😱📉 Tesla CRUSHED in Latest Earnings Report
Hi all,
I hope you’re enjoying the weekend. I just got back from Nashville yesterday - well I was supposed to get back Friday but my connecting flight got cancelled so I had to stay overnight in Denver at the airport hotel. In fact, my flight was one of three flights from Denver to SF that got cancelled that day!
Normally I would have been more upset with that inconvenience, but honestly I wasn’t too bothered this time around because I just accepted my options and went with the best one available to me at the time - to stay at the hotel. My other option would have been to try to standby on the two later flights to SF that evening, but considering there had been a few cancelled flights to SF throughout the day, I just didn’t bother and enjoyed the night relaxing instead.
Often times in life we’ll be faced with inconveniences or sudden changes to our expectations, if we can learn to look ahead & not dwell on events that have already happened - I think we can all be a lot happier. A microcosm of my situation might be sudden standstill traffic. It usually sucks, but wallowing in how much it sucks usually just makes your mental state worse.
I’m not a philosopher but that’s generally how I view things! Let me know if this resonated with you.
Go…. Forty Niners! (Sorry Detroit fans).
— Humphrey, Tim & Rickie
Market Report
Biden to Announce Billions for Advanced Chips
The Biden administration is planning to allocate billions in subsidies to major semiconductor firms like Intel and TSMC as part of the $53 billion Chips Act, aimed at boosting domestic chip production and countering China's growing semiconductor industry.
Despite the slow rollout of the program, which has seen over 170 companies apply but only two small grants awarded, significant funds are expected to be announced soon, particularly to support the construction of new advanced semiconductor manufacturing facilities.
Layoffs Hitting Major News Publications Such as LA Times and Sports Illustrated
The media industry is facing significant layoffs in early 2024, with over 3,000 jobs lost across various publications, including major names like the Los Angeles Times, Time, and Sports Illustrated.
The Los Angeles Times alone saw a 20% reduction in its newsroom following a $60 million loss in ad revenue during the pandemic, despite substantial investment by its owner.
Remote Work Impacting Promotions and Increasing Chances of Layoffs
Recent data from Live Data Technologies has found that fully remote workers are experiencing a significant disadvantage in career advancement, being promoted 31% less frequently than their office-based or hybrid counterparts, with notable mentorship gaps.
Workers logging on from home five days a week were 35% more likely to be laid off in 2023 than their peers who put in office time.
This trend is compounded by a proximity bias in workplaces, where CEOs prefer to reward employees who are physically present, leading to challenges in career progression for remote workers.
Despite the productivity gains associated with remote work, the lack of in-person interactions hinders relationship building and, consequently, promotion opportunities.
Tesla Reports Lower Revenues and Profits, Stock Drops
Tesla reported lower-than-expected revenue and profit for the fourth quarter, with automotive revenue increasing by just 1% from the previous year, leading to a massive drop in the stock.
Despite the modest growth in auto revenue, partly due to significant price cuts, net income more than doubled, largely due to a one-time tax benefit. Tesla warned of potentially lower vehicle volume growth in 2024 as it focuses on launching its "next-generation vehicle" in Texas.
CEO Elon Musk discussed the possibility of a dual-class share structure to maintain control and avoid being "voted out by some sort of random shareholder advisory board," and highlighted the development of Tesla's humanoid robot, Optimus, which he claims could significantly exceed the value of Tesla's other ventures.
The company also began delivering Cybertrucks, predicting a slower ramp-up due to manufacturing complexity.
For the full year, Tesla saw a 15% increase in automotive revenue and significant growth in its energy division, despite a decrease in operating income attributed to lower vehicle prices and increased operating expenses, including AI and R&D projects.
Forecast Ahead
Big Number: $5 billion
Reddit is considering an IPO valuation of at least $5 billion, based on early feedback from potential investors, despite recent private market valuations placing it below this figure, in the range of $4.5 to $4.8 billion. The San Francisco-based social media platform, known for its role in the meme-stock phenomenon, is navigating a challenging tech IPO landscape that has seen significant downturns from previous high valuations.