micron and tesla very bad news
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We have big bad news come out about Micron and Tesla. Let us talk about the micron UMC situation and the Tesla brake situation.
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Holy smokers guys two videos in one day I had to do it we have some massive massive bad news unfortunately that’s come out about micron ticker symbol m you know a lot of you guys are invested in M mu stock some very very bad news about this one.
Also some bad news about Tesla both these stocks got hammered today micron was down five 6% Tesla was down over 7%. So some very bad news. Let’s just get into this guys. micron shares tumble after rival says a Chinese court banned chip sales.
All right, if you don’t ever already know basically last week, it was either last week or the week before I posted a video on this channel called This is a massive threat to us stocks. And in that video, it goes into super great detail about how micron could be negatively affected by basically what a Chinese company was doing against micron.
Basically how it looks. It looks like a Chinese company ended up stealing a ton of patents from micron. Okay, and we know China has an initiative to go ahead and build booster semiconductor in their memory businesses okay over there in China, right.
So what happens is this company steals from micron and then they start up this business in China massive business, and now they’re trying to get micron products blocked into selling China ton of their products.
And it looks like they’ve probably successfully done micron shares fell as much as 8% during regular trading on Tuesday after the Taiwanese rival united micro electronic Corporation UMC released a statement claiming a Chinese court had temporarily banned sales of micron chips in China.
Micron closed down five and a half percent for the day. micron said it had not been served with an injunction and would not further comment until it received and reviewed court documentation.
UNC statement said the People’s Court in the People’s Republic of China had issued a preliminary injunction preventing micron from selling 26 products including certain solid state memory drives and memory sticks in China.
UMC is very pleased with today’s decision. UMC invests heavily in his intellectual property and aggressively pursues any company that infringes UMC. Patents UMC president Jason Wang said in a statement.
The Taiwanese chip makers sought the sales ban alleging that micron violated his patent rights in China UMC and micron have gone back and forth in the courts alleging various intellectual property violations like I said in that video earlier in the week guys.
There’s so Harley How is micron gonna win this even if microns in the right in this situation right? How is Mike are gonna win this in in China basically when China has an agenda to try to build their memory companies in semiconductor companies.
Like do you think China really cares if micron is actually in the right and micron had this stuff stolen like China doesn’t care they want to build their companies up not not build US companies more right so it’s a such an ugly situation guys it’s it’s so sad.
It’s it’s literally a sad situation but it is what it is this world can be cutthroat man business can be cutthroat sometimes and that’s just what it is. I don’t know what else to say about it it’s it’s a it’s a rough situation.
And now for micron we got to see how far does this go like how much is this going to affect microns business? So we talked about maybe like five to 10% of microns revenues are affected by this are we talking like 30 to 40% like now we got to figure out late like.
What’s the what’s the effect on micron negatively and when is micron gonna get actually served with these documents and whatnot. So that situation of the situation nonetheless All right.
Now we got some more Tesla news at Tesla it’s like a full time job trying to keep up with everything that’s going on there. So straight is not impressed by Tesla’s model three milestone stock plunges over 7% on negative notes and break test report.
Several Wall Street firms are playing down Tesla’s model three production milestone remaining skeptical over the car makers finances in demand trends. Okay. Demand trends are talking about now at this point in time.
Tesla said Monday it reached its one week production of 5000 model threes. We already talked about this on this channel for the last week of June in the June quarter, but the company fell short of its second quarter deliveries by posting little over 40,000 vehicles versus.
Wall Street had expected somewhere around 51,000 vehicles. All right. Tesla shares fell 7.2% Tuesday, the company shares hit the lows of the day on a report it decided to skip a break and road testing step in the manufacturing process of the model three vehicles.
Tesla did eliminate the brake test because it deemed too redundant okay. Tesla says every car we build goes through a rigorous quality checks and must meet our exact specifications including brake tests to be extremely clear we drive every and I don’t know why that’s in like little stars there.
Every model three on our test track to verify braking, torque squeal and rattle. There are no exceptions. The company told CNBC All right, Goldman Sachs was not impressed with the company’s announcement and reiterated its celebrating for Tesla shares noting net model three reservations declined to 420,000 from 455,000 last year.
I own Goldman Sachs stock Okay, I own Goldman Sachs stock. I’m just gonna say whatever analysts you know, talked about that I almost like cringe at whether they even bring that up. Because here’s the thing.
If Tesla has the roughly 420,000 reservations for the model three, almost every one of those reservations has never even been in a model three card Never mind test driven a model three car.
If you’re going to try to you know, you can argue a lot of things against Tesla, their finances, oh my gosh, you know, look at the way they’re losing money right now and whatnot, or they have lost money in the past.
You could argue a lot of things. But one thing you should never try to argue is the demand trend for Tesla 400 plus 1000 reservations for a car most people have never even sat in. Never mind when test drove no imagine as model threes get to the showrooms./
Which you know, last time I checked, a lot of showrooms still don’t even have model threes in their showroom, never mind to actually test drive. Now imagine once model threes are actually available in a mass production type of way, right.
Where people can actually start test driving these actually started sitting in them and whatnot. Imagine what that will do for reservations over time. We’re talking about 40,000 plus on a car people have never even sat in before like this is mind blowing stuff.
The one thing you should never try to argue against. Tesla is a demand trend because demand for model threes is off the charts and we in you know things are just getting started there. Okay, model three deliveries did miss our bearish estimates.
And we see the incremental color on model three reservations, where the company showed its first declining data point as incrementally negative, said the analyst to clients on Tuesday, this analyst reiterated his $995.06 month price target for for Tesla shares representing 42% downside from Monday’s pose.
Okay, he thinks the stock can go down massively from here. in similar fashion city research reaffirmed its neutral slash high risk rating on Tesla shares saying Monday’s production announcement doesn’t significantly change the company’s finances.
We don’t believe today’s update will settle the bull versus bear debate around substantial production slashed demand free cash flow generation ability in the risks tied to Tesla’s balance sheet positions and the analysts okay.
He reaffirmed his $313 price target on Tesla shares, which I think is just down slightly from where it’s at. Not everybody is bearish on Tesla stock on wall street that is another analyst out of numer, who has a $450 price target on Tesla shares.
Tesla hit production target of 5000 model threes in the final week of the quarter, which is an important milestone that we believe re establishes some credibility to the position as a company for profitability in the second half of the year said this analysts that said we continue to expect Tesla shares to be volatile near term.
We see current weakness as an opportunity to further accumulate shares. Okay, wait, now we just got you know, people are either super bearish on Tesla or super bullish, it’s like now a lot of people are really in that in between phase just bears are very bullish the bad thing I think about this, okay.
And I don’t know how much this will spread from Wall Street News to mainstream media news and whatnot. But I think it’s never a good a good sign or a good you know, thing to get out there.
If you are actually, you know, let’s say you’re not doing as many tests on your cars, because maybe that just is a bad look in the public’s eye because I look at that and they’re like, Oh, so you’re just trying to hit Wall Street numbers, you don’t really care about safety.
You don’t care about the quality of the car in Tulsa, you know, is trying to build a brand on quality. So I think that’s just a risk, we’re gonna have to see how much this this breaks away from just financial landscape news to actually the mainstream media and CNBC and how will you know.
This is perceived by the media and whatnot. And so it’s very important it’s a very big thing. I think, you know, Tesla shares are just gonna be very volatile right now. It’s almost every single day there’s some big news either on an analyst upgrading or downgrading the stock there’s a number that came out you know.
Musk would tweet something there’s almost always news earnings should be coming out here I think within about a month or so. Or maybe it’s about a month and a half from now. So that’s going to be really big to watch a lot of fun there.
Micron situation that’s just sad situation. Let me know what you guys think about that whole micron deal. Let me know what you think about Tesla shares. Are you a buyer or seller Are you either on the super bearish side or super bullish sighs I noticed there’s not a lot of people in the middle it’s either you’re you’re on one or the other.
I would love to know from you guys in that comment section. As always hit a thumbs up if you enjoyed this video today. I hope you did. Vic you for watching. Have a great day.