The Chicago Journal

BuzzFeed will see off 15% of staff in recent memo

Buzzfeed The technology sector began a wave of significant layoffs in late 2022 that would endure until 2023.

BuzzFeed, a journalism and media company, observed a similar trend.

During the internet age, the digital media firm prospered, but that is going to change.

The news

BuzzFeed CEO John Peretti notified employees on Thursday that the firm is cutting off 15% of its workforce and closing its news division.

The decision would have far-reaching repercussions for the corporation’s administrative, economic, content, and technology divisions.

More than 180 workers will be let go.

BuzzFeed employs around 1,200 workers, according to the company’s most recent securities filing.

BuzzFeed News

BuzzFeed News is the content part of the digital media firm, and it employs over 100 individuals.

According to two persons familiar with the matter, the branch loses around $10 million every year.

By providing legitimate news and investigative reporting, BuzzFeed positioned itself as the leading source of viral material.

In 2021, BuzzFeed News was awarded the Pulitzer Prize for its coverage of Muslim incarceration in China.


Despite the success of the branch, a few wealthy owners petitioned John Peretti to close it.

The company’s shares have dropped by more than 90% since its IPO in late 2021.

On Thursday, the stock fell more than 20% to 75 cents.

The allegations come at a challenging time for digital media organizations, as publishers lay off workers and advertisers cut back on expenditure.

Budget cuts have hurt publications such as the Wall Street Journal, Dow Jones, and Vox Media.

Vice Media started selling in January, although at a cheaper cost.

The firm was worth $5.7 billion in 2017, and it was projected to be sold for less than $1 billion in 2018.

According to Jonathan Miller, CEO of Integrated Media, a digital media investment firm:

“There’s no free lunch anymore in the [digital media] space in the sense that the advertising market this year is not particularly strong, and everything has to be earned.”

Miller also claimed that going public with a digital media company like Buzzfeed would be an unwise move.

“There’s not that many public companies in digital media,” he said.

“And I think investment dollars in general will be tough to come by unless you can show a real differentiated plan.”

Read also: EzChatAI: The Future of Logistics is Here

Other layoffs

BuzzFeed isn’t the only digital media business to lay off a large number of employees.

Insider, owned by the German firm Axel Spring, has informed its employees that 10% of its personnel would be laid off.

The warning was sent via email to both union and non-union staff.

Affected employees will get a minimum of 13 weeks of basic income, according to the letter.

Their medical insurance will remain valid until August as well.

The layoffs were reportedly caused by a major fall in advertising expenditure in technology, finance, and distribution, as well as revenue share interruptions.

“As you know, your industry has been under significant pressure for more than a year,” Insider President Barbara Peng wrote.

“The economic headwinds that have hurt many of our clients and partners are also affecting us.”

“Unfortunately, to keep our company healthy and competitive, we need to reduce the size of our team.”

“We have tried to avoid taking this step, and we are sorry about the impact it will have on many of you.”

BuzzFeed today

According to John Peretti, HuffPost and BuzzFeed’s flagship site is looking for BuzzFeed News editors and writers for a variety of positions.

Furthermore, the company is decreasing expenditure, hiring, and other non-essential costs.

“We’ve faced more challenges than I can count in the past few years: a pandemic, a fading SPAC market that yielded less capital, a tech recession, a tough economy, a declining stock market, a decelerating digital advertising market, and ongoing audience and platform shifts,” he wrote.

Peretti feels he could have handled the transition more effectively.

He also expressed reservations about admitting that huge platforms could not offer the required distribution or financial support for high-quality, free social media content.

BuzzFeed’s CEO also announced the resignations of sales chief Edgar Hernandez and operations executive Christian Baesler.

Initial layoffs

BuzzFeed laid off around 180 employees, or 12% of its employment, in December 2022.

The layoffs were announced in reaction to BuzzFeed’s acquisition of Complex Networks.

BuzzFeed will also downsize its presence in New York in 2022.

It also shuttered three of its four Los Angeles locations.

BuzzFeed’s journalistic efforts were reduced in order for the company to become more financially sustainable, however this resulted in the resignation of several editors.

In 2022, the firm went public via a special purpose acquisition vehicle, with shares dropping more than 40% in the first week of trade.

According to one investor, closing the newsroom might result in the stock hitting $300 million in value.

Furthermore, John Peretti claimed that the company intends to lay off staff in a number of other countries.

Banks across Europe witness stock drops, banking crisis looming over their heads

Banks On Friday, the European financial crisis took an unexpected twist, with bank stocks tumbling.

Investors had a role, acting on their lingering anxieties about previous bank crises spreading into the broader industry.


The European Stoxx Europe 600 Banks index tracks the top 42 European and British banks.

It finished 3.8% lower.

Despite this, the index has dropped roughly 18% from its peak in late February.

Similarly, the London FTSE 100 index sank 1.3%.

Deutsche Bank (DB) shares fell 14.5% before rebounding to close down 8.5%.

UBS and Credit Suisse’s shares declined 3.6% and 5.2%, respectively.

Deutsche Bank

Deutsche Bank’s costs for protecting itself against a potential debt default have grown in recent days.

According to S&P Market Intelligence data, the bank’s five-year CDS hit 203 basis points on Thursday, the highest level since early 2019.

On Friday, German Chancellor Olaf Scholz declared that there was no need to be concerned about Deutsche Bank.

“It’s a very profitable bank,” said Scholz.

EU leaders issued a joint statement in Brussels applauding the European banking sector for its stability and proper capital and liquidity levels.

Michael Hewson, chief market analyst at CMC Markets, backed up the news, saying:

“The rising price of insuring CDS senior debt is weighing on Deutsche Bank, as well as other European banks, on concerns over the impact of rising rates on the wider economy and banks’ balance sheets.”

Read also: Meta will charge users for its subscription service

Interest rate hike

The European Central Bank kept its commitment to hike interest rates by half a percentage point this week.

Their decision was based on their conviction that inflation posed a greater economic threat than the present global financial crisis.

After data showing an unexpected increase in inflation in February, the Bank of England raised its main interest rate by a quarter percentage point on Thursday.

Market jitters, according to Susannah Streeter, Hargreaves Lansdown’s head of money and markets, have also contributed.

“Worries about contagion are again rearing up even though more deposits appear to have been flowing into the German lender since the banking scare erupted,” she said.

“It is thought to have capital reserves well in excess of regulatory requirements.”

Analysts believe Deutsche Bank’s announcement on Friday that it will repay one of its bonds five years ahead of schedule jolted markets.

Such a move is typically interpreted by investors as proof that the company is financially strong and capable of repaying creditors on schedule.

US crisis effect

While investors were initially optimistic, the bankruptcies of Silicon Valley Bank and Signature Bank in the United States, as well as Credit Suisse’s emergency takeover, harmed their confidence.

Investors may have construed the comments as Deutsche Bank’s anxiety about the banking industry’s future.

Some investors, according to Capital Economics deputy chief markets economist Jonas Goltermann, are concerned that banks are overcompensating.

Furthermore, he argued that the bank’s actions looked to have backfired.

According to a person close to the situation, Deutsche Bank’s decision to repay the bond ahead of time was planned rather than a reaction to recent market events.

Under the rules enacted in the aftermath of the 2008 financial crisis, the bond would have lost its eligibility as a sort of regulatory capital later on.

The bank, according to the source, replaced the bond in February by releasing a matching type of bond.

Similarly, Commerzbank (CRZBF) in Germany and Société Générale in France incurred considerable losses, with losses of 5.5% and 5.9%, respectively, at the end of the quarter.

Swiss banks remain wary

UBS, Switzerland’s largest bank, paid 3 billion Swiss francs ($3.25 billion) for its Swiss rival in an emergency takeover arranged by the Swiss government this week.

The move helped to calm markets following the collapses of Silicon Valley Bank and Signature Bank earlier this month.

Yet, investors were concerned on Friday.

UBS and Credit Suisse failed following a Bloomberg report that the US Department of Justice was investigating their employees’ connections to help Russian oligarchs dodge Western sanctions.

The DOJ sent subpoenas to the individuals prior to UBS’s acquisition of Credit Suisse, according to the story.

Meanwhile, employees of major US banks are being examined.

According to CMC Markets’ Hewson, the DOJ probe into UBS contributed to widespread price weakening across European banks.

Credit Suisse’s dropped shares prompts acceptance of loan offer

Credit SuisseAnother big issue has developed following the failure of Silicon Valley Bank last week.

The Swiss National Bank announced its willingness to lend money to Credit Suisse in a letter.

Hours later, the megabank accepted the offer in order to persuade investors that it had enough money to be sustainable.

The news

Credit Suisse received a 50 billion Swiss franc ($53.7 billion) loan from the Swiss National Bank.

Investors in the collapsed megabank decreased their stakes by 30% on Wednesday.

The loan was made with the purpose of progressively expanding liquidity, according to Credit Suisse.

They released the formal statement below:

“This additional liquidity would support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs.”

In addition to the central bank loan, Credit Suisse indicated that it repurchased billions of dollars in debt in order to reduce commitments and interest payments.

The financing package includes $2.5 billion in American bonds and €500 million (or $529 million) in euro bonds.

The bank

Credit Suisse, founded in 1856, is usually regarded as one of the most powerful financial institutions.

It is one of 30 companies certified as a “globally systemically significant bank,” including Bank of America, Bank of China, and JP Morgan Chase.

Asian equities fell significantly early Thursday.

They have rebounded from the lows brought about by Credit Suisse’s actions thus far, encouraged by the bank’s tenacity and commitment to repair public trust.

According to a joint statement published early Wednesday by the Swiss National Bank and Swiss financial market regulator FINMA, Credit Suisse met the strict capital and liquidity standards for banks critical to the broader financial system.

“If necessary, the SNB will provide CS with liquidity,” the statement said.

SVB’s impact

With the demise of Silicon Valley Bank in the United States late last week, investors were on alert.

Investors then dumped Credit Suisse stock, driving the bank to a new low as its largest shareholder appeared to rule out further investment.

According to Swiss officials, the issues of “certain” US banks do not pose an urgent risk to Swiss financial markets.

“There are no indications of a direct risk of contagion for Swiss institutions due to the current turmoil in the US banking market,” the authorities said.

No stake increase

After a capital increase in October, the Saudi National Bank has become Credit Suisse’s largest shareholder.

On Wednesday, Saudi National Bank Chairman Ammar Al Khudairy announced that the bank’s stake will not be raised.

“The answer is absolutely not, for many reasons,” said Al Khudairy. “I’ll cite the simplest reason, which is regulatory and statutory.”

“We now own 9.8% of the bank – if we go above 10% all kinds of new rules kick in, whether it be by our regulator or the European regulator or the Swiss regulator.”

“We’re not inclined to get into a new regulatory regime.”

Read also: Bank stocks become priority after fears of recession

What happened?

Credit Suisse was a big Wall Street participant prior to recent blunders and compliance issues.

As a result of the errors, the bank’s image among clients plummeted, and many key employees were let go.

In the fourth quarter of 2022, customers withdrew 123 billion Swiss francs ($133 billion) from the bank.

Credit Suisse later revealed a net loss of around 7.3 billion Swiss francs ($7.9 billion), signaling that the corporation was experiencing its greatest financial crisis since 2008.

In October, the bank announced a drastic reorganization plan that would result in the loss of 9,000 full-time employment.

Within its investment bank, the proposal also includes a wealth management branch.

Others questioned the restructuring, with the exception of Al Khudairy, who stated that the bank did not need any more cash.

Credit Suisse may not have enough capital to bear losses in 2023, according to Morningstar banking analyst Johann Scholtz, as funding costs rise.

“To stem client outflows and ease the concern of providers of wholesale funding, we believe Credit Suisse needs another rights [share] issue,” said Scholtz.

“We believe the alternative would be a break-up… with the healthy business – the Swiss bank, asset management, and wealth management and possibly some parts of the investment banking business – being sold off or separately listed.”


S&P Global Market Intelligence reported that the bank’s shares plunged 24% in Zurich on Wednesday.

In addition, they stated that the cost of getting credit Suisse default insurance had reached an all-time high.

The downturn expanded to other European financial equities, producing issues for some of the following banks in France, Germany, Italy, and the United Kingdom, among others.

  • BNP Paribas
  • Societe Generale
  • Commerzbank
  • Deutsche Bank

The stock is down 8% to 12%.

Regardless of Credit Suisse’s problems, its assets of around 530 billion Swiss francs ($573 billion) pose a higher risk.

Andrew Kenningham, Capital Economics’ chief European economist, wrote:

“[Credit Suisse] is much more globally interconnected, with multiple subsidiaries outside Switzerland, including in the US. Credit Suisse is not just a Swiss problem but a global one.”

More problems

Despite its many problems, the Swiss bank is still being investigated.

On Tuesday, Credit Suisse suspended top executive pay after admitting to “serious errors” in financial reporting.

According to the bank’s annual report, the group’s internal control over financial reporting was deficient owing to a failure to anticipate potential risks to financial statements.

The bank is putting together a regulatory tightening plan.

Tesla and Apple face major China headwinds

Tesla: Apple and Tesla, two of the leading US tech firms, are currently experiencing problems with their stock values.

Because the two firms are facing significant challenges in China, investors are concerned.

Apple’s stock decreased by more than 3% as concerns about the iPhone lineup for the December quarter increased.

Tesla, however, saw a 12% drop on Tuesday when the company reported that deliveries missed the mark of analyst expectations.

China’s influence

Challenges in China may factor in the two tech giants’ stock values declining.

The country contributes 17% of Apple’s sales and 23% of Tesla’s income, making it a big market for both companies.

Daniel Ives of Wedbush Securities, offered his opinion on the companies’ issues.

“China is the heart and lungs of both demand and supply for both Apple and Tesla.”

“The biggest worry for the Street is that the China economy and consumer are reining in spending, and this is an ominous sign.”

He continued:

“In 2022, the worry was supply chain issues and zero Covid-related issues, 2023 is the demand worry and this has cast a major overhang on both Apple and Tesla, which heavily relied on the Chinese consumer.”

Tesla delivery

The share price of Tesla decreased as a result of the delay in vehicle deliveries.

Deliveries of cars fell short of expectations in the fourth quarter, falling to 405,278 from 427,000.

Both the supply chain and Chinese demand were factors in the drop.

During the entirety of 2022, Covid interruptions impacted Tesla’s Shanghai Gigafactory.

However, analysts have also voiced concerns about Chinese consumer demand.

“Tesla will point to supply disruptions and lockdowns as the main problem in China in 2022,” said Bill Russo, the CEO of Shanghai-based Automobility.

“While these are real headwinds, it cannot hide the fact that demand has softened for a variety of reasons, and their order backlog is 70% smaller than it was prior to the Shanghai lockdown.”

Shanghai saw lockdowns in the latter weeks of March 2022 as the authorities sought to contain an outbreak of Covid.


Investors are concerned that Tesla may reduce pricing to draw customers, which puts pressure on margins.

In October, Tesla lowered the price of the Model 3 and Model Y in China, returning to the 2022 pricing company had previously established.

Another obstacle for Tesla in China is the escalating domestic competition from companies like Nio and Li Auto.

Additionally, this year will see the launch of new models from domestic rivals at lower pricing.

“Tesla’s models have been in the market for a while and are not as fresh to the Chinese consumer as other alternatives,” offered Russo.

“What we are learning is, EV product life cycles are short as they are shopped for their technology features.”

“Buying an older EV is like buying last year’s smartphone,” he continued.”

“They need new or refreshed models to reignite the market. Just pricing lower can damage their brand in the long run.”

Read also: Prices of 2022: the highs and lows

iPhone factory problems

Investors are anticipating Apple’s fiscal first-quarter results, which will probably include the December holiday season.

The largest iPhone manufacturer in China, Zhengzhou, experienced a Covid incident in October.

Foxconn, the factory’s owner, placed restrictions.

By November, there had been numerous employee walkouts due to a salary dispute.

Foxconn tried to entice them back with incentives.

Since then, things have become more stable.

Additionally, according to Reuters, the factory was almost running at full capacity on Tuesday.

The incident exposed Apple’s reliance on China for iPhone production.

According to the tech titans, the facility was reportedly operating at significantly lower capacity due to the Covid ban.


According to Evercore ISI analysts, Apple had a $5 to $8 billion sales imbalance in the quarter ending in December.

However, according to Refinitiv’s estimate, the company may report a 1% yearly decline in revenue in the December quarter.

Investors who expected the iPhone 14 to do well have also expressed concern.

However, Apple is facing more than just supply chain issues.

China has modified its zero-Covid policy to reopen its economy.

But, widespread Covid-19 outbreaks in the country could affect iPhone demand.

IDC research manager Will Wong offered his opinion on the matter and stated:

“The key challenge is expected to be on the demand side, especially since resilient high-end consumers may have started to shift their spending to travel while some may have shifted their focus to medical supplies.”

“The shift in spending will pose a key challenge in the short term.”


China risks loom over US tech giants Tesla and Apple as share prices plunge

The Federal Reserve influences 2022 stock market, Thursday market movement

The Federal Reserve: After more than a century, the Federal Reserve has long been recognized as a significant player in the stock market.

Through the 2000s, the central bank adopted unconventional policy measures, such as large-scale asset purchases and forward guidance, which boosted the institution’s reputation.

The policy tools

The Federal Reserve makes large-scale asset acquisitions due to emergency government debt and mortgage-backed securities purchases.

On the other hand, forward guidance refers to the Federal Reserve’s public statements on the direction its monetary policies will take.

The guideline includes the expected federal funds’ interest rate target before a policy change.

Inflation and economic landscape

Central bankers advised the populace to prepare for more difficult economic times as they faced inflation in 2022.

The attempts, according to experts, contributed to the decrease in the price of the S&P 500.

Professor of economics at Notre Dame University and former Federal Reserve economist Jeffrey Campbell said the following:

“I think they know they gambled and lost, and that they have to do something serious in order to get inflation back under control.”

“I fear that they took a gamble that inflation wasn’t too real a thing at the beginning of 2021.”

In 2022, the Federal Reserve raised interest rates seven times in response to inflation that was stronger than predicted.

The effects of higher rates may be felt by publicly traded companies, especially growth shares in the technology industry.

Cautious warnings

Since April 2022, the Federal Reserve’s asset portfolio has decreased by more than $336 billion.

According to experts, the cumulative effect of economic tightening is still unknown.

On Wall Street, there is a lot of hope that the central bank would change its mind and decrease interest rates.

At the same time, many financial gurus are advising caution.

Victoria Green, founding partner and chief investment officer of G Squared Wealth Management, stated the following:

“If you have somebody that has a thumb on the scale or has a decided advantage about what’s going to happen, whether we think good things or bad things are going to happen, it’s best not to fight that policy.”

Experts claim that central bank policy is just one piece of the puzzle.

Investor sentiment and “black swan” events have a significant impact on the direction of the market.

John Weinberg, a former policy adviser for the research department of the Federal Reserve Bank of Richmond, stated:

“Sure, don’t fight the Fed, but… don’t believe too much that the Fed is all powerful.”

Stock movement

Numerous businesses produced headlines on Thursday with their stock movement during the trading session around lunch.


Airline shares fell due to the Thursday announcement of multiple flight cancellations.

Due to a harsh winter storm, the US American and United stocks fell 3.6% and 1.9%, respectively.

Both Delta and Southwest saw drops of 2% and 3%.

AMC Entertainment

The company’s shares dropped 7.4% after it proposed a reverse stock split to lower its debt and announced a new $110 million capital raise.

Its preferred stock shares increased by more than 75%.

Read also: Solar power found to have two benefits for users


Following the most recent quarter’s earnings, the auto retailer’s stock value decreased by 3.7%, and revenue fell short of Wall Street projections.

CarMax generated 24 cents per share on $6.51 billion in sales instead of the analysts’ forecast of 70 cents per share on $7.29 billion in sales.

Micron Technology

Due to the dismal earnings and revenue for the quarter, the company’s shares decreased by 3.4%.

The revenue was attributed to a drop in demand, which is expected to last until 2023.

Additionally, Micron announced a 10% staff decrease for the future year.

Advanced Micro Devices and Nvidia’s respective other semiconductor stocks declined by 7% and 5.6%, respectively.

Marvell Technology lost more than 4%.


After reporting earnings and revenue for the second quarter of fiscal 2023 that beat forecasts, MillerKnoll saw a jump of more than 14%.

The corporation claims it reduced annualized costs by $30 to $35 million.

Even if just somewhat in the third quarter, these savings would be realized in the fourth.

Mirati Therapeutics

Shares of the pharmaceutical company increased by more than 5% after the Food and Drug Administration named its colorectal cancer treatment a “breakthrough therapy.”


On Thursday, the company’s stock fell by roughly 9%.

The Tesla website claims that a $7,500 discount was offered on the Model 3 and Model Y automobiles that will be sent to the US before the end of the year.

The cars also include a free supercharge that is good for 10,000 miles.


After the stock lost more than 11% of its value, TuSimple announced it would remove 25% of its workforce.

The announcement would impact over 350 employees at the self-driving truck startup.

Tyson Foods

The manufacturer of meat and poultry closed the day with unchanged stock prices after The Wall Street Journal reported that the company intended to lay off hundreds of employees in 2019.

Tyson Foods’ corporate offices will consolidate in 2023.

Read also: Elon Musk sells giant chunk of Tesla shares again

Under Armour

On Thursday, the athlete wear company’s share price dropped by more than 2.3%.

Additionally, the business revealed that Stephanie Linnartz of Marriott International would become CEO next year.


How the Federal Reserve affected 2022’s stock market

Stocks making the biggest moves midday: AMC Entertainment, Tesla, Micron, Under Armour and more

Elon Musk highlights macroeconomic factors for Tesla shares decline

Elon Musk: On Tuesday, shares of Tesla, the top producer of electric vehicles, fell 8% and hit a new 52-week low.

Elon Musk, the CEO, attributed the decline to macroeconomic factors.

The news

Tuesday’s market performance was mixed as Tesla shares slid to a 52-week low and finished at approximately $138 per share, down 8%.

Elon Musk tried to attribute the problem to macroeconomic factors.

Ross Gerber, a longtime backer of Tesla, tweeted:

“Tesla stock price now reflects the value of having no CEO. Great job tesla BOD – time for a shake up. $tsla.”

Gerber launched an unofficial campaign to convince Tesla’s stockholders to ratify his appointment to the board of directors.

“As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are not guaranteed,” Musk replied.

“People will increasingly move their money out of stocks into cash, thus causing stocks to drop.”


Since Musk said earlier this year that he would buy Twitter, Tesla’s stock has fallen more than those of other well-known manufacturers.

Tesla shares have dropped 59% since April compared to 26% and 12% for Ford and GM, respectively.

The S&P 500 is down 14% as well.


Elon Musk, according to Ross Gerber, has been preoccupied.

He mentioned the issues that the new CEO and owner of Twitter had been causing with his social media site.

Late in October, Musk used a leveraged buyout to acquire Twitter.

As CEO of SpaceX, a large defense contractor, he also spends his time between those roles.

Read also: Elon Musk sells giant chunk of Tesla shares again

Twitter acquisition

Elon Musk sold his Tesla stock, including one, for $3.6 billion earlier in December to obtain money to buy Twitter.

In an effort to “save” the company last month, he laid off more than half the workers after selling his Tesla for billions of shares.

Then he made a number of modifications to the products and the policies, which he ultimately undid.

After layoffs, Musk called an all-hands meeting to motivate the remaining Twitter employees.

He sold Tesla stock, estimated to be worth $3.95 billion, at the start of November.

Musk also sold 19.5 million more Tesla shares, according to a filing sent to the Securities and Exchange Commission.

In April, Musk sold Tesla shares worth over $8 billion, and in August, he sold stock worth over $7 billion.

The CEO of Tesla extended an invitation to employees from previous companies he co-founded to join the Twitter team, as well as to supporters, friends, and autopilot engineers.

Tesla’s challenges

Since late October, Elon Musk has been focusing on his “Chief Twit” position.

Tesla has been offering discounts and incentives to sell automobiles in China, where the company has a sizable production site in Shanghai.

Additionally, the company has pushed to improve productivity in recently built facilities in Brandenburg, Germany, and Austin, Texas.

Additionally, despite Europe’s growing energy prices, Tesla continues to experience supply chain problems in the automotive industry.

The scenario in Europe may reduce drivers’ interest in electric automobiles.

Price targets

Due to the issues the company is now having, Mizuho Securities and Evercore ISI decreased their projections for the price of Tesla on Tuesday.

Analysts at Mizuho Securities warned of “potential weakness in Tesla sales as macro headwinds and a weaker consumer could drive lower demand for higher-priced EVs.”

The company, however, is upbeat about Tesla’s future and cites the following factors as potential boosters of rising domestic demand:

  • New Tesla factories could provide a competitive advantage
  • New electric vehicle tax credits in the United States

Early in 2023, China’s EV credits start to run out.

As a result, the group has a buy rating and a $285 price objective on Tesla’s shares.

Read also: NetChoice claims California law violates First Amendment, sues state

Tesla shares

Joshua White, an assistant professor at Vanderbilt University and a former economist for the US Securities and Exchange Commission, said:

“Only some of the drop in Tesla’s value can be blamed on interest rates. Twitter overhanging is one important component. China is another huge component.”

“We still don’t know if China will be open all the way, and we see there is supply and demand pressure here in light of the increase in Covid cases and disruption.”

White asserts that Elon Musk likely lost shareholders’ confidence in April when he said he didn’t sell any extra Tesla shares.

Musk persisted nonetheless, raising billions of dollars by selling more shares.

“He seems to sell equity in really large blocks, say ‘I’m done and I’m not selling anymore.’ But talk is cheap,” continued White.

“He says that and then sells more shares. So the more you say that and investors think he’s probably not done? The less confident they will be that the price is going to bounce back.”


Elon Musk tries to explain why Tesla shares are tanking

Elon Musk tells Twitter staff he sold Tesla stock to save the social network

Elon Musk sells giant chunk of Tesla shares again

Elon Musk is highly known for a number of things, but he is best known for his role as CEO of the renowned electric car firm Tesla.

Just recently, Musk sold more than 22 million shares of Musk’s company for a total of about $3.6 billion.

The details were disclosed in a financial document that was made available to the public on Wednesday night.

According to paperwork submitted to the Securities and Exchange Commission, the transactions happened this week between Monday and Wednesday.


Before taking over the well-known social media network Twitter, Elon Musk had his hands full with Tesla and SpaceX.

On April 29, he tweeted the following to let his fans know about some changes to the electric vehicle manufacturer’s stock:

“No further TSLA sales planned after today.”

According to VerityData, a company that performs financial analysis, Musk has already sold 94,202,321 shares in 2022.

With a share price of $234.46 on average, pre-tax profits came to about $22.93 billion.


Ben Silverman, the research director of VerityData, said:

“Musk’s prior sales going back to November 2021 were expertly timed, so Tesla shareholders need to pay attention to Musk’s actions and not his words – or lack thereof when it comes to his recent selling.”

But Elon Musk persevered in trying to sell off some of his Tesla holdings.

After deciding to pay $44 billion for Twitter, the CEO resolved to sell a significant portion of his shares.

Musk bought Twitter in late October.

Read also: Donald Trump slumps in voter standing based on recent poll


This week, Elon Musk lost his title as the wealthiest person in the world.

The CEO of the luxury goods firm LVMH, Bernard Arnault, has reportedly become the richest person in the world, according to Forbes and Bloomberg.

According to Refinitiv, a source of financial market statistics, he still holds the highest position in Tesla, with a 13.4% holding.

Musk said in November that he had sold 19.5 million Tesla shares for a total of $3.95 billion, only days after taking over Twitter.

The worth of the Tesla CEO has climbed to $174 billion, and Arnault’s wealth has increased to almost $191 billion.


Despite having a well-known brand in the sector, Tesla’s stock performance in 2022 was among the poorest among the most illustrious automakers and IT companies.

Investors worry that Musk’s acquisition of Twitter has taken up the majority of his time.

On Wednesday, the value of Tesla shares, which are traded on the New York Nasdaq index, closed under $500 billion.

The shares last experienced a similar decline in 2020.

Last year, Tesla’s worth was astoundingly above $1 trillion, but it has subsequently decreased in recent months.


Elon Musk completed seizing control of Twitter in October.

His focus and efforts are now solely on the social media platform.

By selling shares of Tesla, Musk was able to raise billions of dollars for the acquisition of Twitter.

The shares decreased as a result of the transactions.

The Twitter agreement was finally finalized after some back and forth between the firm and the CEO of Tesla.

Musk attempted to renege on the agreement during that time before deciding to purchase shares of his own company instead.

Some claim that Tesla’s stock price dropped as a result of the takeover’s distraction.

Investors are also concerned that there may be less demand for the company’s electric automobiles because of the weak economy.

Rising borrowing costs have discouraged customers and other companies from adding more electric vehicles to their lineups.

In addition to the problems already highlighted, Tesla has experienced issues with model autopilot, regulatory inquiries into crashes, and recalls.

Read also: Elon Musk vowed to end child exploitation on Twitter, workforce too thin

Other notes

All of 2022 has seen a decline in Tesla stock.

However, things significantly altered after Elon Musk took over as Twitter’s CEO.

On Wednesday, Tesla stock decreased 2.6% to close at $156.80.

As a result, the company’s market capitalization dropped to $495 billion.

As of Wednesday’s close, Tesla stock has also dropped by 55% year to date.


Elon Musk sells another huge chunk of Tesla shares

Elon Musk sells $3.6 bn of shares in electric car maker Tesla

Carvana faces bankruptcy after cutting workforce

Carvana, a renowned used car retailer, has been facing a cash crunch and could be facing bankruptcy.

The reports emerged from published reports and a bearish analyst’s call to slash its share-price target to a meager $1.

The news

During the mid-afternoon trading, Carvana stands at $4.60 a share, which is up on the day.

However, it is also down more than 40% from a week ago.

Carvana is best known for its unique auto vending machine concept.

The industry

In recent months, used car prices have fallen from record highs due to higher interest rates making used cars unaffordable for many potential buyers.

Carvana is one of the newer companies in the used car industry.


Although it hasn’t been around for long, the company has already lost money in most quarters since going public in 2017.

Initially, Carvana’s model aims for sales growth instead of short-term profitability.

However, the company’s losses widened even further amid the recent downturn in the sector.

Carvana reported a significant net loss of $1.5 billion in the first nine months of 2022.

The loss is higher than the $105 million net loss in the same period from last year.

The company’s cash on hand was $316 million in September, which is down 22% from the start of 2022.

However, its borrowing capacity increased.

Last month, the company announced it was cutting 1,500 jobs on slower car sales.

Read also: Amazon checkout traffic causes problems

Job cuts

In mid-November, Carvana announced it was cutting 8% of its workforce amid waning demand for used cars.

The slowed demand coincided with sky-high prices and supply shortages.

Demand for used cars diminished was affected by hybrid-working models and higher costs caused by higher interest rates.

As a result, consumers started rethinking their personal mobility options to adapt and trim their daily expenses.

CNBC was among the first to report the layoffs, citing an internal memo about the move.

The memo revealed that Carvana was facing economic headwinds from higher financing costs.

Additionally, the company failed to predict how the headwinds would all play out and their impact on Carvana’s operation.

In November, Carvana’s shares were down 7%, missing expectations for adjusted earnings in the last five quarters as expenses soared and used car demand dropped.

Debt concerns

Last Tuesday, Bloomberg reported that major holders of the company’s debt entered a cooperation agreement.

They mutually agreed to work together, giving them more leverage in negotiations with Carvana.

A day later, the company spoke with lawyers and investment bankers about options to manage its debt load amid solvency concerns.

Wedbush Securities analyst Seth Basham slashed his price target on the stock from $9 to $1 in a Wednesday note.

Basham explained that the fact that its debt trading is less than 50 cents in the dollar is a sign of a high likelihood of debt restructuring.

The restructuring could leave the equity worthless in case of bankruptcy; otherwise, the best case would have it highly diluted.

Company problems

Carvana entered the market a decade ago with the goal of disrupting the used car market.

It offered online car shopping, trade-ins, and distinctive car vending machines,

However, Basham spoke with CNN, telling them that Carvana’s problems are worse compared to other used car dealers.

He explained that the company expanded faster than the sales could support.

“They put the cart before the horse,” said Basham.

“They built infrastructure for a lot more sales than they’re currently doing. And that saddled them with a ton of excess capacity.”

Read also: Even used cars are becoming more unaffordable as CarMax suffers losses

Company statements

Carvana commented directly about the meetings with lawyers and bankers, saying it is not a party to the cooperation agreement among bondholders.

“Our message to our customers, shareholders, employees, and other stakeholders remain clear,” said the company.

“We are singularly focused on executing on the plan to profitability outlined in our third quarter shareholder letter, and we have substantial liquidity to get us there.”

“In no way do these reports change that strategy.”

However, the reports only addressed a sell-off in shares already underway.

So far in 2022, shares have been down 97% at the close of trading last Friday.

They dropped to an all-time low of $3.55 a share on Wednesday before closing at $3.83 a share, which was down 43% for the day.


Carvana bankruptcy worries swirl around used car retailer

Carvana news: used car retailer cuts 1,500 jobs on slowing demand

Rivian EV stocks show volatile results this quarter

Rivian, the well-known electric truck manufacturer, recently announced some good and bad news for its third-quarter earnings report.

The report comes after a brutal day for the shares of Rivian and other electric vehicle manufacturers.


Rivian reported a lower-than-expected adjusted loss of $1.4 billion.

It was less than the $1.7 billion loss forecast by Refinitiv analysts.

The report shows net bookings fell from 98,000 to 114,000 in the second quarter.

However, the revenue of $536 million, up 47% from the second quarter, was below analysts’ forecast of $552 million.

Read also: Meta set for change with workforce layoff

Other companies

The reservation gain was significant after Lucid, another electric car maker, announced a surprise report Tuesday night.

Reservation numbers for its electric vehicles dropped to 34,000 from 37,000 in the previous quarter.

The news sent Lucid’s shares down 17% for the day.

It also posted shares of Rivian and Chinese electric vehicle maker Nio down 12% each during regular US hours.

Shares in major electric car maker Tesla also fell 7%.

However, Tesla stock may have been hurt by CEO Elon Musk’s decision to sell nearly $4 billion worth of Tesla stock since the signing of the Twitter buyout agreement.

Read also: Lyft announce plans of workforce layoff


Rivian aims to increase production to 25,000 cars this year.

The target is optimistic, as other automakers have had to cut their 2022 sales targets due to supply chain issues.

Rivian built more than 14,000 vehicles in the first three quarters.

Reaching the production target of 25,000 would mean a 45% increase in production in the last three months of the year compared to the 7,400 built last quarter.

Although Rivian intends to hit its 2022 target, it has pushed back its target date for the small R2 model to 2026.

The company had previously predicted 2025 for the launch of R2.

Finally, Rivian stock fluctuated wildly in after-hours trading, rising 3%, falling to trade slightly lower, and rising again by 5%.


Rivian has both good and bad news at end of tough day for EV stocks

Snap’s struggle continue as shares take a 25% dip

Amid a growing number of companies struggling, Snapchat’s parent company Snap continues to endure a challenging year of slow revenue growth.

Revenue growth

Snap reported a revenue of $1.13 billion on Thursday for the three months ending September.

The report shows a modest 6% year-over-year increase, less than what Wall Street was expecting.

The company is currently facing shrinking advertising budgets in an uncertain economic environment.

The company released a letter saying several factors had slowed sales growth.

They listed factors that include growing competition and fear of advertisers, which is Snap’s core business.

“We are finding that our advertising partners across many industries are decreasing their marketing budgets,” the company said in its letter.

“Especially in the face of operating environment headwinds, inflation-driven cost pressures, and rising costs.”

Snap shares and report

Snap shares fell nearly 25% in after-hours trading after the earnings report, 

The company’s report reads what should be a period of sobering technology gains.

Announcements of layoffs, staff freezes and cost-cutting measures have become increasingly common in the industry amid persistent fears of a recession.

The company sparked a wave of concern in May when it warned tech investors that the economy was deteriorating faster than expected.

The deterioration in economic conditions affected sales and earnings expectations for the quarter.

In late August, Snap announced plans to lay off 20% of its more than 6,400 employees worldwide.

Economic headwinds and competition

The company faced headwinds from rising inflation, a stronger dollar, and broader economic concerns.

The economic climate caused advertisers and consumers to rethink their spending in the United States and abroad.

Snap also faces growing competition from TikTok, one of its fastest-growing rivals.

The company continues to navigate its digital advertising business after Apple’s privacy changes made it harder for marketers to target users with ads.

Positive notes

Despite the report, Snap had a glimmer of hope as the number of daily active users increased by 19% year-over-year to 363 million in the third quarter.

The company’s net loss was also lower than Wall Street was anticipating.

However, Snap still lost $360 million in the quarter, compared to a loss of $72 million a year earlier.

Most of the $155 million loss comes from restructuring costs related to layoffs.

The company refused to share its financial outlook for the last three months of 2022.

In the letter, the company wrote:

“We expect that the operating environment will continue to be challenging in the months ahead and believe the actions we are taking provide a clear path forward for Snap.”


Snap stock falls nearly 25% after revenue hit by shrinking advertiser budgets