Elon Musk’s off-the-cuff confirmation that Tesla’s long-promised lower-priced electric vehicle will closely resemble a stripped-down Model Y has done little to rekindle excitement around the brand.

The remark came during Tesla’s post-earnings call earlier this week, contradicting another executive’s attempt to avoid revealing design specifics.

While speculation about a cheaper Model Y has been around for months, Musk’s casual comment—“let the cat out of the bag”—marks the first strong indication of what the new vehicle might look like.

Yet analysts remain skeptical that such a move can meaningfully reverse Tesla’s sliding sales and waning consumer interest.

“It’s been over five years now since Tesla made its first Model Y delivery, and the only new model the company has brought to market in that time has been the Cybertruck,” said Garrett Nelson, equity analyst at CFRA in a MarketWatch report.

“Tesla needs actual new vehicle models, not just updates to existing ones to get people excited about the brand again,” he said.

Tesla’s second-quarter deliveries fell to 384,122 vehicles, down from 444,000 in the same period last year.

Even the refreshed Model Y, which launched earlier this year, failed to halt the decline.

Robotaxis, not new models, dominate Tesla’s vision

Despite the long-awaited promise of affordable Teslas, the company’s leadership barely touched on its vehicle lineup during the earnings call.

The spotlight was instead on the company’s self-driving ambitions and artificial intelligence initiatives.

Musk predicted that Tesla’s robotaxi service will be available to “roughly half the U.S. population” by the end of the year.

The company is also pinning high hopes on Optimus, its humanoid robot in development.

Stephen Gengaro of Stifel noted that Wall Street’s primary focus has shifted from vehicle sales to Tesla’s autonomous vehicle technology.

The “overwhelming key to the Tesla story over the next year is the success of its Unsupervised FSD technology and robotaxi traction,” Stephen Gengaro at Stifel said in a note Friday.

He added that a successful expansion of robotaxi operations in Austin, Texas, and a few other US cities could be a major catalyst for the stock.

Falling demand, political distractions weigh on brand

Even if a cheaper Model Y reaches volume production later this year, industry analysts warn that broader market dynamics are not in Tesla’s favour.

US consumers have shown growing interest in hybrids, while EV growth has stagnated in the face of higher prices and reduced government support.

To make matters worse, Tesla’s brand image has suffered from Musk’s increasingly political posture.

After previously aligning with conservative positions, the CEO is now feuding publicly with Donald Trump and threatening to launch a third political party in the US, potentially alienating both sides of the political divide.

Some view lower-priced cars as entry points into a brand, but with consumers facing mounting pressure from rising prices and interest rates, brand loyalty has weakened considerably.

Tesla’s lower-priced vehicle will also be heavily reliant on sales of the Full Self Driving (Supervised) package, which starts at $8,000 or a $99 monthly subscription.

But many potential buyers may be reluctant to pay the additional cost.

Wall Street trims expectations as tax credits end

The clock is ticking for EV makers, with federal tax credits for electric vehicles expected to lapse in September.

Several investment banks have recently revised their Tesla sales forecasts downward in response.

Morgan Stanley, for instance, adjusted its 2026 sales estimate to 1.85 million units, down from 1.89 million.

FactSet consensus now expects just 1.65 million Tesla deliveries in 2025, compared to 1.79 million in 2024 and 1.81 million in 2023.

Analysts say the limited boost expected from a cheaper Model Y is unlikely to offset the drag from expiring incentives and growing competition.

General Motors, for example, has announced plans to raise prices in North America by up to 1%, further pressuring the average car price, which now hovers around $48,000—nearly $10,000 higher than in 2020.

Expansion of robotaxi in other markets likely catalyst for TSLA stock

Tesla shares have lost about 21% of their value this year, including an 8% drop following the recent earnings report.

This contrasts sharply with the S&P 500 index, which is up about 9% in 2025.

The “overwhelming key to the Tesla story over the next year is the success of its Unsupervised FSD technology and robotaxi traction,” Gengaro said.

A successful expansion of robotaxis in Austin, Texas, plus a potential rollout in a few other markets “is likely a catalyst for the shares,” he added.

While the notion of a more affordable Tesla may still hold consumer appeal, it appears that for investors, the future lies elsewhere—likely behind the wheel of a self-driving robotaxi rather than a cheaper Model Y.

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It may seem like a distant memory, but just 17 years ago, in 2008, the median rent for Americans was a modest $824 per month. Today, that figure has soared to over $1,300, and in major metropolitan hubs like New York City and Los Angeles, it dwarfs even that national average.

This relentless climb, which saw rents jump by nearly 6% between 2022 and 2025 alone, means that Americans are now dedicating a much larger portion of their hard-earned income just to keep a roof over their heads.

The long-standing financial recommendation is to spend no more than a third of one’s income on housing. However, with rent prices consistently rising faster than wage growth across the United States, a significant number of Americans are now shelling out far more than that.

A recent analysis by Self Financial, which synthesized housing data from the US Census, Apartment List, the Bureau of Labor Statistics, and the Federal Reserve, paints a stark picture of this burden, translating it into a more tangible metric: hours of work.

On average, Americans now need to work 38.3 hours just to cover their monthly rent. In practical terms, that means the entirety of an average work week is consumed by this single, essential expense.

This national average, however, masks a wide disparity across the country.

The state-by-state divide: from 27 hours to over 60

The number of work hours required to pay for rent varies dramatically depending on where you live.

Residents of Vermont face the steepest challenge, needing to work 60.2 hours per month to meet their average monthly rental costs, the highest of any state, according to the Self Financial analysis.

At the other end of the spectrum, those living in South Dakota need just 27.6 hours to cover their rent, placing them at the lowest spot in the nation.

Unsurprisingly, the situation is most acute in major cities; residents of New York City, for instance, need to work a staggering 90.2 hours each month to pay their rent—more than two full work weeks.

Here are the five US states where the most hours of work are required to cover the average monthly rent:

• Vermont: 60.2 hours
• Hawaii: 59.9 hours
• California: 52.4 hours
• New Jersey: 50.4 hours
• Maryland: 50.3 hours

And here are the five US states where the fewest hours are required:

• Maine: 32.3 hours
• North Dakota: 32.2 hours
• Alabama: 31.4 hours
• Arkansas: 31.1 hours
• South Dakota: 27.6 hours

A glimmer of hope? Apartment boom offers some relief

While this may paint a grim outlook for rental housing in the US, there is a small glimmer of hope on the horizon.

As of May, the median US asking rent had actually dropped by about 1% year-over-year, according to real estate brokerage Redfin.

The reason for this slight reprieve, Redfin economists say, is a boom in apartment construction, which is currently hovering near a 50-year high.

“Even though renter demand is strong, it’s not keeping pace with supply,” explained Sheharyar Bokhari, a Redfin senior economist.

Many units are sitting vacant for months, which means renters have power to negotiate concessions and landlords have less leeway to keep rents high.

Renting vs. buying: the cheaper of two expensive options

Despite the high cost of renting, it remains a significantly cheaper option than buying a home in the current US market.

A combination of sky-high mortgage rates, which are nearing 7%, and home prices that are a staggering 55% higher than they were at the beginning of 2020 (according to the Case-Shiller US National Home Price Index), has put homeownership out of reach for many.

The situation in Austin, Texas, provides a clear example. “Many people in Austin are finding that it’s a lot cheaper to rent than buy,” Austin real-estate agent Andrew Vallejo recently told Fortune.

You could buy a home and have a monthly mortgage payment of $3,200, but the same home will rent for $1,900. Unless the buyer has a good amount of money for a down payment, renting is way less expensive.

This stark reality underscores the ongoing financial pressures facing American households as they navigate the challenging housing market.

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The Vanguard S&P 500 ETF (VOO) continued its strong bullish trend last week, reaching its all-time high. VOO stock ended the week at $585, up 33% from its lowest point in April, indicating that it has entered a bull market. Here are some of the top catalysts for the VOO fund this week.

VOO ETF to react to key earnings

The VOO ETF stock continued rising last week as the earnings season gained steam. About 34% of the S&P 500 Index companies have published their earnings.

80% of these companies have published a positive EPS surprise. The blended earnings growth so far stands at 6.4%. If the final figure will be 6.4%, it will be the lowest earnings growth since the first quarter of last year. 

The earnings season will accelerate this week, with most of the VOO constituent companies publishing their earnings. The most notable of them are Magnificent 7 companies like Microsoft, Meta Platforms, Apple, and Amazon. 

Other notable companies to watch include firms such as Boeing, Booking Holdings, Procter & Gamble, Visa, Starbucks, Mastercard, and ExxonMobil. 

A few of these companies will stand out. Starbucks stock will be in focus as on the turnaround efforts by the former Chipotle CEO. The company has faced major challenges as competition from firms like Luckin Coffee has surged. Its stock has dropped by almost 20% from the highest point this year. 

Boeing will also be in the spotlight as investors watch its turnaround efforts after a series of challenges. Data shows that the Boeing stock price has jumped by 81% from its lowest level this year, and is hovering at its highest point since January this year. 

PayPal stock price will also be in the spotlight as its earnings show how its business is being impacted by the ongoing stablecoin growth. Although the company has launched its stablecoin, there are indications that its market share is not increasing.

The other notable companies to watch are Union Pacific and Norfolk Southern, which will publish their results and possibly announce a $200 billion merger. 

Federal Reserve interest rate decision

The other major catalyst for the VOO ETF this week will the next Federal Reserve interest rate decision on Wednesday.

Economists expect the bank to leave interest rates unchanged between 4.25% and 4.50% in this meeting. Officials will then maintain their wait-and-see approach and hint of just two cuts this year.

The Fed has come under pressure from Donald Trump, who believes that it should cut rates to 1%. He met with Jerome Powell last week at the Fed building, where he inspected the ongoing renovations. 

In line with this, the US will publish key economic numbers, including the PCE inflation report on Thursday and nonfarm payrolls data on Friday. These numbers will influence the Fed meeting in September this year. 

Trade war deadline

The other key catalyst for the VOO ETF is the upcoming August 1 deadline set by the Trump administration. Trump has threatened tariffs against most countries, which will take effect on August 1 if no deal is reached with the US. 

The US has reached a deal with Japan that will see the country invest $500 billion in the US. All Japanese goods shipped to the US will be charged a 15% tariff.

EU’s Ursula von der Leyen will meet Donald Trump to engineer an elusive deal with the US. Such a deal will boost the VOO ETF stock later this week. 

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The Nikkei 225 Index continued its strong bull run this month, reaching a high of ¥42,030, its highest level since July 10. It has jumped by over 36% from its lowest level in April. This article explores the top catalysts for the blue-chip Japan index. 

BoJ interest rate decision

One of the top catalysts for the Nikkei 225 Index will be the upcoming Bank of Japan interest rate decision scheduled on Friday.

Economists expect the bank to leave interest rates unchanged at 0.50%. It will then maintain that it will resume hiking interest rates later this year if the economic conditions allow. 

The BoJ decision comes a week after the US and Japan reached a complex trade deal. All Japanese goods imported into the US will be subject to a 15% tariff, a move that will impact some of the top Nikkei 225 constituents, including Toyota and Honda. 

Japan will also invest $500 billion in the United States in areas preferred by Donald Trump. It is unclear how this investment will work over time. 

The Nikkei 225 Index will also react to the upcoming Federal Reserve interest rates decision. Economists also expect the Fed to leave rates unchanged between 4.25% and 4.50%.

Japan earnings season 

The other major catalyst for the Nikkei 225 Index will be earnings from key Japanese companies. These earnings will provide more color about the country’s earnings growth.

The most notable companies will be Japanese banks. Sumitomo Mitsui Financial and Mizuo Financial will publish their financial results on Thursday. 

Japanese bank stocks have done well this year, helped by the fairly strong economy and high interest rates. That’s because most of them were used to negative interest rates for over a decade, and now the bank has boosted them to 0.5%.

Other key Nikkei 225 Index constituents like Hitachi, Japan Tobacco, Mitsubishi Electric, Resona Holdings, Itochu, Mitsui, and Marubeni will also release their results this week. The latter three companies are notable because they are part of Warren Buffett’s portfolio.

US corporate earnings and macro data

Global stocks often react to the happenings in the United States. Top companies in the Magnificent 7, like Meta Platforms, Microsoft, Apple, and Amazon will publish their earnings this week. Altogether, over 50% of all companies in the S&P 500 Index will release their results. 

At the same time, the US will publish several key economic numbers this week. The most notable ones will be the consumer confidence report on Tuesday, GDP data on Wednesday, the personal consumption expenditure (PCE) on Thursday, and the nonfarm payrolls data.

All these numbers are important because they will help to determine when the Fed will start to cut interest rates.

The Nikkei 225 Index will also react to the August 1 deadline in which the US will implement tariffs on most countries.

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