- GRIT
- Posts
- Tesla's Delivery Dilemma
Good Morning!
Happy Wednesday! Let’s dive into it:
👉 Tesla has a major miss
👉 Medicare Advantage plans
👉Private payroll numbers are in
STOCK MARKET MADNESS IS ON 📈
Click HERE to view our bracket! 🏀 Let’s recap the Final Four 🥊
Hertz wins in an absolute nail-biter that went down to literally the last 10 minutes of the market being open. Hertz will advance to the Championship and play Verizon.
TESLA: Major Miss
On Tuesday, Tesla's stock dropped following an announcement that vehicle deliveries had decreased in the first quarter, marking the company's first yearly reduction in deliveries since 2020 due to pandemic-related issues. Production slightly fell by 1.7% from last year and deliveries saw a significant 8.5% drop. Tesla reported producing over 412,000 Model 3/Y vehicles but delivered fewer than expected. This includes a decrease in other model productions and deliveries compared to last year and the previous quarter.
Source: CNBC
Various challenges impacted Tesla this quarter, including supply chain disruptions due to attacks in the Red Sea and production halts in its German factory due to environmental protests. Competition in China and mixed reviews in the U.S. for its new Cybertruck also posed hurdles. Efforts to boost sales, including promotions and a push for Tesla's Full Self-Driving system, did not significantly increase sales volumes.
🎯 GRIT TAKE: If we were a Microsoft shareholder…upgrade to VIP now to read the full GRIT Take!
MEDICARE: Advantage Plans
On Tuesday, stock prices of U.S. health insurers dropped after the Biden administration decided not to raise Medicare private plan payments as much as the industry had hoped. CVS Health's stock fell by over 8%, UnitedHealth Group's by nearly 7%, Elevance Health's by more than 3%, Centene's by 6%, and Humana's by over 10%, with Humana hit hard due to its heavy reliance on Medicare Advantage plans.
Source: NBC
This move adds to the challenges for insurers, like high medical costs and issues from a cyberattack on UnitedHealth Group. It also hurts the Medicare Advantage sector, which is key to the industry's growth. The government announced a 3.7% increase in payments to these plans, but effectively, this turned out to be a slight decrease after adjustments. This rate is important because it influences what insurers can charge for their plans and affects their profits. Medicare Advantage plans are private but linked to Medicare, offering lower costs and extra benefits, which attracts over half of Medicare's enrollees.
PRIVATE: Sector Jobs
In March, U.S. private sector jobs grew at the highest rate since July 2023, according to ADP. The report showed 184,000 new jobs, exceeding February's numbers and matching expert forecasts. Wages also grew by 5.1% year-over-year, continuing a steady trend.
Source: ETF Trends
Significant job increases were seen in sectors like leisure and hospitality, construction, and health services, with the South seeing the most growth. This data doesn't include government jobs.
Headlines You Need To Know: 🎙
Chart of the Day
📊 Health Insurer Stocks
Source: Yahoo Finance
GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
Source: @wallstbets
Do you have feedback to share? Click HERE.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
Grit does not accept any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
Please read: Terms of Use, Privacy Policy, Disclosure Policy, State Disclosure Policy, and Disclaimer Policy
If you have any questions please contact us at help@gritcap.io
Join the conversation