Squawk on the Street 2026 Markets, Tesla Deliveries, Mega-Tech Rallies Into the New Year 1/2/26
24 snips
Jan 2, 2026 
David Zervos, Chief Market Strategist at Jefferies, shares insights on a more dovish Fed and a bullish outlook for the S&P 500 in 2026. Automotive reporter Phil LeBeau reveals a disappointing 16% drop in Tesla's Q4 deliveries, questioning their near-term sales strategies. Mike Santoli discusses market momentum and sector rotations, highlighting strength in mega-tech stocks like Nvidia and Apple. The panel also touches on implications of delayed furniture tariffs and evolving dynamics in consumer sectors.
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High Valuations Meet Concentrated Tech Leadership
- Markets start 2026 with high valuations but also concentrated high-growth tech leadership.
- The Magnificent Seven plus Broadcom are expected to show strong earnings that can justify elevated multiples.
Tesla Deliveries Below Expectations
- Tesla's Q4 deliveries came in below expectations and full-year deliveries declined about 8.5% in 2025.
- That raises questions about whether vehicle sales will resume growth or remain flat, impacting free cash flow for longer-term projects.
Tesla Valuation Driven By Future Vision
- Tesla's narrative has shifted from pure deliveries to future bets like robo-taxis and humanoid robots.
- Many investors now price the company on long-term autonomous and robotics potential rather than near-term vehicle metrics.