An Hour Ago
Iron ore prices to shed about $10 per ton from where they are currently, says Celsius Pro
Iron ore prices are set to trade at $115 to $110 per ton, Jonathan Barratt, CEO of Celsius Pro forecast told CNBC.
“I think the key moment that we’re focusing on is what the Chinese regulatory authorities are doing at the ports in terms of price regulation… and the fact that they really don’t want to see too much [iron ore] inventory at the ports,” he said, saying that what could result from that is a drop from 160 million tons of iron ore inventory down to 120 million tons.
In a recent response to rising iron ore prices in China, the National Development and Reform Commission (NDRC) released a statement that regulations and crackdown on illegal activities will be implemented to strengthen the supervision of iron ore market prices.
“As a result of that, we can see a significant fall back in that inventory build in Chinese ports… that’s going to sort of put a flavor of less demand into the equation,” said Barratt.
The benchmark 62%-grade iron ore last traded at $125.74 per ton.
—Lee Ying Shan
57 Mins Ago
Electricity demand in Hong Kong grows as the city adopts more EVs, says CLP
Electricity demand in Hong Kong is growing as the city focuses on moving forward after the pandemic, said Richard Lancaster, CEO of utilities firm CLP.
“The pattern of usages has been all over the place in the last three years … But the overall trend is that there is a growing demand for electricity,” Lancaster said.
As Hong Kong aims to achieve zero carbon emissions in its transportation sector before 2050, an increase in electricity usage is also a result of more electric vehicles on the road, said the CEO.
Lancaster said the company is “supporting the use of electricity in electric vehicles as a replacement for fossil fuels,” adding that it is also supporting charging infrastructures so drivers are able to adopt EVs efficiently and conveniently.
— Charmaine Jacob
An Hour Ago
Tesla faces tough price competition from Chinese EV brands with cost advantage: Consultancy
Tesla needs to lower its prices to compete with Chinese electric vehicle makers which have a cost advantage, according to an investment advisory firm.
Chinese battery maker CATL reportedly offered to sell its batteries to Chinese automakers at a discount, as Reuters reported.
“China, in particular, is a very hyper competitive market. CATL has over 30% of the battery supply chain locked in already. With that kind of scale, they can leverage that with pricing advantage,” said Bill Russo, founder and CEO of Automobility Limited, on CNBC’s “Squawk Box Asia” Tuesday.
He added that Tesla “lacks that product range and portfolio that is bringing traffic into the showroom.”
“If you are Tesla, you cannot be selling older models against fresh competition. So its new model has to come in at a low price point in order to create the showroom buzz and to be price competitive in China,” said Russo.
– Sheila Chiang
An Hour Ago
Amundi likes China A-shares, but ‘not the very big names’
Despite China’s reopening, investors should still be selective when looking at China stocks, according to Amundi chief investment officer Vincent Mortier.
Speaking to CNBC’s “Squawk Box Asia,” Mortier said he likes A-shares in China, but not very large names.
He highlighted “innovative players” in areas like the health-care and semiconductor sectors, adding that “there is value to be found, but you need to dig a bit further.”
As for the Chinese real estate sector, Mortier thinks there are still opportunities, pointing out that “there have been names which are very cheap for good reason [or have] been hammered too much. So if you select the good names, you can make very good returns. But you need to swallow volatility and the risks.”
— Lim Hui Jie
4 Hours Ago
South Korean battery materials maker shares jump after winning Tesla order
Shares of South Korean battery materials maker L&F jumped more than 15%, after it announced winning a nearly $3 billion order from Tesla.
The company said in a filing that it has won a $2.91 billion contract to provide high-nickel cathode materials to Tesla starting January 1, 2024 to December 31, 2025.
Shares of L&F last traded 10% higher on Tuesday, hovering at its highest levels since May 2022.
– Jihye Lee
5 Hours Ago
Hong Kong to end mask mandate from March 1
Hong Kong will end its mask mandate for indoors and outdoors on Wednesday, March 1 – its Chief Executive John Lee said in a briefing.
When asked for the reasoning behind the timing, Lee cited “overall assessment” and emphasized that the government had previously said it would be closely monitoring the situation.
Mask rules for hospitals and nursing homes will be “added administratively,” Lee said.
– Jihye Lee
5 Hours Ago
Bank of Japan official reiterates support for 2% inflation target
Bank of Japan’s deputy governor Masazumi Wakatabe reiterated his support for the central bank’s inflation target of 2%, according to a transcript of his speech delivered at Columbia University.
“The very idea of having a clearly defined inflation target is based on the importance of communication,” he said in his speech.
“Communication with the general public is particularly important since their perception plays a key role in anchoring inflation expectations, and thus, affects the actual evolution of inflation,” he said, adding the central bank’s “sustainable monetary easing” brought a positive effect on the real economy.
– Jihye Lee
5 Hours Ago
SM Entertainment announces plans to change shareholder return policy
South Korean entertainment company SM Entertainment announced an enhanced shareholder return policy ahead of its annual general meeting in March, according to a Monday filing.
The company plans to expand its shareholder return targets to at least 30% of its separated net income from 20%.
The move is seen as part of wider efforts to keep small investors that own just over 70% of shares in SM.
Rival K-pop agency Hybe became the largest shareholder of SM after purchasing a 14.8% stake from Lee earlier this month, while Kakao bought a 9.05% stake.
Shares of SM Entertainment rose 0.25% on Tuesday, Hybe gained nearly 3% and Kakao inched up 0.32%.
– Lim Hui Jie
6 Hours Ago
Japan retail sales jump 6.3% in January, beating expectations
Japan’s retail sales surged 6.3% for January compared to the same period last year, beating economists expectations of 4%.
Government data showed commercial sales in January 2023 totaled 45.7 trillion yen ($335 billion), a 3.2% increase over the same month last year.
Wholesale sales were 32.7 billion yen, up 2% compared to last year, while retail sales increased by 6.3% to 13 trillion yen.
–Lim Hui Jie
7 Hours Ago
Japan industrial production falls more than expected, worst in eight months
Japan’s industrial production fell 4.6% compared to a month ago in January, the biggest decline the economy has seen in eight months, according to Japan’s Ministry of Economy, Trade and Industry.
The reading fell further than expectations of a 2.9% decline and follows a rise of 0.3% in the previous month.
Autos, semiconductor-making equipment, tech parts and devices led the decline overall. Shipments moderately fell and leaving inventories lower for the second straight month.
Core capital goods saw sharp falls, the release said.
– Jihye Lee
6 Hours Ago
CNBC Pro: Semiconductors, A.I. and more: These top-rated ETFs offer a way to play tech’s hottest trends
Two tech themes have taken Wall Street by storm so far this year.
One is the return of semiconductor stocks, as demand bounces back for chips; the other is artificial intelligence, following the buzz surrounding chatbot ChatGPT.
CNBC Pro screened for the highest-rated ETFs with exposure to semiconductor and/or AI-related stocks (among others) using Morningstar data. The resulting funds all received a four- or five-star rating by Morningstar, and have performed well over the past three years.
CNBC Pro subscribers can read more here.
— Weizhen Tan
6 Hours Ago
CNBC Pro: ‘Pretty bearish on Tesla’: Market pro says price cuts will hit the EV giant’s share price
23 Hours Ago
China releases draft plan to improve lending for renting property
The People’s Bank of China and the China Banking and Insurance Regulatory Commission released a draft of measures to enhance financial institutions’ capacity in lending to firms that lease residential properties.
The measures are aimed at broadening bond financing channels for rental housing firms, support issuance of operating loans for leasing, and strengthen credit support for construction of rental housing, the draft showed.
— Jihye Lee
11 Hours Ago
Interest rates are driving the recent stock market performance, chart analysts say
Investors wondering what’s pushing equity market moves should look at interest rates.
Chart analysts say last week’s sell-off can be tied with the advances in bond yields. The three major stock market indexes posted their worst weeks of the year last week.
“The recent reset by the equity market feels more of a byproduct of rates higher, rather than a [simple] reset out of overbought territory for stocks,” said JC O’Hara, chief market technician at Roth MKM, in a note to clients Sunday.
“Overall, we believe this pullback has been orderly for stocks,” he added in his note. “However higher rates are becoming a large factor once again.”
And analysts said fixed income moves could be a driver of the stock market going forward. CNBC Pro subscribers can read the full story here.
14 Hours Ago
The bear market could resume in March, says Morgan Stanley’s Wilson
The stock market’s recent attempt to pull out of a downtrend could soon come to an end, according to Morgan Stanley.
Mike Wilson, the firm’s chief U.S. equity strategist, said in a note to clients Monday that the S&P 500 is on the verge of falling back into a bear market.
“With the equity market showing signs of exhaustion after the last Fed meeting, the S&P 500 is at critical technical support. Given our view on earnings, March is a high risk month for the bear market to resume,” Wilson said.
For more, read the full story on CNBC Pro.
—Jesse Pound, Tanaya Macheel
19 Hours Ago
2-year yield reached highest level since 2007
The 2-year yield added to its February gains Monday, reaching 4.8% on the day. That’s its highest level since July 2007. Short-term rates have been moving higher this month as traders fret over the possibility of tighter monetary policy for longer than anticipated.
2-year rate hits highest level since July 2007
- Stellantis will use a Super Bowl ad for its Ram brand to indirectly take shots at the current all-electric vehicle market, specifically pickup trucks.
- The ad, called “Premature Electrification,” spoofs ads for male sex-enhancement drugs, as well.
- The 60-second commercial also debuts the production version of the Ram 1500 REV electric pickup that is expected to go on sale next year.
Ram’s 2023 Super Bowl ad debuts the production version of the Ram 1500 REV electric pickup that is expected to go on sale late-next year.
DETROIT – Stellantis will air a 60-second Super Bowl ad for its Ram brand to indirectly take shots at the current all-electric vehicle market, specifically pickup trucks.
The commercial, called “Premature Electrification,” or “PE,” spoofs ads for male sex-enhancement drugs. It features electric vehicle owners discussing problems they’ve had with their trucks – from insufficient range and power to problems charging and other potential issues associated with EVs.
“Are you excited about buying an electric vehicle but worry that it could leave you … unsatisfied?” says the ad’s star and narrator Jason Jones, a comedian best known for his work on “The Daily Show with Jon Stewart” and for appearing in comedic Budweiser and Molson ads. “Then you could be one of many Americans concerned about premature electrification.”
The ad debuts the production version of the Ram 1500 REV electric pickup that is expected to go on sale next year. Online reservations for the electric pickup, which debuted as a concept in January, also open Sunday. The vehicle resembles the concept but also the current Ram pickup, which has a traditional internal combustion engine.
Stellantis Chief Marketing Officer Olivier Francois, who has become known for unique and well-received Super Bowl commercials, said the main message is Ram’s electric pickup may not be the first to the market, but it’s going to be worth waiting for compared to the current offerings.
“We have an incredible truck that’s electric that can really deliver on what truck people want a truck to do, so ‘wait, wait and see’ is the meaning of the ad,” he told CNBC. “That’s our pitch.”
When the electric Ram arrives to market, it’s expected to join an increasingly crowded yet relatively unproven segment that includes the GMC Hummer EV, Rivian R1T, Ford F-150 Lightning and Lordstown Endurance. Others such as the Chevrolet Silverado EV, GMC Sierra Denali and Tesla Cybertruck are expected to be on sale by next year or sooner.
“We are on an exciting electrification journey that will see Ram push past the competition in areas customers care about the most: range, payload, towing and charge time,” Ram Trucks CEO Mike Koval said in a release.
Jason Jones, a Canadian-American comedian best known for his work on “The Daily Show with Jon Stewart,” stars and narrates Ram’s “Premature Electrification” Super Bowl 2023 ad.
The ad is unique compared to most of the company’s Super Bowl spots under Francois, who has aired many thought-proving commercials and convinced celebrities not known for being in ads such as Bruce Springsteen, Bill Murray and Eminem to rep the automaker and its vehicles or brands.
The demeanor of the commercial is similar to a 2015 Super Bowl ad aired under Francois by Fiat Chrysler – a predecessor of Stellantis – that followed the path of a little blue pill that an amorous Italian man accidentally loses as he attempts to swallow it.
“It’s lighthearted,” Francois said. “I think it’s just a need. We’ve been through a lot – from Covid to the war in Ukraine to inflation and recession. People want comedic relief.”
Francois said the commercial is not meant to make light of anyone who takes male enhancement drugs. He said the “spoof” ad is aimed at the commercials for the prescription drugs and the current electric vehicle market.
Much like a real pharmaceutical commercial, viewers should pay attention to the fine print. In addition to confirming symptoms of premature electrification aren’t real but “certainly worth talking about,” it says “range-lengthening technology” mentioned in the ad for the vehicle will “come later.”
The Ram ad is scheduled to air in the fourth quarter of the game between the Philadelphia Eagles and Kansas City Chiefs. Before then, the automaker also will air a 60-second ad for its Jeep brand during the second quarter, focusing on its “4xe” Wrangler and Grand Cherokee plug-in hybrid electric SUVs.
The Jeep ad is a much more traditional Super Bowl ad, featuring dancing animals along with the electrified Jeeps. Where it’s unique is the music. The commercial features a remixed version of the 1983 hit “Electric Boogie” by Marcia Griffiths. The song, also known as the “Electric Slide,” was initially recorded by the late Bunny Wailer in 1976.
“The two ads are not pursuing the same objective,” Francois said. “While Jeep is all about pushing the 4xe plug-in hybrid technology … to really push sales, Ram is a totally different thing. We have nothing to sell right now. It’s an investment on the brand itself.”
Griffiths is featured on the new version of the song along with Grammy Award winning reggae artist and producer Shaggy and others. Stellantis is releasing the song Sunday on streaming services.
The “Premature Electrification” and “Electric Boogie” ads were created in partnership with Chicago-based agency Highdive. Both ads were released online Sunday ahead of the Super Bowl.
Stellantis declined to release how much it spent on the ads. The cost of a 30-second commercial is approaching $7 million, according to Kantar Media.
Jeep’s one-minute Super Bowl ad features dancing animals and the brand’s plug-in hybrid electric Jeep Wrangler 4xe and Grand Cherokee 4xe SUVs.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York.
Brendan McDermid | Reuters
Dow Jones Industrial Average futures are near the flatline Wednesday night as investors parsed through the latest batch of corporate earnings that dropped after the bell.
Futures tied to the Dow gained 9 points, trading around the flatline. S&P 500 futures added 0.1%, while Nasdaq-100 futures advanced 0.3%.
A smattering of earnings that came after the bell weighed on the market. Tesla and Levi Strauss were among stocks advancing after beating expectations for revenue and earnings per share.
IBM dipped more than 2% despite exceeding analyst expectations. The legacy tech giant also said it said would cut 3,900 jobs, or about 1.5% of its workforce. Chevron, meanwhile, added more than 2% after announcing a $75 billion share repurchasing program.
“Clearly, we’re moving through the heart of earnings season at this point,” said Bill Northey, senior investment director at U.S. Bank. “There has been some positive news and some less positive news.”
Those reports come after mixed session on Wall Street. The Dow ended Wednesday’s session up 0.03% after dropping more than 400 points earlier. Meanwhile, the Nasdaq Composite and S&P 500 dipped just 0.18% and 0.02%, respectively.
Investors will watch Thursday for earnings from airlines including Southwest, American, Alaska and JetBlue. Intel is also set to report. They will also watch for morning data on jobless claims, the gross domestic product, durable goods and new home sales.
Stock futures were sharply lower Thursday after retail sales for November fell more than expected, raising fears that the Federal Reserve’s relentless interest rate hikes are tipping the economy into a recession.
Futures tied to the Dow Jones Industrial Average fell 402 points, or 1.17%. S&P 500 futures dropped 1.4%, and Nasdaq 100 futures lost 1.7%.
Tesla shares fell more than 2% in the premarket after CEO Elon Musk sold a chunk of his stake in the company.
Treasury yields declined following the most recent Fed rate hike, with the yield on the benchmark 10-year Treasury note falling below 3.5%.
Retail and food services sales fell 0.6% in November, below Dow Jones estimates of a 0.3% decline.
Those moves follow a down session Wednesday when the Dow fell 142 points, while the S&P 500 declined 0.61% and the Nasdaq Composite dropped 0.76%.
Investors digested the Federal Reserve’s latest comments following a boost to its overnight borrowing rate. The central bank said it will continue hiking rates through 2023 and projected a higher-than-expected terminal rate of 5.1%. With Wednesday’s half a percentage point hike, the targeted range for rates is currently 4.25% to 4.5%, which is the highest in 15 years.
Despite favorable improvements like modest growth, spending and production, Powell indicated he remains concerned job gains are too robust and the unemployment rate is too good for the Fed’s fight against inflation.
“People assume earnings are going to come down, but it’s the magnitude of that decline and how fast it’s going to happen — we think that is where the surprise is,” Morgan Stanley’s Mike Wilson said Thursday on CNBC’s “Squawk Box.”
“That negative operating leverage that we see from that falling inflation… is what is going to hurt margins, and that’s irrespective of whether there is an economic recession,” Wilson added.
Ford F-150 Lightning trucks manufactured at the Rouge Electric Vehicle Center in Dearborn Michigan.
Courtesy: Ford Motor Co.
DETROIT – About 65% of Ford Motor’s dealers have agreed to sell electric vehicles as the company invests billions to expand production and sales of the battery-powered cars and trucks, CEO Jim Farley said Monday.
About 1,920 of Ford’s nearly 3,000 dealers in the U.S. agreed to sell EVs, according to Farley. He said roughly 80% of those dealers opted for the higher level of investment for EVs.
Ford offered its dealers the option to become “EV-certified” under one of two programs — with expected investments of $500,000 or $1.2 million. Dealers in the higher tier, which carries upfront costs of $900,000, receive “elite” certification and be allocated more EVs.
Ford, unlike crosstown rival General Motors, is allowing dealers to opt out of selling EVs and continue to sell the company’s cars. GM has offered buyouts to Buick and Cadillac dealers that don’t want to invest to sell EVs.
Dealers who decided not to invest in EVs may do so when Ford reopens the certification process in 2027.
“We think that the EV adoption in the U.S. will take time, so we wanted to give dealers a chance to come back,” Farley said during an Automotive News conference.
Ford’s plans to sell EVs have been a point of contention since the company split off its all-electric vehicle business earlier this year into a separate division known as Model e. Farley said the automaker and its dealers needed to lower costs, increase profits and deliver better, more consistent customer sales experiences.
Farley on Monday also reiterated that a direct-sales model is estimated to be thousands of dollars cheaper for the automaker than the auto industry’s traditional franchised system.
Wall Street analysts have largely viewed direct-to-consumer sales as a benefit to optimize profit. However, there have been growing pains for Tesla, which uses the sales model, when it comes to servicing its vehicles.
Ford’s current lineup of all-electric vehicles includes the Ford F-150 Lightning pickup, Mustang Mach-E crossover and e-Transit van. The automaker is expected to release a litany of other EVs globally under a plan to invest tens of billion of dollars in the technologies by 2026.
Ron Baron, founder of Baron Capital
Anjali Sundaram | CNBC
I began my career as a securities analyst in 1970. It was a tumultuous time.
The Vietnam War, Watergate, the resignation of President Richard Nixon, the Iranian hostage crisis, a recession, inflation, interest rates in the double-digits, gas prices that had tripled. The only crisis with which we did not have to contend during that decade was a pandemic. Further, in the midst of chaos, the stock market crashed, resulting in a global bear market that lasted from 1973 to 1974. It was one of the worst downturns since the Great Depression. The only one comparable was the financial crisis of 2007–2008.
My experience during the 1970s was foundational. The stocks I had recommended were small-cap companies. They included Disney, McDonald’s, Federal Express, Nike, and Hyatt.
After these stocks doubled or tripled, I recommended selling. That was because I earned brokerage commissions — not a salary. Several years later, when I looked back, virtually all those stocks continued to grow dramatically.
I concluded that, instead of trading stocks or trying to predict market fluctuations, the better strategy was to discover and invest in great companies at attractive prices and stay invested for the long term.
I believed then, and believe now, that you do not make money trying to forecast short-term market moves.
In my 52 years of investing, I have never seen anyone consistently and accurately predict what the economy or the stock market was going to do. So whenever extraneous events happened and stocks uniformly declined, I believed that represented long-term opportunity.
Investing in ‘pro-entropic’ businesses
I also learned to invest in “pro-entropic” businesses. In times of entropy – disorganized chaos – I found many of the best companies did not just survive but thrived. They took advantage of opportunities that tough times presented. They acquired weaker competitors at bargain prices or gained market share as their rivals faltered. They accommodated customers, creating loyalty and goodwill and enhancing lifetime value. While continuing to invest in key areas such as R&D and sales, they rooted out extra fat elsewhere in their budgets, creating long-term efficiencies. When conditions normalized, they were better positioned than ever to take advantage of their resiliency.
After the 1973-1974 bear market, I saw this pattern play out again and again. The stock market crash of 1987, the dot-com bubble burst of 2000-2001, the 2007-2008 financial crisis, and now. That is why I like to say we invest in companies, not in stocks.
We look for companies that will grow over full market cycles, at a faster-than-average rate. We invest based on what we think a business will be worth in five or 10 years, not what it is worth right now.
Our goal is to double our money about every five or six years. We seek to accomplish that by investing for the long term in companies we believe are competitively advantaged and managed by exceptional people.
The Tesla example
Tesla is probably the most well-known company we currently own. But I would point out that it is no outlier. In fact, Tesla is the perfect example of how our long-term investment process works.
We first invested in 2014. I thought Elon Musk was one of the most visionary people I had ever met. What he was proposing was so revolutionary, so disruptive, yet made such sense.
We have owned its stock for years while Tesla built its business. Sales grew, but its share price, although extremely volatile, was mostly flat. We remained invested throughout that time, and when the market finally caught on in 2019, Tesla’s share price increased 20 times. That’s why we try to invest in companies early – because you never know when the market will finally perceive the value we perceived, and it drives the share price up.
We only invest in one kind of asset – growth equities. Why? Because we think growth stocks are the best way to make money over time.
While the simple answer to combat inflation is to invest over the long term, the concept of compounding tells us why. … Over time, this effect snowballs…
Historically, our economy has grown on average 6% to 7% nominally per year, or doubling every 10 or 12 years, and the stock markets have closely reflected that growth. U.S. GDP in 1967 was $865 billion, 55 years later it is $25.7 trillion — or over 28 times greater than it was in 1967.
The S&P 500 Index was 91 in 1967. It is now at about 3,700.
We seek to invest in companies that grow at twice that rate at a time when we believe their share prices do not reflect their favorable prospects.
Stocks are also a terrific hedge against inflation. Inflation is once again back in the headlines, but it has always been present. The purchasing power of the dollar has fallen about 50% every 18 years, on average, over the past 50 years.
While inflation causes currencies to lose value over time, it has a positive impact on tangible assets, businesses and economic growth. This means stocks are the best way to counter the devaluation of your money.
While the simple answer to combat inflation is to invest over the long term, the concept of compounding tells us why. When your savings earn returns, compounding allows these returns to earn even more returns. Over time, this effect snowballs, and earnings grow at an increasingly fast rate.
So, if you earn 7.2% on an investment, which is the historic annual growth rate of the stock market (excluding dividends) for the past 60 years, the growth of your investment will be exponential. You will have nearly seven times your initial amount in 30 years, 12 times in 40 years, and more than 23 times in 50 years!
I’d also like to point out that the stock market is one of the most democratic investment vehicles — available to everyone, unlike real estate, private equity, hedge funds, etc. I founded Baron Capital in 1982 to give middle-class people like my parents a chance to grow their savings. Even today, 40 years later, that is why I do what I do.
Ron Baron is chairman and CEO of Baron Capital, a firm he founded in 1982. Baron has 52 years of research experience.
Kyle Vogt, co-founder, president and chief technology officer for Cruise Automation Inc., speaks as he stands next to the Cruise Origin electric driverless shuttle during a reveal event in San Francisco, California, U.S., on Tuesday, Jan. 21, 2020.
David Paul Morris | Bloomberg | Getty Images
Autonomous vehicle venture Cruise, which is majority-owned by General Motors, just scored the final permit it needed to offer its robotaxi service to paying riders in San Francisco, the company announced on Thursday.
Cruise boasted in a blog post that the authorization is “the first-ever Driverless Deployment Permit granted by the California Public Utilities Commission, ” and makes the company that first to operate a “a commercial, driverless ridehail service in a major US city.”
Earlier, the California Department of Motor Vehicles approved autonomous vehicle deployment permits for both Cruise and Alphabet‘s Waymo.
Cruise was already offering nighttime rides to the public in San Francisco in its driverless cars, although it had not yet required passengers to pay a fare.
Police previously pulled a Cruise driverless vehicle over in San Franciso, and a video of the incident went viral. The California DMV told CNBC that, despite that incident , as of late April the department had yet to issue a traffic ticket to any driverless vehicle operator.
Rodney Brooks, professor emeritus in robotics at the Massachusetts Institute of Technology, rode in Cruise driverless taxis recently and wrote favorably of the experience on his blog.
He said, in that post, “Cruise has put together an MVP, a ‘Minimal Viable Product,’ the lynchpin of successful tech.” He also specified that he does not believe mass adoption of driverless cars is near. He wrote, “We have a ways to go yet, and mass adoption might not be in the form of one-for-one replacement of human driving that has driven this dream for the last decade or more.”
Competitors of Cruise are also testing driverless vehicles in San Francisco.
Alphabet’s Waymo has offered free driverless rides to employees or members of a testing program in San Francisco. It has also completed “tens of thousands” of rides without a driver behind the wheel in Arizona.
Another driverless startup, focused on transporting goods instead of passengers, Nuro, has a deployment permit to operate driverless cars in San Francisco, too.
While Tesla CEO Elon Musk often touts the company’s ambitions to deliver cars that are “robotaxi-ready,” Tesla vehicles at a maximum feature its Full Self Driving Beta program, an experimental driver assistance system, which requires drivers to keep their hands on the wheel and remain attentive to the road at all times.
Jim Cramer, host of CNBC’s “Mad Money” and Investing Club, says it’s always possible to find stocks with high growth potential — if you know how.
Sometimes, it can be as simple as liking a company and its products, then following up with research into whether the stock feels worth investing in, Cramer tells CNBC Make It.
That was the case for Cramer’s daughter when she decided to invest in electric car maker Tesla. In 2019, she was driving from Oregon to L.A. and decided to rent a Tesla. She wasn’t into cars before, Cramer says, but she was amazed by how much she liked driving an electric vehicle, and how easy it was to refuel.
“She said it was the most fun car in the world,” says Cramer.
His daughter was sold on Tesla, but Cramer himself was skeptical about the company and pointed out that the stock was expensive.
Still, Cramer’s daughter said she believed in Tesla’s CEO, Elon Musk. She also said that Cramer held a bias against the company because he was too old to see the potential in electric cars.
“I’m going to save up to own a Tesla and I want to buy the stock of Tesla,” Cramer recalls her saying.
Sure enough, she bought in and saw Tesla’s stock increase 10 times, says Cramer. “She had conviction. She did the work and bought it,” he says. When investing in a company’s stock, “the takeaway here is, do you like it?”
If the answer is yes, then you should “do the work” to decide if it’s a worthwhile investment, starting with checking out the company’s filings with the Securities and Exchange Commission. These reports provide information about key metrics like revenue, net income, debt-to-equity ratio and cash flow.
You’ll also want to learn as much as you can about the company and its competitors. You can do this by reading news stories, looking through the company’s website and listening to the company’s earnings calls, if they are available.
Whichever company you choose to research, picking one you like can be a great way to identify a stock that has growth potential. That’s why it’s important to understand your preferences as a consumer, says Cramer.
“When you want to invest in a great growth stock, you need to know yourself,” he says.
Plus, if a company creates an innovative product that you like, they’re more likely to keep making good products even as consumer demand shifts, says Cramer.
He points to Alphabet as an example: As Google, it started as a search engine company first, before dominating ad sales. Similarly, Netflix was a DVD mail-order business before it pivoted to streaming.
“We’re buying shares of companies here — not renting shares of speculation — and a lot of people get those confused,” says Cramer. When you believe in a company and its potential, you’re more likely to overlook short-term dips to its stock value and hold onto them for the long haul, he says.
“When the [stocks] go down and you don’t believe in them, you sell,” he says. “The equivalent of buy high and sell low — cardinal sin.”
To learn more about investing, you can join the CNBC Investing Club with Jim Cramer at a discounted rate.
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