Nvidia to Pay US 15% of China Chip Sale Revenue
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Yahoo
9 minutes ago
- Yahoo
Tesla, industry price cuts boost EV sales in July ahead of tax credit expiration
EV sales soared in the US in July, with Tesla (TSLA) helping to boost those numbers with the biggest price cuts. The jump in EV sales comes ahead of the federal EV tax credit expiration, with EV demand expected to be strong throughout the third quarter. Cox Automotive's Kelly Blue Book estimates EV sales were robust in July, initially estimated to be the second-best month ever, with sales over 130,000 — a 20% jump from a year ago. KBB's official tally for July will come next week. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service But it wasn't just the tax credit expiration that drove buyers to EVs. It was price cuts. KBB reports the average transaction price (ATP) for new EVs was $55,689, down 2.2% from June and 4.2% from a year ago. Tesla, the top EV seller in the US, led the price cuts. Tesla's July ATP was $52,949, down 2.4% compared to June and sliding 9.1% compared to a year ago. KBB said Tesla incentives in July were higher as well, leading to increased sales compared to June but down year over year. KBB said a higher mix of cheaper base Model 3 sedans and Model Y SUVs pushed overall ATPs lower for Tesla. Read more: How to avoid the sticker shock on Tesla car insurance For the industry as a whole, the average incentive package for EVs hit 17.5% of ATP in July, which KBB said was a record in the modern era of EV sales, and up more than 40% compared to last year. "The urgency created by the administration's decision to sunset government-backed, IRA-era EV incentives was expected to create serious demand for EVs in the short term," Cox Automotive senior analyst Stephanie Valdez Streaty said in a statement. "At this pace, Q3 will be the best ever and then some, as buyers jump in before the big incentives dry up." As for Tesla, the company's website shows Model Y wait times in the US stretching to four to six weeks, up from one to three weeks earlier this summer. Tesla also raised lease prices for the Model Y by 14%, suggesting it has some pricing power as demand for the vehicle rises. The next leg up for Tesla's demand story may come when the company unveils its so-called cheaper EV, which the company said will come after the federal tax credit expires. Tesla fans were probably not happy to hear that CEO Elon Musk confirmed it would basically be a stripped-down version of the Model Y, not the long-anticipated "Model Q" hatchback that analysts at Deutsche Bank predicted. Musk himself warned that, following the end of the tax credit, the company would face "a few rough quarters." Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
9 minutes ago
- Yahoo
Trump Trade: Nvidia, AMD said to pay U.S. cut from China chip sales
Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly: Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. CHIP SALES REVENUE: Nvidia (NVDA) and AMD (AMD) have agreed to pay 15% of their revenue from chip sales to China to the U.S. government, Hadriana Lowenkron and Michael Sasso of Bloomberg report, citing a person familiar with the matter. This will be part of a deal with the Trump admin to secure their licenses to export. The revenues will be related to Nvidia's sales of H20 chips and AMD's sales of MI308 in China, the person added. APPARENT IPO: Shares of Fannie Mae (FNMA) and Freddie Mac (FMCC) moved higher after President Trump over the weekend posted a picture on social media of an alleged initial public offering on the New York Stock Exchange of a company called 'The Great American Mortgage Corporation.' The post followed reporting last week that the Trump administration is weighing an IPO of the government sponsored entries. Keefe Bruyette keeps Underperform ratings on both Fannie Mae and Freddie Mac after the Wall Street Journal reported on Friday that the Trump administration is planning to do an initial public offering of both later this year. The firm finds 'very unlikely' that an IPO can be done by the end of 2025. There are numerous factors to address before an IPO, including the current minimum capital, which is roughly 4.25% of assets for both companies and results in estimated run-rate returns on equity of 7%-9%, the analyst tells investors in a research note. Keefe believes investors won't be willing to buy shares of companies with such low ROEs. In order for Fannie and Freddie to generate low-teens ROEs, the capital rules have to be changed to remove the buffers and take capital levels back closer to the statutory minimum of 2.5%, contends the firm. MEETING WITH TRUMP: A week after President Trump called for his ouster, Intel (INTC) CEO Lip-Bu Tan is set to visit the White House on Monday, Lauren Thomas of Wall Street Journal reports, citing people familiar with the matter. Tan and Trump are expected to have a wide-ranging conversation and explain his personal and professional background, sources told the Journal. The CEO may also propose ways that the government and Intel could work together, the people added. Tan seeks rump's approval by showing his commitment to the country, they said. MARIJUANA CLASSIFICATION: President Donald Trump is debating on reclassifying marijuana as a less dangerous drug, Josh Dawsey of The Wall Street Journal reports, citing people familiar with the matter. Earlier this month, Trump said he was interested in change, the sources added. Such a shift would make it easier to buy and sell pot. Publicly traded companies in the space include Aurora Cannabis (ACB), CV Sciences (CVSI), Canopy Growth (CGC), Cronos Group (CRON), Goodness Growth (GDNSF), Green Thumb Industries (GTBIF), IGC Pharma (IGC), Tilray (TLRY), Trees Corporation (CANN) and Trulieve Cannabis (TCNNF). IRS COMMISSIONER: President Trump is removing Billy Long, a former Republican congressman, from his job leading the Internal Revenue Service two months after he was confirmed as commissioner, four people familiar with the matter told The New York Times' Andrew Duehren, Alan Rappeport and Maggie Haberman. Treasury Secretary Scott Bessent will serve as acting IRS commissioner until a permanent replacement is in place, while Long is expected to be nominated to an ambassadorship, the report added, citing sources. GOLD BARS: A White House official said the Trump administration plans to issue a new policy clarifying that imports of gold bars should not face tariffs after the government surprised traders by ruling that they would, Jennifer Dlouhy of Bloomberg reports. The White House intends to post an executive order shortly to clarify what an official called misinformation about the tariffing of gold and other specialty products, according to Bloomberg. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on NVDA: Disclaimer & DisclosureReport an Issue Super Micro Computer Stock (SMCI) Could See Limited Upside Amid Ongoing Challenges Morning Movers: MeridianLink jumps after pact to be acquired by Centerbridge Video: Nvidia, AMD said to pay U.S. 15% of revenue from China chip sales Notable open interest changes for August 11th Wells Fargo Lifts Nvidia Price Target to $220 on China AI Chip Deal
Yahoo
9 minutes ago
- Yahoo
Cash held by US companies halved since 2021 amid high interest rates, data shows
By Ateev Bhandari (Reuters) -Cash allocations by U.S. corporations have halved since 2021 as elevated interest rates prompt a shift to higher-yielding treasury bills, data from Clearwater Analytics showed on Tuesday. Median allocations to cash - which includes hard currency, money market funds and 90-day treasury bills - dropped to 20% at the end of July from 40% in 2021, according to a report encompassing around 800 of the investment management software maker's U.S. corporate clients with a combined $1.3 trillion in assets. This marks the lowest level in Clearwater's system in at least eight years. Excluding very short-term treasury bills, median allocations to U.S. treasuries surged from 3% to 20% over the same period. Chief financial officers are trying to secure higher yields before the U.S. Federal Reserve resumes interest rate cuts, a prospect bolstered by the July jobs report, while also balancing the need for liquidity. A lot of the companies are holding these bonds to maturity, Matthew Vegari, Clearwater's head of research, told Reuters. Short-dated T-bills are quickest to adjust to rate changes, pushing companies toward longer durations for higher yields. "Corporations are still adding duration because they know the duration risk is minimal, because the likelihood that the Fed hikes is much lower than the likelihood that the Fed cuts," Vegari said. Weighted by time to maturity, median portfolio durations rose to 0.61 years at the end of July, from 0.45 years at the start of 2021. The higher-for-longer interest rate environment is "a headwind for those who need to borrow, and it's a tailwind for those who have the cash on their balance sheets and just want to get passive income that is completely risk-free," Vegari added. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
