Tesla Lower on Musk-Trump Latest; Robinhood Gains; Wolfspeed Bankruptcy

On this episode of Stock Movers:
- Tesla (TSLA) is moving to the downside this morning after President Trump lashed out at Elon Musk, accusing the Tesla and SpaceX chief executive officer of benefiting excessively from government subsidies for electric vehicles. "Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump said in a Truth Social post.
- Robinhood (HOOD) is gaining in the premarket after the company announced it will make tokenized US securities for 150,000 customer in 30 countries, available 24 hours a day. In the wake of the announcement, Mizuho raised its price target to $99 from $80, lauding the firm’s “unmatched product velocity.” Mizuho analyst Dan Dolev (outperform) says Robinhood’s product development “makes it hard to keep up with innovation;” believes Robinhood should be re-rated as new products merit a bigger premium vs. peers.
- Wolfspeed (WOLF) shares gained 95% in premarket trading after the chipmaker said on Monday night it would file for bankruptcy to enact a creditor-backed plan to slash $4.6 billion in debt. The company filed for reorganization under Chapter 11 and expects to emerge out of bankruptcy by the end of the third quarter.
- Sweetgreen (SG) is lower as TD Cowen downgrades to hold from buy, saying the salad restaurant chain’s key urban footprint “appears to be under extreme pressure.” Analyst Andrew Charles says that according to his calculations, year four or older stores are showing same store sales down by double-digit percentages. More weight being placed on suburban markets for net restaurant growth, but moves into new, unproven geographies means lower visibility on sales development.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.

Speaker 2 (00:08):
The Stock Movers podcast, your roundup of companies making moves
in the stock market, harnessing the power of Bloomberg data.

Speaker 3 (00:17):
Waited Stock Movers.

Speaker 1 (00:18):
It's a podcast. Here's Lisa Manteo.

Speaker 3 (00:21):
Okay, I want to start with Tesla.

Speaker 4 (00:22):
We've been talking about it cheers down as much as
six percent before the bill. President Trump, Elon Musk, they
renewed their feud over his tax and spending bill. So
if you're keeping score, here's how it goes. Okay, So
Musk criticized the package. He didn't like the cuts to
ev clean energy credits. He even threatened to target nearly
every sitting Republican in Congress who has showed support for

(00:43):
the bill. And then the President turned around it. He
threatened a review of the government funding that must companies
have received, even saying that Dode should take a look
at it.

Speaker 3 (00:53):
Boy, the place where Elon Musk used to sit.

Speaker 4 (00:55):
Over the latest jab that we just heard most recently,
the President was askeid he would ever deport Musk, and
he said he has to take a look at it.

Speaker 3 (01:04):
So in the end, investors, the one who is suffering.

Speaker 4 (01:07):
Now its shares Yes, have been down as much as
six percent before the bell, So it's on going.

Speaker 5 (01:11):
Always tough to be a investor, said it from day one.
The volatility in this name is just extraordinary.

Speaker 1 (01:16):
Those six percent say yes.

Speaker 5 (01:18):
Before its twenty one percent this year, so before today.

Speaker 4 (01:23):
So yep, okay, it's mess today. Okay, we'll go to Robinhood.
That's ticker Hood. Its shares have been up as much
as three percent, but they sarved about thirteen percent yesterday.

Speaker 3 (01:33):
Basically, it launched this.

Speaker 4 (01:34):
New cryptocurrency service designed to make it a hub for
digital assets. So it's making tokenized US securities available to
about one hundred and fifty thousand customers, thirty countries, twenty
four hours a day, five days a week, whenever you
want it the specific So Robinhoon is going to own
the shares back in the tokens and the token holders.

(01:55):
They are going to have the most benefits of the security,
including dividends, but voting rights. That's where they draw the line.
They won't be initially supported. But it's CEO is telling
Bloomberg it said the future crypto traditional financial services, they're
going to fully merge.

Speaker 1 (02:09):
You're talking to Katie Greifeld and ye to Gary Gensler.
Great to have the former chairman of CC in with
some piercing answers there. I want, does it does it
diminish criminal activity? I don't know.

Speaker 5 (02:22):
I don't know. The Robinhood stock up one hundred and
fifty percent this year, up three hundred percent over the
trailing twelve months. The market likes what they're here in
there and that's for sure.

Speaker 1 (02:33):
Wow.

Speaker 3 (02:33):
Yeah, Well we'll go to wolf Speed.

Speaker 4 (02:35):
Ticker wolf The reason why I'm picking this says shares
of serves as much as ninety five percent. But I
file for bankruptcy. I mean, it's trying to implement a
credit back plan to cut its four point.

Speaker 3 (02:44):
Six billion dollar debt.

Speaker 4 (02:46):
It's one of the largest bankruptcy so far this year,
and they expect to emerge out of bankrupcy by the
end of the third quarter. But I mean, yeah, the
signs were there. I mean they announced changes to the
management team. They said they hired advisors to help it
dress the debt load.

Speaker 3 (03:01):
Short sellers have piled.

Speaker 4 (03:03):
Into wolf Speed this year. And yes, it's a chip maker.
And if you remember back, they did receive a seven
hundred and fifty million dollars award from the federal government
last year under that Chips Act. So now it looks
like they're falling SWINGERPTCY.

Speaker 1 (03:17):
July one, June one, May one, basically eighty five or
ninety days ago. The world is coming to an end yep,
and now we're best Robinhood selected stock sentals.

Speaker 5 (03:30):
But the S and P, I mean everything bounced back
other than the US dollar, which we've talked about this morning. Yeah, yeah,
So there you go.

Speaker 3 (03:38):
Absolutely amazing sweet Green.

Speaker 4 (03:40):
Oh yes, I got to squeeze one more because this
is Tom's favorite salad change.

Speaker 3 (03:44):
It's sweet Green. Ticker. SG shares are.

Speaker 4 (03:47):
Down three percent basically td cow and dowgrades from whole
to buy. So they say that they're urban footprint that's
going to be under a pressure.

Speaker 2 (03:55):
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