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- 🚗 Tesla Runs Out of Charge
🚗 Tesla Runs Out of Charge
Big Moves Decoded: Micron, WDC, and more!
Market Performance
S&P 500: 6,858.47 ⬆️ 0.19%
Nasdaq: 23,235.63 ⬇️ 0.03%
Dow Jones: 48,382.39 ⬆️ 0.66%
Tesla’s Deliveries Drop In Q4
Tesla stumbled into 2026 with disappointing fourth-quarter delivery numbers, which totaled 418,227, 16% down year over year and missing Wall Street's 426,000 estimate.
Full-year 2025 deliveries fell 8.6% to 1.64 million, marking the second consecutive annual decline for Elon Musk's EV giant.
The culprit? Intensifying competition from Chinese rival BYD, which delivered 2.26 million EVs in 2025, and a consumer backlash in Europe, where Tesla registrations plunged 39%.
President Trump's early termination of federal EV incentives by September 30 further dampened demand, pulling sales forward to Q3.
Despite the operational struggles, Tesla shares closed down just 2.59% on Friday and rallied 40% in Q3 of 2025, buoyed by Musk's vision of robotaxis and humanoid robots.
However, the widening gap between delivery reality and stock market optimism raises questions about sustainability.
Our Takeaway
Tesla's pivot from EV sales to autonomous vehicles and robotics is bold, but investors should watch whether execution matches the hype.
With BYD and emerging Chinese players like Xiaomi gaining ground, Tesla needs more than just Musk's vision—it needs competitive vehicles and restored consumer confidence.
Market Overview 📈
The first trading day of 2026 delivered mixed results as semiconductor stocks lifted the S&P 500 to a modest 0.19% gain, while software names and Tesla weighed on sentiment.
Nvidia and Micron Technology surged over 1% and 10% respectively, continuing their 2025 momentum—Nvidia gained 39% and Micron skyrocketed 240% last year.
However, software stocks stumbled. Salesforce dropped over 4%, CrowdStrike declined 3%, and Palantir pulled back as investors rotated within tech sectors.
Small-cap stocks outperformed with the Russell 2000 jumping 1.1%, signaling renewed interest in overlooked segments after a year of underperformance.
Furniture retailers caught a break as President Trump postponed 30% tariff hikes on upholstered furniture for one year, keeping duties at 25%. Wayfair surged 6%, and RH climbed 8% on the news.
Manufacturing data showed U.S. factory activity edged lower in December with the S&P Global PMI falling to 51.8 from 52.2, though job creation hit its highest level since August.
Meanwhile, Bitcoin reclaimed the $90,000 threshold for the first time in nearly a month, though it remains 28% off its October record high.
Wall Street strategists remain optimistic for 2026, with the average S&P 500 target at 7,629—implying 11.4% upside from current levels.
Stock Moves Deciphered 📈
🚀 Micron Technology (MU)
Micron surged over 10%, hitting all-time highs dating back to its 1984 IPO. The rally came after Bernstein raised its price target by 20% to $330, citing soaring demand for high-bandwidth memory (HBM) in AI data centers.
Micron's projection that the HBM market would reach $100 billion two years ahead of schedule reinforced the bullish sentiment.
The chip maker deployed strong momentum from 2025, when shares jumped over 240%, positioning itself as a key AI infrastructure beneficiary.
💾 Western Digital (WDC)
Western Digital jumped over 8% as the AI-driven storage supercycle intensified. Supply constraints and long lead times for high-capacity drives, stretching to 12 months, fueled the rally.
Following its February spinoff of SanDisk, analysts maintained a "Strong Buy" consensus on WDC, viewing the company as a prime beneficiary of expanding data center infrastructure.
The stock's surge reflects investor confidence in Western Digital's ability to capitalize on the relentless demand for AI storage.
✈️ Boeing (BA)
Boeing climbed almost 5% on positive delivery guidance for its 737 and 787 aircraft, which improved cash flow visibility.
The aerospace giant plans to ramp up 737 production to 47 per month and 787 output to 10 per month in 2026, signaling a meaningful recovery in its commercial airplane division.
After navigating manufacturing challenges and regulatory scrutiny, Boeing's accelerated production targets suggest the company is regaining operational momentum and positioning itself for sustained growth.
Headlines You Can't Miss 👀
🏭 U.S. manufacturing activity edged lower in December with the PMI falling to 51.8 from 52.2, though job creation hit its highest level since August.
🏦 The FTSE 100 touched 10,000 for the first time ever, capping a stellar 2025 where it rose 21.5%—outperforming the S&P 500's 16.4% gain.
🔌 Vertiv surged 8% after Barclays upgraded the data center infrastructure provider to overweight, citing an attractive entry point after recent volatility.
⚡ Sable Offshore soared 19% after a federal court denied environmental groups' request to halt the restart of its Las Flores pipelines in California.
💾 SanDisk jumped 11% following its spinoff from Western Digital in February, riding data center demand after surging 560% in 2025.
GLP-1 weight loss pills are expected to hit the market in 2026, with Novo Nordisk and Eli Lilly poised to shake up consumer habits as oral drugs overcome needle-averse patients.
Trending Stocks 📊
💰 Baidu (BIDU)
U.S.-listed shares of Chinese tech giant Baidu jumped 15% after announcing plans to spin off its semiconductor unit, Kunlunxin, and list it in Hong Kong.
The strategic move aims to unlock value in Baidu's chip division as demand for AI-specific semiconductors accelerates globally.
Kunlunxin, which develops AI processors for data centers and autonomous driving applications, could benefit from improved access to capital and greater operational flexibility as a standalone public entity in the competitive semiconductor landscape.
📈 Adobe (ADBE)
Adobe fell nearly 5% despite beating fiscal 2026 guidance, as concerns mounted about increasing competition from AI-powered creative tools and pressure on profit margins.
While the software giant remains dominant in digital media and creative workflows, the market reacted cautiously to signals that Adobe's long-term growth could be challenged by newer, more agile competitors leveraging generative AI.
Investors are questioning whether Adobe can maintain its premium valuation amid rapidly evolving dynamics in creative software and potential margin compression.
🚙 Li Auto (LI)
Chinese EV maker Li Auto gained 1.9% after reporting December vehicle deliveries of 44,246 units, demonstrating continued strong demand for its extended-range electric SUVs in China's competitive automotive market.
The company's consistent delivery performance reflects its successful strategy of combining electric powertrains with range-extending gasoline generators, appealing to Chinese consumers concerned about charging infrastructure limitations.
Li Auto's momentum positions it well against rivals, including Nio and XPeng, in the premium EV segment.
What’s Next?
Key market and macro news 👇
📊The Institute for Supply Management (ISM) will release its Manufacturing PMI for December. This report gauges the health of the U.S. manufacturing sector, and a reading below 50 indicates contraction, potentially signaling economic weakness.
🎤 NVIDIA's CEO is scheduled to speak at a pre-show media day for CES. His comments on new products and the outlook for artificial intelligence could significantly influence tech sector stocks.
💸 Earnings season will kick into high gear the following week with major tech and financial companies reporting.
🏦 Federal Reserve officials are scheduled to speak throughout the week on the monetary policy outlook.
👩💼 December jobs report due Friday, January 9—critical gauge of labor market health heading into 2026.
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