Stock Movers: Apple Downgrade, Tesla Shipments Fall, Wells Fargo Asset Cap Lifted

Apple's Growth Concerns

• 🍎 Apple shares are down pre-market following a downgrade from Needham & Co. to 'hold' from 'buy'.
• 📉 Analyst Laura Martin cited near-term threats to revenue and EPS growth, specifically a lack of an iPhone replacement cycle catalyst in the next 12 months.
• ⚠️ The stock is down 19% year-to-date, with concerns also raised about its position in artificial intelligence and competition.

Tesla's China Shipments and FSD Investigation

• 🚗 Tesla vehicle shipments from its China factory have fallen for the eighth consecutive month, indicating a global sales slump.
• 📊 May shipments were down 15% year-over-year, according to preliminary data from the China Passenger Car Association.
• ⚠️ A recent pedestrian fatality linked to Tesla's driving system has prompted a federal investigation into the safety risks of its full self-driving (FSD) system.
• 🤖 Tesla is testing driverless Model Ys in Austin, Texas, with plans to launch a driverless taxi service soon.

Wells Fargo Asset Cap Removal

• 🏦 Wells Fargo shares rose as the Federal Reserve lifted a seven-year asset cap that had restricted the bank's growth.
• ✅ The Fed confirmed Wells Fargo met all conditions required by a 2018 enforcement action, allowing the bank to pursue growth and increase returns.
• 📈 This removal allows Wells Fargo to compete more directly with rivals like JP Morgan Chase and Bank of America, particularly in Wall Street business lines.