👉 The Investing Week Ahead: No Landing Needed?

These are merely interesting charts to share.

If you want to see a detailed breakdown of my personal stock and cryptocurrency portfolios, consider subscribing below.

Subscribe now

What We’re Watching:

Tesla (-40% YTD) is experiencing some turbulence while the EV market continues to develop — as seen by the -20% revenue decline in Q1 and a U.S. market share reduction from 62% to 51%.

Amidst the market slowdown and fierce competition – notably from Chinese manufacturers — Tesla's profitability continues to be pressured. Decreasing margins due to aggressive price cuts and the lack of new model introductions are causing analysts to turn against Elon.

Just this past week — TSLA was forced to recall 3,878 delivered Cybertrucks due to an accelerator pedal issue AND the company is laying off about 10% of its staff.

As Tesla approaches its earnings call, key points of interest will include the outlook for annual deliveries, pricing strategies, and updates on the robotaxi event scheduled for August.

Boeing (-35% YTD) is facing significant challenges this year following a 737 MAX 9 incident — which has led to A LOT of social media scrutiny.

Between production halts, lawsuits, whistleblowers suspiciously dying, and the CEO departing — Boeing feels like a dumpster fire.

Boeing has about 40% market share and Airbus has about 60% — but Boeing has nearly four times more “incidents” in their planes. Just this morning — there was another Boeing plane that had a wheel fall off.

Despite these issues, Boeing managed to secure 113 new airplane orders in March — showing continued customer confidence. However, the company's airplane deliveries have decreased with only 29 jets delivered in March compared to 64 in the same month last year.  

The company's financial outlook is also under strain, with a projected free cash flow burn of up to $4.5 billion for Q1 — materially higher than the previous year.

General Motors (+18% YTD) reported promising Q4 earnings, with a market share increase to 16.2% in the U.S. and 12.2% in South America — though it faced a decline from 11.2% to 8.4% in China.

GM's strong sales in its main markets — coupled with $1 billion in cost reductions and $10 billion worth of strategic buybacks — have positioned it to potentially outperform its conservative financial forecasts for 2024.

GM has responded to operational challenges by focusing on cost efficiency, reducing selectable options across products to save $200 million on manufacturing complexity and costs. Despite slowing growth in the EV sector, GM has moderated its spending and believes the EV side of the business will be EBIT profitable in 2025.

“Despite a sell-off across tech last week after disappointing results from chipmakers and Netflix, earnings growth expectations are still sky-high for Meta, Microsoft, and Alphabet, which are all expected to report in the week ahead.”

— Josh Schafer, Yahoo Finance

It seems confidence in the Fed’s ability to bring inflation down is decreasing, with more people factoring in a ‘no landing’ scenario. As a reminder — this is a situation in which inflation DOES NOT reach the Fed’s 2% goal + the U.S. economy keeps growing.

The ‘no landing’ scenario is essentially saying — “We failed on the whole inflation thing, but we hope you are enjoying the strong economic times.”

Expect to hear updates from Nvidia (NVDA) CEO Jensen Huang, Instacart (CART) CEO Fidji Simo, Urban Outfitters (URBN) CTO David Hayne, and many more.

You can read more here.

What We’re Watching:

On Thursday — we’ll see GDP estimates for Q1 2024.

On Friday, the Core PCE index (the Fed's favorite inflation gauge) returns to the spotlight.

"Should core PCE inflation come in around 0.25% [month-over-month] for March and April, the year-on-year reading will slow, giving the Fed cover to begin 'gradually' adjusting policy rates lower starting in June or July," 

— Andrew Hollenhorst, Economist at Citi