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Indian companies across multiple sectors have reported disappointing results in the second quarter of fiscal year 2025, notes a new JM Financials report. Consequently, their poor performance has triggered stock price corrections for affected companies. The brunt of this weaker than expected earnings was largely borne by consumer centric sectors like FMCG (fast moving consumer goods), retail, and auto, which slacked largely due to dampened urban demand. For instance, India's largest automaker, Maruti Suzuki, reported a 5% YoY decline in its total domestic passenger vehicle wholesales, largely on the back of pent-up inventory. Similarly, Honda reported a staggering 23% YoY dip in its total sales during October 2024. A recent report by Bernstein noted that around 48% of the companies listed on the NSE100 index missed their earnings estimate for Q2FY25, the highest since March 2020. Most companies have mentioned deteriorated domestic demand, urban slowing, macroeconomic risk, and margin pressures as the main reasons behind the dip. "The quarter's earnings have made investors nervous," noted the JM Financials report. The challenging environment stems from multiple factors: softening consumer demand, rising input costs, and companies' limited ability to increase prices. Moreover, this is not limited to just one quarter. Companies have been reporting weak, single-digit earnings growth for the last six consecutive quarters. Data from India Data Hub also suggests that corporate profits of listed companies plunged by as much as 3.4% during the quarter ended September 30, 2024. This is in stark contrast to the year-ago period, where they had shot up by over 40% The oil and gas sector had a difficult quarter, with refiners hit by weak margins and city gas distributors struggling with higher input costs. Financial institutions showed mixed results. While government-owned banks reported strong numbers, microfinance institutions and some private lenders faced massive difficulties with their unsecured loans. Most notable amongst this was the case of IndusInd Bank, which saw its net profits dip by 40% amidst burgeoning provisions, which climbed 87% to Rs 1,820 crore in Q2, as against Rs 974 crore reported in the year-ago period. <h2>Markets head southwards</h2>The selling trend by FPIs has dragged down the major Indian indices, the Nifty 50 and Sensex, both of which have dropped by around 8% since the beginning of this selling spree in October. According to National Securities Depository Ltd. (NSDL) data, FPIs offloaded equities worth a significant Rs 19,994 crore in just the first five trading sessions of November last week. The impact is clearly visible on Indian stock markets. Data suggests that while every sector in October closed the month in red, auto, oil and gas, and consumer durables were the most badly hit, each declining by as much as 10% during the month. Another indicator underlining the inherent weakness of the market was that the month saw only 242 stocks hit their 52-week high, significantly below the usual monthly average of 310.

India Inc. stares at an earnings dearth in Q2, FMCG, auto, and consumer durables falter

<ul class="summary-list"><li>Morgan Stanley analysts' bull case for Tesla would see the stock soar to $500 a share. </li><li>They said Tesla's autonomous technology could be the "great unlock" that turns it into an AI giant.</li></ul>Tesla shares have a path to big upside ahead if the electric car company can expand beyond autos and if CEO Elon Musk flexes newfound political muscle in a second Donal Trump presidency, Morgan Stanley analysts said on Tuesday. The analysts, led by Adam Jonas, forecast a rise to $500 a share in their most bullish scenario, a gain of about 50% from prices on Tuesday afternoon. The stock was trading around $332.45 at 1:58 p.m. ET. They said that Tesla, with 80% of its year-to-date revenues coming from vehicle sales, is frequently excluded from the enthusiasm surrounding artificial intelligence, datacenters, renewable energy, robotics, and on-shoring. However, they think that could change in the coming years if Tesla can successfully implement some of its initiatives outside the core car business. "Tesla is a car company. That is a fact. However, we also view Tesla as a collection of call options," the analysts said in a Monday note. "Many of these call options have exercise dates far out into the future. Many may not be exercised at all. Others may be starting to move into the money right now."The analysts point in particular to its energy sector, which is already showing huge growth even though few investors cared about it just a few quarters ago. Last year, Tesla's storage deployments more than doubled, and are on track to do so again this year, the analysts say.That means it's no longer controversial to suggest Tesla's energy business could soon be more valuable than its auto business, they wrote.They also see the potential for its autonomous driving capabilities to be the "great unlock" that transforms Tesla into an AI giant."In our opinion, the winners in autonomy (whether in cars or other form factors) will be those firms who can combine capabilities in data, robotics, energy, AI, manufacturing and downstream infrastructure," the analysts said. "We believe Tesla has the capability to benefit from this theme over time."The emergence of other themes will be helped by Musk's potentially greater political influence in coming years, the analysts say.Since the election, investors seem to be betting that Musk—and his companies—will benefit from his close ties to the President-elect. Musk became a key Trump ally in the final months of the campaign, <a target="_blank" href="https://www.businessinsider.com/elon-musk-trump-gop-spending-130-million-2024-10">donating millions</a> and voicing his support in key swing states like <a target="_blank" href="https://www.businessinsider.com/elon-musk-pennsylvania-america-pac-donald-trump-harris-2024-11">Pennsylvania</a>.The analysts said it is clear that Musk has gained considerable political influence. If he applies that influence to advance policies to advance EVs, robotics, and renewables, it could accelerate Tesla's journey beyond being just a carmaker."Setting the United States on a course for EV/AV/Robotics/Renewable independence is going to involve government and industrial partnership on a scale some have compared to the Manhattan Project, US Highway Act or the Apollo Missions. Elon Musk's emergence from a political 'outsider' to having a voice in potential policies may, at some level, accelerate Tesla's journey beyond autos," the analysts say.Musk said he would be interested in <a target="_blank" rel="" class="" href="https://www.businessinsider.com/donald-trump-rally-elon-musk-save-department-government-efficiency-2024-10">running a new "Department of Government Efficiency"</a> to slash costs and reduce the federal budget. Morgan Stanley's bullish call comes as Tesla's stock has seen <a target="_blank" href="https://markets.businessinsider.com/news/stocks/tesla-stock-price-trump-win-elon-musk-election-tsla-2024-11?_gl=1*1exg2qk*_ga*MTY3OTgyNjg0MS4xNzIxMDE2MDM2*_ga_E21CV80ZCZ*MTczMTQyNzQ0OS4zOTQuMC4xNzMxNDI3NDU3LjUyLjAuMA..">huge inflows</a> amid a broader <a target="_blank" href="https://markets.businessinsider.com/news/stocks/trump-election-win-stock-market-today-record-high-sp500-dow-2024-11">post-election rally</a>. The stock has risen 34% since the election outcome was called, and has continued trading around a two-year high.

Tesla stock could soar 50% as it broadens beyond autos and as Musk exerts more political influence, Morgan Stanley says 

<ul class="summary-list"><li>Thousands more jobs are under threat in Germany's beleaguered automotive industry.</li><li>Parts supplier Schaeffler said it would cut thousands of jobs for a net reduction of about 3,700 workers.</li></ul>Germany's auto industry is under intense pressure — and now thousands of jobs will go at a key company in the supply chain.Auto parts supplier Schaeffler said on Tuesday it would cut about 4,700 jobs across Europe and close two of its 10 locations in Germany. The move comes a week after union officials said Volkswagen was <a target="_blank" class="" href="https://www.businessinsider.com/volkswagen-considers-closing-factories-germany-job-salary-cuts-autos-2024-10">planning to shut factories</a> in its home market for the first time.Schaeffler, which supplies parts to companies including VW, BMW, and Mercedes-Benz, said it would cut about 2,800 jobs in Germany as part of an effort to save 290 million euros ($316 million) a year by 2029. Relocating some production meant the net number of job losses would be about 3,700, the company said.Schaeffler CEO Klaus Rosenfeld said in a press release that the moves were necessary to safeguard the group's competitiveness over the long term.Net profit for the nine months to September 30 fell almost 40% to 250 million euros compared with the same period last year. The stock fell almost 6% in Frankfurt.Schaeffler's struggles add to the upheaval facing Germany's automotive industry — a vital part of Europe's largest economy.Volkswagen is considering closing as many as three factories and cutting thousands of jobs, the company's top union official said, after it issued two profit warnings in three months.Rivals Mercedes and BMW have also warned on profits amid sliding sales, with <a target="_blank" class="" href="https://www.businessinsider.com/mercedes-benz-sliding-ev-sales-and-weak-demand-in-china-2024-10">Mercedes saying it would seek "cost improvements"</a> across its business after EV sales fell 31% in the third quarter compared with a year earlier.Automakers and suppliers are struggling with <a target="_blank" class="" href="https://www.businessinsider.com/ev-sales-europe-slumping-warning-sign-us-2024-9">stuttering demand for EVs in Europe</a> even as they <a target="_blank" class="" href="https://www.businessinsider.com/vw-making-huge-bet-on-electric-vehicles-in-next-decade-2019-11">pour billions</a> into transitioning from combustion engine vehicles.The likes of Mercedes, BMW, and VW are <a target="_blank" class="" href="https://www.businessinsider.com/germany-auto-giants-volkswagen-bmw-mercedes-struggle-sales-china-evs-2024-10">also facing a growing crisis in China</a>, with all three reporting sliding sales in the world's largest car market.The European giants are coming <a target="_blank" class="" href="https://www.businessinsider.com/luxury-european-carmakers-china-sales-competition-electric-vehicles-bmw-mercedes-2024-10">under pressure from Chinese EV companies</a> including BYD and Zeekr which are winning market share from foreign firms.Many of those companies are now expanding in Europe, despite the EU's tariffs on Chinese EV imports. BYD announced plans to bring its <a target="_blank" class="" href="https://www.businessinsider.com/byd-cheap-ev-seagull-coming-to-europe-china-us-tariffs-2024-5">ultra-cheap Seagull hatchback to the continent next year</a> and is building factories in Hungary and <a target="_blank" class="" href="https://www.businessinsider.com/tesla-rival-byd-chinese-evs-expands-in-europe-new-factory-2024-7">Turkey</a>.Schaeffler declined to comment.

Parts supplier cuts thousands of jobs as Germany's auto woes deepen

<ul class="summary-list"><li>Germany's automotive industry is facing an increasingly difficult outlook.</li><li>Volkswagen may close factories in Germany for the first time, and BMW and Mercedes-Benz are struggling.</li></ul>Germany's car giants were once the envy of the world, but now find themselves facing a myriad of threats.BMW and Mercedes-Benz have issued profit warnings in recent weeks amid <a target="_blank" class="" href="https://www.businessinsider.com/ev-sales-europe-slumping-warning-sign-us-2024-9">slumping EV sales in Europe</a> and <a target="_blank" class="" href="https://www.businessinsider.com/chinas-electric-vehicle-market-could-face-a-brutal-reckoning-2024-5">brutal competition in China</a>, while Volkswagen is <a target="_blank" class="" href="https://www.businessinsider.com/volkswagen-considers-closing-factories-germany-job-salary-cuts-autos-2024-10">also facing a reckoning</a>.On Wednesday VW said net profit for the three months to September 30 plunged by almost 64% to 1.57 billion euros, with a 30% decline to 12.8 billion euros for the first nine months of the year. A 4% rise in vehicle sales in North America and 16% growth in South America for the nine months was offset by a 1% decline in western Europe and a 12% slide in China — VW's biggest market outside Europe. It now expects to deliver about nine million vehicles this year, or about 240,000 fewer than 2023.Volkswagen is seeking to cut billions in costs after issuing two profit warnings in three months. On Monday, its top union official said the company was planning factory closures in Germany for the first time, along with pay cuts and layoffs. The Golf and Polo maker is one of Germany's biggest employers with about 300,000 workers.Mercedes-Benz is also <a target="_blank" class="" href="https://www.businessinsider.com/mercedes-benz-sliding-ev-sales-and-weak-demand-in-china-2024-10">pursuing "cost improvements"</a> after last week's lackluster earnings, while BMW stock has been hit by the recall of some <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/bmw-recalls-1-5-mln-vehicles-over-braking-system-issue-1033765005">1.5 million cars over a braking issue</a>.<div type="image" title="New Volkswagen cars at a factory" height="2574" width="4625" msid="114777386" hostid="261" sizebytes="794156"></div><h2 id="58206ab8-4040-4a0f-ac1e-b07e60c53b6a">Fight for survival in China</h2>All three giants face a similar problem: they're no longer selling enough cars in China, the world's largest car market and a one-time cash cow for European automakers. About 21.7 million new vehicles were sold in China last year, per the China Passenger Car Association figures, compared with about 15.6 million in the US and 10.5 million in Europe.Like VW, BMW and <a target="_blank" class="" href="https://www.businessinsider.com/mercedes-benz-sliding-ev-sales-and-weak-demand-in-china-2024-10">Mercedes</a> also reported a slide in sales in China in the third quarter, amid waning demand for luxury vehicles and the growing dominance of Chinese EV makers.<div type="image" title="BYD Yangwang U8" height="4093" width="6140" msid="114777389" hostid="261" sizebytes="1395046"></div>Helena Wisbert, professor of automotive economics at Ostfalia University in Germany, told Business Insider: "BMW and Mercedes are selling fewer cars, because the new players in the market for EVs have become really competitive, especially in China."Wisbert said that German manufacturers have failed to anticipate the changing behavior of Chinese consumers and diversify their product lines. She added that Mercedes, BMW, and Volkswagen offer comparatively few hybrid and <a target="_blank" class="" href="https://www.businessinsider.com/extended-range-electric-vehicles-erev-gas-generator-range-anxiety-2024-8">extended-range vehicles</a> — categories that have proven extremely popular in China.European carmakers are under intense pressure from Chinese rivals such as <a target="_blank" class="" href="https://www.businessinsider.com/ev-electric-vehicle-china-brands-byd-nio-wuling-zeekr-geely-2023-5">BYD, Nio, and Xiaomi</a>, which offer luxurious EVs vehicles with better <a target="_blank" class="" href="https://www.businessinsider.com/chinese-ev-makers-battle-for-market-dominance-with-smart-features-2024-5">software experiences</a> — and all at far lower prices.<div type="image" title="Chinese customers assess the Xiaomi SU7 at a flagship store in Shanghai, China." height="2800" width="4200" msid="114777392" hostid="261" sizebytes="344146"></div>To make matters worse, some Chinese automakers are now eyeing expansion in Europe, even with <a target="_blank" class="" href="https://www.businessinsider.com/chinese-electric-vehicles-european-tariffs-retaliation-vw-bmw-mercedes-tesla-2024-10">the European Union planning tariffs on BYD and its rivals</a>.Wisbert said the brand strength of BMW and Mercedes in Europe gave them a crucial advantage over Chinese interlopers — but added that VW would likely face competition from Chinese brands that can build and sell EVs far more cheaply. "In the long run, it's a big threat, especially for Volkswagen."<h2 id="4b4f7370-2052-4695-8ad7-e34b879663db">Slow sales in Europe</h2>At the same time, Germany's automakers are also dealing with a slowdown in EV sales in Europe.Mercedes said last week that <a target="_blank" class="" href="https://www.businessinsider.com/mercedes-benz-sliding-ev-sales-and-weak-demand-in-china-2024-10">sales of battery-powered cars</a> fell 31% in the third quarter compared with the same period last year, while deliveries of Volkswagen Group EVs in Europe were <a target="_blank" class="" href="https://uploads.vw-mms.de/system/production/files/cws/040/668/file/151d368085a7d93bdc93358b5dc3bc7714ea72d0/20241011_Deliveries_Tables_icl_BEV.pdf?1728635690">down 12% in Q3</a>.Demand for electric vehicles has slowed in Europe amid a lack of affordable options and the end of subsidy schemes in some countries, including Germany, where new EV deliveries <a target="_blank" class="" href="https://www.businessinsider.com/ev-sales-europe-slumping-warning-sign-us-2024-9">plunged by 69% in August</a>."The European market has failed to return to health as quickly as hoped post-Covid," Matthias Schmidt, an independent auto analyst based in Germany, told BI in an email."That is causing an over-capacity and under-utilisation problem leading to the need for restructuring across European operations, alongside new market entrants such as Chinese carmakers and Tesla increasingly eating up market share."<div type="image" title="Union workers rally outside a Volkswagen plant" height="5464" width="8192" msid="114777385" hostid="261" sizebytes="1564854"></div>Wisbert said that despite Volkswagen and BMW starting to sell battery-electric vehicles more than a decade ago, German companies failed to make EVs their "focus" and are now losing out to rivals such as Tesla and BYD that can build and sell electric cars more cheaply."They missed the chance to get the cost for the battery under control. That's the problem because their competitors can sell cars at a really low price level because they have the battery cost under control," Wisbert said.She warned that attempting to save money by scaling back EV plans would render German carmakers even less competitive in the future. Volkswagen and Mercedes have both adjusted their EV strategies and pushed back targets in recent months as sales stagnate."Right now they're cutting their plans for future investment — and that's not the best way to stay competitive in the future," said Wisbert.Investors are also sounding the alarm, sending Mercedes-Benz shares down more than 11% this year, with BMW sliding 28%. VW, meanwhile, is down about a fifth this year, and close to half the stock price of October 2019. Analysts at UBS have a "sell" recommendation on the stock, and the potential cost and disruption that could be sparked by a "major restructuring."VW, Mercedes, and BMW did not respond to requests for comment from BI.

Volkswagen stumbles in China as Germany's auto giants struggle to compete in the EV race

The Indian automotive landscape is evolving as consumers lean toward both luxury and sustainable options, according to <keyword id="20034170" type="General" weightage="20" keywordseo="Grant-Thornton-Bharat" source="keywords" meta.keywordsubtype="org" meta.entityname="Grant Thornton Bharat" meta.hostid="261" meta.entityid="Grant Thornton Bharat">Grant Thornton Bharat</keyword>’s survey, Shifting Gears: Understanding Passenger Vehicle Market Trends. The survey, gathering insights from over 3,500 respondents, found that 85% are interested in high-end variants, with a notable rise in preference for <keyword id="20372525" type="General" weightage="20" keywordseo="hybrid-vehicles" source="keywords">hybrid vehicles</keyword> over electric options. With 40% of respondents favouring hybrids and only 17% opting for EVs, the shift suggests a cautious approach as consumers await more robust <keyword id="20415012" type="General" weightage="20" keywordseo="EV-infrastructure" source="keywords">EV infrastructure</keyword> and incentives. Meanwhile, 34% still prefer petrol vehicles, indicating the ongoing transition in <keyword id="21046358" type="General" weightage="20" keywordseo="consumer-preferences" source="keywords">consumer preferences</keyword>. Hybrid vehicles, acting as a bridge, are likely to boost familiarity with green technology, paving the way for broader EV adoption in the future. According to Saket Mehra, Partner and Auto &amp; EV Industry Leader at Grant Thornton Bharat, automakers must focus on both hybrid and electric solutions to match changing demands. This year’s festive season—typically accounting for 30-40% of annual sales—is critical, yet high inventory levels, weather impacts, and regional elections have slowed growth. Utility (UV) and sports utility vehicles (SUVs) continue to dominate, now representing 65% of passenger vehicle sales with 13% growth year-over-year. Despite a slow start to FY25, the popularity of SUVs and UVs reflects a strong preference for versatile vehicles. Yet, automakers are grappling with inventory challenges, with 7.9 lakh units worth ₹79,000 crore in stock as of September 2024. To tap into festive demand, nearly 90% of consumers expect substantial discounts. The survey also highlights a shift in consumer priorities, with a heightened focus on <keyword id="20961985" type="General" weightage="20" keywordseo="vehicle-safety" source="keywords">vehicle safety</keyword> overtaking traditional factors like design or performance. Subscription models are also gaining traction, indicating a broader transformation in how Indians perceive mobility solutions.

Indian consumers shift gears toward luxury and sustainability in the auto sector: Survey

<ul><li><keyword id="20025925" type="General" weightage="20" keywordseo="auto-sales" source="keywords">Auto sales</keyword> in August 2024 recorded a month-on-month decline.</li><li>One of the reasons for the decline in sales was excessive rainfall in the country.</li><li><keyword id="20108734" type="General" weightage="20" keywordseo="FADA" source="keywords">FADA</keyword> has urged banks and NBFCs to tighten funding for dealers with excessive inventory.</li></ul>Auto sales in India experienced a significant decline in August 2024, primarily due to excessive rainfall during this monsoon season, according to a report by the Federation of Automobile Dealers Associations (FADA). The report highlighted a 7.01% month-on-month (MoM) decline in overall retail auto sales, falling from 20.34 lakh units in July to 18.91 lakh units in August. Despite this monthly decline in sales, the auto sector witnessed a modest 2.88% year-on-year (YoY) growth compared to August 2023. "India saw 15.9% <keyword id="22508938" type="General" weightage="20" keywordseo="excess-rainfall" source="keywords">excess rainfall</keyword>, with a significant surplus in key regions, disrupting auto retail performance," said a report by FADA. <h2>Decline in sales</h2>The report added that the two-wheeler (2W) segment, despite showing a 6.28% year-on-year growth, registered a 7.29% month-on-month decline. As per the report, market saturation and weather disruptions were the key factors behind the decline in two-wheeler sales. <div type="Article" hostid="261" msid="113016216" title="August auto sales – Maruti Suzuki, Tata Motors and others report a decline in sales" mstype="2" mssubtype="0"></div> In the passenger vehicle (PV) segment, there was a 4.53% YoY and 3.46% MoM decline, while the commercial vehicle (CV) segment recorded an 8.5% MoM and 6.05% YoY decline. FADA noted that weak industrial demand and weather-related challenges were major contributors to the significant drop in commercial vehicle sales. <h2>Inventory levels continue to be a challenge</h2>FADA also highlighted growing inventory challenges in the PV segment, with stock days ranging between 70-75 days, representing approximately 7.8 lakh vehicles valued at ₹77,800 crore. The report noted that these high inventory levels, combined with aggressive OEM dispatches have created cash flow pressures for dealers, impacting their profitability. "Dealers under pressure due to aggressive OEM dispatches, with dealers facing cash flow challenges and reduced profitability" the report said. <h2>FADA urges banks to tighten funding</h2>To address this, FADA has urged banks and NBFCs to tighten funding for dealers with excessive inventory. Additionally, the report emphasized the need for dealers and OEMs to recalibrate their supply strategies to avoid a potential inventory crisis. For the upcoming months, the report paints an optimistic picture with the festive season offering growth opportunities. However, it also noted that the auto retail market must navigate challenges posed by weather uncertainties and inventory management. With inputs from ANI. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/india-beats-the-us-to-emerge-as-the-second-biggest-market-for-5g-smartphones/articleshow/113095322.cms">India beats the US to emerge as the second-biggest market for 5G smartphones</a> <a href="https://www.businessinsider.in/tech/mobile/news/apple-iphone-16-to-launch-on-september-9-design-specs-and-everything-we-know-so-far/articleshow/113091114.cms">Apple iPhone 16 to launch on September 9 – design, specs and everything we know so far</a> <a href="https://www.businessinsider.in/stock-market/webstories/shree-tirupati-balajee-agro-trading-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/113082663.cms">Shree Tirupati Balajee Agro Trading IPO – Price band to risk factors, all you need to know</a>

FADA urges banks to tighten funding to dealers as rains play spoilsport in August

<ul class="summary-list"><li>Earnings-revision breadth, cited as a bullish market driver, has deteriorated, Morgan Stanley says.</li><li>But industrial stocks are still uniquely positioned to outperform, the firm says.</li></ul>A key driver of stock-market bullishness is deteriorating, although there are still opportunities available, Morgan Stanley wrote in new research.The firm is referring to earnings-revision breadth, which enjoyed an increase that coincided with a rally in small-cap stocks in recent weeks.The chart below shows a deceleration in earnings-revision breadth for S&amp;P 500 companies in recent months:<div type="image" title="morgan stanley chart earnings revision breadth" height="412" width="726" msid="112142471" hostid="261" sizebytes="23350"></div>"This does not offer support for a broad cyclical rotation," Morgan Stanley analysts wrote. "Instead, we recommend being more targeted within cyclicals."The firm highlights industrial stocks in particular for two reasons: the relative attractiveness of their current valuations, and macro data that's shown signs of stabilizing.Upcoming quarterly earnings reports could be a catalyst for these stocks, given the outsized impact beats have had on share prices."Stocks are being rewarded for delivering," the analysts said.The analysts, led by CIO and chief US equity strategist Mike Wilson, say earnings revision breadth is trending lower because areas like autos, materials and consumer services have cyclical seasons, and are entering their downturn period.Industrials, meanwhile, have more stability and are thus a safer bet as earnings revision breadth dips.

Why investors should buy industrial stocks now as a valuable market driver deteriorates, Morgan Stanley says

<ul class="summary-list"><li>Stock indexes retreated as investors digested Thursday commentary from Fed Chair Jerome Powell.</li><li>The odds of a 25-basis-point rate cut in December fell sharply after Powell's address.</li></ul>US equities slumped Friday morning as Wall Street pulled back rate-cut expectations for December.The scaling-back started on Thursday afternoon after Federal Reserve Chair Jerome Powell indicated that central bank will take its time in easing policy, citing ongoing US economic strength."The economy is not sending any signals that we need to be in a hurry to lower rates," he said.The odds of a 25-basis-point rate cut fell to less than 60% shortly after Powell's comments, down from 80%, as calculated by the <a target="_blank" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html">CME FedWatch Tool</a>. The probability remained lower, around 58%, on Friday morning.Also impacting rate-cut expectations is a streak of encouraging economic data. New figures on Friday showed US retail sales advanced in October, boosted by a jump in autos purchases.While the three major indexes headed for their first losing week since the election, bond yields climbed. The 2-year yield — most sensitive to near-term rate forecasts — has risen 7 basis points in the last two days.Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:<ul><li><a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 5,905.37, down 0.7%</li><li><a target="_blank" href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 43,547.05, down 0.5% (213 points)</li><li><a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq composite</a>: 18,859.96, down 1.3%</li></ul>Here's what else is going on:<ul><li><a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-bubble-crash-prediction-bull-market-drivers-top-2024-11?_gl=1*1wkitcm*_ga*MTMxNDIwNDI1Ni4xNjc1Njg3OTU4*_ga_E21CV80ZCZ*MTczMTY3NDUwNC44NDAuMS4xNzMxNjc4ODMzLjU1LjAuMA..">3 stock market rally drivers are hitting extremes and pointing to low returns</a>, David Rosenberg said.</li><li>David Einhorn is <a target="_blank" href="https://markets.businessinsider.com/news/stocks/david-einhorn-greenlight-capital-cnh-stock-value-buy-agriculture-inflation-2024-11?_gl=1*jv6vk7*_ga*MTMxNDIwNDI1Ni4xNjc1Njg3OTU4*_ga_E21CV80ZCZ*MTczMTY3NDUwNC44NDAuMS4xNzMxNjc4OTczLjE1LjAuMA..">loading up on a CNH Industrial</a>, a cheap agricultural stock 'no one cares about.'</li><li>Investors underestimate how deep <a target="_blank" href="https://www.businessinsider.com/fed-interest-rate-cuts-outlook-2025-trump-tariff-inflation-growth-2024-11?utm_medium=ingest&amp;utm_source=markets">rate cuts will be in 2025</a>, Goldman Sachs says.</li><li>China's weak economy and record US production will lead to a <a target="_blank" href="https://markets.businessinsider.com/news/commodities/oil-outlook-supply-crude-prices-us-production-china-opec-2024-11?_gl=1*1he4945*_ga*MTY3OTgyNjg0MS4xNzIxMDE2MDM2*_ga_E21CV80ZCZ*MTczMTYxNjYwOS40MTAuMS4xNzMxNjE3NjcwLjYwLjAuMA..&amp;utm_medium=ingest&amp;utm_source=markets">surplus</a> of one million barrels of oil a day next year, IEA says.</li></ul>In commodities, bonds, and crypto:<ul><li>Oil markets were down. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price?type=wti&amp;utm_medium=ingest&amp;utm_source=markets">West Texas Intermediate crude</a> slid 0.96% to $68.04 a barrel. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Brent crude</a>, the international benchmark, fell 0.94% to $71.88 a barrel.</li><li><a target="_blank" href="https://markets.businessinsider.com/commodities/gold-price?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Gold</a> stayed essentially flat at $2,572 an ounce.</li><li>The 10-year Treasury climbed 4 basis points to 4.459%.</li><li><a target="_blank" href="https://markets.businessinsider.com/currencies/btc-usd?utm_medium=ingest&amp;utm_source=markets">Bitcoin</a> jumped 2.28% to $90,053.</li></ul>

Stock market today: Indexes tumble after Fed comments dent December rate-cut odds

Tesla attracts millions of job seekers annually. The few who receive offers typically face a calculated gamble: Accept lower base pay up front for the chance of a potentially lucrative future payout.Business Insider secured access to an internal Tesla pay database, covering nearly 100,000 employees as of December 2021. That data, along with public filings and interviews with people who have worked for the automaker, reveal the company's pay strategy. Tesla offers lower base salaries than its tech and automotive peers but offers substantial stock grants.Even Tesla's top earners must bet on the company. This high-risk, high-reward system is coupled with a selective hiring process that has in the past included <a target="_blank" href="https://www.businessinsider.com/elon-musk-email-tesla-approve-new-hires-2023-5">Elon Musk's sign-off for every hire</a>.Using Tesla's internal salary database, BI looked at median base pay for the roughly 13,000 full-time, salaried, US-based employees across the internal job categories that Tesla uses to define workers in business units, such as engineering, manufacturing, or data management. (BI excluded pay for hourly workers, many of whom work in manufacturing, as it was not possible to accurately calculate their median annual pay based on hourly payroll data.)BI further broke down the data to look at median base pay by job title, analyzing the numbers for full-time, US-based, salaried roles with at least five employees.The base pay for these titles, which include directors of engineering and managers who work in Tesla's service centers fixing vehicles, ranges from about $35,000 to $324,000, according to the data.Nine current and former workers told BI the pay structure has largely remained in place since December 2021 and is ultimately part of Musk's quest to hire only the most <a target="_blank" href="https://www.businessinsider.com/elon-musk-tells-twitter-tesla-staff-be-hardcore-old-email-2022-11">"hardcore" workers</a>."The whole system is set up to find the fanatics," a current Tesla worker with knowledge of the company's hiring process said. "They could get better pay somewhere else, but we want the people who are die-hard Tesla."A former Tesla recruiter who worked with the company until 2024 said the automaker's <a target="_blank" href="https://www.businessinsider.com/how-to-get-hired-at-tesla-job-interview-process">interview process</a> for engineers — which typically entails at least nine interviews and can take months — and the company's pay structure are designed to weed out workers who are looking to just "clock in and clock out.""It's a culture thing," the former recruiter said. "It's not even about how smart you are or how much you know. They're looking for a willingness to learn and put in the extra hours."Tesla, Musk, and the company's board of directors did not respond to requests for comment.In a December 2023 <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.sec.gov/Archives/edgar/data/1318605/000162828024002390/tsla-20231231.htm">regulatory filing</a>, Tesla reported it employed more than 140,000 people worldwide. In April, Tesla told staff it planned to <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/elon-musk-sent-tesla-employees-email-announcing-layoffs-read-memo-2024-4">cut more than 10% of its workforce</a>. A June <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.cnbc.com/2024/06/21/tesla-has-downsized-by-at-least-14percent-this-year-internal-number-shows.html#:~:text=Tesla%20internal%20records%20viewed%20by,includes%20hourly%20and%20salaried%20workers.">estimate</a> from CNBC placed Tesla's headcount at just over 120,000.Using separate data from the Securities and Exchange Commission, BI compared the company's median base pay with that of traditional automakers and the six largest tech firms by market cap. Tesla lags behind all of them except Amazon. While there are a variety of factors that can affect a company's median salary — for example, Amazon's large warehouse workforce or Apple's large retail workforce — the data is consistent with what four current and former Tesla employees say: Tesla's base salaries are generally less than competitors'.Nvidia, Ford, Meta, and Amazon declined to comment on their employee compensation packages. Apple, Microsoft, and Alphabet did not respond to a request for comment. GM said it has doubled its staff in Silicon Valley over the past six months and is competitive in hiring talent away from tech firms.Nine current and former people in engineering and sales said that Tesla's stock grants make it easier to accept lower base salaries. Tesla stock could make them rich, if only on paper. On November 8, the automaker's stock surged more 8% in the wake of Donald Trump's re-election, hitting a market cap of $1 trillion.Some Tesla employees can receive millions of dollars in stock. In 2020 and 2021, 44 US-based employees were offered stock worth more than $1 million, according to the database.To get a sense of which employees were more likely to take home large grants, BI broke up stock grants based on job category. The data show that most workers in engineering received stock grants above $25,000. The value of the stock is based on the value of the shares at the time they were granted, but it's subject to change based on Tesla's share price.Of the stock offerings at Tesla, about 75% were restricted stock units, or RSUs, while nonqualified stock options made up 21%, and were given exclusively as merit-based compensation, according to BI's analysis of US-based, full-time workers. Only 4% of employees — including many executives and other high-level workers — received the stock as incentive stock options, or ISOs.Zaheer Mohiuddin, the cofounder of <a target="_blank" href="http://Levels.fyi">Levels.fyi</a>, said RSUs are very common in tech, while incentive stock options are typically reserved for longtime high-level employees or nonpublic companies. RSUs are typically included in standard compensation packages, while nonqualified stock options and ISOs are often used as additional incentives.RSUs give employees actual shares that vest over time, while ISOs simply provide the right to purchase stock at a preset price before expiration — which is potentially profitable if the stock price rises above that level, but also requires the employee to have money on hand to pay for the stock in the first place.Outside of one person within Tesla's executive job category who had no stock amount listed, Tesla executives received stock offerings worth between $950,000 and $20 million, according to the database, which displayed the latest stock amount for each employee as of December 2021. All but one of the executives' offerings were ISOs.Tesla is far from the first company to enhance base pay with stock grants. Companies like Meta, Google, and Amazon have been known to offer employees healthy stock grants. Employee survey data from 2024 from the compensation-benchmarking company <a target="_blank" href="http://Levels.fyi">Levels.fyi</a> found that Tesla's median base pay and stock grants for US-based software engineers are slightly lower than that of US-based software engineers at Meta, Amazon, Apple, Netflix, and Alphabet, collectively.Over the past five years, Tesla's stock has spiked well over 1,000%; that performance potentially makes those grants attractive.Greg Selker, a managing director at the executive recruitment firm Stanton Chase, told BI that while other Big Tech companies might have higher base pay and equity grants to match, Tesla's strength also lies in its image."There's a mission-driven element to it that allows Tesla to get away with paying less," Selker said. "These people are working to bring about the decarbonization of the planet."Musk has previously described what the stock options can do for employees. "We give everyone stock options; we've made many people who are just working the line — who didn't even know what stocks were — we've made them millionaires," he <a target="_blank" href="https://fortune.com/2023/11/30/tesla-elon-mus-unionize-staff-millionaires-stock-options/">said</a> last year.BI examined the median stock grants and the percentage of employees who received grants for each job category and found that a majority of workers in nearly every category received some type of stock grant.Tesla's pay strategy has more in common with other Silicon Valley companies like Google or Meta than it does with traditional automakers, Harley Shaiken, an auto industry and labor expert, told BI. Traditional automakers like GM or Ford rely on higher base pay while companies like Tesla, which has seen higher stock returns over the past five years, can attract talent through stock grants, Shaiken said."Tech workers are looking for the opportunity for a big payday, not just an incremental salary bump," he said.One former sales manager said Tesla's stock offerings initially attracted him to the role, but he compared them to "golden handcuffs.""The stock is the major hook. You might be unhappy in your role, but you just decide, 'I'm going to keep my head down and wait a few months longer until I vest,'" he said.Tesla's stock offerings have given some workers opportunities for major paydays. Drew Baglino, Tesla's former senior vice president of powertrain and energy engineering, and Zachary Kirkhorn, the former CFO, were awarded $20 million each.Other executives, including Musk's right-hand man Omead Afshar, received $10 million in stock offerings, according to the database."It's part of the benefit of taking a chance on a company like Tesla," one engineer who joined the company in 2015 told BI. "You might have to deal with the aches and pains of a startup — the long hours, some of the uncertainty — but there can also be a significant payoff."Aaron Greenspan, a vocal critic of Musk and the founder of PlainSite, an organization that provides access to legal documents and advocates for legal transparency, first referenced Afshar's stock grant in a lawsuit filed against defendants including Musk and Tesla, accusing them of defamation, among other claims. Lawyers for Musk and Tesla have called his claims "largely unintelligible allegations." The lawsuit is ongoing.Tesla awards stock grants with promotions and annual reviews and bases them on the company's performance, according to the salary database and conversations with four current employees. Last year, the company cut back on merit-based stock awards for staff, <a target="_blank" href="https://www.bloomberg.com/news/articles/2023-12-19/tesla-skips-merit-based-stock-awards-squeezing-compensation">Bloomberg reported</a> and the four employees told BI. In June, Musk told staff he planned to award <a target="_blank" href="https://www.businessinsider.com/tesla-stock-option-grants-awards-elon-musk-email-2024-6#:~:text=Tesla%20will%20reward%20employees%20for,at%20Tesla%20earlier%20this%20year.">additional stock grants for "exceptional performance."</a> During annual performance reviews in July, managers were limited to recommending no more than 20% of their team to be considered for the extra award, two people with knowledge said. Tesla typically awards employees restricted stock units that vest over a period of four years, the data show.Selker said historically Tesla workers have been able to count on their stock continuing to grow."It's a bet they have to make," he said. So far, stock grants have "proven to be better than cash in your pocket.""Now, if the stock were to become inconsistent or halve, then Tesla will have to change its strategy," he added.Tesla's stock has experienced significant volatility this year, slumping as low as 44% in mid-April from its price at the start of the year. Following Donald Trump's re-election, it's up nearly 30% overall year to date.At least one longtime Tesla staffer worries about new hires."I feel lucky that I got in early, but I see a lot of younger engineers expecting to reap the same benefits," they said. "And I'm not sure they will."Do you work for Tesla or have a tip? Reach out to the reporter via a non-work email and device at <a target="_blank" href="mailto:gkay@businessinsider.com">gkay@businessinsider.com</a> or <a target="_blank" rel="noopener noreferrer nofollow" class="c-link">248-894-6012</a>.

Internal Tesla salary database shows Elon Musk's strategy: Lower salaries, bigger stock grants

<keyword id="21999883" type="General" weightage="20" keywordseo="Passenger-vehicle-retail-sales" source="keywords">Passenger vehicle retail sales</keyword> in India witnessed a 5 per cent on-year decline in August on account of delayed customer purchases, poor consumer sentiment and persistent heavy rains, industry body <keyword id="20108734" type="General" weightage="20" keywordseo="FADA" source="keywords">FADA</keyword> said on Thursday. The overall <keyword id="762866" type="General" weightage="100" keywordseo="Passenger-vehicle" source="Orion">passenger vehicle</keyword> (PV) registrations last month stood at 3,09,053 units, as compared to 3,23,720 units in August 2023. "Even with the arrival of the <keyword id="19894908" type="General" weightage="20" keywordseo="Festive-season" source="keywords">festive season</keyword>, the market remains under significant strain... Inventory levels have reached alarming levels, with stock days now stretching to 70-75 days and inventory totalling 7.8 lakh vehicles, valued at an alarming Rs 77,800 crore," Federation of Automobile Dealers Associations (FADA) President Manish Raj Singhania said in a statement. Rather than responding to the situation, PV Original Equipment Manufacturers (OEMs) continue to increase dispatches to dealers on a month-on-month basis, further exacerbating the issue, he added. "FADA urgently calls upon all banks and NBFCs to intervene and immediately control funding to dealers with excessive inventory," Singhania said, adding that dealers must also act swiftly to stop taking on additional stock to protect their financial health. The OEMs, too, must recalibrate their supply strategies without delay, or the industry faces a potential crisis from this inventory overload, he said. "If this aggressive push of excess stock continues unchecked, the <keyword id="23047448" type="General" weightage="20" keywordseo="auto-retail-ecosystem" source="keywords">auto retail ecosystem</keyword> could face severe disruption," Singhania said. Commercial vehicle registrations saw a 6 per cent year-on-year dip in August, while tractor retail sales also witnessed a drop of 11 per cent as compared to the year-ago period. Two-wheeler sales, however, increased 6 per cent year-on-year to 13,38,237 units in August, as compared to 12,59,140 units in the same month last year, on the back of improved stock availability and the onset of the festive season, Singhania said. Three-wheeler retail sales also increased by 2 per cent to 1,05,478 units last month, as compared to 1,03,782 units in the year-ago period. Overall registrations last month saw an increase of 3 per cent year-on-year at 18,91,499 units, as against 18,38,501 units in August last year. On business outlook in the near term, FADA said it remains cautiously optimistic. While the festive season and improved rural demand present promising opportunities for growth, ongoing weather uncertainties and high inventory levels may temper the overall recovery, it stated. To navigate these challenges, strategic inventory management and targeted marketing initiatives will be crucial in maximising festive sales and mitigating risks from adverse weather conditions, it added.

You Searched For "Auto industry stocks" and got 10 results

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