The National Highway Traffic Safety Administration (NHTSA) has announced an investigation into 2.4 million Tesla electric vehicles following a fatal incident involving a pedestrian and a vehicle equipped with the Full Self-Driving (FSD) technology. The Office of Defect Investigations (ODI) has validated four reports of accidents occurring while FSD was enabled, including one where a Tesla drove into a low visibility area. ODI plans to evaluate FSD’s capability to recognize and appropriately respond to reduced visibility issues as part of its initial steps in the investigation.
In corporate news, CVS Health has appointed David Joyner as its new CEO, effective immediately, replacing Karen Lynch, who stepped down after reaching an agreement with the board. Joyner previously served as the president of CVS Caremark, and he will assume the dual roles of president and CEO as of the 18th. This leadership change comes in the wake of multiple downward revisions to the company’s profit forecasts, amidst ongoing challenges in its insurance division related to rising healthcare costs.
Furthermore, Procter & Gamble reported that its first-quarter sales fell short of Wall Street expectations, driven by a shift among consumers in its key markets—both the U.S. and China—towards cheaper household and personal care brands. The company’s net sales for the first quarter declined to $21.74 billion, down from $21.87 billion a year earlier, while analysts had anticipated sales of $21.91 billion.
In finance, American Express exceeded third-quarter profit expectations as an increase in credit card spending offset a rise in loan loss reserves. The company remains relatively insulated from economic impacts due to its focus on affluent customers. However, some analysts suggest that the stock’s recent peak limits further growth potential, especially as rising interest rates and economic uncertainty may deter customers from making non-essential purchases. The loan loss reserve for the quarter was set at $1.4 billion, compared to $1.2 billion last year, with profits growing 2% to $2.51 billion and revenue increasing 8% to $16.64 billion by September 30.
Lastly, Fifth Third Bancorp reported a decline in third-quarter profit due to increased allocations for potential loan defaults. The company raised its credit loss reserve significantly to $160 million, up from $119 million a year earlier. Despite this, wealth and asset management emerged as a bright spot in the report, generating a record $163 million in revenue—a 12% increase from the previous year—while managed assets jumped 21% to $69 billion. The net income attributable to common shareholders for the quarter fell to $532 million, or 78 cents per share.
