Deep Dive
Shownotes Transcript
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. It's good to have you here on this Tuesday, May 27th. I'm Julie Morgan. Tesla loses ground in Europe, Southwest drops free bags, and Truth Social eyes crypto billions.
Tesla's grip on the European electric vehicle market weakened sharply in April. The U.S.-based company sold 7,261 vehicles in Europe last month, a staggering 49 percent drop compared to April of 2024. According to figures from the European Automobile Manufacturers Association, the decline came in stark contrast to the broader EV sector, which grew 34.1 percent year-over-year in the same period.
This is part of a larger downward trend. Tesla's European sales have plummeted nearly 40% during the first four months of 2025. Tesla CEO's growing political entanglements in the U.S., particularly his alignment with President Trump and his role as the head of the Department of Government Efficiency, have sparked backlash in Europe.
Competition is also heating up. Chinese manufacturer BYD recently surpassed Tesla in pure EV sales in Europe for the first time. We're learning more about the end of Southwest Airlines' two-bags fly-free policy. Starting tomorrow, May 28, the airline will charge $35 for one checked bag and $45 for a second, according to an internal memo viewed by The Wall Street Journal.
As of 5 a.m. Eastern Time, the carrier's website under the baggage policy still says it will share more details as we approach May 28, 2025. The new fees are similar to what other airlines charge for checked bags.
Customers at the highest loyalty status level can still check two bags for free, while those with the airline's credit card or next status level can check one bag for free. Passengers who bought tickets before May 28th will still get the two free check bags.
unless they change their flight after the fees kick in. Southwest's new basic economy tickets, which are not refundable and don't allow changes, will also go on sale for the first time. These tickets will replace WANA getaway fares as the airline's cheapest option.
The airline's CFO Tom Doxey said last week that the new check bag fees will bring incremental revenue. He went on to say, but there will also be cost savings that result from the fact that we will fly fewer bags.
President Trump's company behind the Truth Social app, Trump Media and Technology Group, is reportedly planning to raise up to $3 billion to invest in cryptocurrencies. The Financial Times reported on Monday, citing sources familiar with the matter.
The proposed capital raise would comprise $2 billion in new equity and $1 billion through a convertible bond offering. However, the terms, timing, and size of the capital raise could still change, according to the report. The company has rebuffed the Financial Times report, criticizing the media coverage, but not providing a direct denial or further details.
Now for a look at three articles that are trending on Seeking Alpha. U.S. Steel will remain under American control with the Nippon deal. Seeking Alpha is asking its analysts, what are the best robo-taxi stocks right now? And President Trump's $175 billion missile shield is said to face steep tech and budgetary challenges.
On our Catalyst Watch for the Day, the three-day Bitcoin 2025 conference will feature talks by Vice President J.D. Vance, Strategy CEO Michael Saylor, and the CEO of Robinhood Markets. Penn Entertainment, Oklo, and DraftKings are some of the notable companies due to present at the Craig Hallam Institutional Investor Conference.
And Aya Gold and Silver will present at the Raymond James Silver Day.
Now let's take a look at the markets today ahead of the opening bell following the long holiday weekend. Dow, S&P and Nasdaq futures are in the green. Crude oil is up 0.5% at $61 a barrel. Bitcoin is up 0.2% at $109,000. Gold is down 1.5% at $3,296.
The FTSE 100 is up 1% and the DAX is up 0.8%. Informatica is on our list of the biggest movers of the day pre-market. Infa is up 10% after reports that Salesforce is reviving acquisition talks with the software company. Salesforce, led by Mark Benioff, had earlier explored a deal in 2024, but it failed to materialize.
On today's economic calendar, at 9 a.m., the FHFA House Price Index. At 10 a.m., Consumer Confidence. At 8.30 a.m., the Dallas Fed Manufacturing Survey. And at 8 p.m., the Fed's John Williams will participate in a moderated discussion panel before the Bank of Japan Institute for Monetary and Economic Studies Conference.
That's it for today's Wall Street Breakfast. Thanks for listening. To take full advantage of Seeking Alpha with coverage on significant stocks and ETFs, become a premium subscriber. Check out seekingalpha.com slash subscriptions. I'm your host, Julie Morgan. Go out and make it a great day.