1. Tesla’s Annual Sales Decline for the First Time
2. Tesla Explosion Suspect Identified
3. Rolex Increases Watch Prices by 8%
4. U.S. Mortgage Rates Surpass 6.9%
5. Citadel Offers Investors the Option to Take Profits
6. Hindenburg Shorts Carvana
7. U.S. Tech Giants Lose Their Dominance in the Market
1. Tesla’s Annual Sales Decline for the First Time
Tesla’s 2024 sales data reveals that the company sold 1.79 million vehicles, slightly below 2023’s sales and lower than analysts’ expectations.
A slowdown in consumer demand for electric vehicles and concerns about potential cuts to electric vehicle purchase subsidies under the Trump administration contributed to the decline.
In the quarter ending December 31, Tesla sold 495,570 cars, which was below the expected 512,277 units.
Elon Musk indicated during the earnings call that Tesla’s growth rate for 2025 could reach 20%-30%, with lower-priced models potentially launching in the first half of the year.
Following the announcement, Tesla’s stock dropped around 5%, but still recorded a remarkable 63% increase in 2024.
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2. Tesla Explosion Suspect Identified
The FBI has confirmed the identity of the suspect behind the deadly car bomb explosion at the Trump Hotel in Las Vegas.
The suspect, Matthew Allen Livothsberg, was a former U.S. Army Special Forces sergeant major. Investigations revealed that he rented the Tesla Cybertruck involved in the explosion via the Turo rental platform.
In a separate incident, a similar attack in New Orleans killed 15 people, and the suspect there, Shamsud-Din Jabbar, also rented a car through Turo.
FBI investigators are examining whether there is any connection between the two attacks.
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3. Rolex Increases Watch Prices by 8%
Rolex, the leading Swiss watch brand, has raised its retail prices by up to 8% in 2024, following a surge in gold prices.
For example, the 40mm gold Day-Date model is now priced at €44,200, up from €41,000. The gold GMT-Master II’s price has risen from €41,300 to €44,600.
Rolex typically raises prices every January 1st, and with gold prices soaring by 27% in 2024, demand for Rolex watches and inflation in labor costs have contributed to the price hike.
Rolex produces over 1 million watches annually, generating $11 billion in sales.
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4. U.S. Mortgage Rates Surpass 6.9%
Freddie Mac’s data shows that the 30-year U.S. mortgage rate increased to 6.91% as of January 2, 2024, approaching the critical 7% threshold.
The higher interest rates are compressing buyers’ purchasing power and have begun to impact demand for housing. The MBA’s mortgage application index has dropped nearly 7% to its lowest point since mid-November.
Experts predict that home prices and mortgage rates will likely remain high well into 2025, signaling more difficult conditions for homebuyers.
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5. Citadel Offers Investors the Option to Take Profits
Citadel’s flagship fund reported a 15% return for the year, and the company offered investors the option to take profits, but most declined, choosing to continue investing in the multi-strategy hedge fund.
Although Citadel earned billions in profits last year, only a small portion of investors withdrew $300 million in total.
This is the first time Citadel has offered investors the choice to withdraw or continue their investments, as previous years saw mandatory profit withdrawals.
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6. Hindenburg Shorts Carvana
Hindenburg Research has shorted Carvana’s stock, accusing the used-car retailer of issuing high-risk car loan portfolios and having unsustainable growth.
Hindenburg interviewed several former employees and claims that Carvana manipulated financial statements to make them appear better than they were, while also concealing the high risk in its car loan portfolios.
The news led to a significant drop in Carvana’s stock, though the decline was limited to 3%. Carvana’s stock had surged 284% over the past year due to investor optimism about its operations.
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7. U.S. Tech Giants Lose Their Dominance in the Market
Lisa Shalett, Chief Investment Officer at Morgan Stanley’s asset management division, warned that while tech companies like Google, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla contributed to at least half of the S&P 500 index’s 23% gains last year, their profit growth is expected to slow down in 2025.
Bloomberg data indicates that these seven tech giants are expected to see overall profit growth of 18% in 2025, down from 34% last year.
Shalett anticipates that investors will become more cautious when purchasing blue-chip stocks this year. U.S. Bank’s investment executives also warned that the market’s growth expectations for these companies are at historic highs, but their profit growth might not meet previous levels.
Citigroup and Goldman Sachs advised clients not to overly concentrate their investments in these tech giants.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.