Tesla’s Multi-Faceted Challenges and TikTok’s Uncertain Future

Tesla Grapples with Headwinds Ahead of Earnings Report

Over the weekend, Tesla Inc. (NASDAQ:TSLA) was hit by a flurry of headwinds as investors braced for an earnings report that might not hit the high notes they’re hoping for. The electric vehicle powerhouse is juggling a few too many balls at the moment: demand is cooling off, competition is getting fiercer, and they’ve had to slash prices across some major markets including China and Germany.

These price cuts echo those already made in the U.S. But that’s not the end of the road—Tesla’s also dealing with a delivery shortfall, a sizeable cut to its workforce (over 10%!), a recall of the buzz-worthy Cybertruck, a price cut on its Full Self-Driving (FSD) package (we’re talking a 33% drop), and Elon Musk pumping the brakes on a much-anticipated trip to India. These twists and turns have put the brakes on TSLA’s stock price too, with a skid of more than 40% since the start of the year.

U.S. House Takes Firm Stance on National Security

This Saturday, the national security conversation took a sharp turn. The U.S. House of Representatives showed real unity, voting 360 to 58 on a bill taking direct aim at ByteDance, the Chinese parent company of the wildly popular app TikTok. If this bill gets the green light, ByteDance has got two choices: say goodbye to TikTok or get booted from U.S. app stores.

They’ve bumped up the time ByteDance has to sort things out to 270 days from 180, with President Biden having the option to tack on another 90 if he wants to. It’s part of a bigger picture though—a legislative package with a hefty $95 billion aimed at helping allies like Ukraine, Israel, and Taiwan. The bill, TikTok ban and all, is now on a fast track to the Senate, where it’s expected to get the thumbs up before the week is out.

Saleforce and Informatica: Acquisition Talks Hit a Dead End

Before the market even had a chance to wake up, Informatica’s (NYSE:INFA) stocks took a 6% tumble on news that their dance with Salesforce (NYSE:CRM) had turned a bit awkward. The scoop from the Wall Street Journal is that the two just couldn’t sync up on the terms of the deal.

When word first got out on April 15 that Salesforce might be eyeing Informatica, investors got jittery, and Salesforce’s stock value took a 7.3% nosedive. Concerns were high about the company chasing after a big buy while already under the microscope of activist shareholders. Informatica, sporting a market cap of $10.4 billion, is gearing up to share its first-quarter numbers on May 1. Meanwhile, they’re picking up the pieces from the stalled chat with Salesforce.