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The Star
6 days ago
- Business
- The Star
T-Mobile raises forecast for annual subscriber additions
FILE PHOTO: A T-Mobile logo is seen on the storefront door of a store in Manhattan, New York, U.S., April 30, 2018. REUTERS/Shannon Stapleton/File Photo (Reuters) -T-Mobile raised its annual forecast for postpaid net customer additions on Wednesday and added more wireless subscribers than expected in the second quarter, signaling steady demand for the telecom giant's top-tier mobile services. Shares of the Bellevue, Washington-based company rose 3.5% in extended trading. The carrier now expects to add between 6.1 million and 6.4 million subscribers in 2025, compared with its prior projection of 5.5 million to 6 million additions. Telecom operators in the U.S. have boosted their plans with attractive trade-in deals and price guarantees to fend off competition as they grapple for a shrinking pool of new users. T-Mobile's postpaid Experience plans, which bundle streaming services such as Netflix and Apple TV+, come with a five-year price guarantee for customers. Its aggressive promotions and add-on perks have helped the company maintain an edge over rivals and increase its market share. It added 830,000 postpaid phone customers in the second quarter, surpassing FactSet estimates of 700,300 additions. T-Mobile, the last among the big three U.S. telecom carriers to report results, posted second-quarter total revenue of $21.13 billion, beating analysts' estimates of $21.02 billion, according to data compiled by LSEG. Rival AT&T beat quarterly profit estimates on Wednesday and added more wireless subscribers than expected, while Verizon raised the lower end of its annual profit forecast on Monday. (Reporting by Juby Babu in Mexico City; Editing by Devika Syamnath)
The Star
22-07-2025
- Automotive
- The Star
Tesla's easy money from regulatory credits set to dry up amid weakening sales
FILE PHOTO: A logo of Tesla Motors on an electric car model is seen outside a showroom in New York June 28, 2010. REUTERS/Shannon Stapleton/File Photo SAN FRANCISCO (Reuters) -A key driver of Tesla's profit is disappearing fast as the U.S. government changes policies on an environmental asset known as regulatory credits. Investors are likelyto have a number of questions for Chief Executive Elon Musk when Tesla reports second-quarter results on Wednesday. Among them are how fast the EV maker can turn a trial robotaxi program into a money-making business, how to avoid a decline in sales for the second year in a row, and Musk's possible political plans. Less sexy, perhaps, is the issue of regulatory credits, which are bought by traditional automakers from electric-vehicle companies to make up for the tailpipe pollution from their gasoline-powered vehicles. But this income segment is crucial for Tesla's finances, having been the main driver of its profit in the first three months of the year. Without the income from those credits, sold to internal combustion engine automakers, Tesla would have reported a first-quarter loss, and Musk may be pressed to say how long he thinks Tesla will be able to sell credits. The U.S. government incentivized zero-emission vehicle production by giving credits to EV makers while imposing hefty penalties on combustion engine vehicle manufacturers that fail to meet emission standards. The traditional automakers can avoid the fines by purchasing credits from companies like Tesla. Recent legislation passed under the U.S. President Donald Trump, however, is set to eliminate fines for automakers that fail to meet National Highway Traffic Safety Administration's Corporate Average Fuel Economy standards — which underpin much of the demand for these regulatory credits. "They are making conventional ICE vehicles more competitive while making EVs less competitive," said Batt Odgerel, a director at the Energy Policy Research Foundation, referring to Congress, Trump and the federal government. Tesla risks losing revenue from the credits as well as market share, he added. The future of two other sources of credits - from the U.S. Environmental Protection Agency and California's zero-emission vehicle program - is uncertain, with proposed rule changes and political and legal challenges. "That is certainly likely to be a big loss of revenue for automakers" that were selling credits, added Chris Harto, a senior policy analyst at Consumer Reports. Tesla has reported more such sales than anyone else in the automotive sector. FASTER DECLINE THAN EXPECTED One question for Tesla is how fast the credit sales are falling and whether the EPA and California transactions are holding up for now. Other credit producers include smaller EV playersRivian and Lucid. Analysts at William Blair calculate that about three-quarters of Tesla's credit revenue comes from CAFE standards. Within days of the new law, they slashed estimates for Tesla's 2025 credit revenue by nearly 40% to about $1.5 billion. They expect it to plummet to $595 million next year, before being wiped out in 2027. That is a faster decline than seen by many on Wall Street. Tesla's revenue from credit sales will fall 21% this year to $2.17 billion and fall consistently in the coming years, according to 14 analysts polled by Visible Alpha this month. "The elimination of the corporate average fuel economy (CAFE) fines requires a reset in expectations," the William Blair analysts said in their note earlier this month. Revenue from credits wasalways expected to dwindle as traditional automakers ramped up production of zero- or low-emission cars, but not so fast. Tesla has acknowledged its financials would be "harmed" if demand and prices of credits dropped. It did not respond to a request for comment. The credits, which have virtually no cost to produce, were instrumental to keeping Tesla profitable several years ago. While surging Model Y demand once pushed Tesla's profit well above regulatory credit income, recent sales declines and aggressive price incentives have meant regulatory credits are once again a key support for profit. Tesla's loss is a win for internal combustion engine automakers such as General Motors, Ford and Honda, and it comes on top of a second win - the early end of a $7,500 U.S. tax credit for EVs, which now will happen at the end of September. (Reporting by Abhirup Roy in San Francisco and Akash Sriram in Bengaluru; Editing by Peter Henderson and Matthew Lewis)
The Star
17-07-2025
- Politics
- The Star
US Treasury sanctions leaders of Venezuelan gang Tren de Aragua
FILE PHOTO: A Tren de Aragua graffiti sticker is seen on a steel beam, as the Trump administration deported more than 200 Venezuelans, alleged members of the Venezuelan gang, to El Salvador over the weekend, in the Elmhurst neighborhood of the borough of Queens in New York City, U.S., March 17, 2025. REUTERS/Shannon Stapleton/File Photo (Reuters) -The U.S. Treasury said on Thursday it has sanctioned the top leaders of Venezuelan prison gang Tren de Aragua for being involved in criminal activities including illicit drug trade, human trafficking and money laundering. The sanctions target Tren de Aragua's leader Hector Rusthenford Guerrero Flores, also known as Nino Guerrero and five other key leaders and affiliates of the criminal gang, the Treasury's Office of Foreign Assets Control said. The State Department has designated Tren de Aragua a foreign terrorist organization. "The Trump Administration will not allow Tren de Aragua to continue to terrorize our communities and harm innocent Americans... Treasury remains dedicated to dismantling Tren de Aragua and disrupting the group's campaign of violence," Treasury Secretary Scott Bessent said in a statement. U.S. President Donald Trump has claimed Tren de Aragua is coordinating its U.S. activities with the Venezuelan government of President Nicolas Maduro, and used the supposed connection to justify deportations of alleged members to a maximum-security prison in El Salvador. At least one top U.S. official has acknowledged Maduro's government may not specifically direct the gang. (Reporting by Bhargav Acharya in Toronto;)
Straits Times
17-07-2025
- Politics
- Straits Times
US Treasury sanctions leaders of Venezuelan gang Tren de Aragua
Find out what's new on ST website and app. FILE PHOTO: A Tren de Aragua graffiti sticker is seen on a steel beam, as the Trump administration deported more than 200 Venezuelans, alleged members of the Venezuelan gang, to El Salvador over the weekend, in the Elmhurst neighborhood of the borough of Queens in New York City, U.S., March 17, 2025. REUTERS/Shannon Stapleton/File Photo The U.S. Treasury said on Thursday it has sanctioned the top leaders of Venezuelan prison gang Tren de Aragua for being involved in criminal activities including illicit drug trade, human trafficking and money laundering. The sanctions target Tren de Aragua's leader Hector Rusthenford Guerrero Flores, also known as Nino Guerrero and five other key leaders and affiliates of the criminal gang, the Treasury's Office of Foreign Assets Control said. The State Department has designated Tren de Aragua a foreign terrorist organization. "The Trump Administration will not allow Tren de Aragua to continue to terrorize our communities and harm innocent Americans... Treasury remains dedicated to dismantling Tren de Aragua and disrupting the group's campaign of violence," Treasury Secretary Scott Bessent said in a statement. U.S. President Donald Trump has claimed Tren de Aragua is coordinating its U.S. activities with the Venezuelan government of President Nicolas Maduro, and used the supposed connection to justify deportations of alleged members to a maximum-security prison in El Salvador. At least one top U.S. official has acknowledged Maduro's government may not specifically direct the gang. REUTERS
Straits Times
08-07-2025
- Politics
- Straits Times
UN passes climate change motion after Marshall Islands drops fossil fuels focus
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: Demonstrators march across the Brooklyn Bridge, rallying to call an end to the era of fossil fuel, New York City, U.S., September 20, 2024. REUTERS/Shannon Stapleton/File Photo GENEVA - The U.N. Human Rights Council passed a motion on climate change and human rights on Tuesday after the Marshall Islands withdrew a divisive amendment that called on states to recommit to a phase-out of fossil fuels. The motion calling on countries "to contribute to the global efforts" against climate change passed by consensus and follows the council in 2021 recognising access to a clean and healthy environment as a fundamental right. The original language of the motion had exposed divisions among the 47 members after the Marshall Islands, one of the countries most vulnerable to rising sea levels, made an amendment to the motion to mention exiting fossil fuels as agreed by states at the COP28 climate summit in December 2023. "My country - like many of our Pacific neighbours - places a high premium on collaboration, dialogue and consensus and we were willing to recognise this by withdrawing our amendment," Doreen Debrum, ambassador of the Marshall Islands to the U.N. in Geneva, told the council. Instead, the motion referred to "the imperative of defossilizing our economies" in a footnote - allowing the motion to pass without being put to a vote in which the outcome had not been certain. The council's decisions are not legally binding but help shape global standards. Oil producing countries including Saudi Arabia and voting member Kuwait had earlier voiced opposition to the phrasing in negotiations, according to three diplomats. Riyadh called instead for "multiple pathways" to reduce emissions. Top stories Swipe. Select. Stay informed. Singapore NDP celebrations to be held at 5 heartland sites, including Bishan and Punggol, on Aug 10 Singapore Keep citizens at the centre of public service, Chan Chun Sing tells civil servants Singapore Man arrested for allegedly throwing bottle at SMRT bus, injuring passenger Asia As Trump plays tariffs hard ball, Asean has little choice but to play on Asia PM Anwar called out by his own lawmakers as Malaysia's judicial crisis heats up Singapore SIA flight from Brisbane to Singapore diverted to Perth due to technical issue Sport Speeding likely cause of Diogo Jota car crash: Police Business Great Eastern could resume trading after delisting vote fails to pass; OCBC's exit offer lapses There was no immediate response to Reuters' requests for comment from Saudi Arabia's international media offices or the foreign ministry of Kuwait. Their diplomatic missions in Geneva did not immediately respond. Sébastien Duyck, human rights and climate campaign manager at the Center for International Environmental Law, said: "We deeply regret its (the council's) continued failure to explicitly call for an equitable phase-out of fossil fuels — the root cause of the crisis." The move comes as leaders on climate action, such as the European Union, face criticism from campaigners that they are scaling back policies even as they deal with the consequences of a blistering early summer heatwave. The U.S., which has withdrawn from climate action under President Donald Trump, did not participate formally in the vote after disengaging with the council this year. REUTERS
