Dow Jones Futures Fall: Tesla Stock Soars On Deliveries; So Do These China EV Rivals

Dow Jones futures, S&P 500 futures and Nasdaq Futures all remained muted on Monday morning. Tesla (TSLA), a leader in electric vehicle sales, jumped after strong deliveries. Shares of China EV competitors Li Auto (LI), Nio (NIO), and XPeng(XPEV) all saw big gains.

Last week, the stock market rallied. The S&P 500 was back at 14-month highs while the Nasdaq was almost there. Apple (AAPL), which closed Friday with a market capitalization of $3 trillion, saw its shares fall Monday due to reports about production problems for the Vision Pro mixed reality headset.

Tesla Stock is on the rise.

Dow Jones Futures

Dow Jones futures fell 0.2% in comparison to fair value. S&P futures were slightly lower, while Nasdaq futures were slightly higher. Tesla stock has boosted the S&P 500, and in particular the Nasdaq 100.

The yield on the 10-year Treasury note increased by 4 basis points, to 3.86%.

Crude oil prices rose slightly.

The U.S. Stock Markets will close at 1 pm. The financial markets will be closed for Independence Day on Tuesday.

Stock Market Rally

Last week, the Dow Jones Industrial Average rose 2%. The S&P 500 index rose 2.35%, and the Nasdaq Composite advanced 2.2%. Russell 2000, a small-cap index, jumped 3.7%.

Last week, many of the leading stocks showed signs of a breakout or exhibited buy signals.

What is the only thing to worry about? The Nasdaq closed Friday 7.6% above the 50-day line while the Nasdaq is 8.3% over that important level. This raises the risk of another pullback.

Tesla Deliveries Set Record

Tesla's second-quarter deliveries increased to 466 140, a record high, compared with Q1's 422,875 records and Q4's 400,278 records. FactSet estimates that this number surpassed Q2 expectations of about 445,000.

In Q2, Model 3 and Y sales reached 446 915. Model S and X sales increased to 19,225.

Tesla announced some price reductions and modest price increases in Q2. It offered discounts on its inventory and other incentives, which could have further impacted gross margins.

Tesla has reduced production to below its capacity, but the result is that Tesla's production reached 479.700 units, which was more than deliveries. This means that Tesla needs to continue lowering prices, particularly if it wants more deliveries.

Tesla stock rose 6% during premarket trading.

Last week, shares rose by 2% to 261,77. TSLA shares have more than doubled by 2023, and are well above recent buy points.

China EV Sales

Li Auto reported sales of 32 575 in June, surpassing 30,000 for a first time. Delivery rates increased 150% compared to a year ago and by 15.2% from May.

The Nio sales rose 74% from 6,155 vehicles in May to 10,707, but fell 17.4% on a year ago. Prices are dropping and new models or completely revamped ones are driving sales.

Xpeng sold 8,620 vehicles in the month of June, an increase of 14.8% compared to May. This is a fifth consecutive month-to-month growth. Sales fell 44% from a year ago.

BYD, the EV and battery company, sold 253,046 cars in June. This is an 88% increase compared to a year ago and up from 240,220 vehicles in May and 210 295 in April. BYD sold a total of 251,685 vehicles in June, including 128,196 BEVs.

Li Auto and Nio stocks both jumped 6% on Monday morning, while XPeng soared 8%. Last week, all three China EV startups saw big gains. XPEV in particular had a great week.

BYD, which is traded over-the-counter in the U.S.A., has not yet been active. Strong gains in Hong Kong indicate at least a positive opening. BYD is in the buy zone.

Apple Stock

AAPL's stock price rose by 3.9% last weekend and 49% during the first half of this year. It now has a market capitalization of $3.05 trillion.

Apple stock dropped a small amount in premarket trading.

Financial Times reports that Dow Jones, the Dow Jones technology giant, has slashed its Vision Pro production estimates. Apple had planned to ship one million Vision Pro headsets by 2024. However, supply-chain issues and the complexity of the headset may result in shipments that are less than half the volume for the $3500 Vision Pro.

Goldman Sachs is reportedly trying to transfer its partnership with Apple (including an Apple credit card) to American Express. GS and American Express stocks were barely changed before the opening.

Keep in mind the overnight Dow Futures session.