The Rundown - Q1 Market Wrap-Up, Tesla Delivery Outlook

Starting point is 00:00:00 Public.com presents the rundown, your daily market update in five minutes. My name is Zad Admani, and today is Monday, April 1st. In today's episode, we recap the stock market's record performance in Q1 and how the listeners of the show might partially be responsible for the bull market. Stick around to find out what I mean. Also, Tesla is raising prices, despite investors being nervous about slowing sales. And Microsoft and OpenAI are building a supercomputer together. We talked about that and more in today's show.

Starting point is 00:00:28 So let's get into it. Well, guys, Q1 is officially in the books, and the S&P 500 had its best start to the year since 2019. Let me hit you with some stats. The S&P 500 was up more than 10% in Q1 and made 22 record highs without any significant pullback. That's the most amount of record closes in the first quarter since 1998 when there was 25 record closes in Q1. The NASDAQA also was up 10% in Q1 and made a record high in late February. Overall, the vibes in the stock market are looking for. pretty good, despite the fact that the feds didn't cut rates like some people had expected.

Starting point is 00:01:03 The markets have been up for five months in a row, which is incredible. Funny enough, this rally got started in late October, right around the time this show started, which could be a total coincidence, or all you guys listen to the show, just single-handedly save the stock market. Let's go with that theory. So shout out to everyone supporting the show. You guys might be single-handedly responsible for this bull market. So if you want the bull market to continue, drop a five stars on Spotify and Apple to help support

Starting point is 00:01:27 the show, help grow the show, so we can keep the good time. By the way, the stock market was not the only thing making record highs in Q1. We also saw Bitcoin make record highs, gold hit record highs, even Cocoa prices have gone absolutely parabolic and making record highs, which is about to make my chocolate addiction very expensive. I think I might have to start cutting back. Overall, the vibes going into Q2 are fantastic. And Q2 has a lot of big shoes to fill.

Starting point is 00:01:51 Let's run through some headlines. Tesla has officially raised the price of its Model Y in the US by $1,000, according to Reuters. With this new increase, the cost of the base variant of the Model Y is now just under $45,000. Now, this price increase doesn't come out of surprise. Tesla actually said a couple weeks ago that it was going to raise the price. But this price increase does come ahead of its first quarter delivery numbers, which are coming out tomorrow, and they are expected to be kind of weak. Wall Street analysts have been slashing their estimates for the quarter, and some think that

Starting point is 00:02:21 Tesla will suffer its first sales decline in four years. Right now, the consensus from analysts is that Tesla delivered just under $400,000. 554,000 vehicles. That would be about 7% above the delivery number from the first quarter of 2023. Tesla already warned investors that there would be a lower vehicle delivery growth this year, and the slowing demand has been pretty evident in the stock price. Tesla was the worst performing stock in the S&P 500 in Q1, down more than 28%. Stick around to the end of the show to learn about the second worst performing stock in the S&P 500. That one is not a surprise. Switching gears a bit, Microsoft and OpenAI are teaming up. I mean, they've already been buddies, but they are now teaming

Starting point is 00:02:59 up to make a $100 billion data center, according to a report from the information. The project will feature a so-called supercomputer codename Stargate. That will be made up of millions of AI chips. The project is expected to launch in 2028 and cost about 100 times more than some of the largest data centers already out there according to the information. I mean, these two AI power couples are looking to dominate the market. So cute. Microsoft and Open AI have been a thing since 2019 when Microsoft first invested a billion dollars into Open AI back then, and Microsoft continued to invest in them over the years, and Microsoft cumulative investment in the company now stands at $13 billion. All right, let's talk about some stocks making moves today.

Starting point is 00:03:40 Early winner for today is Neo. The Chinese EV company stocks are up 2% after releasing its vehicle delivery metrics for Q1. That's slightly beat estimates. And when I say slightly, I mean very slightly, okay? Their vehicle delivery estimates for Q1, was 30,000. Neo ended up delivering 30,000 and 53 vehicles in Q1. So they beat it by 53 vehicles. But hey, a win's a win. Now, what's kind of funny about the whole thing, Neo had previously come out and lowered their estimates. Originally, they had estimated between 31,000 to 33,000 deliveries. And then they came out and said, you know what, we're not going to hit that. We're probably going to hit 30,000. And they ended up hitting that number. This is kind of

Starting point is 00:04:19 a classic case of under promising and over delivering. All of us can learn something from this. set low expectations and overperform and everyone's going to be happy. Another stock having a good Monday morning is UPS. UPS announced that it will take on the primary role as the U.S. Postal Services air cargo carrier. This came after FedEx removed itself from the role after trying to get the U.S.PS for better terms on their deal. The UPS was like, nope, and so FedEx decided to terminate the deal.

Starting point is 00:04:45 So now UPS is coming in and taking over that role. Now, according to CNBC, FedEx terminating this deal will lead to a loss of around $2 billion in revenue for FedEx. As a result, FedEx stock is down more than 2% this morning. All right, let's wrap up the show with some fun facts. At the start of the show, we talked about how this was the best start for the S&P 500 since 2019. Well, I got some more fun facts for you about the stock market in Q1. Like the two best performing stocks in the S&P 500 was Super Micro, ticker symbol SMCI, which was up more than 250% in Q1, and actually recently added to the S&P 500. And number two was NVIDIA, up 82% in Q1. But surprisingly, the best performing sector in Q1 wasn't tech or anything

Starting point is 00:05:28 AI related. It was energy. This kind of caught me by surprise, I'm not going to lie. The energy sector was up more than 13% in Q1, helped mostly by increasing oil prices, which have gone up for three straight months in a row. On the flip side, the two worst performing stocks in the S&B 500 in Q1, we already talked about one of them, Tesla, down 28% for the year, and Boeing, which was down 26%. I mean, Tesla being down worse than Boeing, it's kind of a tough look, especially after all the drama happening at Boeing this year. All right, guys, that's all I got for you guys. We got a news show every single morning this week, so make sure you guys tune in the stand-the-loop of all the market drama throughout the week. If you guys enjoy the show, consider giving us a five-star rating on Apple and Spotify and Spotify.

Starting point is 00:06:05 And shout-out to everybody that's already done that. Because of all your support, I think the show has cracked the top 11 on Spotify's business charts and the top 80 on Apple's business charts. So thank you guys so much. I think my parents might finally approve my career choice of being a podcaster now. Thank you guys again for listening today. We'll see you guys back here tomorrow. This is the rundown, your real-time resource for news events and trends in the markets. All views presented in this show reflect the opinions of the guests.

Starting point is 00:06:30 You should not take any mention of a publicly traded security as recommendation to buy, sell, or hold that security. Rundown guests are not financial advisors and are not affiliated with public holdings or its subsidiaries. You should make your own financial and investment decisions or consult. Respective professionals. Learn more at public.com disclosures. In partnership with Zayid Admani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.

The Rundown - Q1 Market Wrap-Up, Tesla Delivery Outlook

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