Table of Contents

• US Inflation

• Tesla

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Economy & Finance

US Inflation

Federal Reserve Chair Jerome Powell expressed satisfaction with the progress on inflation but emphasized the need for more evidence of sustained improvement before considering interest rate cuts. Speaking at a central banking forum in Sintra, Portugal, Powell noted that recent inflation readings suggest a return to a disinflationary path, yet he remains cautious about acting prematurely. The Commerce Department’s personal consumption expenditures price index showed a 2.6% annual increase in May, down from around 4% a year ago, but still above the Fed's 2% target. Powell highlighted the balance between risks of moving too soon and too late on rate adjustments, with the Fed's current stance leaning towards caution to ensure inflation continues to decline.

Technology

Tesla

Tesla released its second-quarter 2024 vehicle production and deliveries report, showing 410,831 vehicles produced and 443,956 delivered, surpassing Wall Street expectations. Despite a 4.8% year-over-year decline in deliveries, there was a 14.8% increase from the previous quarter. This news caused Tesla shares to jump more than 10%. Challenges included temporary factory shutdowns and increased competition, particularly in China, where Tesla has offered zero-interest loans to boost sales. Analysts remain cautious, with some predicting further price cuts and lower volumes impacting gross margins. Investors are now focused on Tesla’s upcoming Q2 earnings report and the anticipated reveal of its robotaxi, CyberCab, in August.

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