In this articleTSLASPXCOMPDJIAComing into Friday trading, Tesla stock was flat on the year and up 8% over the past 12 months. (PHILIPPE LOPEZ/AFP via Getty Images)Tesla is one of the most valuable companies on the planet. It is also a chronic underperformer. ...

Core Insights - The U.S. stock market experienced mixed performance with major indexes reflecting cautious investor sentiment ahead of significant economic announcements and the continuation of Q4 earnings season [1] Major Index Performance - The Dow Jones Industrial Average (DJI) closed down by 249.76 points at 49,134.25 - The S&P 500 (SPX) rose by 13.30 points to close at 6,926.65, on track for its first back-to-back weekly drop since June - The Nasdaq Composite (IXIC) increased by 137.87 points to 23,573.89 - The CBOE Volatility Index (VIX) decreased, indicating a slight easing of market stress [2] Upcoming Market Events - The Federal Open Market Committee (FOMC) meeting on January 29 is a key focus, with expectations that interest rates will remain in the 3.50-3.75% range - Investors will be attentive to Fed Chair Jerome Powell's comments on future monetary policy, labor market conditions, and inflation risks [3][4] Q4 Earnings Season - The upcoming week will see earnings reports from major tech companies including Apple, Microsoft, Alphabet, Amazon, Meta Platforms, and Tesla - These companies have underperformed the S&P 500 over the past year, making their earnings particularly crucial for market sentiment [5] Major Stock News - Intel (INTC) shares dropped by 17% in pre-market trading after a Q4 earnings report that, while beating estimates, included a weaker-than-expected Q1 outlook - Nvidia (NVDA) shares rose by 1.4% due to reports of Chinese regulators allowing orders for its H200 AI chips, with Q3 earnings up 62% year-over-year to $57 billion [7][8] - Tesla (TSLA) discontinued its basic driver-assistance system, Autopilot, in the U.S. and Canada - Capital One Financial (COF) shares fell after missing earnings estimates and announcing an acquisition of fintech startup Brex for $5.15 billion [9][10] Broader Market Trends - Commodities showed continued strength, with gold futures reaching $4,970 an ounce and silver surpassing $100 an ounce - Crude oil futures traded above $60 a barrel, reflecting ongoing investor sentiment and geopolitical considerations - U.S. consumer sentiment reached a five-month high, providing support for the economy [13]

Core Viewpoint - Tesla vehicles purchased in the U.S. and Canada will continue to be equipped with traffic-aware cruise control systems [1] Group 1 - The traffic-aware cruise control system is a key feature of new Tesla vehicles [1]

Group 1 - The newly purchased Tesla vehicles in the US and Canada will have the automatic steering feature available only for the FSD (Full Self-Driving) version, which requires human supervision [1]

Core Viewpoint - Tesla has discontinued its basic driver-assistance system, Autopilot, in Canada and the US, pushing customers towards the more advanced Full Self-Driving (FSD) technology, which will now only be available through a monthly subscription model priced at $99 [1][4]. Group 1: Changes in Driver-Assistance Features - Tesla's new vehicle configurations now only include Traffic Aware Cruise Control, which maintains speed and follows traffic at a safe distance, while Autosteer is no longer a standard feature [2][3]. - The California Department of Motor Vehicles has imposed a 60-day deadline for Tesla to revise its marketing practices, including ceasing the use of the "Autopilot" name, which regulators argue misleads consumers regarding the system's capabilities [3]. Group 2: Subscription Model and Market Strategy - The subscription price for FSD is expected to increase over time as the software's capabilities improve, positioning it as a key profit driver for Tesla [4][7]. - Currently, only 12% of Tesla customers have opted to pay for the FSD software, indicating a potential area for growth as the subscription model becomes more accessible [7].

Group 1: Meta and Threads - Meta's stock increased approximately 5% as management reported early success in monetizing Threads, indicating a positive market reaction driven by optionality rather than immediate revenue [1] - Threads is being developed as an additional scalable advertising platform that leverages Meta's existing data and targeting capabilities, following a strategy of building user engagement before efficient monetization [1] Group 2: Tesla and Robotics - Tesla's CEO Elon Musk emphasized that robotics is a long-term strategic focus rather than a short-term revenue generator, prioritizing autonomy and real-world applications over aggressive commercialization timelines [2] - The narrative surrounding robotics is framed as an efficiency and productivity enhancement story, with the understanding that progress will be inconsistent, benefiting platforms that can effectively integrate hardware, software, and data at scale [3] Group 3: Cryptocurrency Market - Bitcoin is currently in a downtrend, characterized by lower highs and weak follow-through, indicating a lack of sustained risk appetite in the market [4] - Despite the ongoing downtrend, the long-term outlook for cryptocurrency remains intact, highlighting the necessity for patience until liquidity improves or macroeconomic pressures lessen [6]

Core Insights - The development of autonomous vehicles is gaining momentum, with multiple players entering the market, indicating increased confidence in the technology [1][4] - Tesla's vision-only platform is now operating on public roads without human supervision, marking a significant milestone in the autonomous vehicle sector [2][3] - Waymo is currently leading in commercial ride-hailing services, aiming to reach one million rides per week by the end of the year, while Tesla's presence remains limited [5][6] Industry Landscape - The regulatory environment has not hindered competitors, and the rapid entry of new players is reshaping the market dynamics [5][6] - Waymo's deployment in multiple cities without human supervision is a key factor in its competitive advantage [6][7] - Consumer acceptance of autonomous vehicles is growing, with data suggesting that users in San Francisco are increasingly comfortable with Waymo's services [8][10] Global Context - The global readiness for autonomous vehicles is on the rise, with various countries allowing more operators to experiment with these technologies [10] - Partnerships between companies like Uber and Waymo in different regions, including Austin and China, indicate a collaborative approach to expanding autonomous ride-hailing services [8][9]

Core Viewpoint - Investor Jim Chanos has criticized the collaboration between Lemonade Inc. and Tesla Inc., particularly the offering of reduced insurance rates for Tesla vehicles engaged in Full Self-Driving (FSD) mode, suggesting that this partnership is misleading [1][2][3]. Group 1: Collaboration Details - Lemonade announced a partnership with Tesla to provide a 50% reduction in insurance rates for vehicles using FSD, citing data that indicates Teslas in FSD mode are involved in significantly fewer accidents [3]. - Chanos argues that true FSD will shift liability insurance from drivers to manufacturers, implying that driver insurance may become unnecessary [2][3]. Group 2: Safety Concerns - There are ongoing concerns regarding the safety of Tesla's autonomous driving systems, with the company facing multiple lawsuits alleging that these systems have caused fatalities [4]. - The National Highway Traffic Safety Administration (NHTSA) has initiated a probe into Tesla's autonomous driving system following reports of incidents involving vehicles in FSD mode, raising further questions about the safety and reliability of these technologies [5].

Core Viewpoint - Tesla has discontinued its basic driver-assistance system, Autopilot, in Canada and the United States, aiming to encourage customers to adopt a more advanced version of its technology [1] Group 1 - The discontinuation of Autopilot is part of Tesla's strategy to push for more advanced driver-assistance features [1] - This move may reflect Tesla's commitment to enhancing safety and performance in its vehicles [1] - The decision could impact customer perception and adoption rates of Tesla's advanced driving technologies [1]

Tesla Inc. (TSLA) out-of-the-money puts have attractive premiums over the next month. I discussed this in a Barchart article three weeks ago, and short-sellers of OTM puts have made money. Tesla will release results on Wednesday, Jan. 28, after the market closes. TSLA is down slightly today at $445.89, although up from a recent closing low of $419.25 on January 20. It hit a three-month low of $391.09 on Nov. 21. More News from Barchart TSLA stock - last 3 months - Barchart Short-Put Investment Returns Ov ...