An icy reception… Tesla’s hittin’ potholes. Last quarter, Chinese carmaker BYD passed Tesla as the world’s #1 EV seller. Then, versions of Tesla’s Model 3 became ineligible for US tax credits worth up to $7.5K/car. As US EV growth cools, car-rental chains Hertz and Sixt have offloaded thousands of EVs (lotsa Teslas). Meanwhile, Tesla’s repeatedly cut prices (most recently in Europe). On top of all that, the Cybertruck has had mixed reviews. On Wednesday, Tesla’s expected to report higher sales but lower profit.
Tap to pay… and keep paying. The holiday shopping szn was surprisingly hearty, with splurges up nearly 4% from 2022. Funding the spending spree: credit-card debt. Consumer borrowing ballooned by $23B+ in November as card balances passed a record $5T. That + high interest rates = $$ for Visa and American Express, which are expected to report solid revenue growth this week. Despite high interest rates and debt, Americans have gained confidence in the economy and their own finances in recent months.