— Tesla Cuts Prices Again, Shares Fall; U.S. Mortgage Rates Surge; Morgan Stanley Beats Revenue Estimates; Congruent Launches Climate VC Fund; Disney to Lay Off Thousands Next Week; U.S. Retail Foot Traffic Declines; Illegal Parking Garage Collapses in Manhattan
1. 特斯拉再降价股价下跌
This week, Tesla announced a $3,000 price cut for every version of its Model Y SUV, marking the second price reduction this month. Tesla also lowered the price of the Model 3 by 4.7% to under $40,000.
As a result, Tesla’s stock declined 2.8% in premarket trading, though it is still up 50% year-to-date.
For several quarters, Tesla’s EV deliveries have fallen short of analysts’ expectations. However, it remains the only automaker with enough profit margin to lower prices, unlike Ford or Rivian, whose EV profits are thin.
On April 15, Elon Musk tweeted that the company is not initiating a price war—it simply wants more people to be able to afford a Tesla.
Tesla has repeatedly missed delivery expectations and may need to cut prices further to boost sales.
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2. U.S. Mortgage Rates Surge
Last week, the average 30-year fixed mortgage rate in the U.S. rose 13 basis points to 6.43%, ending a five-week downward streak.
According to the Mortgage Bankers Association (MBA), in the week ending April 14, the mortgage application index plummeted 10%, marking the steepest decline in two months.
The Federal Reserve may continue raising interest rates, which could push mortgage rates even higher and significantly impact housing supply and sales.
Recent signs of a rebound in home sales and increased buyer demand may have contributed to the rate uptick.
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3. Morgan Stanley Beats Revenue Estimates
Morgan Stanley’s latest earnings report shows the firm generated $14.5 billion in revenue in Q1. Its trading division brought in $5.31 billion, beating analyst expectations, driven largely by fixed-income trading.
Loan loss provisions quadrupled year-over-year to $234 million due to worsening conditions in commercial real estate and broader macroeconomic challenges.
The wealth management division reported $6.56 billion in revenue, up 11% year-over-year, with assets under management reaching $4.6 trillion.
However, equity underwriting revenue fell 22% to $202 million, and debt underwriting dropped 5.8% to $407 million.
Despite a steep decline in investment banking revenue, the trading division’s strong performance provided major support.
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4. Congruent Launches Climate VC Fund
Venture capital firm Congruent Ventures recently raised a $300 million fund, with most contributions coming from institutional investors.
The new Continuity Fund will primarily invest in early-stage startups addressing climate change and sustainability, and help them scale operations.
Co-founder Abe Yokell said he has 19 years of experience investing in clean energy, and two of Congruent’s portfolio companies have been acquired by oil giant BP.
Many climate startups have failed in the past, making institutional investors generally cautious about this sector.
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5. Disney to Lay Off Thousands Next Week
Sources say Disney plans to begin layoffs next week affecting 15% of staff in its entertainment division, including employees in TV, film, theme parks, and corporate roles.
In February, Disney announced it would cut 7,000 jobs and reduce annual costs by $5.5 billion.
Media giants including Comcast’s NBCUniversal, Warner Bros., and Paramount have also announced layoffs due to high streaming platform costs.
Employees in TV and film production, theme parks, and white-collar roles will all be affected.
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6. U.S. Retail Foot Traffic Declines
According to a new report from analytics firm Placer.ai, U.S. brick-and-mortar retail traffic dropped 4.2% year-over-year in Q1, largely due to inflation weakening consumer purchasing power.
Grocery stores and supermarkets saw the largest drop at 4.3%. During the pandemic, grocery store foot traffic peaked in August 2021, up 13.3% compared to August 2019.
Placer.ai noted that rising CPI has heavily impacted grocery stores, but the steep annual decline may also reflect unusually high traffic in the prior year.
Foot traffic at gyms surged 18.7% year-over-year, and discount stores also saw a 2.2% increase.
After retail rebounded in 2022 when the U.S. reopened, inflation has now curbed consumer spending again.
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7. Illegal Parking Garage Collapses in Manhattan
On Tuesday, a parking garage in Manhattan’s Financial District collapsed, killing one person and injuring several others.
New York Fire Department’s James Esposito said six workers were present at the time of collapse. Four are now being treated and are in stable condition. The collapse likely stemmed from structural failure.
Department of Buildings (DOB) records show that the four-story structure at 57 Ann St. had six unresolved code violations over the past 20 years, including a cracked ceiling and poor-quality concrete on the lower level.
The building failed to address several dangerous violations, which ultimately led to the tragedy.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.