Tesla’s Investor Day Set To Provide Market Boost
By 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.[0] 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.”[1]
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%.[2] 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.[3]
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.[4] 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
