It's Ford vs. GM in a 'cruise' trademark battle
Plus, EV producers are not happy by new tax credit plans & earnings we’re expecting this week
Hello there,
It’s Ford (F) vs General Motors (GM) in this new trademark battle over the terms “Cruise'' and "Super Cruise''.
Why this matters: Believe it or not, the car companies are in a legal battle over the word ‘cruise’. GM has filed a lawsuit against Ford, accusing them of violating their trademarks by using the name "Blue Cruise" for a system that enables hands-free driving. Ford responded and called the suit frivolous stating that the word “cruise'' is used by several auto companies. (Yahoo Finance)
EV producers not happy by new tax credit plans
EV producers like Tesla (TSLA) and General Motors (GM) are not excited about the latest tax credit plans made by the U.S. Senate.
Why this matters: For context, there is a federal tax credit (amount of money that taxpayers can subtract directly from taxes owed to their government) of $7,500 for consumers buying an EV, but it isn’t available for automakers who have sold more than 200,000 EVs like General Motors and Tesla. The bill removed the 200,000-vehicle cap which looked, for a hot minute, like a win for the industry but the Senate passed an amendment that grants the $7,500 credit only for EVs that cost less than $40,000, and only if the buyer earns less than $100,000 a year. This news negatively impacted the shares of several EV automakers as investors believed it would affect sales. The dampened reaction to the news is a sign that investors believe negotiations are far from over. (Barron's)
Earnings we are expecting this week
As the second-quarter earnings season comes to a close, more companies are expected to report their earnings this week.
Why this matters: This week, we have some major companies reporting earnings. Retail giants Target (TGT), Walmart (WMT), Bath & Body Works (BBWI), Macy's (M), and Home Depot (HD) are all reporting earnings this week. Their numbers will show us how retail is fairing in a post-pandemic world. On the other side, Robinhood (HOOD) will be reporting its first earnings as a public company. The company has had a wild couple of weeks with new acquisitions and its stock surging over 50%. Their numbers will be exciting to look at. (Barron's)
That’s it from us
See you tomorrow.