Tesla Surging 8% Upon New Self-Driving Regulation News

Good morning. Its November 18th, and in today’s edition we take a look at why Tesla is surging in premarket trade, Spirit Airlines is declaring bankruptcy, and CVS Health finally has something to cheer about.

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All three major indexes concluded a challenging week on Friday, retreating from their post-election highs. The selloff was fueled by Federal Reserve Chair Jerome Powell’s comments indicating no rush to cut rates due to strong economic growth and a robust labor market.

Futures

Nasdaq 100 futures are climbing 0.59% this morning. S&P 500 futures are up 0.2%, while Dow futures are slipping 13 points (less than 0.1%). This week, Wall Street will focus on earnings from several major players like NVIDIA, Palo Alto Networks, Walmart, and Target.

Technology

This AI Startup is Quietly Doubling Revenue

The marketing industry is being transformed, and one AI startup is leading the charge. Delivering 3.5X ROI to Fortune 1000 clients and backed by the likes of Adobe Fund, Meta, and Google, this company is experiencing extraordinary growth.

Its valuation has skyrocketed from $5M to $85M in just three years, and revenue is doubling year over year.

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What to Watch

Several companies will report their quarterly earnings before the market opens today, including Brady Corporation (NYSE: BRC), Twist Bioscience Corporation (NASDAQ: TWST), and Bitdeer Technologies Group (NASDAQ: BTDR).

BellRing Brands (NYSE: BRBR), Symbotic (NASDAQ: SYM), and i3 Verticals (NASDAQ: IIIV) will report their earnings after the closing bell.

On the economic calendar, the Home Builder Confidence Index for November will be released at 10:00 a.m. ET, followed by Chicago Fed President Austan Goolsbee’s welcoming remarks at 10:00 a.m. ET.

Automobiles

Trump’s Self-Driving Rule Relaxation Plan Gets Tesla Shares Soaring

Tesla shares are surging in premarket trading today following a report that President-elect Donald Trump’s transition team plans to prioritize a federal framework for regulating self-driving vehicles. The proposed initiative is expected to be a key focus for the U.S. Department of Transportation, potentially streamlining regulations for autonomous vehicle development.

The report, citing unnamed sources, highlights Tesla as a major beneficiary of this policy shift. Elon Musk, a vocal supporter of Trump’s return to the White House, has long envisioned Tesla’s future as a leader in autonomous driving, aiming to deploy a fleet of “robotaxis” capable of operating without human intervention.

Last month, Tesla unveiled its prototype “Cybercab,” a $30,000 concept vehicle with no steering wheel or pedals, intended as a cornerstone of its robotaxi ambitions. While Tesla's Full Self-Driving (FSD) technology is currently limited to supervised use, Musk has projected unsupervised FSD capabilities in select U.S. states as early as next year.

The Trump team’s plans, if implemented, could provide much-needed regulatory clarity and accelerate autonomous vehicle development across the industry. The framework would also position Tesla to compete more effectively with rivals like Waymo, which has already launched autonomous cars on public roads.

Market optimism about the regulatory overhaul is pushing Tesla stock up 7.90% in premarket trade as of 6:24 a.m. ET, signaling strong investor confidence in the potential impact of these policies.

Airlines

Budget Carrier Spirit Files for Chapter 11, Plans Operational Continuity

Spirit Airlines, a pioneer in budget air travel, is filing for Chapter 11 bankruptcy protection after years of financial struggles and a failed merger with JetBlue Airways. The Florida-based airline is citing mounting losses, surging costs, and a challenging post-pandemic market environment as the reason behind the filing.

Spirit has reached an agreement with bondholders for $300 million in debtor-in-possession financing to sustain operations through bankruptcy, which it aims to exit by Q1 2025. CEO Ted Christie assured customers that the airline will continue normal operations, including bookings, loyalty programs, and flights, during the holiday season.

The filing comes after Spirit faced significant headwinds, including grounding jets due to an engine recall and a blocked $3.8-billion merger with JetBlue on antitrust grounds. The airline also struggled with falling fares, rising operational costs, and a $1.1-billion debt looming next year.

To shore up liquidity, Spirit recently sold 23 Airbus jets for $519 million and plans further operational reductions, including furloughing 330 pilots in January. Despite these measures, analysts anticipate the airline will need to downsize further.

The Chapter 11 filing marks the first major U.S. airline bankruptcy since American Airlines in 2011. Spirit's future could include renewed merger talks with Frontier Airlines, its former suitor, as the budget travel sector recalibrates in a volatile market.

Spirit’s shares, which have plummeted over 90% this year, will be delisted from the New York Stock Exchange. In premarket trade, the share is up 3.70%.

Healthcare

New Leadership Boosts CVS Board as Glenview Increases Stake

CVS Health is adding four new directors to its board as part of a collaboration with Glenview Capital Management. The newly appointed members include Glenview CEO Larry Robbins, alongside Leslie Norwalk, former acting administrator of the Centers for Medicare and Medicaid Services; Guy Sansone, CEO of H2 Health; and Doug Shulman, former IRS commissioner and executive at BNY Mellon. These changes increase the board’s size to 16 members.

Glenview, a significant CVS investor, recently boosted its stake in the company by 31% during the third quarter. CVS Chairman Roger Farah emphasized that this partnership reflects a commitment to enhancing governance and delivering value for all stakeholders, from consumers to shareholders.

The announcement follows a turbulent period for CVS Health, marked by financial struggles tied to challenges within its insurance division, Aetna. To address these issues, CVS recently underwent a strategic review and appointed David Joyner as CEO, tasking him with restructuring Aetna and stabilizing the company’s overall performance.

The board is now focused on key priorities such as executing strategic initiatives and reducing debt to strengthen CVS’s balance sheet. Shares of CVS are up nearly 1.4% in premarket trading, reflecting investor optimism about these latest developments.

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Super Micro Computer Inc. [SMCI] - Last Close: $18.58

Super Micro Computer shares are rising by nearly 13% in premarket trading.

The firm is scheduled to submit a compliance plan to Nasdaq today, aiming to avoid delisting.

The AI server firm has experienced delays in filing its Q1 2025 earnings report because it needs to finalize its 2024 Form 10-K and hire a new accounting firm.

A special committee has completed its initial review of concerns raised by former auditor Ernst & Young and continues to address remaining tasks.

Super Micro has reaffirmed its commitment to promptly meeting Nasdaq's listing requirements.

SINTX Technologies Inc [SINT] - Last Close: $2.04

SINTX Technologies is gaining 57% in premarket trade.

The firm announced a stock repurchase program, authorizing the buyback of up to $500,000 of its outstanding common stock over the next several quarters.

This amount represents approximately 20% of the company's total outstanding shares.

SINTX's confidence in its strategic direction is leading to shareholder optimism in the stock.

Quantum Corporation [QMCO] - Last Close: $3.28

Quantum Corporation's stock is climbing 15% in premarket trade due to improved financial performance and promising business developments.

The company reported stronger gross profit margins of 41.5%, reflecting enhanced efficiency and cost management.

Its Subscription Annual Recurring Revenue (ARR) grew by 28% year-over-year, signaling increased demand for its innovative data solutions.

Quantum also achieved breakeven adjusted EBITDA for the quarter while reducing operating expenses by over 8% year-over-year, highlighting its operational efficiency.

2025 Stock Watch

The Top 5 Stocks to Watch Heading into 2025

As 2025 approaches, key trends are emerging that could shape the market. Trump’s energy-first approach and his commitment to "drill, baby, drill" stand to benefit domestic oil companies.

His enthusiasm for artificial intelligence and the infrastructure needed to support it highlights opportunities in tech and energy.

And with his backing of cryptocurrencies, it’s no surprise Bitcoin hit all-time highs after the election.

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Everything Else

• U.S. government health plans dominate coverage for Novo and Lilly’s obesity drugs.

• Samsung shares jump following a massive buyback plan and union agreement.

• Nedbank shifts focus to Africa’s booming sectors to diversify beyond South Africa.

• Xiaomi raises its EV sales target after strong demand boosts quarterly revenue to $12.77 billion.

  Delivery Hero’s Talabat eyes a $10 billion valuation in one of the Middle East’s largest 2024 IPOs.

• A Greek financial team outlined its 2025 strategy to repay expensive loans and strengthen economic stability.

• TEC secured $160 million to build Europe’s reusable space capsule, challenging SpaceX dominance.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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