Are Tesla vehicles not as appealing anymore?

After Federal Reserve Chairman Jerome Powell issued the strongest signal yet about a rate cut, it appears a reduction is almost certain. According to CME's FedWatch tool, there's a 66% chance of a 25 basis point cut and a 34% chance of a 50 basis point cut in September.

In the market, the Dow Jones Industrial Average reached a new high overnight. On Tuesday, U.S. stocks closed slightly higher: the Dow gained 0.02% to 41,250.50 points, the S&P 500 rose 0.16% to 5,625.80 points, and the Nasdaq increased 0.16% to 17,754.82 points.

On the stock front, Tesla drew attention due to significant selling by long-term investor Ross Gerber, along with other investors expressing concerns about declining sales and Elon Musk's legal troubles, which are reflected in Tesla’s stock price. As of the close on the 27th, Tesla's year-to-date decline is nearly 16%.

In commodities, international oil prices halted their three-day increase. As of the close, WTI crude oil fell by 2.14%, and Brent crude oil dropped by 1.74%. Opinions on future oil price trends are mixed: some believe lower Fed rates could make oil more attractive, while others think the fundamentals may weaken, putting overall pressure on oil prices.

The Dow Jones Industrial Average continued to hit new highs

After a brief pullback, on Tuesday, U.S. stocks closed slightly higher, with the Dow reaching another record. At the close, the Dow was up by 9.98 points, or 0.02%, at 41,250.50 points; the S&P 500 increased by 8.96 points, or 0.16%, to 5,625.80 points; and the Nasdaq rose by 29.05 points, or 0.16%, to 17,754.82 points.

Major tech stocks were mixed: Nvidia rose over 1%, while Tesla and Amazon dropped over 1%.
The coal, semiconductor, and travel service sectors advanced, with Royal Caribbean up more than 4%, Norwegian Cruise Line up over 3%, Carnival Cruise Line and Qualcomm up more than 2%, and Arm and STMicroelectronics rising over 1%.

The oil and gas, department store, and road transportation sectors declined, with Nabors Industries falling over 3%, Murphy Oil and Macy's down over 2%, and Chevron, Imperial Oil, and Petrobras dropping over 1%.

Chinese stocks were mixed, with the Nasdaq Golden Dragon China Index up 0.39%. XPeng rose over 6%, Li Auto and JD.com increased over 2%, Bilibili and NetEase were up over 1%, and Futu Holdings and Tencent Music saw slight gains. Pinduoduo fell over 4%, iQIYI dropped over 2%, and Manbang, Vipshop, Baidu, and Weibo decreased over 1%, with NIO and Alibaba seeing slight declines.

After Federal Reserve Chairman Jerome Powell issued the strongest signal yet about a rate cut, it seems a reduction is almost certain. According to CME's FedWatch tool, there is a 66% chance of a 25 basis point cut and a 34% chance of a 50 basis point cut in September. The probability of the Fed cutting rates by a cumulative 50 basis points by November is 41%, by 75 basis points is 46%, and by 100 basis points is 13%.

Tesla Faces Sell-Off by Prominent Long-Term Investor

In a recent media interview, long-term Tesla investor Ross Gerber revealed that he has sold approximately $60 million worth of Tesla stock. His investment fund now holds Tesla shares valued at around $50 million.

Gerber expressed concerns about Tesla's future, stating, "There are many older Tesla cars in the used car market, and selling them now relies heavily on discounts. Tesla seems to be in a difficult situation. Although the company has the best products in the industry, CEO Elon Musk appears to be distracted from the core business and is not actively promoting these cars. Tesla's sales are declining, and anyone expecting strong performance in the next quarter is mistaken. Currently, Tesla can only sell cars through constant discounts, and sales are clearly falling."

Gerber also commented that AI is unlikely to save Tesla. "You can ask your neighbors how many would want to buy a humanoid robot made by Musk. The answer is zero—no one wants a robot made by Musk. Why? Because who would trust it?"

Gerber is not alone in his concerns. Other investors have also voiced dissatisfaction with Tesla's declining sales and Musk's personal legal troubles, which are reflected in Tesla’s stock price. As of the close on the 27th, Tesla’s year-to-date decline is nearly 16%.

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