NEW YORK: Electric carmaker Tesla Motors announced Tuesday it was cutting nine percent of its workforce to enhance profitability but said the move would not affect an ambitious production ramp-up of its Model 3 sedan.
The job cuts are part of a company-wide restructuring to address excess staff in some areas due to the company’s speedy growth, Tesla chief Elon Musk said in an email to employees.
The cuts concern salaried staff but not production workers and will not affect Model 3 output targets, said Musk, who characterized the downsizing as an acknowledgement of the need to focus more on costs.
“Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us,” Musk said in the message.
“What drives us is our mission to accelerate the world’s transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable,” Musk added.
“That is a valid and fair criticism of Tesla’s history to date.”
The layoff affects almost 4,000 workers, based on figures supplies by the company. Musk said last month that the company would conduct a “sort of reorganization” but did not discuss specifics.
Musk said Tuesday the company would continue to hire for critical roles and that finding additional production staff remained a priority.
Musk said on Twitter that the decision to cut jobs was “difficult but necessary.”
The Tesla chief has at times clashed with Wall Street analysts over an aggressive cash burn rate that has fed skepticism over whether the company can reach its goals after the company earlier missed several key benchmarks for the Model 3.
Just six weeks ago, Musk was in the doghouse with many Wall Street analysts after he abruptly cut off an earnings conference call because of “dry” and “bonehead” questions that dug into capital spending details.
But others on Wall Street and beyond view the charismatic Tesla chief as a visionary, sometimes comparing him to Apple co-founder Steve Jobs and others who have also disrupted industries.
The company’s stock is up about 15 percent since June 5, when Musk signaled that the company would likely meet a goal of producing 5,000 Model 3 sedans by the end of June.
Shares had also risen Monday after Musk said on Twitter the company’s updated Autopilot software coming in August would enable “full self-driving features.”
Shares of Tesla rose 3.3 percent in afternoon trading to $343.00
Founded in 2003 by a group of engineers drawn to electric cars, Tesla went public in 2010 and began delivering the Model S sedan in 2012.
However, the company’s first two major vehicles both sell for around $75,000 or more, whereas the Model 3 starts at $35,000 and had been billed as the first electric car aimed at the middle market.
Since that time, General Motors has also launched a model for this market, the Chevrolet Bolt.
GM chief Mary Barra announced Tuesday that the company planned to boost production of the Bolt to meet demand and reiterated plans to launch more than 20 new electric vehicles worldwide by 2023.
Tesla to cut 9% of workforce, Model 3 production not affected by layoffs
Tesla to cut 9% of workforce, Model 3 production not affected by layoffs
- The cuts concern salaried staff but not production workers and will not affect Model 3 output targets
- Founded in 2003 by a group of engineers drawn to electric cars, Tesla went public in 2010 and began delivering the Model S sedan in 2012
Pakistan PM urges all sectors to ensure tax compliance for economic growth
- Faced with persistent tax evasion, officials are implementing automated tax collection system
- Government says it wants to increase the tax-to-GDP ratio to 13 percent in the next three years
ISLAMABAD: Prime Minister Shehbaz Sharif on Monday called for all sectors to fulfill their tax obligations, emphasizing that economic development hinges on collective responsibility and adherence to tax laws.
The government has set an ambitious target to increase the tax-to-GDP ratio from less than 10 to 13 percent over the next three years, describing the current revenue generation level as “unsustainable.”
Faced with persistent tax evasion, authorities are implementing reforms aimed at automating the tax collection system, broadening the tax base, and enforcing strict compliance measures.
The prime minister raised the issue while chairing a meeting to review the economic situation in the country.
“Economic development is only possible when everyone fulfills their share of responsibility,” he was quoted as saying in a statement released after the meeting by his office. “All sectors must pay taxes to contribute to national progress.”
During the meeting, he noted that inflation had decreased from 38 percent to seven percent, and the interest rate had been reduced from 22 percent to 15 percent. He maintained these developments were expected to boost business activity and create new employment opportunities in the country.
The prime minister also commended the provincial administrations for their reforms in the agricultural sector, pointing out it had contributed to Pakistan’s economic stability.
Pakistan’s economy has faced significant challenges in recent years, including high inflation and fiscal deficits.
The government’s focus on tax reforms and economic stabilization measures aims to address these problems and set the country on a path toward sustainable growth.
Dubai’s annual inflation rate slows to hit lowest level in 14 months
RIYADH: Dubai’s annual inflation rate slowed again in October, reaching its lowest level in 14 months, official figures showed.
According to data released by the Dubai Statistics Center, the emirate’s inflation rate reached 2.4 percent in October, driven by a deeper deflation in transport prices, which fell by 10.6 percent compared to an 8 percent decline in September.
Dubai’s inflation rate has been relatively low compared to other major cities in the region, reflecting the government’s proactive measures to manage price stability and sustain economic growth.
Amid global inflationary pressures, the emirate’s economy has remained resilient, benefiting from diversified sectors such as tourism, real estate, and trade.
The data further indicated a deflation in the tobacco price category to 3.63 percent, similar to that recorded in September.
The figures also showed slower deflation in the information and communication category, which saw an annual fall of 1.92 percent, compared to a decline of 2.05 percent in September.
Recreation, sport, and culture prices witnessed a year-on-year drop of 1.74 percent in October, a smaller decrease than the 2.66 percent seen in the previous month.
The data also revealed that the housing, water, electricity, gas, and other fuels sector witnessed a price increase, with a 7.16 percent surge, compared to 7.02 percent in September.
The insurance and financial services sector also witnessed a rise in prices, with a 5.83 percent rise in October, compared to 5.20 percent in the previous month.
Prices in education, health, and food and beverages also advanced in October. Education rose by 2.94 percent, health by 1.87 percent, and food and beverages by 1.85 percent.
In comparison, September’s increases were 2.94 percent for education, 1.88 percent for health, and 1.81 percent for food and beverages.
The personal care, social protection, and miscellaneous goods and services sector, recorded a 1.67 percent jump in prices, while clothing and footwear was up 1.15 percent.
Both of these were lower rises than in September.
Arab stock markets up 2.14% in Q3, surpassing $4.3tn in market capitalization
RIYADH: Arab stock markets saw a 2.14 percent growth in the third quarter of 2024, driven by strong performances in Beirut, Egypt, and Damascus, according to the Arab Monetary Fund’s composite index.
The AMF’s quarterly report highlighted annual growth of 1.5 percent in the index, reflecting gains in 13 of the 16 tracked markets, while three recorded declines.
Regional reforms, such as Egypt’s privatization initiatives and Saudi Arabia’s Vision 2030 projects, played a significant role in bolstering market activity.
The UAE’s diversification efforts also contributed to the strength of its financial markets, particularly in renewable energy and technology sectors.
The AMF said: “The positive sentiment in Arab financial markets reflects investor confidence in ongoing economic reforms and robust corporate performances.”
Top performers
The Beirut Stock Exchange led the gains with a 29.03 percent rise, marking the highest performance among Arab exchanges despite ongoing Israeli attacks on various Lebanese regions, including the capital.
According to the World Bank, the violence in the country has caused $8.5 billion in damages and losses, including $3.4 billion in physical damages and $5.1 billion in economic losses.
BSE was followed by the Egyptian Exchange, which increased by 13.76 percent, and the Damascus Securities Exchange, with a 12.66 percent rise.
In the UAE, Dubai Financial Market recorded an 11.75 percent gain, reflecting strong investor activity.
Other markets also posted significant performances. The Casablanca Stock Exchange grew by 8.06 percent, while stock markets in Qatar and Iraq posted increases of 6.52 percent and 5.35 percent, respectively.
The Saudi Exchange, known as Tadawul, saw healthy growth of 4.68 percent, underpinned by gains in non-oil sectors aligned with Vision 2030 objectives. Algeria and Oman reported smaller but steady increases of 4.9 percent and 0.49 percent, respectively.
Despite the positive trend in most markets, three exchanges reported declines, with Bahrain’s stock market falling by 0.63 percent, Amman’s by 0.82 percent, while Palestine’s saw the steepest drop at 7.78 percent.
Market capitalization
The combined market capitalization of Arab financial markets grew by 2.54 percent in the third quarter of 2024, reaching $4.30 trillion, up from $4.19 trillion in the previous three-month period. This represented an increase of $106.55 billion.
Abu Dhabi Securities Exchange contributed the most to this growth, adding $37.30 billion, followed by Dubai Financial Market with a $21.35 billion rise. Other notable increases came from Saudi Arabia, Qatar, and Morocco.
In terms of individual exchanges, the Saudi Exchange retained its position as the largest contributor, representing 62.7 percent of the total Arab market capitalization.
The UAE’s markets, including Abu Dhabi and Dubai, collectively accounted for 18.6 percent, while Qatar, Kuwait, and Morocco contributed notable shares. The rest of the Arab markets showed varying levels of growth, with Beirut and Cairo posting sharp rises in market value.
Trading volumes
The value of traded shares across Arab markets soared by 47.46 percent in the third quarter of 2024, reaching $328.92 billion compared to $223.06 billion in the previous three-month period.
The Iraq Stock Exchange reported the highest surge in trading volumes, increasing by 67 percent. The Egyptian Exchange followed with a 51.50 percent rise, while the Saudi Exchange and Abu Dhabi Securities Exchange also saw substantial gains of 25.73 percent and 21.01 percent, respectively.
Some markets experienced a downturn in trading activity. Palestine, Algeria, and Casablanca saw declines in traded volumes, attributed to specific local economic factors.
Across the Arab region, key sectors such as real estate, technology, and financial services performed strongly, attracting both local and foreign investments.
The financial results of listed companies and the announcement of quarterly dividends boosted investor confidence.
Key factors
Arab markets demonstrated resilience despite global economic uncertainties, including fluctuating oil prices and geopolitical challenges.
The AMF reported that easing monetary policies by major central banks, such as the US Federal Reserve and the European Central Bank, improved global liquidity flows into emerging and regional markets.
The report also noted the impact of oil price volatility, which declined by approximately 15 percent during the third quarter of 2024.
While oil-exporting nations, such as Saudi Arabia and the UAE, maintained steady market performance, oil-importing nations like Egypt and Jordan benefited from reduced energy costs, alleviating inflationary pressures and supporting economic stability.
Global view
Arab stock markets’ 2.14 percent growth in the third quarter of 2024, with a total market capitalization surpassing $4.3 trillion, is relatively a great performance, especially when compared to other global equity markets.
For instance, the S&P 500 Index rose by 5.9 percent, while the Russell 2000 Index gained 9.3 percent, according to the investment consulting firm NEPC.
Internationally, emerging markets outpaced the Arab region, with the MSCI Emerging Markets Index rising by 8.7 percent and the MSCI China Index soaring by 23.5 percent.
However, the Arab markets’ performance is notable for its resilience, especially amid geopolitical tensions and fluctuating oil prices, reflecting the ongoing impact of structural reforms and regional initiatives like Saudi Arabia’s Vision 2030 and Egypt’s privatization efforts.
Outlook
The AMF emphasized the role of continued economic reforms and diversification in shaping the outlook for Arab financial markets.
“The ongoing efforts to attract foreign investment, improve market transparency, and support non-oil sectors are crucial for sustaining growth and enhancing the competitiveness of Arab financial markets,” AMF said.
Oil Updates – crude nudges up after Russia-Ukraine tensions escalate
SINGAPORE: Oil prices edged up on Monday after fighting between Russia and Ukraine intensified over the weekend, although concerns about fuel demand in China, the world’s second-largest consumer, and forecasts of a global oil surplus weighed on markets.
Brent crude futures gained 29 cents, or 0.4 percent, to $71.33 a barrel by 8:02 a.m. Saudi time, while US West Texas Intermediate crude futures were at $67.20 a barrel, up 18 cents, or 0.3 percent.
Russia unleashed its largest air strike on Ukraine in almost three months on Sunday, causing severe damage to Ukraine’s power system.
In a significant reversal of Washington’s policy in the Ukraine-Russia conflict, President Joe Biden’s administration has allowed Ukraine to use US-made weapons to strike deep into Russia, two US officials and a source familiar with the decision said on Sunday.
There was no immediate response from the Kremlin, which has warned that it would see a move to loosen the limits on Ukraine’s use of US weapons as a major escalation.
“Biden allowing Ukraine to strike Russian forces around Kursk with long-range missiles might see a geopolitical bid come back into oil as it is an escalation of tensions there, in response to North Korean troops entering the fray,” IG markets analyst Tony Sycamore said.
Saul Kavonic, an energy analyst at MST Marquee, said: “So far there has been little impact on Russian oil exports, but if Ukraine were to target more oil infrastructure that could see oil markets elevate further.”
In Russia, at least three refineries have had to halt processing or cut runs due to heavy losses amid export curbs, rising crude prices and high borrowing costs, according to five industry sources.
Brent and WTI slid more than 3 percent last week on weak data from China and after the International Energy Agency forecasted that global oil supply will exceed demand by more than 1 million barrels per day in 2025 even if cuts remain in place from OPEC+.
China’s refinery throughput fell 4.6 percent in October from last year and as the country’s factory output growth slowed last month, government data showed on Friday.
Investors also fretted over the pace and extent of interest rate cuts by the US Federal Reserve that has created uncertainty in global financial markets.
In the US, the number of operating oil rigs fell by one to 478 last week, the lowest since the week to July 19, Baker Hughes data showed.
World Defense Show 2026 to showcase record number of Chinese companies in Riyadh
RIYADH: The third edition of the World Defense Show, scheduled to take place in Riyadh from Feb. 8-12, 2026, has secured a record number of participants, with more than 100 companies from China confirmed to take part.
Notably, the China Pavilion has already filled 88 percent of its exhibition space, making it the second-largest national presence at the event, surpassing even the host nation, Saudi Arabia.
This strong participation underscores the growing global appeal of the show. Since its debut, WDS has seen impressive growth, with exhibition space expanding by 54 percent between 2022 and 2026, more than doubling its size. As of now, over 50 percent of the total floor space for WDS 2026 has already been sold.
The announcement follows the successful conclusion of the second edition of WDS, which hosted 773 exhibitors from 76 countries, facilitated SR 26 billion ($6.9 billion) in deals, and attracted 106,000 trade visits.
“The significant interest and commitment from Chinese exhibitors is a testament to the prominence WDS holds in the global defense space,” said Andrew Pearcey, CEO of World Defense Show.
“Our goal is to bring together global and local stakeholders to advance networking opportunities, strengthen global knowledge-sharing, and shape the future of defense technology,” he said.
The high level of interest from Chinese firms was also evident at the 15th Airshow China in Zhuhai, held from Nov. 12-17. Senior WDS representatives attended the event to engage with potential exhibitors, offering them the opportunity to secure their space at WDS 2026, which is rapidly filling up.
