Elon Musk's Tesla Could Face Investigations in the European Union

Earlier this month, the European Union (EU) began an investigation into the subsidies that China gives to EV (electric vehicle) makers. According to the latest reports, non-Chinese EV automakers might also fall under investigation by the EU. This includes brands like BMW and Elon Musk’s Tesla.

The EU launched its investigation after gathering evidence of distortions in the European market. It was found that vehicles produced in the EU were facing steep competition from cheaper vehicles produced in China. According to European data, sales of Chinese-produced cars in Europe rose to 8% this year. This figure could reach 15% by 2025. According to Valdis Dombrovskis, the Executive Vice President of the European Commission, “There’s a lot of speculation, but at this stage, the scope of this investigation is not decided yet.”

Also Read: Morgan Stanley Analyst Predicts 60% Rally for Elon Musk’s Tesla

Dombrovskis added that they are currently doing pre-initiation consultations with Chinese authorities. He added that the investigation announcements so far “do not cover only Chinese-brand electric vehicles.” Last Friday, Dombrovskis traveled to China and held discussions with Chinese authorities in Shanghai and Beijing. He stated,

“This topic was extensively raised by the Chinese side during my visit, so I was reassuring Chinese authorities that this is a well-established process.”

According to reports, the investigation could last up to 13 months. Chinese authorities have labeled the move “protectionist.”

Deutsche downgrades Elon Musk’s Tesla

Tesla 3:1 Stock Split Officially Goes Into Effect
Source: Electrek

With a possible EU investigation, Tesla stocks was downgraded by Deutsche Bank on Wednesday to $285 a share. This represented a 5% drop from its earlier target of $300. The bank warned that the EV maker‘s earnings could face strong headwinds in 2024.

Also Read: Elon Musk Confirms X Will Not Charge Fee for Regular Users

Deutsche predicted that Tesla would report 440,000 deliveries in Q3, lower than its earlier prediction of 455,000. This, in turn, might lead to lower quarterly earnings. The bank estimates Q3 earnings to fall to $23.3 billion from its previous forecast of $24.1 billion. At press time, Tesla was trading at $240.50.

  • Elon Musk
  • tesla

Comments

Post a Comment

Popular posts from this blog

SHIB, PEPE: Bitcoin Devs Want to Crush $500 Million Meme Coin Market

Image
The meme coin hype was re-ignited in the second quarter of 2023. The launch of Pepe Coin in mid-April single-handedly managed to kickstart the market’s meme-coin season. The original PEPE Coin is an ERC-20 token that’s based on Ethereum. On the heels of the rising hype, other blockchains have gradually stepped up. On Bitcoin, BRC-20 tokens have gained significant popularity. According to brc-20 .io, there are around 24,677 BRC-20 tokens worth $475,058,296. It is worth recalling that their cumulative worth surpassed the $1 billion threshold last month. The Bitcoin blockchain is currently sustaining several spin-off versions of original meme tokens. For instance, the BRC-20 token ‘pepe’ was worth $0.20 at press time on Monday, post noting a 1.1% incline over the past day. Its aggregate capitalization was over $8.3 million. The original Pepe Coin, however, noted a 7% decline in 24-hours and was priced at $0.00000119. Its market cap stood much higher, at $466.1 million. Likew
Read more

Polygon Releases 3 Major Proposals for POL Token

Image
In a June announcement, Sandeep Nailwal, the creator of Polygon , revealed a substantial technical enhancement to the ecosystem through the introduction of the POL token. This token is a crucial component of the Polygon 2.0 proposal, which aims to evolve the Polygon ecosystem from a single chain into a network of interconnected Layer 2 solutions [L2s]. In a more recent development, the team has put forth three proposals for implementing the Polygon 2.0 upgrade. Polygon Labs has introduced three Polygon Improvement Proposals [PIPs]. Through these, the transition strategy becomes more defined. It also delivers specifications for the enhanced Polygon 2.0 architecture and elucidates alterations to its native token. So what are Polygon’s latest PIPs? PIP-17 : As mentioned above, there are a total of three PIPs. The first proposal, or PIP-17, highlights “Phase 0” of Polygon 2.0. This guarantees that neither end-users nor developers utilizing the existing Polygon PoS and zkEVM cha
Read more

WikiLeaks founder Julian Assange to attend 'metaverse' political rally

Image
Julian Assange , who is wanted by the United States on 18 espionage charges, is to appear in the ‘ Metaverse ’ alongside former UK Labour leader Jeremy Corbyn as part of a virtual protest against the WikiLeaks founder’s extradition to the US.  Assange will appear at the web3 political rally on August 26 in an effort to raise awareness of and help prevent his extradition. Also giving speeches at the event will be his wife Stella Assange, Corbyn, and WikiLeaks editor-in-chief Kristinn Hrafnsson.  According to a press release shared by event host Wistaverse, “speakers at the rally will appear either as characters inside the event or with filmed contributions shown on screens inside the arena.”  The arena will be “designed to look like the Royal Courts of Justice in London where Assange is set to face his final appeal in the UK court system.” Organizers of the protest hope to build up support for a real-life protest at the Royal Courts of Justice once a court date is announced. T
Read more