August 2023 Market Update: U.S. Steel $7.25B Bid Rejected & Tesla Price Cuts Impact Shares
Stay informed with today’s key market movements including U.S. Steel’s takeover bid rejection, Tesla’s price reductions in China, AMC’s court-approved stock plan, Foxconn’s earnings update, and Nikola’s EV truck recall.
Market Highlights for August 14, 2023
Investors should note several significant developments shaping today’s market landscape. U.S. Steel’s shares surged following the rejection of a $7.25 billion acquisition offer, while Tesla’s stock dipped after implementing price cuts in the Chinese market. Here’s a detailed look at the top five market events to watch.
1. U.S. Steel Shares Soar After Turning Down $7.25 Billion Cleveland-Cliffs Offer
United States Steel Corporation (X) decisively declined a $7.25 billion takeover proposal from competitor Cleveland-Cliffs Inc (CLF), which would have formed one of the globe’s largest steel producers. Instead, U.S. Steel announced it will explore strategic alternatives independently. This announcement caused U.S. Steel’s shares to jump 32% in pre-market trading, whereas Cleveland-Cliffs’ shares fell approximately 7%.
2. Tesla Stock Declines Following Price Reductions in China
Tesla Inc. (TSLA) experienced a 1.6% drop in pre-market trading after the electric vehicle giant introduced further price cuts in China. The Model 3 sedan received a $1,100 discount, and the Model Y saw a $2,000 price reduction. These adjustments follow similar moves by competitor Zeekr and previous Tesla price cuts, fueling concerns about electric vehicle demand in the world’s largest automotive market.
3. AMC Entertainment Shares Drop Despite Court Approval of Preferred Stock Conversion
AMC Entertainment Holdings Inc. (AMC) shares plunged 28% pre-market after the company secured court approval for a preferred stock conversion plan, which sparked a shareholder lawsuit. The ruling resolves the dispute over AMC’s Preferred Equity (APE) shares, which surged 27% in pre-market trading following the decision.
4. Foxconn Beats Q2 Earnings Estimates but Lowers Full-Year Revenue Forecast
Apple supplier Foxconn Technology Group reported second-quarter earnings that exceeded analyst expectations, buoyed by growth in the artificial intelligence sector. Despite this, Foxconn revised its full-year revenue outlook downward, anticipating a slight decline due to concerns over China’s economic slowdown and global market weakness. Apple Inc. (AAPL) shares rose 0.5% in pre-market trading on the news.
5. Nikola Recalls Battery-Powered Trucks Over Fire Risk
Electric vehicle manufacturer Nikola Corporation (NKLA) announced a recall of all 209 battery-powered trucks delivered to date after identifying a coolant leak issue within the battery pack that could lead to fires. Following this, Nikola’s shares fell 14% in pre-market trading. The company is shifting its focus toward hydrogen fuel cell trucks and manufactures battery EVs only on order.
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