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From Elon Musk’s controversial Washington crusade to the Cybertruck’s flop, it’s been a bad year for Tesla. Now, the EV company is reporting a 13% decline in vehicle deliveries for its second quarter, marking the second quarterly decline in a row. On Wednesday, Tesla reported 384,122 total vehicle deliveries, down from 443,956 in the same period last year. The drop of almost 60,000 vehicles is Teslas biggest quarterly decline in the companys history, and is on par with low expectations from various analysts. The drop follows last quarter’s decline, with Tesla reporting 336,681 deliveries for this year’s first quarter, down from 386,810 the previous year. Still, the Austin-based company’s stock is up by 4.4% at the time of publishing, although it is on course for an annual drop amid ongoing challenges related to Musk’s controversies, changing policies, and an increase in EV competition. BYD takes the lead Tesla’s sales in European and Asian markets have plunged throughout the year, in part due to other EV manufacturers taking the lead as a demand for EV vehicles remains steady. Notably, Chinese EV leader BYD outpaced Tesla’s $97.7 billion in annual revenue last year, rising to $107 billion. In April, the Chinese company also outsold Tesla in Europe for the first time, selling 7,231 battery-powered electric vehicles over Tesla’s 7,165. Despite BYD’s growing popularity, its stock price has been slowly declining, with its shares down 1.4% at the time of publishing. DOGE controversy Tesla has been facing backlash following Musk’s 130-day stint as head of the Department of Government Efficiency (DOGE), which implemented massive layoffs and funding cuts for federal agencies. Public outrage targeted the EV maker, with protests organized outside of Tesla dealerships; videos of users trading in their Teslas going viral on social media; and overall mockery and pranks surrounding Tesla vehicles. Additionally, discontent from the CEO’s political alignment led to sales declines in key U.S. markets like California. Despite a slight rise in Tesla’s stock following Musk’s departure from DOGE, public trust in the company and sales have not recovered. Changing policies and a presidential feud After Musk stepped down as head of DOGE, the former adviser and President Trump entered into a feud over the proposed “Big Beautiful Bill.” The budget bill, which Musk called a disgusting abomination,” plans to cut EV tax credits, which would likely hurt Tesla’s sales. Since then, tensions between Musk and the president have risen, with both sharing insults, allegations and exchanges via social media, while Tesla’s stock plummeted. Early last month, the company’s share price fell as much as 15% (it has since slowly recovered). Tesla, whose current market capitalization is upward of $1 trillion, is expected to release its second quarter financial results on July 23 after market close.
Category:
E-Commerce
A well-known grocery store brand, which has long sold canned fruits and vegetables, has filed for bankruptcy. Del Monte Foods, a 138-year old company, filed for Chapter 11 bankruptcy on Thursday. The company is headquartered in Walnut Creek, California, and operates six production facilities across the U.S., and two in Mexico. The company is now looking for a buyer with plans to sell off all of its assets. “This is a strategic step forward for Del Monte Foods,” said Greg Longstreet, president and CEO of Del Monte Foods, in a press release. “After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods. With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success.” From canned fruit king to bankruptcy In addition to its flagship Del Monte brand, which includes canned fruits, vegetables, fruit cups, juices, and more, the company is also known for selling College Inn and Contadina products. The company began in 1886 before building a cannery in 1907 in San Francisco in 1907. Just two years later, in 1909, it had become the largest canned fruit and vegetable company in the world, according to the company’s website. Del Monte says it has secured $912.5 million in new funding, which includes $165 million from some of its current lenders. The funds will allow the company to continue operations leading up to its sale. The company listed liabilities estimated between $1 billion and $10 billion, per court documents. Mr. Longstreet continued, “While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years, and we remain committed to our mission of expanding access to nutritious, great-tasting food for all. I am deeply grateful to our employees, growers, customers and vendors, as well as our lenders for their support in helping us achieve our long-term goals.” Overseas operations remain unaffected Del Monte also operates outside of the U.S. and Mexico, with other main locations in the Philippines, Singapore, and India. The company says it doesn’t expect interruptions to non-U.S. units, including its operations in Mexico. When it comes to recognizable grocery store products, Del Monte has been one of the biggest staples on the shelves for over a decade. Still, the company is not the only major brand to face financial challenges as of late. A number of fast casual chains, pharmacies, and other stores, such as Big Lots and Joann Fabrics, have all filed for Chapter 11 bankruptcy in recent months, signaling that in a tough market even iconic brands are struggling to hold on. Why is Del Monte filing for bankruptcy now? While Del Monte says increased production costs are to blame for the company’s struggles, some experts say that canned foods, which rely heavily on preservatives, are no longer America’s go-to at the grocery store. Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,” Sarah Foss, global head of legal and restructuring at Debtwire, said, per CNN. While Americans did lean on canned food immediately after Trump announced new tariffs, with more information around the risks of high levels of bisphenol A (BPAs) in canned products, there are plenty of health-focused reasons to avoid them altogether.
Category:
E-Commerce
Shares of U.K.’s Bytes Technology plunged over 27% on Wednesday after the IT firm said its operating profit for the first half of fiscal 2026 would be marginally lower due to delayed customer decisions and longer-than-expected readjustments from internal restructuring. Trading in the first few months of the year was hurt by macroeconomic pressures, leading to deferred customer decisions, particularly among corporates, the firm said in an update to the exchanges ahead of its annual general meeting. The stock fell as much as 27.43% to 369 pence, the lowest since April 2023, before paring some losses to trade down 23% at 391.4 pence by 08:00 GMT. Bytes, which provides software, cloud, and AI services, is moving from a generalist sales model to specialised, customer segment-focused teams a shift that has taken longer than expected, it said. Also weighing on its performance in the first half are changes to Microsoft’s enterprise agreement program, which the company had disclosed earlier, where certain transactional incentives have been reduced. The impact of the changes are weighted more to the first half due to high levels of renewals in March and April, Bytes said. The firm posted an operating profit of 35.6 million pounds ($48.8 million) for the first half of fiscal 2025. On Wednesday, it said it expects gross profit for the first half of fiscal 2026 to be flat. In May, it had said it was “well positioned” to deliver another year of double-digit gross profit growth and high single-digit operating profit growth in financial year 2025-26. “Investors will be slightly taken aback by the more cautious AGM statement, which now flags flat year over year trends versus May guidance for double-digit gross profit growth,” Jefferies analysts said in a note. ($1 = 0.7298 pounds) Judes Joseph, Reuters
Category:
E-Commerce
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