This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Tesla (NASDAQ: TSLA) has grown to become the largest producer of electric vehicles (EVs) worldwide. It has always been a trailblazer, leading this new industry with its innovation not just inside each car but also in the manufacturing process.

But 2022 has been challenging. The automotive industry is facing supply chain disruptions that have slowed production, and a brutal sell-off in the stock market has sent company valuations in the tech sector plunging. 

Tesla just reported its production figures for the second quarter of 2022, and it revealed the largest sequential drop in two years. While this is a short-term speed bump, it shouldn’t alter the company’s long-term trajectory. 

Tesla management is navigating tough times

The automotive industry has grappled with shortages of key vehicle components like semiconductors since the pandemic began, as lockdowns across Europe and Asia caused production to grind to a halt. Semiconductors are advanced computer chips that power the digital features inside new cars, but in Tesla’s electric vehicles, they do far more.

The infotainment system inside a Tesla is responsible for controlling many of the car’s core functions like charging and comfort, in addition to enabling the user to browse the internet and play games. It’s a step above the processing power required in a traditional combustion engine car, to the point that semiconductor giant Micron Technology has described electric vehicles as data centers on wheels.

Tesla has navigated the chip shortage well, generating quarterly production growth for most of the past two years. But it was hit with a further challenge when its production facility in Shanghai, China, was shut down for the majority of April as part of COVID-related temporary closings. The facility has an annual manufacturing capacity of 450,000 vehicles, which is almost half of the company’s total capacity (until new factories in Texas, Berlin and Germany ramp up), so the downtime heavily impacted second-quarter output. 

The slowdown at Tesla might be temporary

When all was said and done, Tesla produced 258,580 vehicles in Q2, which was a 15% drop compared to Q1. But it was still 25% higher than the number of cars produced a year ago, in Q2 2021. 

In the commentary that accompanied the Q2 numbers, Tesla informed investors that June was actually its highest production month in the company’s history. It suggests two things: The Shanghai plant is nearly back in full swing, and supply chain issues (like chip shortages) are beginning to resolve.

But it’s also attributable to the fact that Tesla’s two brand new gigafactories in the U.S. and Germany have begun to manufacture vehicles. Once they ramp up to full capacity, it’s expected that Tesla could produce 2 million cars every year, which is almost double the number it could make with its existing factories. 

That’s a sign that the Q2 production slump might be a mere speed bump on the road to much, much higher numbers in the near future. Given Tesla stock is currently down 45% from its all-time high, this might be an opportunity for investors to build a position. For those deploying smaller amounts of capital, keep an eye out for the company’s stock split later this year.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post What Tesla’s production slowdown could mean for its stock appeared first on The Motley Fool Australia.

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• Is it time to load up on beaten-down growth stocks (like Tesla)?
• 3 reasons Tesla could soar after its stock split
• Better stock-split buy: Alphabet or Tesla?
• 3 top stock splits to watch in 2022
• Should You Buy Tesla Stock Right Now?

Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Australian markets are rangebound today with tech and financial leading into afternoon trade.

ASX 200 bank shares have been net-winners today, following news that the Reserve Bank (RBA) hiked the cash rate by 50 basis points to 1.35% on Tuesday.

Investors have rallied the sector amid speculation the hikes may be passed immediately through to consumers.

In broad market moves, the S&P/ASX 200 Index (ASX: XJO) is rangebound today.

Tackling macroeconomic worries

The rate increases are also hoped to compress the level of inflation, a common theme currently plaguing equity markets.

“Global inflation is high,” the RBA said.

“Monetary policy globally is responding to this higher inflation, although it will be some time yet before inflation returns to target in most countries,” it added.

The size and timing of future interest rate increases will be guided by the incoming data and the Board’s assessment of the outlook for inflation and the labour market. The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.

ASX 200 bank shares rise amid rate hikes

In an effort to uphold net interest income (NII) and net interest margins (NIMs), the big Australian banks have folded the cash rate hikes into their lending rates.

It wasn’t long after the RBA’s decision that the Commonwealth Bank of Australia (ASX: CBA) passed on the full 50 basis point increase to its standard variable mortgage rates.

Macquarie Group Ltd (ASX: MQG) and Australia New Zealand Banking Group Ltd (ASX: ANZ) each passed through the 0.5% raise as well.

CBA, Macquarie and ANZ are each up around 1% on the day at the time of writing.

However, CBA and Macquarie have also passed on rate increases to their deposit rates. For example, CBA also fed the 50 basis point jump through to its GoalSaver and YouthSaver accounts.

ANZ also followed suit and now offers a 2.5% rate of interest on an “advance notice” term deposit with an 11-month maturity.

As a result of the shift in rates, investors have rallied ASX bank shares amid speculation the interest rate rises could be a net positive to NII and NIMs.

Should that be the case, it would address the NIM issue that’s been festering amongst ASX bank shares for some time.

The post Why are ASX 200 bank shares responding positively to higher interest rates? appeared first on The Motley Fool Australia.

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More reading

• What happened with the CBA share price in the 2022 financial year? 
• What’s going on with ASX 200 bank shares on Tuesday?
• How did the Macquarie share price perform in June?
• CBA share price slips as analyst warns of $2 billion Klarna scratch
• Why did the ANZ share price underperform the ASX 200 in June?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Santos Ltd (ASX: STO) share price had a turbulent year in FY22 and managed to finish in the green.

Investors rallied behind commodity giants like Santos, particularly as the new year rolled around. On the last trading day of June, Santos shares were trading at $7.42 apiece.

The company’s share price has taken a tumble since then. It’s down 5.88% so far today at $7.04.

In broader market moves today, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is also down 5.42% on the back of falling commodity prices.

Santos compounds upward in FY22

The big story behind moves in the Santos share price is the tremendous rally in oil and gas markets that have ensued since the pandemic.

In the 12 months of FY22, Brent Crude oil surged more than 45% to trade at US$109 per barrel on June 30.

It nudged past US$123 per barrel back in March 2022, its highest level since 2014.

Meanwhile, natural gas posted triple-digit returns in FY22 amid extreme volatility, particularly in European gas contracts.

These moves are plotted against the Santos share price below.

The oil and gas trade was certainly active this past financial year with momentum picking up from February amid tensions in Europe.

The bullish momentum in these commodity markets provided the perfect underlying conditions for the Santos share price to rally back near its pre-pandemic high.

It topped $8.53 before entering a consolidation phase and levelling off toward the end of June.

As such, the Santos share price had a successful FY22, rewarding shareholders in the process. It gained around 4% in that time.

The post How did the Santos share price perform in FY22? appeared first on The Motley Fool Australia.

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• How is the oil price plunge impacting ASX 200 oil shares today?
• Leaking oil price sends Santos shares into the red
• ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump
• Santos and Woodside on watch after oil prices crash 10%
• 2 bargain ASX shares with good times ahead: expert

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The AGL Energy Limited (ASX: AGL) share price went on a rollercoaster ride during the 2022 financial year.

The energy company’s shares finished at $8.20 on 30 June 2021 and closed at $8.25 the same time this year. However, there were steep declines in between, trading as low as $5.10 during November 2021.

In contrast, the S&P/ASX 200 Index (ASX: XJO) crashed around 10% over the same period.

Share prices of AGL’s competitors, Meridian Energy Ltd (ASX: MEZ) and Infratil Ltd (ASX: IFT) backtracked 16% and 2%, respectively.

What happened to AGL shares throughout FY22?

Australia’s largest electricity provider had a busy year in FY22 with the proposed demerger that was eventually scrapped in May.

After reaching around the $8 mark in July 2021, AGL shares came under severe selling pressure in the following months. This came from difficult conditions of the national electricity market as well as unstable electricity prices.

Management noted the disappointing AGL share price performance as the demand for decarbonisation increased.

It’s worth noting that the company is one of the largest carbon emitters in Australia.

Furthermore, the Liddell coal-fired power station caused a financial strain on AGL’s books. It plans to transform the site with a hydro and solar energy facility after Liddell’s shutdown in 2023.

Fast forward to March 2022, AGL shares made a stunning turnaround after receiving an improved takeover offer from the Brookfield Consortium.

Although, this was soon rejected by the board as it believed the $8.25 per share offer undervalued the company.

Nonetheless, AGL shares continued to surge as investors closed their short positions following an uptick in energy prices.

More recently, the company ditched its demerger plans on the likelihood of being rejected for splitting into two separate businesses.

This led AGL shares to trade sideways before retracing due to fears regarding a potential recession in 2023.

AGL share price snapshot

A challenging year brought many twists and turns for the AGL share price.

While relatively unchanged since this time last year, in 2022, its shares have produced strong returns, up 35%.

At the time of writing, AGL shares are swapping hands at $8.26, down 1.08% for the day.

The company has a price-to-earnings (P/E) ratio of 6.78 and commands a market capitalisation of roughly $5.62 billion.

The post Why did the AGL share price have a volatile FY22? appeared first on The Motley Fool Australia.

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• AGL share price lifts as Brookfield caught buying
• Here are the top 10 ASX shares today
• 2 ASX 200 dividend shares analysts rate highly
• What’s with the AGL share price today?
• ASX utilities shares electrifying the market as suspension begins to unwind

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Nearmap Ltd (ASX: NEA) share price struggled in June, closing the month down 16.9%.

Nearmap shares finished May trading at $1.24 per share and had slid to $1.03 by 30 June.

The decline was significantly more than the 9.5% losses posted by the All Ordinaries Index (ASX: XAO) in June and the 10.4% loss on the S&P/ASX All Technology Index (ASX: XTX).

Why was the aerial mapping company sold off in June?

Though the Nearmap share price fell harder than many tech shares, it’s worth noting that the NASDAQ also slipped 8.7% in June.

Nearmap certainly will have felt the same pressures that saw the broader technology sector sell off last month, namely soaring inflation figures and fast-rising interest rates. With the markets pricing in a series of sharp rate hikes ahead yet.

That’s put particular pressure on companies like Nearmap, which are priced with future growth in mind. As the present cost of money goes up, awaiting those future earnings gets pricier.

The Nearmap share price also looks to have gotten some continuing headwinds from a lawsuit in the United States. Eagle View Technologies and Pictometry International Corp allege the Aussie company has infringed on their patents. While Nearmap is defending its position, analysts have taken note.

Speaking to The Motley Fool’s Tony Yoo in June, U Ethical chief investment officer Jon Fernie cited the lawsuit along with increased competition as likely to drag on Nearmap:

We think the company’s small, but also I think it’s facing increased competition in that aerial mapping space. It continues to be a loss-making business. It’s going to require a lot of ongoing investment, and they’re also facing some legal action from a competitor.

Nearmap share price snapshot

The Nearmap share price is down 21% year to date, compared to a loss of 14% posted by the All Ordinaries.

Longer-term, Nearmap shares remain up 82% over five years and up 1,639% since the beginning of 2013.

The post Why did the Nearmap share price tumble 17% in June? appeared first on The Motley Fool Australia.

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• Own Nearmap shares? Here’s how much cash the company has up its sleeves
• This is what I’d do with these 3 battered ASX shares: fund manager
• Why is the Nearmap share price soaring 5% on Thursday?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nearmap Ltd. The Motley Fool Australia has positions in and has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Nanosonics Ltd (ASX: NAN) share price is having a very strong day on Wednesday.

In afternoon trade, the infection prevention company’s shares are up over 10% to $3.96.

What’s going on with the Nanosonics share price?

Investors have been bidding the Nanosonics share price higher today despite there being no news out of the company.

However, it is worth highlighting that the healthcare sector is performing strongly today, as are a range of beaten down shares.

In respect to the former, in afternoon trade the S&P/ASX 200 Health Care index is up a sizeable 2%. That’s despite the ASX 200 index trading 0.5% at the time of writing.

As for the latter, a number of beaten down ASX shares are recording double digit gains on Wednesday. This includes the likes of Life360 Inc (ASX: 360), Megaport Ltd (ASX: MP1), Mesoblast limited (ASX: MSB), and Zip Co Ltd (ASX: ZIP).

Some investors appear to believe that the selling has been overdone and now is the time to pounce.

Anything else?

Nanosonics is one of the most shorted shares on the Australian share market. At the last count, the company had over 12% of its shares in the hands of short sellers.

If some short sellers have decided to close positions, then they could be boosting the buy side by buying shares today.

Whatever the reason, with the Nanosonics share price still down ~40% in 2022, shareholders will no doubt be hoping there are more strong gains to come.

The post Why is the Nanosonics share price jumping 10% on Wednesday? appeared first on The Motley Fool Australia.

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• These are the 10 most shorted ASX shares
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• These are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc., MEGAPORT FPO, Nanosonics Limited, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Nanosonics Limited. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is sinking lower over this Wednesday’s trading session thus far today, giving investors a mid-week slump. At the time of writing, the ASX 200 has dropped by 0.35% to just around the 6,600 points mark.

But let’s not allow that to get us down. So instead of dwelling on the market’s falls, let’s check out the ASX 200 shares that are currently topping the share market’s trading volume charts today, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

Scentre Group (ASX: SCG)

ASX 200 real estate investment trust (REIT) Scentre Group is first up this Wednesday. A sizeable 12.52 million Scentre shares have changed hands as it currently stands. We haven’t had any news out of Scentre either.

But the Westfield operator seems to be having the opposite problem to our next share. In defiance of the broader market, Scentre shares have lifted by a pleasing 3.05% to $2.70 a unit at the time of writing. It’s likely this lift that is behind Scentre’s elevated trading volume.

Pilbara Minerals Ltd (ASX: PLS)

Our next ASX 200 share today is lithium producer Pilbara Minerals. This ASX lithium stock has had a notable 12.64 million shares swap owners on the share market this Wednesday thus far. There’s been no news out of the company today.

However, that has not stopped the Pilbara share price from taking a nasty tumble. The company is currently down by a nasty 4.2% at $2.16 a share. It’s this fall that is probably responsible for the volumes we are seeing.

South32 Ltd (ASX: S32)

Our third, final, and most traded ASX 200 share today is diversified mining company South32. South32 has had a hefty 22.96 million of its shares bought and sold on the share market. This has almost certainly been caused by the collapse in the South32 share price that we’ve seen this Wednesday.

South32 shares are presently down by a nasty 7.66% at $3.56 each. As my Fool colleague James covered this morning, this seems to be the result of a pullback in global commodity prices we’ve seen over the past 24 hours or so.

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

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• ASX lithium stocks avoid share price shock amid commodities lashing
• The Coles share price beat the ASX 200 by over 10% in June
• What’s in store for the Woodside Energy share price in July?
• ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump
• South32 share price heads 8% south on high volumes, but why?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ResMed Inc (ASX: RMD) share price is having a strong day on Wednesday.

In afternoon trade, the sleep treatment company’s shares are up a decent 3% to $32.52.

This latest gain means that the ResMed share price is now up an impressive 13% since this time last month.

Can the ResMed share price keep rising from here?

The good news for investors is that one leading broker doesn’t believe the company’s shares have peaked just yet. In fact, its analysts continue to see ResMed as one of the best options for investors in July.

According to a note out Morgans, its analysts have kept the company’s shares on their best ideas list with an add rating and $37.95 price target.

Based on the current ResMed share price, this implies potential upside of almost 17% for investors over the next 12 months.

Why is the broker bullish?

Morgans is bullish on ResMed due to its belief that the company is well-placed for long term growth thanks to its patient-centric connected-care digital platform.

And while it acknowledges that the near term could be a touch volatile, it thinks investors should look beyond this and focus more on the long term opportunity.

The broker commented:

While we believe the next few quarters will likely be volatile, as Covid-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

All in all, this could make ResMed shares worth considering if you’re on the lookout for options in the healthcare sector right now.

The post Why this broker is tipping the ResMed share price to rise 17% appeared first on The Motley Fool Australia.

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• Pricing power: 2 ASX shares that can fight stagflation
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• Why Goldman Sachs sees 13% upside for the ResMed share price

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Australian markets have remained relatively unmoved on Wednesday following the Reserve Bank (RBA)’s 50 basis point hike to the cash rate yesterday.

The All Ordinaries Index (ASX: XAO) is down 0.34% on the day so far. Earlier in the session, it was in the green.

However, these two ASX All Ords shares have outstripped the pack today and are posting tidy gains.

Whispir Ltd (ASX: WSP)

The Whispir share price is pushing 17.89% higher today on no news. Shares in the communication technology company have been punished in 2022, posting a loss of 48% in that time.

What could be behind the rise in this tech share today is a fall in long-dated government bond yields.

Valuations of tech shares are closely related to movements in bond yields. The mathematical relationship roughly dictates that as bond yields fall, the valuations on risk assets such as tech shares begin rising, and vice-versa.

Indeed, the relationship is especially sensitive in technology shares. In fact, this has largely explained the large drawdown in the ASX tech basket in 2022. As yields have spiked, this has compressed tech share prices.

However, yields on long-dated government bonds have been in a consolidation phase since 14 June.

The current yield on the 10-year Australian note is 3.4%, dropping from a high of more than 4% last month.

Given the relationship described above, the pullback seems to be a bullish sign for tech shares like Whispir.

Certainly, investors are bidding up the stock today on a daily volume of 96% of the company’s four-week average trading volume. The Whispir share price is now $1.12 apiece.

Eroad Ltd (ASX: ERD)

Investors drove the Eroad share price to a gain of 18.15% at the time of writing despite no market sensitive updates from the company.

However, similar to Whispir, this All Ords tech share has climbed along with the pullback in government bond yields.

Prior to today’s gain, the company’s share price had stamped its 52-week lows last week, closing at $1.26 on 30 June. This followed a sustained downward run across the 12-month period.

Unprofitable tech shares like Eroad endured a significant down-rating from investors in 2022. However, if the trend in bond yields continues, it could spell further upside for the sector.

In the last 12 months, Eroad has lost more than 71%, now trading at $1.66 per share.

The post Guess which ASX All Ords shares are serving up 15% gains today appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Whispir Ltd. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) has taken a tumble on Wednesday. In afternoon trade, the benchmark index is down 0.4% to 6,603.1 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

Beach Energy Ltd (ASX: BPT)

The Beach share price is down over 7% to $1.62. Investors have been selling energy shares after oil prices crashed during overnight trade. According to Bloomberg, the WTI crude oil price fell more than 10% before closing the session 8.2% lower at US$99.50 per barrel. Brent crude oil ended the session 9.45% lower at US$102.77 a barrel. Recession fears are weighing on prices.

BHP Group Ltd (ASX: BHP)

The BHP share price is down over 5% to $37.83. The Big Australian and other mining shares are falling heavily today after recession concerns put pressure on commodity prices. This has led to the S&P/ASX 200 Resources index trading a sizeable 5.4% lower at the time of writing.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is down 5% to 60.5 cents. The catalyst for this was the completion of the junior infant formula company’s institutional placement and entitlement offer. Bubs has raised a total of $40.1 million at a sizeable 18.8% discount of 52 cents per new share. The company will now aim to raise $22.9 million from retail shareholders. These funds will be used to support its growth plans.

Galileo Mining Ltd (ASX: GAL)

The Galileo Mining share price is down over 3% to $1.28. This morning the palladium and nickel explorer announced that it has received firm commitments from sophisticated and institutional investors for a $20.4 million placement. These funds are being raised a $1.20 per new share, which represents a 10% discount to its last close price. The proceeds will be used to support accelerated diamond and RC drill programs at the Callisto palladium-nickel discovery.

The post Why Beach, BHP, Bubs, and Galileo Mining shares are sinking appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• How is the oil price plunge impacting ASX 200 oil shares today?
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• ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump
• Why is the Bubs share price crashing 15% today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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