Latest news with #TeslaTesla
The Citizen
06-05-2025
- Automotive
- The Citizen
Tesla sales fall again in Germany as drivers steer clear of Musk
Despite a surge in electric vehicle sales, Tesla's registrations plummeted 45.9% in Germany last month, with Chinese rival BYD outperforming it by nearly double. Tesla sales nosedived again in Germany last month even as electric vehicle sales rose strongly, data showed Tuesday, as German drivers voted with their wallets against billionaire owner Elon Musk. Just 885 Tesla electric vehicles (EVs) were registered in April, 45.9 percent fewer than the same month last year, the KBA federal transport authority said. Chinese competitor shines That was almost half as many as BYD, a Chinese competitor, managed: 1,556 BYDs were registered in April, a rise of 756 percent on the year. At the same time, overall EV registrations rose 53.5 percent year-on-year and now account for almost 19 percent of the market, the highest share since the government removed a subsidy for electric vehicles in December 2023. Musk's politics spark German consumer revolt Tesla's sales have been slowing worldwide due to a combination of fierce Chinese competition as well as anger at Musk's outspoken political positions. He has faced particular hostility in Germany for backing the far-right Alternative for Germany (AfD) before February's general election by appearing via video link at a rally and broadcasting a conversation with its co-leader, Alice Weidel, on his X platform. ALSO READ: US attorney general calls Tesla attacks 'domestic terrorism' Other political parties in Germany shun the AfD and Germany's domestic intelligence agency last week classified it as a right-wing extremist organisation. Some German Tesla drivers have put 'I bought this before Elon went crazy' stickers on their vehicles and the backlash has also taken more forceful forms. Protests against Tesla Tesla cars have been targeted in suspected arson attacks in Berlin and Dresden, and protesters have staged demonstrations against the carmaker. Over the three months to April, Tesla registrations fell a whopping 60.4 percent from the same period a year ago. Overall car registrations in Germany fell 0.2 percent in April versus the previous year, a sign that the market is stabilising after they fell almost four percent in March. Tesla chairman Robyn Denholm last week denied that the carmaker's board was looking to replace Musk as CEO. NOW READ: Incoming EV and range extending Deepal SUVs could be these
Globe and Mail
05-05-2025
- Automotive
- Globe and Mail
GM vs. TSLA: Which Auto Giant is a Better Investment Option Now?
A fresh wave of auto tariffs is rattling the U.S. auto industry — this time targeting imported parts rather than fully assembled vehicles. While previous levies largely spared American-made cars, the new tariff on auto parts affects nearly every vehicle produced in the United States. Not one of the 10 million cars built in the country last year rolled off the line without some foreign components. With the implementation of the new duties, tens of billions in additional costs are looming over manufacturers, which will potentially be passed down to consumers in the form of higher prices. Already vulnerable to economic cycles, the auto industry now faces even greater uncertainty. In this environment, investors must be extra cautious. So, how do two of the sector's biggest names— General Motors GM and Tesla TSLA —stack up as investment opportunities amid these headwinds? Let's break down their fundamentals, growth catalysts and looming risks to determine which automaker offers the better bet right now. The Case for General Motors General Motors is the country's top-selling automaker, supported by strong demand for its popular pickups and SUVs. In its recently released first-quarter 2025 results, GM continued its streak of beating earnings expectations, showing resilience despite tough conditions. However, the company wouldn't be immune to the tariffs. Citing uncertainty, GM lowered its full-year guidance. It now expects adjusted EBIT between $10 billion and $12.5 billion, down from the earlier range of $13.7 billion to $15.7 billion. Net income forecasts were also trimmed to $8.2 billion–$10.1 billion from the previous $11.2 billion–$12.5 billion. Free cash flow expectations have dropped, too, and GM has paused its share buyback program until the full tariff impact is clearer. Earnings Estimates for GM Despite these near-term headwinds, GM's long-term story is intact, especially its shift toward electric vehicles. It was the second-largest EV seller in the United States last reported quarter, with Chevrolet emerging as the fastest-growing EV brand. Impressively, GM's EV lineup became "variable profit positive" by the end of 2024, meaning it now covers its production costs. The company aims to reduce those losses even further this year. Strategic partnerships with firms like Vianode, LG Chemical and Lithium Americas have strengthened GM's EV supply chain. Meanwhile, cost-cutting remains a priority. GM met its $2 billion cost reduction target in 2024 and is targeting an additional $1 billion in annual savings by exiting its robotaxi program. Financially, GM is in good shape. It ended the first quarter with $20.7 billion in cash and is seeing progress in its China restructuring, aiming to return to profitability there this year. In short, while GM faces near-term challenges, its strong ICE and EV portfolios, improving cost structure, and solid balance sheet support its long-term potential. The Case for Tesla Tesla, once seen as the gold standard in the electric vehicle world, is now facing a tough stretch. The company is dealing with falling deliveries across major markets, as competition heats up from legacy automakers and new EV entrants. Its brand image has also taken a hit. CEO Elon Musk's political involvement has distracted him from the company's core operations. In the first quarter of 2025, Tesla missed its earnings expectations. Musk recently said he would reduce his role in the U.S. government's Department of Government Efficiency (DOGE) and focus more on Tesla. But it's unclear whether this move can undo the damage already done. The company has been offering steep discounts to keep sales going, but that's putting pressure on its automotive profit margins. Amid the global tariff uncertainty and ongoing challenges in China, the company plans to revisit its 2025 delivery volume guidance in the next quarterly update. Earnings Estimates for TSLA One bright spot is Tesla's energy generation and storage segment. This part of the business is growing fast and is more profitable, but it's not enough to balance out the weakness in its EV division. Financially, Tesla is strong. As of March 31, 2025, the company had $37 billion in cash, up slightly from the previous quarter. Its long-term debt is low, with a debt-to-capital ratio of just 7. This gives it the flexibility to invest in new opportunities. Looking ahead, Tesla is betting big on self-driving technology. Musk plans to launch robotaxi services in Austin this June. The company is also working on its humanoid robot, Optimus, and a two-seat autonomous vehicle called the Cybercab, set for volume production in 2026. While these plans are exciting, they are still in early stages and come with execution risks. For now, Tesla's core business—selling electric cars—is under pressure. The company's future depends on its ability to deliver on ambitious new projects while stabilizing its existing operations. GM Looks Undervalued, TSLA Too Pricey Tesla is trading at a forward sales multiple of 8.75X, above its median of 7.72X over the last five years. Tesla has a Value Score of F. Meanwhile, General Motors has a Value Score of A, with its forward sales multiple at 0.25X, below its 5-year average of 0.32. Conclusion Both GM and Tesla are facing challenges right now. Tesla, once seen as the top name in EVs, is struggling with falling sales, shrinking profits and distractions from its CEO. While its future plans—like robotaxis and humanoid robots—sound exciting, they're still just promises at this stage. The core car business is clearly under pressure. GM, on the other hand, has its own issues, especially with tariffs and lowered guidance. But it's still holding up better. It continues to sell a lot of trucks and SUVs, and its EV push is gaining ground. In fact, GM's electric portfolio was near breakeven on variable profit in the last reported quarter. The company is also cutting costs and building strong partnerships to support its future goals. So, while both General Motors and Tesla are navigating an environment marked by economic uncertainty, rising tariffs and shifting consumer demand, GM may be the better pick for investors seeking a more balanced exposure to the auto sector right now. Tesla still has the bigger brand and bold vision, but GM currently offers more stability and a more grounded execution strategy. Tesla currently carries a Zacks Rank #5 (Strong Sell), while GM is #3 Ranked (Hold). You can see Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report This article originally published on Zacks Investment Research (
New Indian Express
23-04-2025
- Business
- New Indian Express
Tariff turmoil: How Tesla and other companies are dealing with the uncertainty of the trade war
NEW YORK: Uncertainty over tariffs and an unpredictable trade war is weighing heavily on companies as they report their latest financial results and try to give investors financial forecasts. Some tariffs remain in place against key U.S. trading partners, but others have been postponed to give nations time to negotiate. The tariff and trade picture has been shifting for months, sometimes changing drastically on a daily basis. Those shifts make it difficult for companies and investors to make a reliable assessment of any impact to costs and sales. On Tuesday, Treasury Secretary Scott Bessent said he expects a "de-escalation" in the trade war between the U.S. and China, but cautioned that talks between the two sides had yet to formally start. Here's how several big companies are dealing with the tariff confusion: Tesla Tesla is in a better position than most car companies to deal with tariffs because it makes most of its US cars domestically. But it still sources materials from other nations and will face import taxes. The bigger impact will be seen in the company's energy business. The company said the impact will be "outsized" because it sources LFP battery cells from China. The broader trade war could also hurt the company as China, the world's largest electric vehicle market, retaliates against the U.S. Tesla was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai. CEO Elon Musk, an adviser to President Donald Trump, on Tuesday reiterated that he believes "lower tariffs are generally a good idea for prosperity." But he added that ultimately the president decides on what tariffs to impose. Akzo Nobel The Amsterdam-based maker of paints and coatings for industrial and commercial use said the big risk from tariffs could come in the form of lower demand for its products. The company said almost all sales of finished goods in the U.S. were locally produced, with the majority of raw materials locally sourced. "Over the years, we deliberately localized both our procurement and production in the US," said CEO Gregoire Poux-Guillaume, in a conference call with analysts. "We also largely run China for China and use the rest of Asia instead as an export base." The company's products range from paints and coatings for the automotive industry to the do-it-yourself homeowner. Broader tariffs could squeeze consumers and businesses and hurt sales. Boston Scientific The medical device maker said it expects most of the effecs of tariffs to hit the company during the second half of the year, but that it can absorb the impact. The company raised its earnings and revenue forecasts for the year, despite the tariffs. It estimates a $200 million impact from tariffs in 2025, but said it can offset that through higher sales and reductions in discretionary spending. The company said it has a long-standing supply chain around the globe and has made significant investments in the U.S. Boeing Boeing said much of its supply chain is in the U.S. and many of its imports from Canada and Mexico are exempt from tariffs under an existing trade agreement. The company does have suppliers in Japan and Italy, but it expects to recover those tariff costs. The net annual cost of higher tariffs on the supply chain is less than $500 million. A bigger concern is the potential for retaliatory tariffs, which could impact its ability to deliver aircraft. China, a key target for U.S. tariffs, has retaliated in part by no longer accepting deliveries of Boeing aircraft. AT&T AT&T, like its peers in the telecommunications sector, faces higher costs for cellphones and other equipment. The company said it believes it can manage anticipated higher costs, based on the current pause in some tariffs and its supply chain. "The magnitude of any increase will depend on a variety of factors, including how much of the tariffs the vendors pass on, the impact that the tariffs have on consumer and business demand," said CEO John Stankey, on a conference call with analysts. (By DAMIAN J. TROISE, AP Business Writer)
San Francisco Chronicle
23-04-2025
- Business
- San Francisco Chronicle
Tariff turmoil: How Tesla and other companies are dealing with the uncertainty of the trade war
NEW YORK (AP) — Uncertainty over tariffs and an unpredictable trade war is weighing heavily on companies as they report their latest financial results and try to give investors financial forecasts. Some tariffs remain in place against key U.S. trading partners, but others have been postponed to give nations time to negotiate. The tariff and trade picture has been shifting for months, sometimes changing drastically on a daily basis. Those shifts make it difficult for companies and investors to make a reliable assessment of any impact to costs and sales. On Tuesday, Treasury Secretary Scott Bessent said he expects a 'de-escalation' in the trade war between the U.S. and China, but cautioned that talks between the two sides had yet to formally start. Tesla Tesla is in a better position than most car companies to deal with tariffs because it makes most of its U.S. cars domestically. But it still sources materials from other nations and will face import taxes. The bigger impact will be seen in the company's energy business. The company said the impact will be 'outsized' because it sources LFP battery cells from China. The broader trade war could also hurt the company as China, the world's largest electric vehicle market, retaliates against the U.S. Tesla was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai. CEO Elon Musk, a member of Trump's administration, on Tuesday reiterated that he believes 'lower tariffs are generally a good idea for prosperity.' But he added that ultimately the president decides on what tariffs to impose. Akzo Nobel The Amsterdam-based maker of paints and coatings for industrial and commercial use said the big risk from tariffs could come in the form of lower demand for its products. The company said almost all sales of finished goods in the U.S. were locally produced, with the majority of raw materials locally sourced. 'Over the years, we deliberately localized both our procurement and production in the U.S.,' said CEO Gregoire Poux-Guillaume, in a conference call with analysts. 'We also largely run China for China and use the rest of Asia instead as an export base.' The company's products range from paints and coatings for the automotive industry to the do-it-yourself homeowner. Broader tariffs could squeeze consumers and businesses and hurt sales. Boston Scientific The medical device maker said it expects most of the effecs of tariffs to hit the company during the second half of the year, but that it can absorb the impact. The company raised its earnings and revenue forecasts for the year, despite the tariffs. It estimates a $200 million impact from tariffs in 2025, but said it can offset that through higher sales and reductions in discretionary spending.
The Independent
23-04-2025
- Business
- The Independent
Tariff turmoil: How Tesla and other companies are dealing with the uncertainty of the trade war
Uncertainty over tariffs and an unpredictable trade war is weighing heavily on companies as they report their latest financial results and try to give investors financial forecasts. Some tariffs remain in place against key U.S. trading partners, but others have been postponed to give nations time to negotiate. The tariff and trade picture has been shifting for months, sometimes changing drastically on a daily basis. Those shifts make it difficult for companies and investors to make a reliable assessment of any impact to costs and sales. On Tuesday, Treasury Secretary Scott Bessent said he expects a 'de-escalation' in the trade war between the U.S. and China, but cautioned that talks between the two sides had yet to formally start. Here's how several big companies are dealing with the tariff confusion: Tesla Tesla is in a better position than most car companies to deal with tariffs because it makes most of its U.S. cars domestically. But it still sources materials from other nations and will face import taxes. The bigger impact will be seen in the company's energy business. The company said the impact will be 'outsized' because it sources LFP battery cells from China. The broader trade war could also hurt the company as China, the world's largest electric vehicle market, retaliates against the U.S. Tesla was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai. CEO Elon Musk, a member of Trump's administration, on Tuesday reiterated that he believes 'lower tariffs are generally a good idea for prosperity.' But he added that ultimately the president decides on what tariffs to impose. Akzo Nobel The Amsterdam-based maker of paints and coatings for industrial and commercial use said the big risk from tariffs could come in the form of lower demand for its products. The company said almost all sales of finished goods in the U.S. were locally produced, with the majority of raw materials locally sourced. 'Over the years, we deliberately localized both our procurement and production in the U.S.,' said CEO Gregoire Poux-Guillaume, in a conference call with analysts. 'We also largely run China for China and use the rest of Asia instead as an export base.' The company's products range from paints and coatings for the automotive industry to the do-it-yourself homeowner. Broader tariffs could squeeze consumers and businesses and hurt sales.
