Positive inflation indicators reduced the likelihood of interest rate hikes, creating a positive market atmosphere overall, with attention also on Tesla's new business expansion.
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Today, Tesla showed its strongest performance in a long time, leading the M7 companies. It jumped over 4% during market hours and has already surpassed 4% in after-market trading.
Memory semiconductor companies showed strength, with Micron rising over 4% and Intel also showing an upward trend. While other companies like AMD saw relatively smaller gains, the overall memory semiconductor market is performing well. Micron's strength is expected to positively impact Korean companies as well.
Advice was given that it is crucial to invest in Tesla stock from a long-term perspective and manage one's mental state, rather than reacting to short-term volatility. Many people offered pessimistic forecasts when the stock price fell from the $400 range to the high $200s, but one must have faith that it will eventually recover. Understanding the volatility patterns of high-PR stocks like Tesla and the ability to control emotions are essential for long-term investing.
Key inflation indicators, such as the recently announced CPI and PC indices, turned out better than expected. Both the CPI and PC indices showed a trend of declining inflation, acting as positive signals for the market. These results are expected to influence the Federal Reserve's decision on interest rates.
Favorable inflation indicators are lowering the likelihood of an interest rate hike at the September Fed meeting. While the market had largely taken a September rate hike for granted, these signals of easing inflation have changed that outlook. Since interest rate hikes negatively impact the stock market, a decreased likelihood of a hike is welcomed as positive news for the market.
With recent declines in CPI and PCI indices, the market widely expects no interest rate hike in September. This outlook is creating a positive market sentiment and contributing to improved investor confidence. The reduction in interest rate uncertainty is expected to help stabilize the stock market.
One of the reasons for the significant contraction of the commercial district in LA was attributed to past policies of the Trump administration. The policy of expelling Mexican and Hispanic immigrants led to a contraction of the underground economy, and the departure of international students and Chinese residents from LA reduced the spending base, which analyzed as having impacted the commercial district. This negatively affected regional economic revitalization.
The CPI index has recently been reported lower than expected in 9 out of 10 times, sending positive signals about inflation stabilization. If this trend continues, the actual inflation rate could fall to the low 2% range, and there's even a risk of it dropping below 2%. This further lowers market expectations for interest rate hikes.
Over 50% of American consumers are consistently carrying credit card debt. This indicates a growing reliance on credit cards to cover rising prices for essential expenditures. This phenomenon raises concerns about the financial health of American households.
Among American consumers carrying credit card debt, 25% have been carrying long-term debt for 6 months to 1-2 years or more. This suggests that debt is continuously accumulating, and household financial conditions could worsen over time. Concerns are being raised that Americans' ability to repay debt is progressively deteriorating.
Tesla's Robotaxi has officially received an operating permit from the Nevada Transportation Authority. This allows Tesla to legally operate Robotaxi services in Nevada. This is considered a significant advancement in the commercialization of Tesla's autonomous driving technology.
Nevada has placed strict limits on the operational scale of Tesla's Robotaxi. The total number of vehicles that can be operated is explicitly set at a maximum of 10, indicating initial regulations for fully autonomous vehicle operation. Tesla will begin services within this limited number.
The operation of Tesla's Robotaxi is also geographically restricted. The Nevada Transportation Authority has only permitted Robotaxi services within a specific rectangular zone, and operation outside this zone is not allowed. This is interpreted as a measure to ensure safety and control operations during the initial phase.
Nevada Robotaxis are mandated to clearly display 'Robotaxi' on their vehicles. All 10 operating vehicles must be affixed with a logo and a 'Robotaxi' sign. Furthermore, the condition of human supervision, meaning a person must directly oversee Robotaxi operations, is included, demonstrating a cautious approach to fully unmanned autonomous driving.
Nevada's Robotaxi regulations are considered much stricter than when Waymo first started its business. The detailed and complex regulatory items currently imposed on Tesla suggest that many requirements must be met by each company for fully autonomous and unmanned autonomous driving to be implemented. This shows that the commercialization of autonomous driving technology is proceeding gradually and cautiously.
Pessimism is being raised regarding Tesla's plan to build a 'Terrafab,' a semiconductor factory, to produce its own semiconductors. Given the difficult path Korean companies have taken in the semiconductor industry, many skeptical opinions suggest that Tesla will find it challenging to succeed in semiconductor production just by having money. This emphasizes the technical difficulty of the semiconductor industry and the importance of accumulated know-how.
Tesla and SpaceX have finally commenced their joint $16.8 billion Terrafactory project. Large-scale construction is underway on a site next to the Tesla factory, for the purpose of building a Terrafactory for semiconductor production. Tesla and SpaceX are jointly pursuing this project, each contributing half of the funds.
Tesla has launched a Powerwall leasing program for home energy storage systems targeting residents in Texas. By allowing them to lease Powerwalls for approximately $35 a month, the plan aims to enable more households to utilize eco-friendly energy solutions. This is one of Tesla's key strategies for expanding its energy business.
The Tesla Powerwall leasing program offers free installation when leasing two Powerwall units and is available for a monthly cost of $35. It provides the ability to back up electricity for the entire home, and subscribing to Tesla Electric in Texas also offers additional credits or benefits to reduce the total payment. Excluding the initial order cost of $100, there is virtually no burden of actual installation costs.
Installing a Tesla Powerwall can save monthly electricity costs, offering a clear economic benefit of reduced electricity bills. Furthermore, it provides the safety benefit of supplying electricity to the entire home during power outages, protecting households from sudden power interruptions. This is expected to help users stably use power and enhance energy efficiency.
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