Tesla's $70 Billion Plunge

Tesla's shares dropped 11% following Elon Musk's sobering sales growth warning. Musk predicted that Tesla’s growth will decelerate as the company gears up to introduce a more affordable electric vehicle in 2025.

This bleak outlook prompted a worrying $70 billion dive in market value, escalating total losses to a concerning $200 billion this month.

Simultaneously, Rivian, Lucid, and Fisker also faced a downturn, with their stocks dropping between 4.7% to 8.8%.

Tesla’s valuation—nearly 60 times its 12-month forward earnings—is under scrutiny. Tesla short sellers have reaped a windfall of $3.45 billion, crowning it the year's most lucrative short sell in the U.S.

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U.S. GDP Booms Against All Odds

The U.S. economy ended the year with a bang, growing 3.3% in the last quarter. This growth pushed the yearly expansion to 2.5%, proving those who feared a recession wrong.

American spending on goods and services climbed by 2.8%, showing the strength of consumer confidence.

Meanwhile, jobless claims saw an uptick, with 25,000 more claims than expected, totaling 214,000 for the week. Yet, this number is still historically low.

The strong foundations suggest that, for now, a recession in 2024 may be dodged.

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Google, Microsoft & Amazon Grilled By FTC

The Federal Trade Commission (FTC) is investigating Microsoft, Amazon and Google over their multibillion-dollar investments in AI start-ups OpenAI and Anthropic.

The concern? These dealings might curb competition by strengthening the hold of established companies.

Moreover, this isn't just a local affair. International watchdogs like the UK's Competition and Markets Authority and the European Commission are also sniffing around these investments.

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Apple's App Store Empire Crumbles in EU

Apple has caved to EU regulators by revamping its iOS, Safari, and App Store policies. For the first time ever, customers will have the freedom to explore software outside the App Store.

Apple is set to support third-party app stores, allowing for more competitive gaming services and other apps. Now, Apple is slashing its app store rates as low as 10%.

This shift is a direct response to an EU law called the Digital Markets Act, enforcing major changes long resisted by Apple.

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