Tesla Raises Prices After Share Drop
Tesla (NASDAQ:TSLA) has raised the prices of its two most expensive models, hours after its shares dropped due to concerns that its aggressive price-cutting policy would harm profits. The electric car maker is lowering prices in the US to boost demand and fill its factories in California, Texas, Germany, and Shanghai. This has caused concerns about a wider price war in the electric vehicle market, potentially putting pressure on thin profit margins for established car brands. Tesla shares dropped almost 10% after the company missed profit expectations for the first quarter of 2023 due to price reductions.
Procter & Gamble Raises Prices
Procter & Gamble (NYSE:PG) raised its prices by approximately 10% across its consumer products portfolio in the last quarter, causing financially strained consumers to purchase fewer items. The world’s largest producer of household goods increased prices in all five of its primary divisions in Q1 2023. This latest move indicates the continuous inflationary pressures that consumers worldwide are facing.
Apple Plans App for Tracking Daily Activities
Apple (NASDAQ:AAPL) is planning to launch an iPhone app that enables users to track their daily activities as part of its drive into the mental and physical health technology market. The app will compete against so-called journaling apps, such as Day One, that enable users to track and record their activities and thoughts. Apple’s push into mental health demonstrates its growing interest in the sector. In a document describing the app, Apple stated that journaling can improve mental and physical wellbeing, with much of the company’s healthcare initiatives centred around the Apple Watch.
Shareholder Activists Less Effective
Shareholder activists have demonstrated more bark than bite during the 2023 proxy season so far. Land & Buildings Investment Management LLC succeeded in winning one board seat at Apartment Investment & Management Co (NYSE:AIV) in the US, marking the only instance of an activist’s bid for board representation going all the way to a shareholder vote. This compares to four such cases at this point last year, three in 2021 and seven in 2020. There have been 33 settlement agreements as of April 18, in which a company agreed to give an activist at least one board seat, compared with 32 at the same point last year, despite an overall decline in activist volume.
Goldman Sachs Climate ETF at Risk
The $8.5 million Goldman Sachs (NYSE:GS) ActiveBeta Paris-Aligned Climate US Large Cap Equity ETF (GPAL) may be delisted due to its failure to attract sufficient investors, according to reports. It has had fewer than 50 beneficial owners for over a month and is in breach of the Chicago Board Options Exchange BZX Exchange’s listing standards, according to Goldman Sachs.
Autonomy Founder Loses Extradition Battle
Autonomy’s billionaire founder, Mike Lynch, lost a High Court battle to appeal his extradition to the US. He faces a criminal trial over 17 allegations related to the $11bn takeover of Autonomy by Hewlett-Packard over a decade ago. Lynch’s appeal was rejected by two judges in London, who upheld a previous decision. The ruling comes as a blow to Lynch, as Autonomy’s former CFO is already serving a five-year prison sentence after a 2018 conviction in the US.
Credit Suisse Bondholders Contest Write-Down
Credit Suisse Group AG (NYSE:CS) bondholders are contesting regulators’ decision to write down $17 billion in securities as part of UBS Group AG’s rescue of the bank. The bondholders holding about $5 billion of Credit Suisse’s canceled debt want the write-down revoked or amended. They argue that the total write-down violated their property rights and was disproportionately punitive to them, according to a summary of the legal filing.
LVMH Shifts Focus to Chinese Metropolises
Luxury conglomerate LVMH (EPA:MC) is reallocating its resources from Hong Kong to focus on burgeoning metropolises such as Shanghai, Chengdu, Guangzhou, and Shenzhen. This reflects a decline in interest in Hong Kong as the premium shopping hub of Asia, as mainland Chinese consumers increasingly shop at home. The move is aimed at investing more in the Greater China region, according to sources familiar with the matter.
SLB Beats Earnings Expectations
Oil-field services company Schlumberger Limited (NYSE:SLB) beat earnings expectations and reported a positive outlook for the year. Earnings per share were 63 cents, higher than the average estimate of 60 cents among analysts surveyed by FactSet. Sales were $7.74 billion, beating expectations for $7.44 billion. However, the stock was down 1.6% in the premarket as the company reported weaker-than-expected cash flow and said activity in the North American onshore market may plateau this year.
Lululemon Struggles with Climate Ambitions
Lululemon Athletica Inc. (NASDAQ:LULU) is facing a challenge in meeting its climate ambitions due to the need for crude oil for its leggings and other stretchy clothes. Nylon derived from oil makes up more than half of the synthetic fabrics the company uses. To address this, Lululemon aims to replace the majority of oil-based nylon with plant-based versions by 2030. The company’s first products out this month are two shirts containing at least 50% nylon made from plant-based sugars instead of oil.
States Urge Recall of Hyundai and Kia Vehicles
The attorneys general of 17 states have called for a recall of millions of Hyundai (KRX:005380) and Kia vehicles (KRX:000270), claiming the companies failed to address a surge in car thefts. The auto makers’ failure to install standard safety features on many of their vehicles has put owners and the public at risk, according to the letter sent to the National Highway Traffic Safety Administration. Hyundai and Kia vehicles manufactured between 2011 and 2022 lack engine immobilizers, making them particularly vulnerable to thefts that have become a viral trend on social media. This affects about 4.5 million Kias built since 2011 and about 3.8 million Hyundais built since 2016.
Deloitte to Cut Jobs in US
Leaders of Deloitte’s Risk and Financial Advisory division informed staff that the company will eliminate approximately 1,200 positions in the United States. This decision is in response to a slowdown in the consulting side of its business, and represents a reduction of 1.5% of the company’s US workforce. However, the cuts will be more significant in areas such as the financial advisory business, which has been negatively impacted by a decline in merger and acquisition activity. Cuts at RFA will be around 3%.