Breakfast | Tesla claims that Tesla's 10-fold production capacity is not impossible, XPeng will invest $500 million in AI.

Good morning! A wonderful day starts with making money.

Overnight and This Morning Market Update

Overnight, the US stock market was closed due to the US President's Day holiday.

Major European stock indices showed slight differentiation. In the London market, UK electronics retailer Currys opened significantly higher and closed with a 36.36% surge. JD.com stated that it is in the early stages of evaluating the acquisition of Currys.

Yesterday, the three major Hong Kong stock indices opened lower, quickly weakened, then maintained a weak and volatile trend, closing lower after three consecutive days of gains. The Hang Seng Index fell by 1.13% to 16155.61 points, and the Hang Seng TECH Index dropped by 2.68%. The consumer, technology, and healthcare sectors led the decline. The market turnover was 82.087 billion Hong Kong dollars, with a net inflow of 4.266 billion Hong Kong dollars from the southbound funds, and China National Offshore Oil Corporation received a net inflow of 0.616 billion Hong Kong dollars.

Blue Chips and Hot Stocks

Tesla: Achieving 10x Production Capacity is Very Challenging, but Not Impossible

A netizen posted: "The timing for Tesla to deliver 10-20 million cars per year is not a question of 'whether' but 'when'." Tesla responded: "Achieving a 10x production capacity is very challenging. Feasible, but requires a lot of work."

Microsoft President Brad Smith: Will expand our investment in artificial intelligence and cloud infrastructure in Spain by $2.1 billion in the next two years.

Ford Motor significantly lowered the price of the 2023 Mustang Mach-E in the Canadian market, with price reductions ranging from 5,000 to 13,000 Canadian dollars to compete with Tesla Model Y and other electric SUV models.

BYD Qin enters the 70,000 yuan price range, with Wuling, NIO, and Changan Qiyuan quickly following suit, offering discounts of up to 22,000 yuan. NIO's main models have all been reduced in price, with the highest discount being 22,000 yuan.

Media: XPeng Plans to Recruit 4,000 People and Invest $500 Million in Artificial Intelligence

XPeng Motors CEO warned of intense competition in the electric vehicle sector. The company will invest 3.5 billion yuan (approximately $500 million) in research and development of artificial intelligence technology focusing on "smart driving."

Media: Rivian to launch affordable R2 electric SUV in Europe.

The US plans to allocate $1.5 billion to China's largest custom chip manufacturer, GigaChip, marking the largest initial allocation under the "Chip Act" to date. In addition, the US will provide the company with a $1.6 billion federal loan.

First Capital Finance reportedly seeks to acquire Discover, potentially forming the largest credit card company in the US

Discover's stock price has fallen by about 2% this year, with a market value of $27.6 billion. First Capital Finance has a market value of approximately $52.2 billion. If an agreement is reached, it could be announced as early as this week. This deal would create the largest credit card company in the US by loan volume, surpassing long-time competitors JPMorgan Chase and Citigroup.

Shanghai and Shenzhen Stock Exchanges publicly reprimand Evergrande and related personnelEvergrande Group and related parties have received public reprimands and penalties from the Shanghai and Shenzhen Stock Exchanges. The main violation was that Evergrande failed to submit and disclose the 2022 interim report and 2022 annual report within the specified time.

Nintendo will hold its first online briefing for 2024 on February 21 at 22:00 Singapore time, focusing on introducing the 2024 first-half Switch game plans from Nintendo's publishing and development partners.

Li Auto's 2024 Spring Launch Event will be held on March 1, featuring the flagship family tech MPV Li ONE and the 2024 Li ONE series models.

IPO Opportunities

14 Companies from Mainland China Have Submitted Applications to the Hong Kong Stock Exchange in February, Heating up the Listing of Mainland Unicorns in Hong Kong

As of February 14, a total of 14 companies have submitted applications to the Hong Kong Stock Exchange in February, averaging one company per day. As of February 19, the Hong Kong Stock Exchange is processing 75 listing applications. Industry insiders believe that mainland unicorns in artificial intelligence, biotechnology, new consumption, and other sectors will lead to a wave of listings in Hong Kong.

Reports suggest that eHi Car Services is considering a $300 million IPO in the United States. In November 2014, eHi Car Services was listed on the NASDAQ, but after a continuous decline in stock prices, it was privatized and delisted in 2019.

Tata Group is considering spinning off its lithium battery business Agratas for an estimated valuation between $5 billion and $10 billion.

Macro: A Global Perspective

Commercial Real Estate Prices in the United States Experience the Most Severe Decline in 50 Years

A study by the US real estate company High Latitude Properties found that by the end of last year, about one-fifth of office buildings in the United States were vacant, with vacancy rates reaching 25% even in major cities like Los Angeles and Houston.

Media: The Biden administration intends to relax restrictions on vehicle emissions, giving automakers more transition time. Under the new regulations, it is expected that by 2030, the proportion of electric vehicle production will be less than 60%, compared to the previous requirement of reaching 60% by 2030 and 67% by 2032.

Singapore will invest over $1 billion in the next five years to further enhance the country's artificial intelligence capabilities.

As of the end of January, the total market value of the Japan Exchange Group was $6.34 trillion, returning to the top spot in Asia after three and a half years and rising to fourth place globally. The top three are the New York Stock Exchange, the NASDAQ market, and the Euronext Exchange.

Media: S&P Global is set to acquire research platform Visible Alpha for over $500 million.

The German Central Bank: The German economy may experience a slight contraction in the first quarter of this year, potentially entering a technical recession.

On February 19, the European Union officially launched Operation Red Sea Escort. The operation is planned to last for a year and can be extended. Belgium, Italy, Germany, France, and other countries plan to send multiple warships to the Red Sea region.

Chairman of the China Securities Regulatory Commission, Wu Qing, Works Continuously Without Resting Since Taking Office

After the Chinese New Year, Wu Qing held more than ten series of symposiums at the China Securities Regulatory Commission, covering various market participants.The China Banking and Insurance Regulatory Commission has issued the "Regulatory Rating Measures for Automobile Finance Companies," aiming to guide automobile finance companies to adhere to specialized consumer credit functions, further unleash the potential of automobile consumption, and expand domestic demand.