Stocks traded higher but trimmed gains on Wednesday, 11 June 2025, after The Wall Street Journal reported that China plans to impose a six-month limit on rare-earth export licences for US carmakers and manufacturers.
The move followed the latest round of trade talks between Washington and Beijing. Earlier in the session, US President Donald Trump declared a deal with China was 'done'—but news of the export restrictions quickly injected fresh uncertainty into the markets.
Premarket activity was further stirred by headline developments from Tesla, GitLab and GameStop, with investors increasingly responsive to both corporate news and global economic shifts.
Tesla Rallies on Robotaxi Reveal
Tesla (NASDAQ: TSLA) shares rose 1.8% in premarket trading after CEO Elon Musk announced the company could debut its long-anticipated robotaxi service on 22 June in Austin, Texas. Leaked footage online appeared to show a Tesla vehicle operating driver-free, fuelling speculation about the company's advances in autonomous technology.
The announcement comes as Tesla faces rising competition from Chinese electric vehicle (EV) makers and AI-driven mobility start-ups. Analysts believe the robotaxi rollout is a strategic attempt to reaffirm Tesla's tech leadership. Autonomy is widely seen as a cornerstone of Tesla's long-term growth narrative.
GitLab Slides Despite Earnings Beat
GitLab (NASDAQ: GTLB) reported stronger-than-expected quarterly earnings but saw its shares fall nearly 8% in premarket trading, after issuing weaker forward guidance. The cautious outlook rattled investors already wary of slowing momentum in the saturated DevOps software space.
Despite continued praise for GitLab's integrated developer tools, analysts flagged growing pressure from competitors like GitHub and Atlassian. With technology budgets tightening and sales cycles stretching, markets are placing more weight on future performance than current results.
GameStop Swings to Profit, but Sales Drop Sharply
GameStop (NYSE: GME), the gaming retailer known for its meme-stock past, posted a quarterly profit of £0.07 per share ($0.09)—a significant turnaround from a loss during the same period last year.
However, total revenue slumped 17% year-on-year to approximately £576 million ($732.4 million), falling short of analyst forecasts and pushing shares down 4.3% in premarket trade.
The results underscore GameStop's ongoing challenges in adapting to the digital gaming era. While the return to profit is seen as a positive, analysts warn that sustained growth will require a meaningful pivot toward e-commerce, digital services, and a more resilient business model.
Macro Watch: Inflation and Trade Tensions Weigh on Outlook
These company updates unfolded against a broader backdrop of macroeconomic uncertainty. US Consumer Price Index (CPI) data for May is expected to show a 0.2% monthly rise, or a 2.5% increase compared to the previous year. These figures could prove pivotal in determining the Federal Reserve's stance on interest rates at its upcoming policy meeting.
Meanwhile, US–China trade talks resumed in London, with discussions focusing on rare earth elements—essential components in high-tech and automotive production. Dubbed the 'Geneva Consensus', the talks aim to ease escalating trade friction between the two superpowers, though they remain in early stages.
Investor Insight: Vision vs. Value
Wednesday's premarket moves reflect a market increasingly driven by forward-looking stories and future potential rather than traditional performance metrics. Tesla's ambitious robotaxi reveal captivated investor interest, while GitLab and GameStop faced sharp scrutiny over growth trajectories.
With inflation figures pending and global trade dynamics shifting, markets are on high alert. But for now, Tesla's futuristic narrative has stolen the spotlight—leaving more cautious firms under pressure to prove they can keep pace in an increasingly volatile economic landscape.
