Stocks rise...Tesla sell-off...Lyft IPO
NEW YORK (AP) — U.S. stocks are higher in afternoon trading on Wall Street, reversing a three-day losing streak as investors digest news of a potential resolution to the U.S.’s trade war with China. Stocks pulled back from an initial early-morning jump after a report showed manufacturing growth slowed in February. Investors have remained confident in the strength of the U.S. economy despite weak economic reports. Consumer spending in December took its biggest tumble in nine years while disappointing retail sales added to signs that growth slowed at the end of 2018.
UNDATED (AP) — Tesla is suffering one of its worst sell-offs of the year after announcing it would begin closing all of its stores in favor of selling its electric cars exclusively online. The goal is to allow Tesla to lower the price of its Model 3, the vehicle that CEO Elon Musk envisions as the company’s first mass-market vehicle. The base price for the Model 3, Tesla’s cheapest car, is now $44,000. Musk believes the mid-$30,000 range is the sweet spot. Tesla Inc. tumbled 8 percent Friday.
TORONTO (AP) — Canada says it will allow the U.S. extradition case against Huawei (WAH’-way) executive Meng Wanzhou (muhng wahn-JOH’) to proceed. The Chinese tech giant pleaded not guilty this week to U.S. charges that it stole trade secrets from T-Mobile. Huawei, the No. 2 smartphone maker and an essential player in global communications networks, has also been charged in New York with lying to banks about deals that violated economic sanctions against Iran.
NEW YORK (AP) — New York Gov. Cuomo says his efforts to get Amazon back on board with a New York headquarters have not worked — but he doesn’t want the failed Amazon deal to drive other companies away. The Democratic governor said that he has spoken to Amazon executives since they pulled the plug on a planned secondary headquarters in New York and that they did not indicate that they might reconsider.
NEW YORK (AP) — Ride-hailing giant Lyft has released financial details about the company in a federal filing before it begins selling its stock to the public. The company said its revenue grew from $343.3 million in 2016 to $1.1 billion in 2017 and $2.2 billion in 2018, representing year-over-year growth rates of 209 percent and 103 percent respectively. Lyft has been in a race with its competitor Uber to be first to offer its stock to the public. Uber is expected to file its own initial public offering later this year.