Wall Street Lunch: Ferrari Revs Up Elettrica (undefined:RACE)

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Ferrari’s first EV will have 1,000 horsepower and unique engine sound. (0:15) Silver tops $50. (2:06) Hollywood vs. AI. (2:50)

This is an abridged transcript of the podcast:

Our top story so far, Ferrari (NYSE:RACE) unveiled some details about its first electric vehicle, which has a placeholder name of Elettrica.

The EV will have in-house-developed electric motors with 1,000 horsepower, going from 0 to 62 in 2.5 seconds. The Elettrica will have a range of over 323 miles and a top speed of 192 mph, powered by a 122-kWh battery pack.

But what about that signature Ferrai roar?

A system that uses real powertrain vibrations will create a novel, emotive electric Ferrari sound, settoing it apart from other EVs.

The initial skateboard platform indicates a four-door, but for now it’s unclear if it will be a sedan or SUV. The design debut is expected next spring.

But amid all this, Ferrari lowered its forecast for electric vehicles to account for 20% of its lineup by 2030, down from a prior target of 40%.

Among active stocks, PepsiCo (PEP) topped Q3 earnings expectations and named a new CFO. Walmart U.S. CFO Steve Schmitt will step into the role in a month.

Looking ahead, Pepsi expects a low-single-digit increase in full-year organic revenue and core constant currency EPS about even with the prior year.

Delta Air Lines (DAL) is rallying on solid results coupled with an upbeat outlook for the remainder of the year.

After a turbulent start to the year, strength in premium, corporate and loyalty boosted Q3 numbers above expectations. And it now sees the Q4 top and bottom lines beating current forecasts.

Nvidia (NVDA) nabbed a Street-high price target of $300 from Cantor analyst C.J. Muse, who reiterated his Top Pick Overweight, saying customers are “searching desperately for compute wherever they can find it.”

The next highest target is $275 from Melius Research, which boosted theirs from $240 earlier this week.

And cannabis stocks are gaining after Tilray Brands (TLRY) posted its first revenue beat in four quarters, boosted by its distribution business.

Canopy Growth (CGC), Aurora Cannabis (ACB) and SNDL (SNDL) and all following Tilray higher.

Looking to the markets, it’s High-Ho-Silver.

Echoing gold’s breakneck rally, spot silver (XAGUSD:CUR) topped $50/oz. for the first time since 2011.

Research firm MenthorQ says the historic silver run is fueled by industrial demand, supply tightness and economic uncertainty are fueling this historic rally.

In other news of note, China tightened its rules on rare earth exports. Those elements are crucial to many high-tech products.

The announcement from the Ministry of Commerce clarifies and expands sweeping controls announced in April, which caused massive shortages around the world before a series of deals with Europe and the U.S. resumed shipments.

The new announcement makes it clear that licenses will likely be denied to arm makers and some semiconductor companies.

Also, technology used to mine and process the rare earths, or to make magnets from rare earths, can only be exported with permission from the government.

And we’ve seen this reel before.

Hollywood’s Creative Artists Agency said that OpenAI (OPENAI) is exposing artists to “significant risk” through its new video-generating tool Sora.

The talent agency told Reuters: “The question is, does OpenAI and its partner companies believe that humans, writers, artists, actors, directors, producers, musicians, and athletes deserve to be compensated and credited for the work they create?”

CAA said control, permission for use, and compensation were “a fundamental right” of creative workers and warned the misuse of new technologies poses risks beyond entertainment and media. But it added it was open to hearing OpenAI’s solutions.

And in the Wall Street Research Corner, it’s time to play the reel of short opportunities again.

Yesterday, we gave you J.P. Morgan’s best consumer stocks to short. Today it’s top tech shorts.

Two of the stocks are Mobileye Global (MBLY), whose expected revenue growth does not support its valuation, especially given current challenges in the auto sector.

And Skyworks Solutions (SWKS), which keeps a Neutral rating on iPhone opportunities, but will be an underperformer compared to the broader semiconductor group.

Check out the other two names in our story.