Automotive clean energy company Tesla has made a reversal from its strategy, as it slashes the price of its vehicles globally by 20%.
Tesla made this move after missing Wall street delivery estimates for 2022, as it also seeks to challenge rival EV companies.
The company’s CEO Elon Musk disclosed that the price of its vehicle was high which could affect demand, which necessitated a price cut. Also, the chairman and managing member at Great Hill capital Thomas Hayes said “competition is coming and they are responding to price cuts”.
Tesla in its recent slash in the price of its vehicles reduced prices of its EV vehicles in the United States, Europe, the Middle East, Asia, and Africa.
In China, Tesla cut prices for its vehicles two times in three months as demand continued to drop. The automaker was forced to cut prices after posting an unimpressive fourth-quarter report for 2022.
Investors King understands that for its Model 3 and Model Y vehicles, it produced 419,088 vehicles and delivered 388,131, falling short of wall street expectations.
This spurred the automaker to reduce the price of its model 3 which is now pegged at CNY 229,900 ($33,415) down from CNY 265,900, while the model Y price is currently pegged at CNY 259,900 ($37,775) down from CNY 288,900.
In the U.S., Tesla also cut prices on its Model 3 sedan and model Y crossover, and also on its Model X Luxury crossover SUV and Model S Sedan.
In France, customers purchasing the model 3 for 44,990 Euros ($48,570) will now get a further reduction through a government subsidy of 5,000 Euros ($5,400) on an electric vehicle scheme with a threshold of 47,000 Euros ($50,8580).
Analyst at Wedbush, Dan Ives disclosed that Tesla’s recent move could boost global deliveries by 12 to 15 percent this year.
In his words, “this is a clear shot across the bow at European automakers and U.S Stalwarts (GM and Ford) that Tesla is not going to play nice in the sandbox with an EV price war now underway.
“Margins will get hit on this, but we like this strategic poker move by Musk and Tesla”.
EnjoyCorp Limited Secures Strategic Acquisition of Champion Breweries Plc
EnjoyCorp Limited, a conglomerate known for its ventures in food, beverage, and hospitality, has successfully secured a strategic acquisition deal with Heineken B.V.
The agreement entails EnjoyCorp acquiring 100% of Heineken’s shareholding in The Raysun Nigeria Company Limited, which holds an 86.5% stake in Champion Breweries Plc, a prominent regional brewer listed on the Nigerian Exchange Limited (NGX).
The transaction, subject to regulatory approvals, is anticipated to conclude in the second quarter of 2024.
Heineken will extend its support to Champion Breweries for a year post-acquisition, ensuring a seamless transition of ownership.
This acquisition marks EnjoyCorp’s strategic entry into the beverage sector, aligning with its vision of catering to the diverse tastes of the African consumer market.
By integrating Champion Breweries as an anchor subsidiary, EnjoyCorp aims to strengthen its foothold in the industry.
EnjoyCorp, known for its mission to enrich life’s moments through quality brands and sustainability, sees this acquisition as a pivotal step in its journey toward transformative growth.
With a focus on innovation and community engagement, EnjoyCorp endeavors to inspire consumers to cherish life’s moments responsibly.
The acquisition underscores EnjoyCorp’s commitment to shaping the future of the beverage industry in Africa.
Apple’s Ambitious Electric Car Effort Comes to an End, Stock Rises
Apple Inc. has announced the termination of its decade-long effort to develop an electric car, marking the end of one of the company’s most ambitious projects.
The decision was disclosed internally on Tuesday, surprising nearly 2,000 employees involved in the project, according to sources familiar with the matter.
Chief Operating Officer Jeff Williams and Vice President Kevin Lynch, who spearheaded the effort, informed staff that the project would wind down.
Many employees from the car team, known as the Special Projects Group, will transition to Apple’s artificial intelligence division under executive John Giannandrea, focusing on generative AI projects.
The news brought a sense of relief to investors, with Apple’s stock climbing approximately 1% to $182.63 at the close of trading in New York.
Elon Musk, CEO of Tesla Inc., also celebrated the decision, signaling approval with a post on social media.
The end of the electric car project, named Project Titan, is a significant shift for Apple, which initially aimed to produce a fully autonomous electric vehicle with advanced features.
However, the endeavor faced challenges from its inception, including leadership changes and strategic shifts.
Despite investing substantial resources and talent, Apple found itself grappling with a cooling market for electric vehicles, sluggish sales growth, and manufacturing hurdles.
The company explored various designs and tested self-driving technology extensively but ultimately struggled to achieve breakthroughs in the competitive automotive industry.
Apple’s decision underscores its strategic shift towards prioritizing generative AI projects over automotive ventures.
While the end of the electric car project marks a notable chapter in Apple’s history, it signifies the company’s adaptability and focus on areas with long-term profitability potential.
Olam Group’s Second-Half Earnings Rise 15.5%, Share Price Jumps 10%
Olam Group Ltd., a prominent agricultural trader, reported an improvement in its second-half performance following a report of an ongoing investigation in Nigeria.
The company disclosed that its earnings soared by 15.5% to S$230.8 million ($172 million) in the six months ending in December as announced in a recent exchange filing.
Despite facing challenges throughout the year, including high borrowing costs and operational hurdles, Olam Group posted double-digit growth across various metrics in the latter half of the year.
The substantial improvement in earnings has buoyed investor confidence, reflecting optimism about the company’s resilience and capacity to navigate challenging market conditions.
The company’s share price rose by 10% during Singapore trading.
However, Olam Group’s full-year net income experienced a sharp decline, plummeting by 56% to S$278.7 million.
The company attributed this downturn primarily to high interest rates, which resulted in a significant increase in net finance costs amounting to S$401.9 million.
Olam Group’s Chief Executive Officer, Sunny Verghese, expressed optimism about the future, anticipating a decrease in interest rates in the latter part of 2024.
Also, the company announced plans to launch a share buyback program, signaling its belief that the group is currently undervalued in the market.
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