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Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Tech stocks led an earnings-induced nosedive across Wall Street on Wednesday. The Nasdaq plunged 654 points in its biggest one-day loss since 2022. Google parent Alphabet was the main culprit after mixed quarterly results. But tech wasn’t the only earnings disappointment. Visa missed quarterly sales forecasts as high credit card fees dampened consumer demand.
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In other news: Elon Musk, one of the world’s richest people on the planet, is seeking investment advice from you for his latest project.
In a poll posted on – where else but X – Musk asked “Should Tesla invest $5 billion into xAI, assuming the valuation is set by several credible outside investors?”
His idea of taking money away from Tesla to focus on his new artificial intelligence company came off as tone deaf. Musk’s main revenue generator, Tesla, is admittedly facing slower sales growth this year and its latest earnings report hit with a thud. While total second-quarter sales beat forecasts, automotive revenue dropped 7 percent from a year ago. The decline would’ve been worse without recent price cuts, discounts, and incentives. Meanwhile, profits plunged more than 40 percent from a year ago, marking the fourth straight quarter of disappointing earnings. Investors responded by erasing more than one-tenth of Tesla’s market value in a single day – that’s a loss of $100 billion dollars in stock market wealth..
Musk is known for juggling several things at once as CEO of Tesla, SpaceX, Starklink, the Boring Company, X and now xAI – and his companies often make money off one another.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I”m Conway Gittens with TheStreet.
Related: Analysts race to reset Tesla stock price targets after earnings
