Tesla, Reddit, Walmart and GSK

Tesla is facing a climb up “Mount Everest” as it tries to persuade shareholders to approve a move to Texas and re-approve a $56 billion (£44.26 billion) salary deal for Elon Musk, the electric car maker’s chief executive said.

Tesla Chairman Robyn Denholm stressed the importance of shareholder approval in an interview with the FT, stressing that their decision was “also important for the American economy.”

The controversial compensation deal was already supported by shareholders once in 2018, but was vetoed by a judge in Delaware in January.

Musk criticized the decision and urged shareholders to move Tesla out of Delaware, something he has already done with SpaceX. However, Denholm said Musk would remain loyal to the electric car maker even if he loses the upcoming vote.

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“There’s always a risk, but he’s not holding a gun to anyone’s head… He hasn’t been very open about it. And do I think he’ll stay loyal to Tesla? Absolutely.”

Reddit (RDDT)

Reddit shares rose in premarket trading as the platform announced it would give artificial intelligence (AI) startup OpenAi access to its data.

The agreement “will enable OpenAI’s AI tools to better understand and present Reddit content, particularly on trending topics,” the companies said in a joint statement. The deal will allow OpenAI to display Reddit content and train AI systems using its partner’s data.

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“Reddit will build on OpenAI’s AI modeling platform to bring its powerful vision to life,” OpenAI wrote in the post. “By using LLMs, ML, and AI, Reddit can improve the user experience for everyone.”

Investors view the sale of their data to train AI models as an important source of revenue beyond Reddit’s advertising business.

The two will also work together in advertising.

Walmart (WMT)

Walmart hit an all-time high and traded higher in premarket trading as the retailer beat quarterly earnings and revenue estimates.

The wholesaler reported a rise in net income to $5.1 billion, or 63 cents per share, in the three-month period ended April 30, compared with $1.67 billion, or 21 cents per share, in the year-ago period.

Revenue increased 6% from $152.3 billion in the year-ago quarter. This increase includes a benefit of approximately 1% from an additional day of sales during the period.

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Comparable sales in the U.S., which are sales from digital channels and stores that have been in operation for at least 12 months, rose 3.8 percent in the quarter ended April 26. That was slower growth than a year earlier, when comparatively higher prices drove up sales.

The story continues

Looking ahead, the Bentonville, Arkansas-based company now expects full-year net sales growth to be at the high end or slightly above its original guidance of 3% to 4%. Adjusted earnings per share are expected to be at the high end or slightly above its original guidance of $2.23 to $2.37.

GSK has raised £1.2 billion by selling its last remaining stake in Sensodyne and Advil maker Haleon (HLN.L), almost two years after spinning off its consumer healthcare business.

The pharmaceutical giant initially retained a 12.9 percent stake in Haleon after the IPO and was able to raise a total of around £3.9 billion through the sale of its shares.

GSK said in a statement this morning: “GSK’s exit from its position in Haleon is consistent with its previous commitments to monetize its investment in a disciplined manner.”

Haleon was created in 2019 through the merger of the consumer healthcare businesses of the British pharmaceutical group GSK and its US competitor Pfizer and was a joint venture within GSK.

In July 2022, it was spun off from GSK and listed as an independent company on the London Stock Exchange.

Attention: These stocks perform well in an inflationary environment

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