Dow Jones futures fall: Tesla stock rises on deliveries; The same goes for these Chinese EV competitors

Dow Jones futures and S&P 500 futures were down slightly Monday morning, while Nasdaq futures were trending higher. Tesla (TSLA) rose on strong deliveries with shares in Chinese EV rivals Li car (LI) noo (NIO) and XPeng (XPEV) also achieved large sales gains.




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The stock market rally rebounded last week, with the S&P 500 hitting a 14-month high again and the Nasdaq close to a 14-month high. Apple (AAPL) closed Friday with a market cap of $3 trillion, although shares fell slightly on Monday amid reports of manufacturing issues for the Vision Pro mixed-reality headset.

AstraZeneca (AZN) fell sharply after the release of disappointing results from a phase 3 study in lung cancer.

Tesla stock is on the IBD leaderboard.

Dow Jones futures

Dow Jones futures lost 0.15% from fair value. S&P 500 futures fell slightly and Nasdaq 100 futures rose slightly. Tesla stock is a boost for the S&P 500 and the Nasdaq 100 in particular.

The 10-year government bond yield rose 3 basis points to 3.85%.

Crude oil rose more than 1%.

US stock markets close at 1:00 PM ET today, bond markets close at 2:00 PM ET. Financial markets will remain closed on Tuesday for Independence Day.

stock market rally

The Dow Jones Industrial Average was up 2% in trading last week. The S&P 500 Index rose 2.35% and the Nasdaq Composite rose 2.2%. The Russell 2000 small-cap index rose 3.7%.

Over the past week, leading stocks have been breaking out or giving buy signals in large numbers.

The only concern? The Nasdaq Composite closed 7.6% above its 50-day moving average on Friday, while the Nasdaq 100 is 8.3% above that key level. That increases the risk of a further decline.

Tesla deliveries hit record

Tesla deliveries jumped to 466,140 in the second quarter, up from a record 422,875 in the first quarter and a record 405,278 in the fourth quarter. That beat second-quarter estimates of around 445,000, according to FactSet.

Deliveries of the Model 3 and Y reached 446,915 in the second quarter. The number of deliveries of the Model S and X rose to 19,225.

After huge price cuts around the world in the first quarter, Tesla made some official price cuts and some modest price increases in the second quarter. But it offered significant inventory discounts and other incentives that could put further pressure on gross margins.

Production hit 479,700, again beating deliveries even as Tesla throttled production below capacity. That suggests that Tesla needs to cut prices further, especially if it wants to increase deliveries.

Tesla shares are up 6% in premarket trading.

Shares rose 2% last week to 261.77. TSLA stock has more than doubled in 2023 and has performed well since recent buy points.

Electric vehicle sales in China

Li Auto reported sales of 32,575 in June, surpassing the 30,000 mark for the first time. Deliveries were up 150% year-on-year and up 15.2% compared to May.

Nio deliveries rose 74% to 10,707 vehicles from 6,155 in May, but were down 17.4% year-on-year. Sales are increasing due to price reductions as well as new or completely revised models.

Xpeng delivered 8,620 vehicles in June, up 14.8% from May and the fifth straight monthly increase. But sales were down 44% year over year.

Electric and battery giant BYD (BYDDF) sold 253,046 vehicles in June, up 88% year-on-year and up from 240,220 in May and 210,295 in April. Of the 251,685 passenger vehicles, BYD sold 128,196 battery electric vehicles (BEVs).

Li Auto shares are up 6% early Monday, Nio is up 4%, while XPeng is up 7%. All three Chinese EV startups posted big gains last week, most notably XPEV stock.

BYD stock, which is traded over the counter in the US, has not yet been active. But strong gains in Hong Kong suggest at least a positive open. BYD stock is in a buy zone.

Apple stock

AAPL stock is up 3.9% last week and 49% in the first half for a market cap of $3.05 trillion.

Apple shares lost a fraction in premarket trading.

According to the Financial Times, the Dow Jones tech giant is lowering production forecasts for Vision Pro. Apple had a goal of shipping one million Vision Pro headsets by 2024, but supply chain issues and the complexity of the headset could mean shipments are less than half those of the $3,500 Vision Pro.

Separately, Goldman Sachs (GS) is reportedly trying to divest its partnership with Apple, including an Apple credit card American Express (AXP). GS shares and American Express were little changed prior to opening.

Keep in mind that nightly action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular trading session.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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