Tesla Sales Slip After EV Tax Credits Expire

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📉 Yesterday's Market Recap

Yesterday was a tale of two markets: the Dow Jones surged 650 points to a record high, the S&P 500 eked out its own all-time close, but the Nasdaq stumbled on a tech slump led by Oracle’s disappointing earnings. A day after the Fed’s rate cut, sentiment seems split—bullish on traditional sectors, cautious on growth stocks. Here’s what moved the needles.

• Dow’s Record Rally: A 650-point surge pushed the Dow to a new high, fueled by optimism post-Fed rate cut and strength in industrial and financial stocks. → MarketWatch


• S&P 500 Edges Up: The broader index also notched a record close, though gains were modest as investors weighed mixed sector performance. → CNBC


• Nasdaq Slips on Tech Woes: Oracle’s earnings miss sparked a sell-off in tech, dragging the Nasdaq lower and stoking fears of an AI bubble. → StockTwits

📈 Daily Performance Snapshot

🔭 What to Watch Today

Today’s docket has a few key events that could nudge markets or shift sentiment. From earnings releases to policy ripples, keep your eyes peeled for these potential catalysts.

💡 Opportunity Watch

Amid the market highs and policy noise, a few under-the-radar plays are worth a closer look. These trends and stocks could offer upside for those willing to dig deeper—let’s explore.

• Devon Energy (DVN): Upgraded to ‘Buy’ by UBS with a $46 target, DVN’s debt reduction and cost-saving moves position it well for a stronger oil outlook in 2026. → StockTwits
• West Palm Beach Boom: This Florida hub is morphing into a business magnet with 140+ companies relocating—real estate and regional ETFs could see tailwinds from this growth. → Fox Business
• British American Tobacco (BTI): With a 5.1% dividend yield and £1.3 billion in planned buybacks for 2026, BTI offers value despite headwinds in vapor products. → Seeking Alpha

🔥 The Big Bullet

Tesla Sales Dip After EV Tax Credit Expiration

What happened: Tesla’s U.S. vehicle sales dropped sharply in November. The drop came soon after the federal electric vehicle (EV) tax credit expired. This tax credit had helped reduce prices and boost demand for many EVs, including Tesla’s. Without it, prices feel higher for buyers, and demand appears to be cooling. According to some reports, this decline was expected, but it still shows how much the market depends on government support. The timing is tough for Tesla, as competition from other EV makers continues to rise. Tesla has also been facing questions about its pricing strategy and production plans. Investors are now watching for more signs of slowing sales into the next quarter.

Why it matters: This slump raises concerns about how strong EV demand really is without incentives. For many buyers, tax credits made EVs affordable. Now, without them, Tesla could lose ground to cheaper brands or traditional gas-powered vehicles. This could also affect the broader EV industry, which has relied on subsidies to grow. Tesla’s market value depends on big growth, so slower sales may cause pressure on its stock. Other carmakers like Ford and GM are watching this closely. If they see the same trend, they may slow their EV rollout plans. The shift also highlights how sensitive green technology adoption is to policy changes, making future growth less certain. Broader market indexes are reacting as tech-related growth stocks take hits.

What’s next: Investors should watch for December and January delivery numbers. If sales stay low, Tesla might have to lower prices again or offer its own incentives. Policymakers may also face pressure to bring back EV credits or find new ways to support clean cars. Tesla’s next earnings call could bring updates on margins and delivery targets. The company may also shift focus to international sales where subsidies still exist. Meanwhile, competitors like Hyundai and BYD are gaining ground. If this trend spreads beyond Tesla, it could slow the whole EV sector. The next few months will be key to seeing whether this is a short-term dip or the start of a tougher road ahead for electric vehicles.

• How Tesla’s U.S. deliveries fell sharply in November even after rolling out more affordable vehicles – Reuters
• How EV sales growth worldwide has cooled, with North America showing a steep drop after federal incentives expired – Reuters
• Broader U.S. auto trends where pure EV sales tumbled but hybrid vehicles gained traction — suggesting buyers may be switching to alternatives when credits disappear. – Autobodynews.com

🧭 Policy & Market Ripples

• H-1B Visa Program Stays: Labor Secretary Chavez-DeRemer rules out scrapping H-1B visas despite MAGA calls, citing legal limits, while launching ‘Project Firewall’ to curb abuses. → Daily Signal
• Housing Shortage Woes: Fed Chair Powell admits the central bank lacks tools to fix the structural housing shortage, keeping affordability pressures high—mixed signals for homebuilder stocks. → Seeking Alpha

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