Elon Musk and Tesla are on the rise after a brutal start to the year

After dropping more than 42% and bottoming out in late April, Tesla's stock has rebounded sharply and is up more than 60% in a little over two months.

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Hi! Wickiator? Glad-to-Wick? I'm not sure about the name, but "Gladiator 2" and "Wicked" being released on the same day (November 22) could become the new "Barbenheimer."

In today's big story, a tough sales report for Tesla can't slow the EV maker's turnaround.

What's on deck:

• Markets: Hedge funds' June report cards are in. Here's how they stack up.
• Tech: Salesforce investors denied its executives' new pay packages.
• Business: Lifeguards need saving.

But first, back on track.

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The big story

Fully charged

Trouble at Tesla? Says who?

After a dreadful start to the year, the EV maker has been running on all cylinders on a full charge.

Even when it loses, it still manages to win. Tesla's sales slumped for the second quarter. But the 5% drop from last year was better than analysts expected, writes Business Insider's Nora Naughton.

Tesla's share price surged as much as 10% following the news as Wall Street proclaimed the company's worst days are behind it, writes BI's Filip De Mott.

From the market's perspective, that seems to be the case. After dropping more than 42% and bottoming out in late April, Tesla's stock has rebounded sharply. It's up more than 60% in a little over two months.

Tesla's polarizing CEO also notched a massive victory when investors approved Elon Musk's $55 billion pay plan.

And even though he hasn't secured the bag just yet, it's a testament to the 180 that Tesla has pulled off. After months of people questioning Tesla's future — including this very newsletter — the EV maker seems to be back on track.

Tesla's turnaround comes despite the company looking very similar to how it did at the start of the year.

The EV maker's newest product, the Cybertruck, has had its headaches, including a recent recall over its giant wiper. And the wider EV market still has demand issues, especially for expensive cars.

But what is new at Tesla, and what sparked the company's recent market rally, are big promises from its CEO. Musk's plans for robotaxis and an affordable model in the wake of a dreadful earnings report were all investors needed.

As Nora has previously written, it's an example of the power Musk holds in getting investors to quickly fall in line and back his big-picture ideas.

How soon Tesla will be able to reach those goals remains to be seen. Musk has a history of punting on deadlines. But he's also delivered for the company in big ways, like defying expectations by turning the Model 3 into one of the best-selling cars in the world.

Tesla and Musk also hold another massive advantage. As automakers reconsider their EV strategy, Tesla has figured out how to build cars cheaper than anyone else.

3 things in markets

1. Halfway through 2024 and Schonfeld rules the roost. The $10 billion multi-manager's flagship fund's 10.3% gain this year leads the way. Steve Cohen's Point72 and Ken Griffin's Citadel are up 8.7% and 8.1% this year, respectively. But the S&P 500's nearly 15% rise in the first half of the year rules them all.
2. BlackRock is going to make a founder richer than the Wall Street giant's CEO. The world's largest asset manager's deal to acquire Preqin means founder Mark O'Hare pockets a cool $2 billion after tax. That will slot him above BlackRock cofounder and CEO Larry Fink, who has an estimated fortune of $1.7 billion.
3. China's biggest economic problem is its own consumers. Despite facing stiff tariff hikes from the EU and the US, China's most pressing economic problem isn't from its trading partners. Its weak internal consumer demand is dragging on manufacturing activity.

3 things in tech

1. Google's cookie-replacement plan is starting to crumble. Google gave adtech companies a taste of what life after cookies would be like — and it wasn't sweet. Now, the firms' pushback threatens to prolong Google's cookie phase-out, which has already been delayed several times.
2. The kids really, really like YouTube. A new report found that YouTube was by far the favorite content platform for kids aged 2 to 12. It also has a special power: It's really good at getting kids to buy stuff.
3. Shareholders won't make it rain for Salesforce execs. Shareholders voted down a proposed plan to raise compensation for CEO Marc Benioff and other execs, trouncing hopes of a Tesla-style mega payday. It's not a total loss for Benioff, though.

3 things in business

1. Lifeguarding needs a lifeline. A national shortage of lifeguards is drastically reducing public pool access, and the crisis is only getting worse. Fewer swimmers, stagnating wages, and the job's image as a youth-only gig may be to blame.
2. Lumber prices are going down like timber. Though lumber prices skyrocketed during the pandemic, they've dropped precipitously this year as supply outpaced demand. Repairs and remodels have slowed, and high interest rates have reduced new homebuilding altogether.
3. Housing costs will stay high even when the Fed cuts rates. Bad news for buyers and renters looking for a break when the Fed cuts interest rates: The housing market probably won't get more affordable anytime soon. Falling interest rates might slow mortgage rate growth, but won't make them decline, Morgan Stanley said.

In other news

• Trump hush-money sentence delayed as he leverages Supreme Court immunity to fight his conviction.
• Prosecutors knew Jeffrey Epstein had raped teens before giving him a sweetheart deal: transcript.
• The VC that predicted a 'mass extinction event for startups' says it's time for a 'Great Reawakening'.
• $6.4 billion Walleye Capital taps a Balyasny portfolio manager to run its stock-picking unit
• Suspected Chinese spy bases in Cuba are growing, including one near a US naval base: report.
• Steve Ballmer is now worth $157 billion —more than his former Microsoft boss Bill Gates.
• Earth's inner core reversed direction and is slowing down, and scientists don't know why.
• Rudy Giuliani has been disbarred in New York

What's happening today

• Major Hurricane Beryl forecast to threaten Jamaica. It made landfall yesterday as a Category 5 storm.

The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. Amanda Yen, fellow, in New York.