Weekly Market Update - 13 June 2022
Musk Warns of Tesla’s ‘Very Tough Quarter’
Tesla Inc. has had a “very tough quarter” as it struggled with supply-chain snags, Chief Executive Officer Elon Musk warned in an internal memo as he implored workers to help get the electric-vehicle maker back on track.
“This has been a very tough quarter, primarily due to supply chain and production challenges in China,” Musk said in an email to workers over the weekend. “So we need to rally hard to recover!”
The company’s Shanghai plant, which had slowed production in recent weeks amid severe Covid-19 restrictions, is returning to full strength and its Austin, Texas, facility is ramping up production as well, Musk said. Last week, he noted, Tesla’s Berlin factory built almost 1,000 cars, while its Fremont, California, plant notched a record day of production.
Source: Bloomberg
Russia Earns $97bn On Energy Exports Since Invasion
Russia earned nearly $100bn (£82.3bn) from oil and gas exports during the first 100 days of the war in Ukraine, according to a report. Revenues have been falling since March, as many countries shunned Russian supplies, but remain high, the independent Centre For Research on Energy and Clean Air (CREA) found.
It also warned of potential loopholes in efforts to curb imports from Russia. The EU, US and UK are among those to have pledged to cut Russian imports. But the CREA report found Russia still earned $97bn in revenue from fossil fuel exports in the first 100 days of the Ukraine conflict, from 24 February to 3 June. The European Union made up 61% of these imports, worth approximately $59bn.
Overall, exports of Russian oil and gas are falling and Moscow's revenue from energy sales has also declined from a peak of well over $1bn a day in March. But revenues still exceeded the cost of the Ukraine war during the first 100 days - with the CREA estimating that Russia is spending around $876m per day on the invasion.
Source: BBC
US To Drop Test Requirement For Air Travellers
The US will no longer require air travellers to have proof of a negative Covid-19 test before entering the country from abroad. Officials said they were dropping the requirement due to the "tremendous progress" the country had made in the fight against the virus. The travel industry has been pushing for an end to the policy, which they say has deterred bookings, as families fear getting stranded abroad. The change comes into effect on Sunday.
The Centers for Disease Control and Prevention (CDC) will re-evaluate the policy in 90 days. The administration said it would "not hesitate to act" to reinstate the rule should new variants make officials believe it is necessary.
"We are able to take this step because of the tremendous progress we've made in our fight against the virus: We have made lifesaving vaccines and treatments widely available and these tools are working to prevent serious illness and death, and are effective against the prevalent variants circulating in the US and around the world," a senior official told reporters.
Source: BBC