The most important news from last week
Tesla has discounts with price cuts
Tesla Inc has reduced prices for its electric vehicles in Europe, Israel, and Singapore, marking its latest global discount effort that began in China in January. However, this move has raised concerns about its industry-leading profit margin. Despite offering discounts in the United States, China, Japan, Australia, and South Korea to spur demand, Tesla reported a mere 4% increase in first-quarter deliveries compared to the previous quarter.
Movement of Tesla in the last five years. (Source: Trading Economics) *
Boeing halts deliveries
Boeing has disclosed that it has paused deliveries of some 737 MAXs due to a new supplier quality issue involving Spirit AeroSystems, which could date back to 2019. The problem affects a significant number of undelivered 737 MAX planes that are either in production or storage, and it may result in lower deliveries of the model in the short term. However, it is not a safety issue, and planes in service can still operate. The Federal Aviation Administration confirmed their statement about safety.
Rheinmetall will be subcontractor for Norway’s Leopards
German manufacturer Krauss-Maffei Wegman (KMW) revealed that Rheinmetall has been hired as a subcontractor in the Norwegian armed forces' order for 54 Leopard 2 battle tanks. The contract, worth €129 million, could increase by €44 million if Norway executes an option to buy an additional 18 tanks. As a key subcontractor to KMW, Rheinmetall will supply components such as main armaments, fire control technology and parts of the sensor suite over a period of around four years.
Nvidia included AI in their gaming chips
Nvidia Corp announced that it is incorporating more artificial intelligence features into one of its mid-range chips for gamers to enhance graphics, highlighting the significance of gaming for the company despite the segment's declining revenue. The new RTX 4070 chip, which will cost 599 USD and is already available for shipping since Thursday, will be placed in the middle of the company's range of graphics processing units (GPUs), which are listed at up to 1,600 USD.
UBS hired JPMorgan regarding Credit Suisse
UBS has enlisted JPMorgan to explore the possibility of an initial public offering (IPO) for Credit Suisse's domestic business. In March, UBS agreed to acquire Credit Suisse for CHF 3 billion as part of a merger orchestrated by Swiss regulators, with the Swiss government providing over CHF 200 billion of support and guarantees. UBS is now looking to move forward quickly with its plans. At its general assembly, Vice Chairman stated that all options are on the table regarding Credit Suisse's domestic business.
* Past performance is no guarantee of future results.
Sources: Trading Economics, Reuters, CNBC, Investing
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