Stock Decline Amid Broader Tech Rout
Despite positive news about its energy storage gigafactory in Shanghai starting trial production, with mass production expected early next year, Tesla stock declined in premarket trade on Tuesday. The 3.3% drop in the previous session tracks a broader tech rout, which has hit the market amid concerns about the pace of Federal Reserve interest rate cuts in 2025.
Elon Musk’s Controversial Remarks
The electric car maker’s stock continues to be closely tied to the actions and statements of its billionaire founder Elon Musk. Musk recently made several provocative statements, including claiming that he would ‘go to war’ with the MAGA movement over skilled migrant visas. He also vowed to kick out any ‘hateful, unrepentant racists,’ marking the latest in a series of controversial remarks.
Connection to H-1B Visa Programme
Musk’s recent outburst was in response to criticism of the H-1B visa programme, which allows US companies to hire skilled foreign workers. In his defense of the programme, Musk highlighted its importance to America’s success, citing his own experience as a recipient of an H-1B visa.
Stock Performance
Despite the controversy surrounding Musk’s remarks, Tesla stock has jumped around 68% for the year-to-date.
Stocks
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Stock Drops Amid Partnership Termination
Sangamo Therapeutics dropped almost 50% in premarket trade on Tuesday in the US, following news that pharma giant Pfizer is ending a partnership with the drug developer to make a new gene therapy to treat haemophilia A.
Assessment of Options by Sangamo
The company stated that it is assessing ‘all options’ to continue making the drug. Despite meeting its goals in a late-stage trial, Pfizer’s decision to terminate the partnership has raised concerns about the future of the project.
Potential Consequences for Sangamo
The move by Pfizer comes at a time when Sangamo was planning to file for US and European approval early next year. The termination of the partnership may have significant consequences for the company’s financials and growth prospects.
Cautionary Rise Amid Volatility
Bitcoin ticked cautiously higher on the final day of the year, after a rollercoaster year which saw it smash through previous all-time highs. The largest digital asset by market cap was trading at around $93,800 by mid-morning in London on a subdued day in markets.
Anticipation of Pro-Crypto Regulation
Over the last month, the asset has been volatile — heading to all-time highs past the $106,000 mark, as markets anticipate US president-elect Donald Trump’s incoming pro-crypto cast of advisers. During the election cycle, Trump made several pledges in line with boosting the crypto industry.
Potential Benefits for the Crypto Industry
One such pledge was to build a national bitcoin reserve for the US. He also vowed to sack the crypto critical US Securities and Exchange Commission (SEC) chair Gary Gensler, with Paul Atkins lined up to replace him. Atkins is known as a friend of the crypto industry and will likely be a softer touch on regulation.
Appointment of Crypto Tsar
Meanwhile, Trump appointed former PayPal executive David Sacks as the first crypto and AI tsar. Sacks has previously argued that opening the doors to crypto adoption would spur on growth and encourage innovation.
Share Buyback Announcement
Endeavour stock was among the winners of the FTSE 100 (^FTSE) on Tuesday, climbing 1.8% after it announced a share buyback. The transaction will involve the repurchase of 15,700 of its ordinary shares as part of its ongoing buy-back programme.
Optimisation of Capital Structure
The company stated that it was making the move in order to optimise its capital structure. Share buybacks can help to reduce the number of outstanding shares, which can have a positive impact on earnings per share and overall market value.
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