Here's the info from Ford:

Safety recall for select 2011-17 Ford Explorer vehicles for rear suspension toe link fracture issue

Ford is issuing a safety recall on select 2011-17 Ford Explorer vehicles. Vehicles that are exposed to frequent full rear suspension articulation (jounce and rebound) may experience a fractured rear suspension toe link. A fracture of a rear toe link significantly diminishes steering control, increasing the risk of a crash.

One customer reported hitting a curb when the toe link broke. Ford is not aware of any reports of injury related to this condition in markets included in this action.

This action affects approximately 1.2 million vehicles in the United States and federalized territories, approximately 28,000 in Canada and one in Mexico.

Affected vehicles were built at Chicago Assembly Plant, May 17, 2010 to Jan. 25, 2017.

Dealers will remove and replace left and right-hand rear suspension toe links with a new forged toe link and align the rear suspension. The Ford reference number for this recall is 19S17.

Safety recall for select 2013 Ford F-150 vehicles with 6-speed automatic transmission for transmission calibration issue

Ford is issuing a safety recall on select 2013 Ford F-150 vehicles equipped with 5.0-liter and 6.2-liter gasoline engines that had the powertrain control module software reprogrammed as part of recall 19S07. The powertrain control module software used to service these vehicles in accordance with recall 19S07 was incomplete. It did not have the updates necessary to prevent a potential unintended downshift into first gear or the updates necessary to ensure illumination of the malfunction indicator light in the event of an intermittent transmission output speed sensor signal. Vehicles that have not had 19S07 performed are not affected by this action and will receive updated software under the existing 19S07 program.

A vehicle without the intended 19S07 calibration remains at risk for unintended transmission downshift due to intermittent output speed sensor failure. Depending on vehicle speed, an abrupt transmission downshift to first gear without warning could result in loss of vehicle control, increasing the risk of a crash.

Ford is not aware of any reports of accident or injury related to this issue.

This action affects approximately 123,000 vehicles in North America, including approximately 107,850 in the United States and federalized territories and approximately 15,200 in Canada.

Affected vehicles were built at Dearborn Assembly Plant, May 7, 2012 to Oct. 27, 2013, and Kansas City Assembly Plant, April 18, 2012 to Nov. 18, 2013.

Dealers will reprogram the powertrain control module with the appropriate software calibration. The Ford reference number for this recall is 19S19.

Safety recall for select 2009-16 Ford Econoline vehicles with 5.4-liter engine for loss of motive power issue

Ford is issuing a safety recall for select 2009-16 Ford Econoline vehicles equipped with a 5R110W transmission, 5.4-liter engine, and a school bus or ambulance prep package. Affected vehicles contain a capacitive discharge weld within a coast clutch component in the transmission. A substandard weld may fatigue and fail, causing an elevated rate of reports of the loss of the ability to move in the subject vehicle applications. All normal engine, braking and steering functionality is unaffected. Reports indicate that the majority of weld failures occur when torque is highest, which is when the driver attempts to accelerate from a stop.

An elevated rate of loss of mobility in school bus and ambulance vehicle applications could present a unique risk to passengers or occupants including a loss of mobility in school bus applications may result in the transfer of unchaperoned children when the vehicle is immobilized in a roadway. Loss of vehicle mobility in ambulance applications may result in delay of patient treatment. Ford is unaware of any accidents resulting from this condition.

This action affects approximately 4,300 vehicles in North America, including 3,868 in the United States and federalized territories and 445 in Canada. Affected vehicles were built at Ohio Assembly Plant, May 11, 2009 to Dec. 10, 2015.

Dealers will replace the coast clutch cylinder and the single-engaging coast one-way clutch with a dual-engaging one-way clutch. The Ford reference number for this recall is 19S20.

Safety recall for select 2010-17 Ford Taurus, 2009-17 Ford Flex, 2009-15 Lincoln MKS and 2010-17 Lincoln MKT vehicles for rear suspension toe link fracture issue in Canada only

Ford is issuing a safety recall in the Canadian provinces of Alberta, Manitoba and Saskatchewan for select 2010-17 Ford Taurus, 2009-17 Ford Flex, 2009-15 Lincoln MKS and 2010-17 Lincoln MKT vehicles. Some vehicles operated in these Canadian provinces may experience a fractured rear suspension toe link. A fracture of a rear toe link significantly diminishes steering control, increasing the risk of a crash.

Ford is aware of one report of a crash with minor injuries related to this condition in the markets included in this service action.

This action affects approximately 12,000 vehicles in Canada.

Affected vehicles include:

• 2010-17 Ford Taurus vehicles built at Chicago Assembly Plant, July 2, 2009 to May 25, 2017
• 2009-17 Ford Flex vehicles built at Oakville Assembly Plant, May 7, 2008 to May 16, 2017
• 2009-15 Lincoln MKS vehicles built at Chicago Assembly Plant, May 28, 2008 to Sept. 10, 2015
• 2010-17 Lincoln MKT vehicles built at Oakville Assembly Plant, July 28, 2009 to May 29, 2017

Dealers will replace the left and right-hand rear suspension toe links with new forged toe links. The Ford reference number for this recall is 19S18.

Copyright 2019 by WDIV ClickOnDetroit - All rights reserved.

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2019-06-12 12:47:45Z
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Tesla shares jump after Musk says company may have 'a record quarter on every level' - CNBC

Elon Musk, CEO of Tesla

Beck Diefenbach | Reuters

Tesla shares rose on Wednesday after CEO Elon Musk said that he believes the electric automaker has a "decent shot at a record quarter on every level."

"I want to be clear: There is not a demand problem," Musk said at the company's annual meeting with shareholders on Tuesday evening. "Sales have far exceeded production and production has been pretty good so we're actually doing well."

Tesla shares jumped 4% in premarket trading Wednesday. Musk also said "it won't be long" before the company has an electric car with a range of 400 miles.

Cowen questioned Musk's confidence in a note to investors after the meeting, saying "basic microeconomic theory would suggest that goods or services that don't have a demand problem don't see their prices lowered by half a dozen times in 4-5 months." Cowen has an underperform rating and a $140 price target on Tesla shares.

Baird, on the other hand, said "the narrative is overly negative" around Tesla, adding that it thinks "Bear arguments will be disproven in the coming weeks and months." Baird has a $340 price target and an outpeform rating on the stock. The firm said there have been "several signs of steady demand over the past few weeks," a point Musk emphasized during the presentation. Musk said that 90% of Tesla's orders are coming "from non-reservation holders, so these are new customers," he said.

Tesla's stock is down nearly 35% for the year as of Tuesday's close of $217.10 a share but the stock has slowly come back after hitting a low of $179 a share last week.

"We continue to see the shares in a tug of war between skeptics and extreme believers, where we have fallen into the skeptical camp for several years," Cowen said.

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2019-06-12 11:48:43Z
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Dow Jones Futures: Tesla Shareholder Meeting, Medidata Stock Takeover Buzz, Dave & Buster's Earnings In Focus - Investor's Business Daily

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1. Dow Jones Futures: Tesla Shareholder Meeting, Medidata Stock Takeover Buzz, Dave & Buster's Earnings In Focus  Investor's Business Daily
2. Tesla pickup truck will have better performance than a Porsche 911, says Elon Musk  Teslarati
3. Elon Musk at Tesla shareholder meeting: 'It won't be long before we have a 400-mile range car'  CNBC
4. What's moving markets today: Live updates  CNN
5. EXPLAINER: How much does Tesla CEO Elon Musk get paid? And why?  Business Insider
6. View full coverage on Google News

https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-tesla-shareholder-meeting-medidate-stock-dave-and-busters-crowdstrike/

2019-06-12 11:07:25Z
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