With the first-quarter reporting season getting started in earnest, the weekend chatter revolved around what to expect from the companies with respect to their quarterly performance and forward guidance. Economic data released over the week and the implication for interest rates was also part of the conversation.
Here's a recap of a few major headlines that hit the wire:
1. Musk’s Words Of Wisdom: Tesla, Inc. TSLA CEO Elon Musk underlined the toughest part of being a startup in the electric vehicle arena. He delved into the need to keep cars affordable and hit the volume required to absorb fixed costs. “Reaching volume production and achieving positive cash flow is insanely hard,” he said. The billionaire concurred with one of his Twitter followers who said Tesla could be the only publicly traded mass-market automaker that’ll be cash flow positive by 2026.
2. Apple’s MR Headset Holds Promise, Gurman Says: Apple, Inc. AAPL's soon-to-be-launched mixed-reality headset could be slow to start but will grow strongly to replace iPhone as the company’s growth engine, said Bloomberg’s Mark Gurman. The Apple writer also sees the company launching some hardware products at the software-focused Worldwide Developers Conference due to start on June 5.
3. Summers Sees Growing Fragmentation In Global Order: Former Treasury Secretary Larry Summers said in an interview with Bloomberg that Saudi Arabia warming up to Russia is at the behest of China. He sees the liaison as something that is a huge challenge for the U.S. “There’s a growing acceptance of fragmentation, and — maybe even more troubling — I think there’s a growing sense that ours may not be the best fragment to be associated with,” he added.
See Also: How to invest in startups
4. Wood Upbeat On Cybertruck: Tesla bull Cathie Wood took to Twitter this weekend to offer her take on the EV maker’s upcoming Cybertruck. She sees the vehicle as the sleeper that could destroy the pricing structure of light-duty trucks, which are the lifeblood of most traditional auto companies in the U.S.
5. Yellen Flags Tighter Lending Norms: Banks may become more cautious and tighten their lending amid recent banking failures, Treasury Secretary Janet Yellen said in an interview with CNN over the weekend. Doing so would negate the need for further interest rate hikes from the Fed, she added.
She also expressed conviction that the banking crisis that erupted last month hasn't pushed the country off the course of achieving a soft landing.
What Else: Ahead of the Internal Revenue Service releasing the list of EVs that qualify for a full or partial tax credit, these vehicles could potentially make the cut.
A Benzinga/Dig Insights poll showed that inflation is the most concerning issue for American consumers, while most also remained concerned about an economic recession, rising interest rates, high gas prices, and job security.
Photo courtesy of Tesla.
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