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- Tesla's Surprise Announcement
Good Morning!
Happy Monday! Let’s have a great week:
👉 Tesla makes surprise announcement
👉 Philips settles lawsuit
👉Paramount’s leadership change
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TESLA: SELF-DRIVING APPROVAL
Tesla's stock rose sharply in U.S. premarket trading on Monday after the company announced it was ready to launch its full self-driving technology in China. Shares jumped over ~10% following news of CEO Elon Musk's visit to China and the local approval of Tesla's data security measures. This approval paves the way for Tesla's Full Self Driving (FSD) software to enter China, the world's largest electric vehicle market.
Source: BBC
Tesla had faced restrictions in China over data security concerns, and the U.S. government has also been investigating whether cars imported from China pose security risks. Despite these challenges, Tesla secured a partnership with Baidu, allowing it to use Baidu’s mapping technology essential for its FSD system in China. This move marks a significant step for Tesla as it competes with local electric vehicle makers like BYD, Nio, and Xpeng.
🎯 GRIT TAKE: As we mentioned last…upgrade to VIP now to read the full GRIT Take!
TESLA: SELF-DRIVING APPROVAL
Tesla's stock rose sharply in U.S. premarket trading on Monday after the company announced it was ready to launch its full self-driving technology in China. Shares jumped over ~10% following news of CEO Elon Musk's visit to China and the local approval of Tesla's data security measures. This approval paves the way for Tesla's Full Self Driving (FSD) software to enter China, the world's largest electric vehicle market.
Source: BBC
Tesla had faced restrictions in China over data security concerns, and the U.S. government has also been investigating whether cars imported from China pose security risks. Despite these challenges, Tesla secured a partnership with Baidu, allowing it to use Baidu’s mapping technology essential for its FSD system in China. This move marks a significant step for Tesla as it competes with local electric vehicle makers like BYD, Nio, and Xpeng.
🎯 GRIT TAKE: As we mentioned last week, you should never bet against Elon Musk. This is a huge win for Tesla in the China market, and in theory it will boost sales in China. One of the biggest risks that faces Tesla stock is their relationship with the Chinese government. If the relationship goes south, and they get kicked out of China then it would have a very big negative impact on their stock price. However, as of now the relationship is thriving!
PHILIPS: Settles Lawsuit
Philips shares reached a two-year high on Monday after the company settled U.S. personal injury claims linked to a recall of some sleep apnea devices for $1.1 billion causing Philips' stock to surge by almost ~50% by mid-morning in London. In 2021, millions of these devices were recalled due to potential cancer risks.
Source: Bloomberg
The settlement resolves litigation uncertainties without admitting any fault or liability. This settlement was much lower than the expected 2 to 4 billion euros, with worst-case fears around 10 billion euros. Despite some ongoing cases in Europe, this settlement allows Philips to move past most of the legal issues. The company posted a loss of 998 million euros ($1.07 billion) for the period but reported better-than-expected adjusted earnings of 388 million euros. However, sales slightly declined from the previous year, and the company experienced a seventh consecutive quarter of decreased group order intake.
PARAMOUNT: Major Shakeup
Paramount Global's board plans to dismiss CEO Bob Bakish as early as Monday. This coincides with the company's quarterly earnings report, which Bakish will not attend.
Source: TBI Vision
The board intends to rely on division heads while discussing a potential merger with Skydance Media. A special committee has been formed to explore this deal, which is in exclusive talks until May 3rd. Bakish has reportedly lost the confidence of controlling shareholder Shari Redstone, prompting her push for his removal ahead of key negotiations with Charter Communications.
Headlines You Need To Know: 🎙
Japan intervenes after Yen slides
Thailand’s central bank will not cave
Apple’s iPad hit by EU’s crackdown
AI startups are being showered with cash
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