Sanctions

Key morning headlines: Tesla’s earnings disappointed, prioritizing robotaxis and AI, triggering a share drop. Southwest Airlines and American Airlines reported strong earnings, contrasting Tesla’s struggles. The US imposed sanctions on Russian oil giants, causing prices to surge. Meta is cutting AI jobs amid superintelligence concerns. Starbucks workers are preparing for a strike vote over pay and working conditions, potentially impacting upcoming earnings.

Huawei’s Richard Yu addressed the company’s use of the phrase “leading far ahead” in a recent interview, clarifying he uses it sparingly, reserved for genuine achievements. He highlighted the significant impact of U.S. sanctions, causing smartphone shipments to plummet from 240-250 million annually to just over 20 million. Yu also refuted rumors of a fine imposed by Ren Zhengfei for using the phrase, stating it has been overused and the rumors were false. The company aims to only use the term when definitively leading in a specific area.