Reports that CEO Elon Musk wanted Warren Buffet’s Berkshire Hathaway (BRK-B) to buy Tesla (TSLA) shares are distracting noise. Investors should worry about more layoffs in the software, service, and engineering departments. According to Electrik’s Monday report, Tesla is cutting staff to achieve a total global cut of over 10%.
Growth companies do not cut jobs. Although efficiencies rose for Meta Platforms (META), Alphabet (GOOG), and Microsoft (MSFT), Tesla’s staff costs suggest a slowdown in innovation.
Axon Enterprise (AXON) is a high-flying winner today. The firm posted revenue growing by 34.3% Y/Y to $460.74 million. It forecasts a full-year 2024 adjusted EBITDA of $430M to $445M.
AXON stock continues to prove that it is a long-term investment for the patient growth investor.
Rate Cut Hopes
On Monday, the Nasdaq added 1.10%, erasing a small correction that started in mid-April. Hopes of an interest rate cut persisted, helped by weak job growth in April 2024. Last Friday’s weaker non-farm jobs report is due mostly to the government adding less staff. It is not a basis for the Fed to cut rates soon. Still, stock markets anticipate less pressure for the central bank to keep rates higher for longer. Watch TLT ETF, the 20+ Year Treasury bond, to strengthen the rate cut hope.
TLT stock bounced off the $88.00 level, closing at $90.19. It will run up to $92.00 next before facing selling pressure.
