Top News in Finance for June 7, 2023

KEY POINTS

Dive into this week’s key financial happenings with our succinct, easy-to-understand summaries of the most crucial economic events. Designed to keep you up-to-date, our roundup empowers you to navigate the week ahead and seize unfolding opportunities

• Concerns arise as Chinese exports nosedive, hinting at global downturn.
• Every model of Tesla’s Model 3 now falls under the U.S. federal EV tax credit scope.
• Ford recalls over 125,000 hybrid and plug-in hybrid SUVs due to a potential fire hazard.
• U.S. trade deficit projected to escalate, while consumer debt is likely to decline.
• GitLab stock climbs after reporting better-than-anticipated revenues and a promising annual forecast.

Significant Drop in Chinese Exports Might Indicate Global Deceleration

In a surprising turn of events, China’s economy hinted at possible challenges ahead. It was reported that exports in May dropped a steep 7.5%, defying economists’ predictions of a minor 0.4% decrease. Specifically, exports to the U.S. fell by a hefty 15.1% YoY, and to the European Union, they declined by 4.9%.

Entire Tesla Model 3 Line-Up Qualifies for Federal EV Tax Credit

As per the latest information from the U.S. government, all Tesla Model 3 variants, including the Standard Range Rear Wheel Drive and Long Range All-Wheel Drive models, are now eligible for the $7,500 federal EV tax credit. This was made possible after Tesla made adjustments to its battery supply chain to comply with tax credit requirements. When combined with state tax credits, the price of a new Tesla Model 3 in California could be reduced to an attractive $25,240. In pre-market trading, Tesla shares saw an increase of over 1.5%.

Ford Issues Recall of 125,000 Hybrid and Plug-In Hybrid SUVs

Ford is set to recall over 125,000 hybrid and plug-in hybrid SUVs due to a risk that their engines could leak fluids and catch fire. The recall encompasses Escape model SUVs produced from 2020 through 2023, Maverick models from 2022 to 2023, and Corsair models from 2021 to 2023. Meanwhile, Ford’s shares remained unchanged in pre-market trading.

Anticipated Rise in U.S. Trade Deficit While Consumer Debt May Shrink

The U.S. trade deficit is projected to increase to $75.2 billion in April from $64.2 billion in March, according to data to be released by the Commerce Department. Simultaneously, the Federal Reserve’s consumer borrowing report, to be published later today, predicts a drop in overall consumer borrowing for April to $21.6 billion from $26.5 billion the previous month.

GitLab’s Stock Soars on Better-Than-Expected Revenues

Shares of GitLab, the code-deployment software provider, increased by 31% yesterday and are up by an additional 1% in pre-market trading. The surge followed an earnings report that revealed smaller-than-expected losses and an upgraded forecast for the full year. Specifically, GitLab’s first-quarter revenue jumped 45% to $126.9 million from $87.4 million in Q1 of 2022.