by Brian Shilhavy, Health Impact News:
In a Wall Street bloodbath today that saw significant losses in the DOW, S&P 500, and Nasdaq, the Big Tech “Magnificent 7” companies (Apple, Google, Facebook, Amazon, NVIDIA, Microsoft, and Tesla) lost $1.7 TRILLION in market share, in just one day.
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‘Magnificent Seven’ stocks near correction territory as $1.7 trillion in value erased
The wheels appeared to be coming off the artificial-intelligence trade on Wednesday as members of the “Magnificent Seven” headed for their worst daily drop since October 2022.
A market-capitalization-weighted gauge of the seven companies’ shares was down 4.1%, according to Dow Jones Market Data, bringing its total decline from its most recent peak on July 10 to 9.8%. (Source.)
Shares of Tesla stock were down the most, losing 12.3%, close to a $90 billion loss.
Tesla’s quarterly report on earnings yesterday was not as positive as shareholders had expected, and some seem to be waking up to the fact that Musk may not be as smart as everyone thinks, as he continues to sell the future and his AI hype, while sales of his Tesla vehicles are declining, as are other EV sales.
See my article from last week:
Elon Musk: World’s Biggest Con Man, or Just a Fool? Big Tech in Panic Mode!
Ford also posted another $1 billion loss on electric vehicles last quarter.
Ford saw a $1.1 billion loss in its EV business, dragging Q2 profit well below Wall Street forecast
Shares of Ford Motor Co. lost more than 10% in the extended session Wednesday after the car maker reported quarterly profits well below Wall Street’s expectations and notched another billion-dollar loss on EVs. (Source.)
The fools who still believe in Musk think Teslas are different from other EVs, and insist that their investment in Tesla is not really an investment in an automobile manufacturer, but in an AI company that is going to build robots and self-driving cars.
Here is an article published in Fortune that represents the Musk believers’ continued optimism:
Tesla shares plunged on weak earnings. But a top analyst says AI investments will lead to a $1 trillion-plus valuation
EV maker Tesla reported its second straight quarter of year-over-year sales declines. But, some analysts see light at the end of the tunnel for the company with the help of AI.
In its Q2 earnings report released on Tuesday, Tesla revealed quarterly profitability from the sale of EVs dropped to its lowest level in five years. Meanwhile, the company generated 7% less revenue compared to the same time last year. All of this led shares to decline about 11% in Wednesday morning trading.
“We reiterate our Buy rating on TSLA, which still has a number of catalysts ahead that could help drive the stock, including the Robotaxi Day in October, potential licensing of FSD, new product launches, and realization of cost savings,” BoA research analyst John Murphy wrote in a Wednesday note to investors.
“The positive shift has begun for Tesla and the bears will continue to miss the forest through the trees on this one,” Dan Ives, Wedbush Securities managing partner, told Fortune.
Wedbush analysts said they weren’t “looking for major fireworks this quarter from Tesla.” And although the margin weakness is weighing on the stock this morning, the company has a new growth story to tell.
“Tesla is truly an AI and robotics play and this is the $1 trillion-plus valuation we see,” Ives said.
The robotaxi is the start of the AI story, according to Wedbush. CEO Elon Musk postponed the company’s planned August unveiling of its robotaxi prototype until Oct. 10 in order to make changes to improve the vehicle, he told analysts on the earnings call. Musk said he expected roll-outs possibly by the end of the year—though Wedbush believes it will be later.
“We believe next year is a more realistic time frame depending on the regulatory path ahead,” he said. (Source.)
Notice how all the hope and hype from these “analysts” for Tesla are about the future, and trusting Musk’s promises? They are all going to suffer, just like everyone else who puts their hope in Musk.
But it looks like fools such as these investors are becoming the minority now, as others clearly see the hype and B.S. Musk keeps trying to sell with no proof that his AI beliefs will ever come true.
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