Stock Price Decline Despite Positive News
Tesla’s stock price declined in premarket trade on Tuesday, having dropped 3.3% in the previous session. This decline is a reflection of the broader tech rout that has hit the market amid concerns about the pace of Federal Reserve interest rate cuts in 2025.
Despite the decline, Tesla’s energy storage gigafactory in Shanghai has started trial production, with mass production expected early next year. This news should have been a positive catalyst for the stock price, but it seems to have had little impact on the market’s sentiment.
Elon Musk’s Controversial Comments
The electric car maker’s stock continues to be closely tied to the actions and statements of its billionaire founder Elon Musk. Recently, Musk made some controversial comments, claiming that he would "go to war" with the MAGA movement over skilled migrant visas. He also vowed to kick out any "hateful, unrepentant racists," marking the latest in a series of provocative statements.
Musk’s most recent outburst was in response to criticism of the H-1B visa programme, which allows US companies to hire skilled foreign workers. ‘Take a big step back,’ Musk said, as he launched an attack on critics of the programme. The world’s richest man, who himself came to the US from South Africa on an H-1B visa, defended the programme as vital to America’s success.
Stock Performance
Despite Musk’s controversies and the stock price decline, Tesla’s shares have still jumped around 68% for the year-to-date.
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- His most recent outburst was in response to criticism of the H-1B visa programme, which allows US companies to hire skilled foreign workers. ‘Take a big step back,’ Musk said, as he launched an attack on critics of the programme.
Sangamo Therapeutics (SGMO)
Sangamo Therapeutics dropped almost 50% in premarket trade on Tuesday in the US, following news that pharma giant Pfizer (PFE) is ending a partnership with the drug developer to make a new gene therapy to treat haemophilia A.
The company said it is assessing ‘all options’ to continue making the drug. The move by Pfizer comes despite the fact the drug had met its goals in a late-stage trial. The company was planning to file for US and European approval early next year.
Bitcoin (BTC-USD)
Bitcoin ticked cautiously higher on the final day of the year, after a rollercoaster year which saw it smash through previous all-time highs. The largest digital asset by market cap was trading at around $93,800 by mid-morning in London on a subdued day in markets.
Over the last month, the asset has been volatile — heading to all-time highs past the $106,000 mark, as markets anticipate US president-elect Donald Trump’s incoming pro-crypto cast of advisers. Read more: FTSE 100 LIVE: Markets lower on last trading day of the year
Story Continues
During the election cycle, Trump made several pledges in line with boosting the crypto industry. One such pledge was to build a national bitcoin reserve for the US. He also vowed to sack the crypto critical US Securities and Exchange Commission (SEC) chair Gary Gensler, with Paul Atkins, CEO of Patomak Partners and a former SEC commissioner, lined up to replace him.
Atkins is known as a friend of the crypto industry and will likely be a softer touch on regulation. Meanwhile, Trump appointed former PayPal executive David Sacks as the first crypto and AI tsar. Sacks has previously argued that opening the doors to crypto adoption would spur on growth and encourage innovation.
Endeavour (EDV.L)
Endeavour stock was among the winners of the FTSE 100 (^FTSE) on Tuesday, climbing 1.8% after it announced a share buyback. The transaction will involve the repurchase of 15,700 of its ordinary shares as part of its ongoing buy-back programme.
The company said it was making the move in order to optimise its capital structure. Read more: How major tech stocks could perform in 2025
Best-Performing Memecoins of 2024
- Dogecoin (DOGE): Up over 100% in the last month.
- Shiba Inu (SHIB): Up over 200% in the last month.
Pound, Gold and Oil Prices in Focus: Commodity and Currency Check
The pound rose against the dollar on Tuesday, reaching its highest level since April. The UK currency gained 0.3% to $1.24, as investors became more optimistic about the country’s economic prospects.
Gold prices fell by 0.5% to $1,780 an ounce, while oil prices rose by 0.2% to $81 a barrel.