Every weekday the CNBC Investing Club with Jim Cramer holds a Morning Meeting livestream at 10:20 a.m. ET. Here’s a recap of Friday’s key moments. 1. U.S. equities moved lower in midmorning trading Friday, with the S & P 500 down 0.2% and the Nasdaq Composite down 0.68%. Jim Cramer said that the market is now bifurcated, with bank stocks going higher on the back of strong earnings and Big Tech coming under pressure. At the same time, bonds rallied, with Treasury yields pulling back in a flight to safety. The yield on the closely-watched 10-year Treasury was hovering around 4.6%. And oil prices surged roughly 4% amid growing geopolitical risk, as West Texas Intermediate crude moved above $86 a barrel. Club energy name Pioneer Natural Resources (PXD) followed suit, climbing more than 2%, while Jim reiterated the Club’s intention to exit the position given Exxon Mobil’s planned acquisition of the shale company. 2. Club holding Wells Fargo (WFC) on Friday reported a 7% uptick in revenue year-over-year for the third quarter, with beats on both net-interest income and non-interest income. Earnings-per-share of $1.48 topped analysts’ estimates of $1.24 a share. The bank also raised its full-year 2023 net-interest-income growth outlook to 16%, up from guidance of 14% and ahead of the consensus estimate of 14%. Jim on Friday highlighted his belief in CEO Charlie Scharf’s ability to continue to turn around the bank under challenging circumstances, while suggesting he expects Wells Fargo stock to only move higher. Shares of WFC jumped roughly 3.8%, to more than $41 apiece. Stay tuned for a full Club analysis on the results later Friday. 3. Club holding Danaher (DHR) sold off late Thursday after German bioprocessing rival Sartorius (SARTF) preannounced a third quarter miss and lowered its organic-growth outlook due to a longer inventory destock from its U.S. and Chinese customers. But TD Cowen said Sartorius’ latest cut aligns its guidance more closely with that of Danaher, which was more conservative with its outlook last quarter. We expect Danaher’s stock will rally before the bottom of the of the bioprocessing cycle. “This is a stock to own,” Jim said Friday. (Jim Cramer’s Charitable Trust is long PXD, WFC, DHR. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Tesla (TSLA) is reintroducing Full Self-Driving (FSD) transfers and offering $2,000 loyalty discounts on the new Model Y to existing owners amid a demand surge.
Now, Tesla has pulled new demand levers to drive sales of these vehicles.
First, last night, Tesla began sending emails to early Model Y owners in the US, offering them a $2,000 discount on upgrading to the new Model Y.
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This is an unusual type of discount for Tesla and a significant one.
On top of the direct loyalty discount, Tesla also announced that it is bringing back “FSD transfer” on all vehicles in the US:
‘Vox populi, Vox Dei’. Tesla says that it’s by popular demand that it is coming back, but that’s true. It’s because Tesla needs it.
If it were by popular demand, FSD transfer would always be available to Tesla owners as long as Tesla hasn’t delivered on its promise of delivering unsupervised full self-driving. That would simply be the right thing to do and what most owners, who are not also Tesla shareholders, have been asking for years.
But instead, Tesla is using its own inability to deliver a product it promised and sold as a way to create more demand for its newer vehicles.
In the summer of 2023, CEO Elon Musk finally agreed to allow FSD transfers after owners had asked him for years, but not because it was the right thing to do. Instead, he said it would be a “one-time amnesty” for a single quarter. Tesla used this to boost sales in the quarter.
Tesla ended up bringing back the incentive four more times when it needed to boost orders, making Musk a liar for saying it would only be for a quarter. By claiming it’s only for this one time, Tesla is creating urgency in trying to get people to upgrade – instead of doing the right thing and offering everyone who bought FSD the ability to transfer until Tesla actually delivers on its promise.
Electrek’s Take
‘Vox populi, Vox Dei’. That’s funny. It’s Latin for “the voice of the people, the voice of God.” But it should be more “vox necessitatis, vox pecuniae,” which is “the voice of necessity, the voice of money.”
That’s not by popularity. If Tesla were doing what owners wanted and what is right, FSD transfer would be permanent and available to any Tesla owner who purchased the FSD package, until Tesla delivers on what it promised.
Tesla is doing this now because it needs it. It already has no backlog of orders for the new Model Y in the US and it is testing out these incentives before going back to offering 0% financing, likely in the coming weeks.
Something interesting to note is that these incentives are both technically loyalty incentives, as they apply to existing owners.
Tesla used to have incredible customer loyalty, but that has changed in the last few months due to Elon Musk.
I’d be curious to see how successful they are and if it can convince some people who swore off Tesla because of Musk to actually get another one.
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes a new cargo e-bike launch from Tenways, Lime bringing its new e-bike and e-moped to its larger fleets, testing a 100 mile e-bike, California’s e-bike vouchers are set to open again in another lottery round, a new electric unicycle from InMotion, and more.
Today’s episode is brought to you by retrospec—makers of sleek, powerful e-bikes and outdoor gear built for everyday adventure.Electrek listeners can get 10% off their next ride until May 8th with the exclusive code ELECTREK10 only atretrospec.com.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
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After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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Here are a few of the articles that we will discuss during the Wheel-E podcast today:
Here’s the live stream for today’s episode starting at 9:00 a.m. ET (or the video after 10:00 a.m. ET):
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This one’s pretty simple, kids – it’s exactly what it says on the tin: a Polestar 2 owner took to the Polestar subreddit this week claiming that the window glass in his new EV actually stopped a bullet from hitting him. Plus, he says he’s got the pictures to prove it. (!)
The brand may be evolving into its own, but the OG Polestar 1 and Polestar 2 were little more than hot electric versions of Volvo cars – and Volvo cars are known throughout the world for their secure, planted feel on the road and absolutely bananas high-tensile steel safety cages. As such, it should come as no surprise that the Polestar 2 is one of the safest sedans on the road today … but is the car really bulletproof?
That’s what one redditor is claiming after his window was hit by what they believed to be a stray bullet just five days after taking delivery.
Now, that was fun, sure – but it’s worth noting that a number of commenters claiming alternately that there’s no way this was a .22 caliber bullet (certainly not a .22 WMR) or that it was a stray shot from very far away. The consensus seems to be that a .177 caliber air gun pellet is most likely to blame, but my money is on a small piece of stone or gravel kicked up at a weird angle from a nearby vehicle.
Regardless, it seems like CptMerica29 is A-OK, and their Polestar 2 hardly seems worse for wear, either. Here’s hoping it’s the last time we have to have a debate about what kind of bullet was being fired at an EV driver for a long time.
If you’d like to try your hand at driving a Polestar 2 through a volley of flying debris and other assorted projectiles and letting us know how you do, click the link below to score a great deal on one near you (while you still can):
Disclaimer
I would like to believe this is obvious, but there’s a “do not use batteries as toothpaste” sticker on this pack of Duracell batteries for a reason, so I’m going to err on the side of caution here and tell any of you reading the above and taking it seriously that: I am kidding. That was a joke.
To be clear, it is my position that NO VEHICLE this side of a Mercedes-Benz EQS GUARD or Inkas Armored S Class is actually bulletproof – and that, yes, a .22 is a real gun with plenty of lethal stopping power and, also yes, a pellet gun can and has killed a lot of people. DO NOT SHOOT AT CARS, and do not sit in your cars and let others shoot at you if you can at all avoid it.