Tesla's nightmare | New China Covid concerns | SCOTUS upholds Title 42

WED, DEC 28, 2022

1. A battered Nasdaq

The new year can’t come quickly enough for the bulls. Tuesday’s post-Christmas trading day saw the Dow rise slightly, with the already-bruised Nasdaq sliding 1.4%. Chalk that up to Tesla’s latest bad day (see more below), although there are plenty of tech culprits for the Nasdaq’s woeful performance this year. The index has lost more than 33% so far in 2022, and there are only three trading days left, including Wednesday. For comparison’s sake, the Dow could end the year down over 8% while the S&P 500 could finish it off about 20%. Read live markets updates here.

2. How much worse can it get for Tesla?

Let’s just go through the list. Tesla shares are down about 69% so far this year, and they’re off more than 70% since their all-time high in November 2021. CEO Elon Musk has sold multiple chunks of shares to help pay for his takeover of Twitter, and the electric vehicle maker’s stock has declined more than 50% since the deal was completed in October. Musk, no longer the world’s richest person, has also alienated Tesla’s American customer base – affluent, left-leaning people who are environmentally conscious – with his embrace of extreme right-wing figures and conspiracy theories. Shares of Tesla, which fell another 11% Tuesday, are on a seven-day losing streak. Even if things get better in the next three days, and they may not, given new Covid problems for the company in China, Tesla is about to wrap its worst month, quarter and year on record.

3. U.S. considers China Covid restrictions

As China opens its economy and borders after nearly three years of draconian “zero Covid” policies, other countries are considering new rules for travelers coming from China. U.S. officials are weighing new limits as they press China for more data about the virus. “Without this data, it is becoming increasingly difficult for public health officials to ensure that they will be able to identify any potential new variants and take prompt measures to reduce the spread,” officials said. With infections exploding in China, Japan said it would start requiring negative tests for travelers from mainland China at the end of this week. Taiwan will implement similar requirements.

4. Pandemic immigration rule stays in place

The Supreme Court on Tuesday left in place a rule that allows the U.S. to deport migrants at the Mexican border as a health precaution. More than 2 million migrants have been deported under the rule, called Title 42, since it went into effect in 2020, as the country struggled to respond to the spread of Covid. The justices also agreed to hear oral arguments on the rule in February. A ruling is expected in June. The policy will stick around at least until then. Read more from CNBC’s Spencer Kimball.

5. Russia ramps up attacks

The Russian military on Wednesday intensified attacks on Kherson in southern Ukraine, hammering the recently liberated city with artillery and mortar shells, the Ukrainian military said, according to Reuters. Moscow’s forces also beefed up pressure on Ukraine’s military along the front lines in eastern Ukraine. The war is in its eleventh month, and there are no signs of an end. Ukraine President Volodymyr Zelenskyy has put forth a 10-point peace plan that would have Russian forces fully withdraw, but the Kremlin has rejected it.

— CNBC’s Mike Calia wrote this newsletter. Alex Harring, Rohan Goswami, Jihye Lee and Spencer Kimball contributed to this report.

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