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- 📈 Tesla’s Delivery Dip
📈 Tesla’s Delivery Dip
Amazon deploys millionth robot, unveils AI, Banks hike dividends, expand buybacks post-tests, Lululemon sues Costco over knockoff gear, Constellation Brands misses, tariffs dent profits, Lockheed deal boosts Fujitsu’s defense profile
Evelio Silvera
July 02, 2025
Good morning.
⚡ The Fast Five → Amazon deploys millionth robot, unveils AI, Banks hike dividends, expand buybacks post-tests, Lululemon sues Costco over knockoff gear, Constellation Brands misses, tariffs dent profits, Lockheed deal boosts Fujitsu’s defense profile
🔎 Market Trends → Wall St ends mixed after Senate passes Trump's tax-cut bill; Futures dip after record run as investors focus on Trump's tax bill
And now…
⏱️ Your 5-minute briefing for Wednesday, July 2, 2025:
MARKET BRIEF
Before the Open
As of market close 07/01/2025.
Pre-Market
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Fear & Greed
Markets in Review
Nasdaq Stumbles Off Highs as Powell Talks Tariffs and Traders Reprice Fed Cuts
Nasdaq -0.8% to 20,202.9, snapping a 6-day winning streak. S&P 500 -0.1% to 6,198 after back-to-back record closes. Dow Jones +0.9% to 44,494.9, extending its own rally.
The Big Picture:
Wall Street paused after a torrid run as Fed Chair Jerome Powell threw cold water on near-term rate cut hopes, citing inflation risks tied to Trump-era tariffs.
Despite a drop in tech, gains in materials and industrials propped up the broader market. Investors parsed conflicting manufacturing data and firmed-up labor numbers, keeping bets for a July cut modest.
Treasury yields climbed — the 2-year hit 3.78%, the 10-year at 4.25% — as bond traders realigned expectations with Powell’s tariff-tinted tone.
Market Movers:
Tesla (TSLA) tumbled -5.3% after renewed tension between Elon Musk and Trump sparked fears over regulatory pressure and scrutiny of federal funding for both Tesla and SpaceX.
AMC (AMC) plunged -9% as the cinema chain raised $200M in fresh funding to tackle looming debt — a lifeline, but a costly one.
Packaging Corp. of America (PKG) surged +7.6% on news it’s acquiring Greif’s (GEF) containerboard business for $1.8B — a bold bet on logistics and domestic demand. Greif gained +7.4% on the sale.
What They’re Saying:
“Tariff-induced price hikes remain an important near-term theme... diminishing the probability of a July Fed rate cut.”— ING Economics
WHAT WE’RE WATCHING
Events
Today: Automatic Data Processing, Inc. - ADP Non-Farm Employment Change - 8:15am
Why You Should Care: Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity;
Earnings Reports
Today: National Beverage Corp., Haleon plc, Unifirst Corporation
Tomorrow: There are no noteworthy earnings reports scheduled for release for Thursday, July 3.
MARKET BRIEF
Leading News
Tesla’s Delivery Dip: A Speed Bump on the Road to AI Riches
Photo Credit: MSC Industrial Direct
Why it matters:
Tesla’s Q2 2025 delivery numbers, out today, signal short-term pain but long-term gain for investors betting on its AI and autonomous driving pivot.
Zoom Out:
Tesla (TSLA) is expected to report 355,000-394,000 vehicle deliveries for Q2 2025, a 10-19% year-over-year drop, per analyst consensus. Weak demand in China and Europe, plus tariff threats, have clipped the EV giant’s wings. Yet, CEO Elon Musk’s focus on robotaxi tests and AI innovation is stealing the spotlight, with investors eyeing a future beyond four wheels.
The stock shed 7% yesterday after Musk’s public spat with President Trump over tariffs, but savvy retail investors see this as noise. Tesla’s $16.35 billion cash hoard and margin superiority (still above 20%) give it muscle to weather the storm while scaling autonomous tech and energy storage.
Key Insights:
Delivery Blues: Analysts like UBS peg deliveries as low as 355,000, citing soft China sales (market share down to 7.6%). But North America’s Model Y refresh is a bright spot, up 10% quarter-over-quarter.
AI Bet: Tesla’s robotaxi ambitions could redefine its valuation, with Baird noting it may “take precedence” over near-term EV slumps. Think crypto-level disruption, but with self-driving cars.
Tariff Risk: Potential $4,500/vehicle tariff costs loom, but Tesla’s pricing power and cost cuts can absorb the hit.
Market Pulse:
“Q2’s delivery miss is priced in; the real story is Tesla’s AI runway,” says Deepwater Asset Management.
Bull’s Take:
Tesla’s delivery skid is a buying opportunity for those with a stomach for volatility. Load up on dips—AI and autonomy will drive (TSLA) to new highs by 2026.
Headlines
Amazon Hits 1 Million Robots in Warehouses, Launches New AI Model (link)
Meta Launches ‘Superintelligence Labs’ to Lead AI Research (link)
Big Banks Raise Dividends, Boost Buybacks After Less-Stressful Stress Test (link)
Lululemon Accuses Costco of Selling Knockoff Athleisure Gear (link)
Modelo owner Constellation Brands misses on earnings as aluminum tariffs hit profitability (link)
Lockheed deal highlights Fujitsu as under-the-radar Japan defense stock (link)
