June 30: Tesla Developing Cheaper Model 2, Warren Buffet donates $5.3B, Cilantro Prices Explodes (Recap ep282)

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In this week’s Recap, Marcello brings us the latest in finance, technology and market trends. In a significant development for the electric vehicle market, Tesla’s stock surged by 4.81% on Wednesday, driven by the announcement of the upcoming Model 2 and positive coverage from Stifel. Meanwhile, Warren Buffett has made headlines with his largest annual donation yet, giving away $5.3 billion worth of Berkshire Hathaway shares to charity, while still retaining a substantial stake in his company. On a different note, the culinary world is grappling with skyrocketing cilantro prices, up 400% due to a severe drought, pushing Mexican taquerias to innovate their traditional dishes.

The EV maker Tesla stock rose +4.81% on Wednesday at $196.37, after the U.S. financial services firm Stifel initiated coverage of the stock with a buy rating. The firm cited the revamping of Tesla’s Model 3 & Model Y as well as the start of production on its next-generation Model 2 vehicle as catalysts. Its price target of $265 implies 41.4% upside from Tuesday’s close. Tesla shares are up +11.71% in the past 3 months, but down -20.97% in 2024 & -23.74% y/y, with a market cap of $626.26B.
On Friday, Warren Buffett made his largest annual donation to date, giving away $5.3 billion worth of Berkshire Hathaway shares to five different charities. Despite this generous contribution, Buffett still holds a significant stake in his company, owning 207,963 Berkshire A shares and 2,586 B shares, which are collectively worth about $130 billion.
Cilantro prices have skyrocketed by 400% due to a severe drought, forcing Mexican taquerias to reimagine traditional dishes and markets to drop the herb from their offerings. In the capital’s largest wholesale market, a 5kg (11lbs) bundle of cilantro is now selling for 440 to 500 pesos ($24.26 to $27.57), up from 110 pesos in the first week of May.

U.S. athletic apparel giant Nike shares plummeted -19.98% on Friday at $75.37, in the worst session ever, wiping out $28B in valuation, after the firm posted fiscal Q4 revenue of $12.61B, which came below the $12.86B forecast by analysts. The company said quarterly revenue fell -2% from the year prior. Nike’s $0.99 earnings per share exceeded analysts’ expectations of $0.66. Nike’s direct-to-consumer sales declined -8% from the same quarter a year ago to $5.1B. Nike also reduced its full-year outlook. Nike had initially guided for overall sales growth in 2025. The stock is down -19.80% in the past 3 months, -30.58% in 2024 & -31.71% y/y, with a market cap of $113.77B.
French inflation slowed slightly in June, providing an economic boost for President Emmanuel Macron 2 days before the 1st stage of parliamentary elections on Sunday. The Insee statistics agency had consumer prices rising +2.5% from a year ago in June, versus + 2.6% in the previous month of May.
European stock markets gave up early gains to close lower on Friday, as investors considered key inflation data from both the U.S. & the Euro-zone, while the French benchmark index reported weekly, monthly & quarterly declines, due to French political uncertainties. Paris CAC 40 -0.68%, Frankfurt DAX +0.14%, Italian FTSE -0.10%, Spain’s Ibex -0.07% & London FTSE -0.19%. European STOXX 600 -0.23%, at 511.42, extending losses to the 4th straight session. The personal & household goods sector shed -1%, dragged down by a -3% fall in French beauty giant L’Oreal, after its CEO gave a lower market growth forecast.
U.S. denim maker’s Levi Strauss founded in 1853 stock fell -15.40% on Thursday at $19.56, after revenue came in at $1.44B for the fiscal quarter 2, which is slightly below the consensus forecast of $1.45B from analysts polled. The company’s reported net income for the 3-month period that ended May 26 was $18M, or $0.04 per share, compared with a loss of $1.6M, or $0.00 a share, a year earlier. Excluding 1-time items, Levi’s posted earnings of $66M, or $0.16 per share. Sales rose to $1.44B, up about 8% from $1.34B a year earlier. The stock is down -2.15% in the past 3 months, but is still up +18.26% in 2024 & +35.55% y/y, with a market cap of $7.75B.
Walgreens Boots Alliance stock fell -22.16% on Thursday at $12.19, after the U.S. retail firm reported fiscal Q3 earnings results that missed analyst expectations. It announced a cut to its full-year adjusted profit outlook & said it will close a significant number of stores that are underperforming as a way to cut costs, but didn’t specify how many of its more than 8,700 stores will be affected.

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