Shares of Tesla have spiked in premarket trading as the company divulged plans for a more affordable electric vehicle (EV), regardless of the fact that its earnings missed predicted targets. Meta Platforms, the parent company of Facebook and Instagram, has seen an uptick in share price in anticipation of their upcoming earnings report. In political news, President Biden is set to ratify a new bill that could remove TikTok from American app stores if ByteDance, its Chinese parent company, doesn't sell it within one year. Shares of beleaguered airplane maker Boeing and telecommunications titan AT&T are seeing notable rises after both corporations exceeded earnings expectations.
Approximately 90 minutes before market opening, Tesla shares had already increased by nearly 12%. Investors seem to be prioritizing the upcoming launch of more cost-effective EVs over less-than-stellar quarterly earnings. Tesla CEO Elon Musk disclosed during an earnings call that production of these more budget-friendly models could commence as soon as year-end.
In other tech news, shares of Meta Platforms have increased over 2% in premarket trading. As we approach the release of the company's first-quarter results, investors will be keeping a close eye on any developments in the business's advertising revenue growth and the incorporation of artificial intelligence (AI) into various sectors of the company.
President Biden's impending signing of legislation that could ban TikTok is giving ByteDance, its Chinese owner, a one-year window to sell the app or risk being banned in the United States. This follows concerns over TikTok's potential to affect national security by facilitating the collection of intelligence on U.S. users. If TikTok becomes banned, U.S. social media giants Meta and Google's parent company, Alphabet, could see a boost given their own popular short-video platforms, Instagram Reels and YouTube Shorts.
Boeing's stock has also risen by more than 3% in premarket trading after the company suffered a less-than-expected first-quarter loss and recorded higher revenue than had been predicted. The company has been facing setbacks including safety concerns and delivery issues, but its crucial performance metrics still managed to exceed estimates.
Finally, AT&T shares rose over 4% after the telecom firm recorded higher first-quarter profit than was expected, although its revenue slightly fell short of Wall Street predictions.