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Tesla Model S Plaid, Didi IPO, Vertex — Five things you must know

Tesla Model S Plaid, Didi IPO, Vertex — Five things you must know
Business
Stock futures were higher Friday after the S&P 500 set a record high as investors have fallen in line with the Federal Reserve’s belief that inflation spikes will prove to be transitory.

Contracts linked to the Dow Jones Industrial Average rose 71 points, S&P 500 futures gained 6 points and Nasdaq futures were down 26 points.

The S&P 500’s record closing high, its first since May 7, came as investors shook off hotter-than-expected inflation data for May. Near-term price pressures are being seen, however, in categories that will benefit from the economy’s recovery and aren’t expected to be persistent.

“There are plenty of indicators pointing to near-term spike in inflation — acute labour shortage, supply chain constraints, and cyclical highs for commodity prices,” said Anu Gaggar, senior global investment analyst at Commonwealth Financial Network.

“However, the belief remains that these are cyclical pressures that are to be expected when an economy is in the early stages of a strong rebound. As the cycle matures, these inflation pressures will subside owing to the structural forces that have kept inflation low for long,” Gaggar added.

Consumer prices last month increased at the fastest pace in more than a decade, according to data from the Labor Department.

The fear on Wall Street has been that rising price pressures could challenge the Federal Reserve’s accommodative stance as the world’s biggest economy continues its recovery from the COVID-19 pandemic.

The yield on the benchmark 10-year U.S. Treasury yield early Friday was at 1.43 per cent, its lowest point since early March.

2. — Tesla Delivers the First Model S Plaid

Tesla (TSLA) CEO Elon Musk said his electric-vehicle company built the Model S Plaid, a high-end, ultra-speedy version of Tesla’s sports sedan, because “we’ve got to show that an electric car is the best car, hands down.”

Musk delivered the first Model S Plaid in a livestreamed event Thursday evening.

The $123,000 model, which drew its name from the 1980s movie comedy “Spaceballs,” does zero to 60 mph in under two seconds, according to Tesla’s specifications. It offers a 390-mile range, a 200-mph top speed and up to 1,020 horsepower. The acceleration has been compared with that of a catapult-launched roller coaster.

Musk said improved charging allow 187 miles of range in 15 minutes.

The Model S Plaid is seen by some as a move by Tesla to fend off high-end offerings from Mercedes-Benz and Porsche which are also making moves in the electric vehicle space.

Tesla shares were rising slightly in premarket trading Friday to $610.23.

3. — Chinese Ride-Hailing Giant Didi Files to Go Public

Chinese ride-hailing giant Didi Chuxing filed to go public, looking to begin trading in the U.S. next month in what could be the largest initial public offering in the world this year.

Didi, which filed under its formal name of Xiaoju Kuaizhi Inc., could fetch a valuation upward of $70 billion, The Wall Street Journal reported, citing people familiar with the matter.

The company revealed in the filings for its IPO that it lost 10.68 billion yuan, or $1.63 billion, in 2020. Revenue last year was close to $22 billion.

In the first quarter of 2021, Didi reported earnings of $837 million on revenue of $6.4 billion as China recovered from the coronavirus pandemic

Uber Technologies (UBER), which sold its China business to Didi in 2016, retains a 12.8 per cent stake in the company.
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