This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
The richest person in the world, Elon Musk is the head of the U.S. Department of Government Efficiency, Tesla, SpaceX, X, the Boring Company, xAI, Neuralink, and a new group of investors attempting to purchase OpenAI.
From a business perspective, Musk’s achievements are indisputable. In addition to becoming market leaders, the firms he leads are frequently innovators in their respective fields, such as SpaceX’s successful commercialization of space travel or Tesla’s pioneering role in the electric vehicle industry.
Ironically, reaching success in too many ways might backfire. Despite Musk’s financial savvy, investors are concerned he is being sidetracked.Â
Tesla’s stock has dropped over the last five trading days, falling more than 6% on Tuesday as the Chinese competitor BYD seems to surpass the business in AI-enabled autonomous driving.
If Tesla implements hands-free driving, Musk may be able to pursue other interests without negatively impacting the company’s stock price.
What To Note Today
BYD threatens Tesla
Following the announcement by Chinese EV manufacturer BYD that it will incorporate DeepSeek into its autonomous driving technology and make it available in almost all of its vehicles, Tesla’s stock slumped 6.3% on Tuesday. Concerns have also been raised about Musk’s diversions, including his support for Open AI and his position in the White House’s “Department of Government Efficiency.” Over the last five trading days, the price of Tesla’s shares has dropped by more than sixteen percent.
Possible U.S. markets
As investors processed U.S. Federal Reserve Chair Jerome Powell’s remarks in the Senate that the central bank doesn’t need to “be in a hurry” to change its policy position, U.S. markets were neutral on Tuesday. The S&P 500 was largely unchanged, the Nasdaq Composite fell 0.36%, and the Dow Jones Industrial Average increased 0.28%. On Wednesday, stocks in the Asia-Pacific region rose. As Alibaba’s shares listed in Hong Kong surged 7.15% on news that it is collaborating with Apple to introduce iPhone AI features in China, the Hang Seng Index increased by about 1.9%.
Baidu will release an AI model of the future
According to someone who knows the situation, Chinese tech giant Baidu intends to launch its next-generation AI model in the year’s second half. According to the source, the model called Ernie 5.0, will feature “significant improvements in multimodal capabilities.” Media formats can be used with multimodal AI models. The launch of Baidu coincides with China’s AI breakthroughs, like the affordable DeepSeek, which was introduced in January.
Super Micro Computer gives investors comfort
Charles Liang, the CEO of Super Micro Computer, stated on Tuesday that he is “confident” the business will submit its postponed annual report by the February 25 deadline set by the U.S. Securities and Exchange Commission. Additionally, the business anticipates revenue of $40 billion in fiscal 2026, more than the $30 billion predicted by LSEG’s poll of experts. During extended trading, the company’s shares increased by 8.4%.
CATL files for Hong Kong listing
CATL, or China’s Contemporary Amperex Technology, has applied to be listed on the Hong Kong Stock Exchange. According to Reuters, the initial public offering is anticipated to raise at least $5 billion, making it the biggest IPO in the city in five years. The business provides batteries for Tesla and other automobiles. In January, Tencent and CATL were added to the U.S. Department of Defense’s “Chinese Military Companies” list.
How to use the CPI
Wednesday’s release of the U.S. Consumer Price Index report coincides with a renewed concern about inflation due to tariffs and higher-than-expected wage growth in January. Based on the CPI figure, JPMorgan traders predicted the possible reaction of the S&P 500.Â
The possibilities, which include an asset class that can “react violently,” range from a 1.75% increase to a 2% decline.
Bottom Line
Hardeep Singh Puri, India’s Minister of Petroleum and Natural Gas, told CNBC on Tuesday, on the fringes of the India Energy Week conference, that his country will “play by the rules” and not “go around” international sanctions on the oil markets. Since many consumers could not access Moscow’s supplies due to Western and G7 energy restrictions, India’s refiners have been grabbing cheap Russian oil. New Delhi has often defended its purchases as a matter of national interest.
Additionally, Puri hinted that the administration of President Joe Biden, Trump’s predecessor, had supported India’s increased use of Russian oil. “I spoke with the Americans and the previous administration. They said, please buy as much as you like. Just be careful if you purchase it within the price limit. And we did just that,” Puri remarked.
