Happy Tuesday Zingernation!
Investors are very happy to see green on the board today. Yesterday was a complete blood bath, with the S&P 500 Index finishing down nearly 4%. We officially entered a bear market, down 20% or more, on the S&P, and Bitcoin continued to drop, dipping below $22,000 briefly. The world's largest cryptocurrency is now down more than 65% from its highs in November.
1. Cathie Wood Buys The Dip In Tesla Again
What Happened: Cathie Wood-led Ark Invest Investment Management added more Tesla Inc shares to its portfolio on Monday, raising its exposure to the electric vehicle maker for the fifth time this month. Ark Invest bought 2,800 shares, estimated to be worth $1.81 million, in Tesla on Monday.
Why It Matters: Tesla shares have also been under intense pressure since China introduced extensive COVID-19 lockdowns late in March, forcing production halts at Giga Shanghai. Austin, Texas-based Tesla last week also proposed a 3-for-1 stock split to triple the number of shares to 6 billion. Musk also warned of 10% job cuts at Tesla, but added that “hourly headcount will increase.”
2. Warren Buffett's EV Maker Ranked Among Top Three in China
What’s Happening:
Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) -backed Chinese EV maker BYD Co, Ltd's sales more than doubled in May, making it one of the top three automakers in China, CNBC reports.
Why It Matters:
BYD dominated new energy vehicles, including hybrid and battery-powered cars, and ranked among the top three brands in the largest automobile market by passenger car sales.
BYD accounted for two of China's top three bestselling new energy models in May. BYD's feat remained unattainable by Tesla, Inc, NIO Inc, and XPeng Inc.
3. Why FedEx's Stock Is Taking Off Today
What Happened: FedEx Corp shares are trading higher Tuesday after the company announced actions to enhance stockholder value.As part of the move to drive shareholder value, FedEx increased its dividend, enhanced its executive compensation program and added two new independent directors to its board.
Why It Matters: FedEx raised its quarterly dividend from 75 cents per share to $1.15 per share. The company added a total shareholder return performance metric to its compensation program and appointed Amy Lane and Jim Vena to the board.
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