Podcast Summary
New rules cut electric vehicle tax credits in half, Bitcoin reaches highest price in 2 years: New US rules halve electric vehicle tax credits to 13 models, Bitcoin surpasses 45,000 on ETF anticipation
The number of electric vehicles eligible for the full consumer tax credit in the US has been cut in half, from 25 models to 13, due to new rules excluding vehicles with battery components made by Chinese manufacturers. Bitcoin, on the other hand, has reached its highest price in 2 years, surpassing 45,000, in anticipation of US approval of a Bitcoin ETF. The electric vehicles still eligible for the $75100 tax credit include variations of Tesla's Model Y, Rivian R1T pickup, Jeep Wrangler 4XE, Chevrolet Bolt, and Ford F-150 Lightning pickup truck. Notable absences from the list are the Nissan LEAF and Tesla Cybertruck, which still qualify for a $3,750 tax credit. The restrictions on Chinese suppliers will expand to include suppliers of key raw materials for batteries in 2025, putting additional pressure on automakers. Bitcoin's price rally is fueled by the anticipation of US approval of a Bitcoin ETF, which could bring more institutional investors into the market.
Bitcoin regulation and stock market updates: Bitcoin regulation could impact investor activity, with Coinbase, Riot, Marathon, and MicroStrategy potentially affected. Tesla reports Q4 deliveries and Spirit Airlines faces a DOJ trial. Oil prices rise after Iran's military move. Avangrid cancels merger deal. Major market averages closed down, with consumer staples and health care in the green.
The potential decision regarding Bitcoin regulation could lead to significant investor activity, with Bitcoin having already seen a 175% increase in the past year despite not reaching its 2021 peak. Notable stocks to watch include Coinbase Global, Riot Platforms, Marathon Digital, and MicroStrategy. However, Corpent Therapeutics plummeted 38% in after hours trading due to a patent trial loss with Teva Pharmaceuticals over a drug for Cushing's syndrome. Tesla is expected to report Q4 deliveries, and there is high options trading volume on Spirit Airlines regarding the DOJ trial on blocking the merger with JetBlue Airways. Sirius XM Holdings and Big Lots have high short positions. Additionally, oil prices climbed after Iran sent a warship to the Red Sea, and Avangrid canceled a merger deal with PNM Resources. The major market averages concluded the last day of trading in 2023 to the downside, with 9 of the 11 S&P sectors finishing in negative territory. Consumer staples and health care were the only sectors to finish in the green. The markets are now open for trading at 6 AM.
Mixed Results in the Market: Crude Oil Up, Bitcoin Surges, But Some Sectors Decline: Crude oil increased 2.4%, Bitcoin surged 7% above 45,000, and international markets like FTSE 100 and DAX saw growth. However, certain sectors and Japanese markets were closed, and Lee Auto faced a 4% decrease despite strong growth.
Despite a 0.1% decrease for the Dow, S&P 500, and Nasdaq futures ahead of the opening bell, certain sectors and international markets showed positive growth. Crude oil experienced a 2.4% increase, and Bitcoin surged 7% above 45,000. The FTSE 100 was up 0.1%, and the DAX saw a 0.4% rise. However, notable losses came from Lee Auto, which saw a 4% decrease despite a 22.7% month-over-month growth and a 137.1% year-over-year increase in vehicle deliveries. Market closures in Japan due to an earthquake resulted in no activity in that region, but Japanese markets will reopen on January 4th. A construction spending report is set to be released at 10 AM. Overall, the market showed mixed results, with some sectors and international markets experiencing growth, while others faced declines.
