Stock Decline Continues Amid Broader Tech Rout
In premarket trade on Tuesday, Tesla’s stock fell further, marking a 3.3% decline in the previous session despite positive news about its energy storage gigafactory in Shanghai.
Trial Production Underway at Shanghai Gigafactory
The company has announced that trial production has begun at its energy storage gigafactory in Shanghai, with mass production expected to start early next year. This development is seen as a significant step forward for Tesla’s expansion plans in the Asian market.
Broader Tech Rout Continues Amid Fed Concerns
However, the broader tech sector continues to be affected by concerns about the pace of Federal Reserve interest rate cuts in 2025. This uncertainty has led to a decline in stocks across the board, with investors becoming increasingly cautious about their investments.
Elon Musk’s Impact on Tesla Stock
Tesla’s stock remains closely tied to the actions and statements of its billionaire founder, Elon Musk. Recent controversies surrounding Musk’s comments have had an impact on the stock, which has jumped around 68% for the year-to-date despite the current decline.
Musk Defends H-1B Visa Programme
Musk was embroiled in controversy recently after 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 provocative statements from the entrepreneur.
Musk’s Background and H-1B Visa Programme
Musk himself came to the US from South Africa on an H-1B visa, which allows US companies to hire skilled foreign workers. He defended the programme as vital to America’s success, stating that "the reason I’m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H-1B."
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Stock Drops 50% Amid Partnership Termination
In premarket trade on Tuesday, Sangamo Therapeutics dropped almost 50% following news that pharma giant Pfizer is ending a partnership to develop a new gene therapy for haemophilia A.
Late-Stage Trial Success Unaffected by Partnership Termination
Despite the drug meeting its goals in a late-stage trial, Pfizer has decided to end the partnership. Sangamo stated that it is assessing "all options" to continue making the drug and filing for US and European approval early next year.
Gene Therapy Market Growth Prospects
The gene therapy market is expected to experience significant growth in the coming years, with an increasing number of companies investing in research and development.
- Market Size: The global gene therapy market size was valued at $1.3 billion in 2022 and is projected to reach $6.4 billion by 2030.
- Growth Rate: The market is expected to grow at a CAGR of 20.5% during the forecast period.
Bitcoin (BTC-USD)
Volatility Continues Amid Market Uncertainty
Bitcoin ticked cautiously higher on the final day of the year, after a rollercoaster year which saw it smash through previous all-time highs.
Anticipation of Pro-Crypto Policies Under Trump Administration
The largest digital asset by market cap was trading at around $93,800 by mid-morning in London on a subdued day in markets. 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.
Potential Policy Changes Under Trump Administration
During the election cycle, Trump made several pledges in line with boosting 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, CEO of Patomak Partners and a former SEC commissioner, lined up to replace him.
Trump’s Pro-Crypto Appointments
- David Sacks: 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.
Endeavour (EDV.L)
Share Buyback Programme Announced
Endeavour stock was among the winners of the FTSE 100 (^FTSE) on Tuesday, climbing 1.8% after it announced a share buyback programme.
Ongoing Capital Structure Optimisation Efforts
The company stated that it is making the move in order to optimise its capital structure, with the transaction involving the repurchase of 15,700 of its ordinary shares as part of its ongoing buy-back programme.
Share Buybacks: A Strategic Move for Companies
Share buybacks can be a strategic move for companies looking to return value to shareholders and improve their financial performance. When executed correctly, share buybacks can have a positive impact on the company’s stock price and overall market value.
- Benefits: Share buybacks offer several benefits, including increased liquidity, improved credit ratings, and enhanced shareholder value.
- Risks: However, there are also potential risks associated with share buybacks, such as dilution of existing shares, increased debt levels, and market volatility.
