Tesla’s Investor Day Set To Provide Market Boost
Tesla's Investor Day on Wednesday is set to be a major event for the week, with expectations for announcements related to the company's “generation 3” platform, capital structure, and stock buyback policy. CEO Elon Musk has also revealed plans to present his “Master Plan 3” at the event, which he says is about a “path to a fully sustainable energy future for Earth.”
Analysts believe the event will provide more clarity on the company's plans to launch a cheaper mass-market Tesla, but say they expect few new product announcements. The market is also expecting Musk to give more details on Tesla's capital structure and a possible stock buyback policy.
The Dow Jones Industrial Average fell 3% last week, its fourth straight weekly loss, and the S&P 500 index sank 2.7%. With the market now pricing in a 30bp interest rate hike for March, traders are expecting the Fed Funds rate to rise by 25 basis points to between 5.25% and 5.5% by mid-June.
The U.S. stocks ended the week slightly lower, with the S&P 500 index closing 0.28% lower – the first time it recorded two consecutive weekly red candles since December. Investors are hoping that Tesla's Investor Day will provide some positive news for the market and help push the S&P 500 up.
0. “S&P 500 Forecast: SPX clings to bottom trendline support” FXStreet, 28 Feb. 2023, https://www.fxstreet.com/news/sp-500-forecast-spx-clings-to-bottom-trendline-support-202302281435
1. “Dow Jones Futures: Warren Buffett Stock Falls On Earnings Miss; Tesla Investor Day On Deck” Investor's Business Daily, 28 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-warren-buffett-stock-occidental-falls-on-earnings-tesla-investor-day-on-deck
2. “Dow Jones, Nasdaq, S&P 500 weekly preview: Fed tightening forecasts are inching up By Investing.com” Investing.com, 27 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-jones-nasdaq-sp-500-weekly-preview-fed-tightening-forecasts-are-inching-up-3015573
3. “Stocks Edge Higher, Nvidia, Moderna, eBay, Wells Fargo In Focus – Five Things To Know” jacksonprogress-argus, 23 Feb. 2023, https://www.jacksonprogress-argus.com/arena/stocks-edge-higher-nvidia-moderna-ebay-wells-fargo-in-focus—five-things-to/article_2193282a-3820-5763-9a15-98740fb980f6.html
4. “CNBC Daily Open: Growth stocks look hot but investors should be cautious” CNBC, 20 Feb. 2023, https://www.cnbc.com/2023/02/20/stock-markets-growth-stocks-look-hot-but-investors-should-be-cautious.html
Leave a Comment
You must be logged in to post a comment.