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  • ⚡️Tesla Sinks Below $1 Trillion

⚡️Tesla Sinks Below $1 Trillion

+ Earnings Rundown From Lucid, Cava, Home Depot & Workday

February 25, 2025

Good afternoon! A Southwest Airlines flight was forced to abort its landing at Chicago Midway after a private jet mistakenly entered the runway. The Southwest plane, arriving from Omaha, climbed to 3,000 feet to avoid a collision before landing safely. The FAA has launched an investigation into the incident, which adds to a string of recent aviation close calls. Here’s the video.

The private jet, operated by Flexjet, reportedly misinterpreted air traffic control instructions before crossing into the Southwest plane’s path. The two aircraft came within 2,050 feet of each other before the go-around maneuver.

MARKETS

*Stock data as of market close*

  • Wall Street stumbled again Tuesday, with the S&P 500 dropping 0.5% for its fourth straight loss. The Nasdaq took the biggest hit, down 1.35%, dragged lower by a 2.8% slide in Nvidia ahead of its earnings. Meanwhile, the Dow bucked the trend, climbing 0.37% as investors shifted into more defensive names.

  • Consumer confidence took a sharp hit, posting its biggest monthly drop in nearly four years as inflation fears and economic uncertainty weighed on sentiment. With tariffs back in the conversation and the labor market showing cracks, traders aren’t feeling too optimistic heading into the next round of data.

STOCKS
Winners & Losers

What’s up 📈

  • Dream Finders Homes soared 17.90% after posting a strong quarter, benefiting from regional housing market strength. ($DFH)

  • Li Auto jumped 13.20% after unveiling its first fully electric SUV, the Li Auto i8. ($LI)

  • Solventum surged 9.54% following its announcement to sell its purification and filtration business to Thermo Fisher Scientific for $4.1 billion. ($SOLV)

  • American Tower climbed 6.12% thanks to strong demand for telecom infrastructure, leading to a revenue beat. ($AMT)

  • Keurig Dr Pepper rose 2.40% after topping both earnings and revenue expectations last quarter. ($KDP)

  • Home Depot gained more than 2.84% after posting positive comparable sales for the first time in nine quarters. ($HD)

  • Eli Lilly added 2.31% after launching lower-cost, higher-dose vials of its weight-loss drug Zepbound. ($LLY)

What’s down 📉

  • Chegg cratered 31.41% as AI continues to cut into its online learning platform’s business, leading to weak earnings and subscriber losses. ($CHGG)

  • Krispy Kreme plunged 21.91% to a new record low after disappointing Q4 earnings and issuing weak full-year guidance. ($DNUT)

  • Hims & Hers Health tumbled 22.32% after posting a weak gross margin and losing its ability to sell compounded versions of weight-loss drugs. ($HIMS)

  • Sempra sank 18.97% after slashing its full-year earnings forecast, revising its outlook downward. ($SRE)

  • Tempus AI fell 15.05% after missing Q4 revenue expectations and providing weaker-than-expected full-year guidance. ($TEM)

  • Super Micro Computer dropped 11.76% as its deadline to file delayed earnings reports arrived, risking a Nasdaq delisting. ($SMCI)

  • MicroStrategy (Strategy) fell 11.41%, Robinhood dropped 8.03%, and Coinbase slid 6.42% as crypto stocks tumbled alongside Bitcoin’s drop below $90,000. ($MSTR, $HOOD, $COIN)

  • Zoom Communications shed 8.48% after issuing lower-than-expected full-year revenue guidance. ($ZM)

  • Tesla slid 8.39% after dropping for a fourth consecutive day, pulling its market cap below $1 trillion. ($TSLA)

STOCK
Tesla’s Market Cap Sinks Below $1 Trillion

Tesla’s high-flying market cap just hit a speed bump. The EV giant’s stock plunged 8.4% on Tuesday, knocking its valuation back below $1 trillion for the first time in three months. The latest drop extends a brutal 16% skid over four straight losing sessions, erasing $186 billion in market value—a hit bigger than the GDP of some countries.

Europe Is Driving Off Without Tesla

Tesla’s European sales crashed 45% in January, even as the broader EV market surged 37%. That’s a nightmare scenario for a company that once owned the electric car conversation. Meanwhile, competitors like Volkswagen, Renault, and SAIC Motor are taking full advantage, grabbing market share in Germany, the U.K., and the Netherlands—three of Tesla’s most important regions.

It’s not just competition slowing Tesla down. The Model Y is undergoing a refresh, meaning some buyers are hitting pause on purchases. And then there’s Elon Musk’s political baggage—his rumored backing of Germany’s far-right AfD party hasn’t exactly helped Tesla’s brand in Europe.

Musk’s Political Distractions Are Spilling Into Tesla’s Stock

Beyond sales troubles, investors are increasingly worried about Musk’s extracurricular activities. His role in Trump’s Department of Government Efficiency (DOGE) is causing a stir, with protesters swarming Tesla stores and charging stations over Musk’s influence on government job cuts. Critics argue he’s spending too much time in Washington and not enough time fixing Tesla’s growing list of problems.

China’s Not Bailing Tesla Out Either: Over in China, Tesla’s big upgrade to its self-driving system landed with a thud. Disappointed users say the company overpromised and underdelivered, while competitors like BYD and Xiaomi are offering better driver-assist tech at a fraction of the cost. That’s not the kind of differentiation Tesla needs in its second-largest market.

What’s Next for Tesla?With the stock down 25% in 2025, Tesla has now claimed the title of the worst-performing “Magnificent 7” stock—not exactly the trophy Wall Street expected. Between slumping sales, aggressive competition, and Musk’s political distractions, Tesla’s future isn’t as autopilot-friendly as investors once thought. The question now: Can Musk shift his focus back to the road before Tesla’s stock takes another wrong turn?

NEWS
Market Movements

EARNINGS
Earnings Rundown From Lucid, Cava, Home Depot & Workday

Lucid’s CEO Steps Down as EV Maker Tries to Recharge

Lucid just swapped drivers. CEO Peter Rawlinson is stepping down, with COO Marc Winterhoff sliding into the interim role as the company hunts for a permanent replacement. The shake-up comes as Lucid looks to double production in 2025, hoping the new Gravity SUV can supercharge demand. The EV maker still isn’t profitable, but investors didn’t seem to mind—shares jumped 8.8% in after-hours trading. ($LCID)

EPS: -$0.22, a smaller loss than the expected -$0.25
Revenue: $234.5 million, cruising past estimates of $214 million

Cava’s Growth Outlook Fails to Sizzle

Cava just got served a reality check. The Mediterranean fast-casual chain’s 2025 sales forecast fell short of expectations, sending shares up 2.71% after hours. Same-store sales are expected to rise between 6% and 8%, but analysts were hoping for something juicier. Even a strong Q4, featuring a 21% same-store sales pop, wasn’t enough to ease concerns. With no more price hikes planned, Cava’s hoping new locations and menu additions can keep customers coming back. ($CAVA)

EPS: In line with estimates
Revenue: Matched forecasts

Home Depot’s Sales Turn Positive, Stock Gets a Lift

Home Depot finally broke its eight-quarter losing streak, sending shares up nearly 3% as comparable sales eked out a 0.8% gain. The home improvement giant credited shoppers spending more per trip, but big-ticket renovations are still gathering dust. Full-year guidance came in light, with management bracing for a slow housing market recovery. Still, investors saw enough to believe Home Depot is stabilizing after a rough couple of years. ($HD)

EPS: $3.02, a hair above the expected $3.01
Revenue: $39.70 billion, edging past forecasts of $39.16 billion

Workday Jumps as AI Hype Powers Earnings Beat

AI is paying off for Workday, which saw its stock surge over 10% after crushing earnings expectations. Revenue climbed 15% year over year, with AI tools now a key part of nearly a third of customer expansions. The company also boosted its full-year margin outlook, giving investors confidence in its long-term profitability. As AI adoption ramps up in enterprise software, Workday is proving it has a seat at the table. ($WDAY)

EPS: $1.92, easily topping estimates of $1.78
Revenue: $2.21 billion, beating forecasts of $2.18 billion

Calendar
On The Horizon

Tomorrow

Tomorrow’s housing data rollout continues with the latest new home sales report, offering another read on the real estate market.

On the earnings front, a packed lineup includes Salesforce ($CRM), Snowflake ($SNOW), eBay ($EBAY), Lowe’s ($LOW), TJX Companies ($TJX), AB InBev ($BUD), AmBev ($ABEV), Advance Auto Parts ($AAP), Paramount Global ($PARA), Sweetgreen ($SG), Stellantis ($STLA), and Urban Outfitters ($URBN).

After Market Close:

  • Nvidia has been Wall Street’s golden child, but even heroes face a reckoning. With the AI trade showing signs of fatigue, anything short of flawless earnings could send shockwaves through the market. Investors will be watching for updates on its next-gen Blackwell chips and whether management shrugs off rising competition.

    The biggest wildcard? How Nvidia responds to growing concerns that AI can be built without its top-tier (and top-dollar) hardware. If confidence wavers, the broader tech rally could feel the heat. Consensus: $0.85 EPS, $38.04 billion in revenue. ($NVDA)

NEWS
The Daily Rundown

RESOURCES
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