Breakfast News: Affordable Tesla Debut

Breakfast News: Affordable Tesla Debut

1. Tesla Cuts Entry Prices

Tesla (TSLA -4.58%) unveiled long-awaited "affordable" vehicles Tuesday, with the cheaper Model Y standard starting at $39,990 and the Model 3 standard at $36,990. They lack features including Autosteer, and have more limited ranges. The new Model Y is around $5,000 cheaper than the previous entry-level version, helping offset some of the $7,500 federal EV tax credits canceled by President Trump – analysts had earlier predicted a price around $30,000.

• "Ultra-low cost of ownership, engineered for safety & comes with the best Tesla features you love": The company also announced an update to its supervised Full Self-Driving system, which will add $8,000 to the prices of the new models.
• Beating the S&P 500 by 109% since 2023 Stock Advisor recommendation: Tesla stock rose 5% Monday after the company posted teasers on X, but ended Tuesday down 4.5% again after the technical and pricing details were released.

2. Introducing: The S&P Digital Markets 50

Bitcoin (BTC -1.66%) hovering around an all-time record shows how investors increasingly trust crypto assets in uncertain times. All we need now is a dedicated crypto index – and we're about to get one! Yesterday, S&P Dow Jones Indices – responsible for the S&P 500 and the Dow Jones – announced the S&P Digital Markets 50, in partnership with blockchain company Dinari.

• "Cryptocurrencies and the broader digital asset industry have moved from the margins": Cameron Drinkwater at S&P says the new index – combining 15 major cryptocurrencies and 35 crypto stocks – will provide consistent, rules-based tools. Dinari will release a token for tracking the index.
• "From an innovative experiment into a multitrillion-dollar digital asset": Motley Fool CEO and co-founder Tom Gardner recently flagged that "exchange-traded funds now hold well over $150 billion in Bitcoin." Coupled with a regulatory landscape bringing crypto into the mainstream, it's making it more attractive for private investors. Because of how far digital assets have advanced, Tom believes "Bitcoin has room to move significantly higher."

3. MKC Posts Beats, Lowers Guidance

McCormick (MKC -3.78%) declined 3.91% yesterday, even though third-quarter sales and earnings beat expectations. The seasonings and flavorings company saw sales grow 2.7% year over year – including a favorable currency impact. Adjusted earnings per share rose 2.4% from a year ago.

• "Our fifth consecutive quarter of volume-led growth": CEO Brendan M. Foley told us: "As consumer trends evolve, demand for flavor remains strong." But he added: "As a result of the dynamic global trade environment, our gross margin was further pressured by rising costs."
• Forecast 2.7% dividend yield: The company downgraded its full-year profitability outlook, now expecting adjusted operating income to grow 2-4% (or 3-5% at constant currency) – down from earlier 3-5% guidance (4-6% at constant currency.)

4. Would You Rather?

Today we're asking whether you'd rather start a position in Stock Advisor recommendations Visa (V 0.77%) or Mastercard (MA 0.08%) today, and why? Between the two, they control about 80% of the U.S. credit card payment processing market. Debate with friends and family, or become a member to hear what your fellow Fools are saying.