Insider Today: Tesla’s make-or-break time

Plus: Trump wins New Hampshire, and Oscar nominees.

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January 24, 2024 • 5 min read with Dan DeFrancesco Hey there! We seem well on our way to a rematch of the 2020 US presidential election as Donald Trump secured a decisive win at the New Hampshire Republican primary. In today’s big story, we’re previewing Tesla’s make-or-break earnings report. What's on deck Markets: The companies behind the products you buy every day might be the best investments. Tech: Google rolled out an AI tool to organize all your open tabs. Business: The Zoomtown boom has newcomers and long-time residents at odds with each other. But first, the results are coming in.

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Reuters/Stephen Lam The big story It's Tesla time Earnings season is stressful for companies, but arguably no one is under more pressure these days than Tesla.  The EV maker reports its highly anticipated fourth-quarter and year-end results after the market closes.  Tesla’s earnings always draw significant fanfare thanks to the high level of trading activity around the company and its polarizing CEO, but this time feels even more important.  The company’s share price has had a rocky start to the year — down nearly 16% — despite the broader market being up on the year. The EV market has also shifted as demand is drying up. And then there’s the ultimatum Elon Musk issued to Tesla’s board about wanting more voting rights or taking his AI projects elsewhere.  Business Insider’s Jennifer Sor has a roundup of what five Wall Street firms expect ahead of Tesla’s earnings report. A key area of focus will be where Tesla’s profit margins landed for the year after conducting a significant price cut throughout 2023, Nora Naughton, BI’s senior reporter covering the auto industry, told me.  The price cut, which saw some models discounted as much as 25%, was a bid to deal with a glut in Tesla’s supply and a shot at competitors moving deeper into the space.  The strategy worked in the short term, as Tesla enjoyed big wins during the year and saw its share price more than double. But how long it can maintain the price war remains to be seen. Tesla How Musk pitches Tesla’s year ahead will also be a telling signal, Nora told me.   Part of what makes Tesla so special in Wall Street’s eyes — and what validates its $655 billion market cap — is how innovative the company can be. There is always something on the horizon that’s brilliant, fascinating, and, most importantly, potentially profitable.  For a while, that was the Cybertruck. But that’s a carrot Musk can no longer dangle in front of analysts.  Instead, he’ll need to look elsewhere. One obvious and anticipated innovation is a self-driving feature allowing Teslas to drive without humans.  On Monday, Tesla released a new version of its Full Self-Driving software to a few owners. But despite previously big promises from Musk regarding this version, the early reviews have been underwhelming, Fortune reported. If self-driving remains a pipedream, that’s bad news for Tesla. Because if analysts can’t point to what’s next for Tesla, they might start pointing somewhere else.    Read the full story

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3 things in

Markets 🔔 Before the opening bell: US stock futures rise early Wednesday, after Netflix reported its best fourth quarter yet. Reuters 1. Commercial real estate might be about to hit its breaking point. The sector was battered in 2023 and has $2.7 trillion in debt set to mature by 2027, according to Capital Economics deputy chief property economist Kiran Raichura. As a result, borrowers could end up selling into a soft market, which would lead to more valuation markdowns, Raichura said in a note on Monday. 2. These consumer staples stocks should be on your investing shopping list, according to Goldman Sachs. The sector full of companies producing everyday necessities is a good bet  after a rough 2023. These 38 names, from Kraft Heinz to Monster Beverage, should shift from your shopping cart to your portfolio. 3. Bitcoin ETFs were kind of a bummer. The price of the cryptocurrency dropped to a two-month low on Tuesday as much of the gains seemed to have been baked in before the SEC’s approval. But the benefits from bitcoin ETFs in the long run could still materialize, experts say.

3 things in

Tech Google 1. Google Chrome’s new AI feature can now organize your browser tabs. The tool will automatically organize your open tabs into groups based on similarities. It’s part of a slate of generative AI tools that Google will soon be rolling out across Chrome. 2. Sam Altman wants to solve the great AI chip shortage himself. The demand for AI chips is heavily outstripping supply right now — so the OpenAI CEO is reportedly considering building his own supply line. 3. Why Netflix just made a $5 billion pro wrestling deal. For years, the streamer didn’t want to get into live sports. Now, it’s entering the arena with a nine-figure agreement with TKO. A major reason it could work is that Netflix also previously wasn’t in the ads business. But now it is.

3 things in

Business Glenn Harvey for BI 1. America’s booming cities are suffering from some nasty growing pains. Midsize cities exploded over the past few years. But now, residents old and new are fighting over housing, traffic, and local culture. 2. United’s CEO seemed to subtly threaten a move away from Boeing. The airline is expected to lose money over the 737 Max 9 grounding — the first indication of the financial impact of the door plug blowout saga. United’s CEO called the grounding “the straw that broke the camel’s back.” 3. A possibly strong labor market. The labor market may be returning to pre-pandemic conditions, but three statistics could indicate some challenges for the year ahead, Goldman Sachs found. One strong sign for the economy, however, is that young people are working up the courage to start switching jobs again.

In other news Here are all the 2024 Oscar nominees. Temu was one of the fastest-growing websites in 2023, new data shows. Empty-nest baby boomers won’t give up their large homes — and it’s hurting millennials with kids. I visited a “bin store” that sells Amazon returns for as little as 25 cents. It made me rethink my shopping habits. How the superrich, like Walmart’s Waltons, get richer by using trusts to give to charity and save on tax.

What's happening today The Metal Hall of Fame induction ceremony is tonight. The seventh annual ceremony will be hosted by Eddie Trunk. Today marks the 40th anniversary of the first Apple Macintosh. It was on sale two days after it was shown in a Super Bowl commercial. Earnings today: Tesla, IBM, AT&T, and other companies.

Brooks Kraft LLC/Corbis via Getty Images For your bookmarks Trader Joe's weekly buys The 12 things a busy parent buys from Trader Joe’s each week. Staples to feed her family of four include the Baked Cheese Crunchies, shredded cabbage, and family-style meat lasagna.

The Insider Today team Dan DeFrancesco, deputy editor and anchor, in New York. Diamond Naga Siu, senior reporter, in San Diego. Hallam Bullock, editor, in London. Jordan Parker Erb, editor, in New York. Hayley Hudson, director, in Edinburgh. Lisa Ryan, executive editor, in New York. Get in touch insidertoday@insider.com To read unlimited articles, subscribe to Business Insider. Download the Insider app Email sent to: vitor@idiot.cloudns.cc Manage your email preferences | Unsubscribe | Terms of service | Privacy policy | Advertise with us © 2024 Insider Inc. 1 Liberty Plaza, New York, NY 10006