Jim Cramer Weighs in on the Trade Talks, Boeing and Tesla
Here's what you need to know Thursday.
Trade Talks Vice Premier Liu He, China's top trade negotiator, will meet with Donald Trump later Thursday in the White House amid multiple reports that suggested the trade talks were nearing a conclusion.
Bloomberg reported that China could agree to purchases of U.S. goods worth more than $1 trillion, as well as opening its markets to further American investment, in exchange for a multi-year window in which to meet certain conditions on intellectual property and technology transfer protections.
The Financial Times, meanwhile, said the two sides were close to a deal on most of the major issues, but were still negotiating ways in which China could implement them under U.S. monitoring.
Tesla's Missed Deliveries Tesla's first-quarter production and delivery figures fell short of Wall Street estimates.
Real Money Stock of the Day, Tesla, said it delivered 63,000 vehicles, including about 50,900 Model 3s, during the quarter, down 31% from the previous quarter.
The electric carmaker pinned the weak delivery volumes on its challenging expansion of sales to China and Europe, saying that it had only delivered half of the entire quarter's numbers by March 21.
The carmaker said that it produced 77,100 total vehicles during the first quarter, and that "production exceeded deliveries by 22%." Tesla warned investors that owing in part to the weak delivery volumes, net income for the quarter will disappoint.
"Because of the lower-than-expected delivery volumes and several pricing adjustments, we expect Q1 net income to be negatively impacted.
Even so, we ended the quarter with sufficient cash on hand," Tesla wrote in a statement.
Outside of producing and delivering cars, Tesla CEO Elon Musk is also facing a court hearing on Thursday related to a potential violation of an earlier settlement with the Securities and Exchange Commission.
The agency is asking Federal Judge Alison Nathan to hold Musk in contempt of court over tweets posted in late February that misstated, and then clarified, production targets for 2019.
The Newest Headlines Around Boeing Officials in Ethiopia said the Boeing 737 MAX 8 plane that crashed shortly after takeoff last month was airworthy and that pilots followed all proper procedures prior to the catastrophe that killed all 157 passengers on board.
In a preliminary report following the March 10 disaster, Ethiopia's Transport Ministry stopped short of blaming Boeing's Maneuvering Characteristics Augmentation System software system, which similar probes in Indonesia have identified as the potential cause of the Lion Air crash in October that killed 189 people.
Ethiopian officials said Boeing should review the aircraft control systems and confirm their safety before MAX 8 planes return to normal service.
"The crew performed all the procedures repeatedly provided by the manufacturer but was not able to control the aircraft," Ethiopia's Transports Minister Dagmawit Moges told reporters Thursday.
"Since repetitive uncommanded aircraft nose-down conditions are noticed ... it is recommend that the aircraft control system shall be reviewed by the manufacturer." Related.
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