In the pre-market trading today, a wave of concern is hitting several sectors, particularly electric vehicles (EVs), artificial intelligence (AI), and semiconductor companies. Tesla, a prominent name in the EV market, finds itself embroiled in controversy. Recent reports highlighted a staggering 89% drop in monthly new car registrations in Sweden compared to the previous year. Adding to this troubling narrative, Norway’s sovereign wealth fund, one of Tesla’s major shareholders, announced it will vote against Elon Musk’s proposed trillion-dollar pay package. These tensions between the fund and Musk create a precarious situation, as he now needs to rally support from retail investors in just two days. Consequently, Tesla shares have dipped over 2% in pre-market trading as the uncertainty surrounding this vote looms.
Another stock drawing attention is Palantir Technologies, the AI data analytics firm, which is seeing its shares plummet by about 7% despite exceeding earnings expectations. The decline seems to stem from investor disappointment over margins and the outlook for AI revenue, suggesting that the market’s expectations for AI companies have reached unprecedented heights. Analysts are questioning whether this reaction indicates a temporary pause in AI stocks’ rapid growth or if it signals a potential bubble burst.
In a related development, Iren, a company transitioning from Bitcoin mining to AI infrastructure, has seen its stock drop more than 5% after a dramatic rally the previous day following news of a significant $9.7 billion deal with Microsoft. Today’s decline appears to be a result of profit-taking after the stock has soared over 500% this year, highlighting a broader trend in tech stocks which are also experiencing similar drops, including Cipher Mining, Lumen Technologies, and Amcore Technologies.
Turning to Advanced Micro Devices (AMD), the company is set to report earnings later today. The stock is down by over 2% in pre-market trading after a remarkable increase of more than 160% over the past six months. Investor anticipation is exceptionally high regarding AI chip sales, especially following recent positive reports from competitors like Alphabet and Amazon Cloud. A disappointing earnings result or lackluster guidance could lead to a significant market reaction.
Lastly, Beyond Meat, the maker of plant-based burgers, is facing a dismal phase, with shares plunging almost 8% and previously dropping nearly 16%. The company has delayed releasing its earnings report due to the need for additional time to assess an impairment charge, further intensifying concerns about declining sales and waning demand for meat alternatives. As the pre-market session unfolds, these developments reflect a turbulent atmosphere in multiple sectors, leaving investors anxious about what the day ahead may bring.
