Pre-market US Stocks | Tesla plunges after earnings, TAL Education soars! NVIDIA leads chip stocks higher

Tesla's pre-market stock fell more than 7%, with fourth-quarter performance below expectations and a warning that growth will slow this year. TAL Education's pre-market stock briefly rose more than 8%, with the company's third-quarter net revenue exceeding expectations. American Superconductor briefly rose more than 20%, with Q3 earnings per share and sales exceeding expectations.

Top News in US Stocks

Xiao Yuanqi, Deputy Director of the China Banking and Insurance Regulatory Commission, stated at a press conference that a relevant work deployment meeting will be held soon. Banks are required to take action as soon as possible, coordinate with local governments, and work together with the housing department to provide precise support for reasonable financing needs of real estate projects.
Tesla CEO Elon Musk stated during the earnings conference call, "Frankly, if there were no trade barriers, Chinese car companies would almost certainly destroy most other car companies in the world. They are very good." Tesla also mentioned that they have not seen any obvious opportunities for collaboration with Chinese car manufacturers unless they are allowed to use Tesla's charging network or license their autonomous driving technology.
Tesla also mentioned that they are currently in between two major "waves of growth," and the production of the next generation of low-cost vehicles is expected to start by the end of 2025, depending on when the Austin Gigafactory exits new manufacturing technologies.
TAL Education reported a net revenue of $373.5 million for the third quarter, exceeding the estimated $329.5 million. Adjusted earnings per ADS for the third quarter were $0.00, lower than the estimated $0.01.
The Federal Aviation Administration (FAA) announced the suspension of Boeing's 737 MAX aircraft production expansion plan, including the 737-9 MAX aircraft.

Pre-market Movement

In pre-market trading, stock index futures rose, and Pro Vix Mid Futures also increased.

Bitcoin is currently trading at $40,065, up 0.2% in the past 24 hours. Ethereum is trading at $2,224, down 0.6% in the past 24 hours.

Tech stocks showed mixed performance in pre-market trading, with Tesla falling over 7% and NVIDIA, AMD, and Intel rising over 1%.

Chinese stocks also showed mixed performance, with TAL Education initially rising over 8%, NetEase up nearly 3%, JD.com and Li Auto rising over 1%, Pinduoduo increasing, and Alibaba, NIO, XPeng, Bilibili, and Baidu falling.

In terms of individual stocks, American Superconductor initially rose over 20%, with Q3 earnings and sales exceeding expectations.

IBM initially rose over 9% as Q4 performance exceeded expectations, with strong growth in its artificial intelligence business.

Interactive Brokers Group fell 4% as it experienced two consecutive days of shareholder sell-off.

Strategy Review

1. Company Analysis | Is Tesla the biggest victim of price wars?

The minimal impact of Tesla's price reductions, stagnant profitability, sluggish sales growth, and a lack of new vehicle models have cast a shadow over Tesla's prospects. In 2024, Tesla, accustomed to rapid progress, may focus on stability.

2. Small-cap stocks show strong rebound, and the bull market in US stocks is expected to continue

This rotation towards small-cap stocks signals the Federal Reserve's easing of monetary policy. The market breadth of the seven giants in the US stock market has improved, with the Russell 2000 Index outperforming the S&P 500 Index. There may be many opportunities in this bull market.

3. In just 24 days, the US stock market has exceeded the "Wall Street annual target". Is it rising too fast?

After five consecutive gains, the S&P 500 index broke through 4867 points on Wednesday, achieving a level that analysts predicted would take nearly 11 months to reach, according to Bloomberg's compilation.

4. US tech stocks are "exploding" the European and American stock indices!

Continue to go all in on AI! The earnings reports of AI chip giants have brought continuous good news, signaling the strong demand for AI and causing a surge in tech stocks. Overnight, AMD and Google reached new all-time highs, while Microsoft and Meta set consecutive new highs for two days.

5. Understanding the market | Why could the US stock market fall 10% in the short term?

"The level of profits, especially in the Nasdaq, is increasingly being scrutinized. Positions and profits are expanding, with an average profit of nearly 5% for long positions, increasing the risk of profit-taking and creating potential resistance to a sustained rebound in the short term."