Stock Declines Amid Broader Tech Rout
Tesla stock declined in premarket trade on Tuesday, following a 3.3% drop in the previous session, despite news that its energy storage gigafactory in Shanghai has started trial production. The factory is expected to enter mass production early next year.
This decline tracks a broader tech rout, which has hit the market amid concerns about the pace of Federal Reserve interest rate cuts in 2025. The electric car maker’s stock continues to be closely tied to the actions and statements of its billionaire founder Elon Musk.
Elon Musk’s Controversial Remarks Spark Debate
Musk, who has been embroiled in a series of controversial remarks recently, claimed 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.
Musk Defends H-1B Visa Programme
His most recent outburst was in response to criticism of the H-1B visa programme, which allows US companies to hire skilled foreign workers. ‘Take a big step back,’ Musk said, as he launched an attack on critics of the programme.
The world’s richest man, who himself came to the US from South Africa on an H-1B visa, defended the programme as vital to America’s success. ‘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,’ Musk wrote on X.
Year-to-Date Performance
Despite Musk’s comments, the stock has jumped around 68% for the year-to-date.
Stock Plummets After Pfizer Partnership Ends
Sangamo Therapeutics dropped almost 50% in premarket trade on Tuesday in the US, following news that pharma giant Pfizer is ending a partnership with the drug developer to make a new gene therapy to treat haemophilia A.
Sangamo said it is assessing "all options" to continue making the drug. The move by Pfizer comes despite the fact the drug had met its goals in a late-stage trial. The company was planning to file for US and European approval early next year.
Impact on Sangamo Therapeutics
The partnership with Pfizer accounted for a significant portion of Sangamo’s revenue, and the loss of this deal is likely to have a significant impact on the company’s financials.
Bitcoin Ticks Higher Amid Volatility
Bitcoin ticked cautiously higher on the final day of the year, after a rollercoaster year which saw it smash through previous all-time highs. The largest digital asset by market cap was trading at around $93,800 by mid-morning in London on a subdued day in markets.
2024 Performance
Over the last month, the asset has been volatile — heading to all-time highs past the $106,000 mark. This volatility is likely due to the anticipation of US president-elect Donald Trump’s incoming pro-crypto cast of advisers.
Trump’s Crypto Pledges
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.
Atkins is known as a friend of the crypto industry and will likely be a softer touch on regulation. Meanwhile, 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.
End of Year Performance
Bitcoin’s performance in 2024 is expected to be closely tied to the actions of these new advisors and regulators, and any changes they may bring to the industry.
Stock Rises Amid Share Buyback Announcement
Endeavour stock was among the winners of the FTSE 100 (^FTSE) on Tuesday, climbing 1.8% after it announced a share buyback. The transaction will involve the repurchase of 15,700 of its ordinary shares as part of its ongoing buy-back programme.
The company said it was making the move in order to optimise its capital structure. This decision is likely to have a positive impact on the company’s financials and could lead to further gains in the stock price.
Conclusion
The stock market has been experiencing significant volatility in recent weeks, with many stocks seeing large fluctuations in value. The performances of Tesla, Sangamo Therapeutics, Bitcoin, and Endeavour are just a few examples of this volatility.
As we head into 2025, it is likely that these trends will continue, and investors should be prepared for further ups and downs in the market. The actions and statements of key players such as Elon Musk and Donald Trump will also have a significant impact on the industry and should be closely monitored.
Ultimately, the future of the stock market and the crypto industry is uncertain, but one thing is clear: change is coming, and investors must be prepared to adapt.
Sources:
- Tesla (TSLA) Stock Price
- Sangamo Therapeutics (SGMO) Stock Price
- Bitcoin (BTC-USD) Price
- Endeavour (EDV.L) Stock Price
Disclaimer:
The information contained in this article is for general information purposes only and should not be considered as investment advice. The performance of the stock market can be unpredictable, and past performance is not indicative of future results.
